Treasury and Resources
Ministerial Decision Report
Andium homes Ltd – change to strategic Business Plan 2014-2016.
- Purpose of Report
To enable the Minister to consider a request from Andium Homes Ltd to amend their Strategic Business Plan 2014-2019, as requested in their letter dated 24th June 2015.
- Background
Andium’s Strategic Business Plan 2014-2019 (SBP) was approved by the Minister in MD-TR-2014-0120.
Section 8.4 of the Memorandum of Understanding between Andium and the Minister (as Guarantor) states that Andium may seek the agreement of the Guarantor to modifications of the SBP at any time by written notice, and such consent will not be unreasonably withheld.
- Request to change the Strategic Business Plan 2014-2019
Andium Homes have requested in a letter dated 24th June 2015 a modification to allow the funding for the Summerland and Ambulance Station site to be used on the same terms for the development of the Ann Court site.
Jersey Property Holdings have advised Andium that the Summerland and Ambulance Station site will not now be available for development until 2022.
In MD-PH-2015-0053 Jersey Property Holdings approved the disposal of the Public’s land holdings on the former Ann Court site to Andium Homes to assemble a site for a residential development with public car parking element.
The Minister for Housing has also formally endorsed the development of the Ann Court site by Ministerial Decision in MD-C-2015-0062, stating that the development of affordable housing at Ann Court is a key priority of the Minister for Housing.
The Public had previously entered into discussions with Jersey Homes Trust (JHT) with a view to the site being developed by JHT as a social housing site above a basement of public parking, to be funded by the Car Parks Trading Account. It was not possible to reach an agreement with JHT and the Trust decided not to continue with the project. The Public then subsequently entered into discussions with Andium Homes as an alternative developer of the site.
These changed circumstances have resulted in the request to amend the Strategic Business Plan.
Approval will mean that the Ann Court scheme will be eligible to be funded from the £207m loan allocation within the Housing Development Fund, which is allocated to Andium Homes. This loan will be subject to a separate and specific loan request from Andium, supported by a viable “Business Case” and will require the approval of the Minister in a separate Ministerial Decision.
- Reason(s) for Decision
As requested by Andium Homes in a letter from their Finance Director dated 24th June 2015.
In accordance with Section 8.6 of the Memorandum of Understanding between Andium Homes Ltd and the Minister (as Guarantor), which requires the Minister to agree modifications to the Strategic Business Plan.
- Recommendation
The Minister is recommended to approve the amendment requested by Andium Homes to the Strategic Business Plan 2014-2019.
- Resource Implications
There are no additional resource requirements as a result of this decision.
Report author : Head of Shareholder Relations | Document date: 7th July 2015. |
Quality Assurance / Review : Head of Decision Support | File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\MD-TR-2015-0087 Andium Homes Ltd –Change to Strategic Business Plan 2014-2019 |
MD sponsor : |