DEPARTMENT FOR INFRASTRUCTURE
JERSEY PROPERTY HOLDINGS
Property Transaction for Ministerial Decision - Minister for Infrastructure
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Springfield Stadium - Football Foundation Grant
SF 1323-01-001
Purpose
To recommend to the Minister the securing of a 21 year registered charge over the football pitch forming part of Springfield Stadium in respect of a conditional grant by the Football Foundation (the “Foundation”).
Background
In August 2014, the Foundation, a sports charity based in the United Kingdom, approved a capital grant application of £400,000 (the “Grant”) as 39% of an anticipated total project cost of £1,016,298 to the States of Jersey towards a new 106m x 70m 3G FTP (football pitch) at Springfield Stadium.
Various terms and conditions were attached to the Grant, including, under Section 21 of the “General Terms and Conditions of Grant”, a legal charge to be secured over the relevant property in favour of the Foundation.
This arrangement is to cover the possibility of the grantee selling the site, or changing its use, within 21 years of the Grant being made, and the Foundation thereby losing out on its investment. If, during 21 years of the Grant being made, the States sells Springfield Stadium or ceases to use it as a football pitch, it will be obliged to repay the £400,000 sum to the Foundation.
The new 3G pitch has been installed, but 5% of the Grant (i.e. £20,000) has still to be advanced. The remainder will be advanced once the charge has been registered.
The charge will be limited to the football pitch only (as shown on the attached extract from Jersey Mapping).
The loan documentation, consisting of a Bond, Billet (Act of Court) and Letter of Authority will be signed by an advocate or solicitor within the Law Officers’ Department acting on behalf of the Public.
The Foundation requires a 21 year Bond, but in Jersey such an arrangement is limited to 10 years, with subsequent renewal being required for a longer period.
The Foundation also requires that the playing surface be renewed as necessary by the States during the 21 year period of the Bond. The Economic Development, Tourism, Sport and Culture Department has confirmed that it will remain directly repsonsible for all costs associated with the pitch during the 21 year period.
Jersey Property Holdings has sought advice from the Law Officers’ Department and has been informed that there are no issues under the Public Finance Law with regard to securing the charge on the Public’s property at Springfield.
The Public will be responsible for the Foundation’s legal fees in this matter.
Recommendation
It is recommended that the Minister authorises the securing of a 21 year charge on Springfield Stadium as set out in this Report
Written By: (Estates Surveyor)
Signature …………………………
Authorised By: (Director/Assistant Director JPH)
Signature ………………………… 11 October 2016
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