Grant of Rights: Carlton Hotel Site and La Collette Promenade, St. Helier.

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A decision made (19/07/2007) regarding: Grant of Rights: Carlton Hotel Site and La Collette Promenade, Le Havre des Pas, St. Helier. Carlton House Limited and the Public of the Island.

Subject:	Grant of Rights : Carlton Hotel Site and La Collette Promenade, le Havre des Pas, St Helier Carlton House Limited and the Public of the Island
Decision Reference:	MD-PH-2007-0061		Exempt clause(s):	None
Type of Report: (oral or written)	Written		Person Giving Report (if oral):	N/A
Telephone or e-mail Meeting?	N/A		Report File ref:	1771/1-3
Written Report – Title	Grant of Rights : Carlton Hotel Site and La Collette Promenade, le Havre des Pas, St Helier - Carlton House Limited and the Public of the Island		Written report - author	Neil Sproston
Decision(s): 1. The Minister approved, as recommended by Property Holdings, the granting of rights to Carlton House Limited and its successors in title, in respect of certain encroachments towards La Collette Promenade, in the ownership of the Public, subject to the terms set out in the report. 2. Under Standing Order 168 (5) the Minister hereby authorised the Attorney General and the Greffier to pass any contract which is required to be passed on behalf of the Public.
Reason(s) for decision: The approval of the Minister is required to agree certain encroachments towards the Public’s land, subject to the terms and conditions recommended by Property Holdings, as set out in the attached report.
Action required: The Director of Property Holdings is to instruct the Attorney General and the Greffier to pass the necessary contract, and to copy this decision to the Minister, Treasurer and Assistant Treasurer.
Signature: (Assistant Minister)[1] Deputy J A N Le Fondré		Date of Decision: 19 July 2007

Grant of Rights: Carlton Hotel Site and La Collette Promenade, St. Helier.

TREASURY AND RESOURCES DEPARTMENT

PROPERTY HOLDINGS

Property Transaction for Ministerial Decision - Minister for Treasury and Resources

Grant of Rights : Carlton Hotel Site, Havre des Pas, St Helier

Carlton House Limited and the Public of the Island

NS/1771/1-3

Purpose

To seek approval from the Minister for Treasury and Resources in respect of a contract to permit certain encroachments at the site of the Carlton Hotel, Havre des Pas, St Helier towards La Collette Promenade, in the ownership of the Public.

Background

Carlton House Limited owns an area of land comprising the Carlton Hotel, the adjacent car park and the Cockles Restaurant, measuring approximately 1349 sq.m/0.75 vergée, as shown on the attached plan, Appendix1. In 2005 the company secured planning permission (P/2004/2190) to redevelop the entire site and construct a five storey structure consisting of 47 self-catering units, manager’s accommodation, fitness centre and basement car park.

In seeking to progress the possible redevelopment of the property, it became apparent that a number of doors, windows and shutters situated on the southern elevation of the existing hotel towards the adjacent La Collette Promenade (“the promenade”), constitute legal encroachments that would need to be regularised, especially given the view that the promenade can not be treated in the same way as a Public road.

In view of the site’s redevelopment potential, the owner has agreed to a sale of the site to Antler Property (CI) Limited. It is unclear at this stage whether the proposed purchaser will proceed with the approved scheme or seek planning consent for residential development. Both parties require comfort in connection with the Public’s position in respect of future encroachments and their impact upon the Promenade.

Current Situation

Terms and conditions have been agreed between Property Holdings on behalf of the Public and Carlton House Limited to provide contractual rights to allow existing encroachments together with any future encroachments arising from the redevelopment of the existing hotel, to remain towards the promenade.

In particular the deed would seek to permit the positioning of any doors, windows or other openings within a distance of 2 feet 9 inches from the Public promenade and also to permit any overhangs onto the Promenade up to a maximum of 12 inches, though not below a height of 8 feet.

In order to allow the necessary flexibility in the contract, the terms provide for 2 payment structures: in the event of the approved scheme being implemented, as referred to above, a payment will be due to the Public totalling £130,000. If the site were to be redeveloped for any alternative scheme, then a consideration of £240,000 shall be due to the Public to reflect the benefit derived in being able to construct directly adjacent to the said boundary.

It is envisaged the above sums will be payable to the Public in stage payments: (1) £10,000 upon passing of the contract (2) 70% of the balance upon receipt of the Building Permit from States’ Planning and Building Services and (3) 30% payable 1 month after the issue of the Practical Completion certificate by the developer’s architect.

Any subsequent developer would also be permitted the opportunity to increase the building volume by a factor of 25% based upon the surface area of the southern elevation of the approved scheme without having to renegotiate with the Public in respect of the terms set out above.

If upon redevelopment of the site, the structure were to be set back from the boundary the relevant distance to eliminate any encroachments onto Public land, then the requirement for any subsequent payment after the passing of the contract shall not apply.

The Public will receive payment of its professional fees upon the passing of contract in the sum of £5,000. It is also proposed that the Crown will be party to the transaction to confirm and ratify the contents of the deed.

Recommendation

It is recommended that the Minister for Treasury and Resources approves the terms set out above and authorises a suitable contract to be passed between the Public of the Island and Carlton House Limited before the Royal Court.

Written By: Neil Sproston

Signature …………………………

Authorised By: Eric Le Ruez (Director Property Holdings)

Signature ………………………… Date 19 July 2007