Ann Court Site, St. Helier: Disposal to Andium Homes

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A decision made 28 May 2015:

MINISTERIAL DECISION REFERENCE: MD-C-2015-0062
Disposal of the former Ann Court site to Andium Homes
DECISION SUMMARY AUTHOR:	Policy Officer Strategic Housing Unit	IS THE DECISION SUMMARY PUBLIC OR EXEMPT? (if exempt state clause from Code of Practice booklet and from 1st January 2015 stating the relevant article/paragraph of the Freedom of Information Law/Regulations)		Public
REPORT TITLE: Disposal of the Public’s land holdings on the former Ann Court site to Andium Homes to assemble a site for a residential development
REPORT AUTHOR OR NAME OF PERSON GIVING REPORT: (if different from Decision Summary Author)	Policy Officer Strategic Housing Unit	IS THE REPORT PUBLIC OR EXEMPT (if exempt state clause from Code of Practice booklet and from 1st January 2015 stating the relevant article/paragraph of the Freedom of Information Law/Regulations)		Public
DECISION AND REASON FOR THE DECISION: The Minister for Housing endorsed the decision of the Minister for Treasury and Resources (MD-PH-2015-0053) of his intention to notify the States of her intention to dispose of the former Ann Court site to Andium Homes for residential development with public parking subject to; The production of a Development Agreement; Confirmation by Ministerial Decision of the respective support of the Housing and TTS Minister; and Confirmation that funding for the development is accessible to Andium. The reason for the decision is that the development of affordable housing at Ann Court is a key priority of the Minister for Housing, as reflected in the recent States decision to approve the revised 2011 Island Plan, which identified Ann Court as a site on which a minimum of 140 affordable units of accommodation could be developed.
RESOURCE IMPLICATIONS: There are no resources implications arising from the Ministerial Decision.
ACTION REQUIRED: To request the Greffier of the States to arrange for the attached Report to be presented to the States Assembly for Members’ information.
SIGNATURE:			POSITION: Deputy Anne Pryke Minister for Housing
DATE SIGNED:			EFFECTIVE DATE OF THE DECISION:

Ann Court Site, St. Helier: Disposal to Andium Homes

Minister for Housing

Strategic Housing Unit

Disposal of the former Ann Court site to Andium Homes

Purpose

1.1. This report seeks the endorsement of the Minister for Housing of the Minister for Treasury and Resource’s decision to transfer the Public’s land holdings on the former Ann Court site to Andium Homes (MD-PH-2015-0053) to assemble a site for a residential development with public car parking element on the basis of an agreed methodology for determining a valuation of the residual site value and a Development Agreement.

Background

2.1. The site has been identified in the Revised 2011 Island Plan to provide (an estimated) 140 affordable homes, to be delivered by 2020.The site comprises the area enclosed by Ann Place, Ann Street, Charles Street and Providence Street:

Land in the ownership of Andium Homes: The properties 65 to 70 Ann Court, 33, 35, 37 and 39 Ann Street, 1 and 2 Clifton Place which are rented out by Andium Homes, and Toddy’s Bar.

Land in the Ownership of the Public: the former Ann Court site used as a temporary public car park by TTS until January 2016, for which a fee is paid to Andium Homes to recognise the loss of residential dwelling income to the former Housing Department (green on attached plan SD2) as well as an area to the South of Toddy’s Bar, administered by TTS as a verge area with ancillary uses

2.2. 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.

Current Position

3.1. The development of affordable housing at Ann Court is a key priority of The Minister for Housing, as reflected in the recent States decision to approve the revised 2011 Island Plan, which identified Ann Court as delivering a minimum of 140 affordable units of accommodation.

3.2. The Public has subsequently entered into discussions with Andium Homes as an alternative developer of the site.

3.3. The original concept of providing the public car parking fully underground does not present good value, due to difficult ground conditions discovered by TTS engineers while undertaking the current town drainage improvement plan on the site. It is accepted that this will now result instead in a ground level car park design, which will impact on the overall number of parking spaces.

3.4. Despite this restriction, the Public is keen that the site design should seek to maximise the number of public parking spaces so far as is possible, subject to the achievement of the level of residential parking identified as necessary by Andium Homes which is a minimum of 0.7 spaces per unit.

3.5. Various discussions have taken place involving the Strategic Housing Unit (SHU), Jersey Property Holdings (JPH), Transport and Technical Services (TTS) and Treasury, all of whom have a role in the delivery of the site.

3.6. The officer position of all the involved departments is that an agreement with Andium Homes is the most likely way to achieve the desired outcome for the site.

3.7. This position has been agreed by the Minister for Housing and Minister for Transport and Technical Services and will be confirmed by respective Ministerial Decisions prior to a confirmation Treasury and Resources Ministerial Decision being tabled for consideration.

3.8. The Treasury has identified lending to Andium Homes through the recent Bond issue as an appropriate funding route and will prepare loan agreement documentation and a corresponding Ministerial Decision in due course.

3.9. The Board of Andium Homes also supports the proposal for the company to undertake the development.

3.10. To move the project forward, Andium Homes will require certainty of ownership to be able to invest a considerable sum in working up plans for the site.

3.11. It is, therefore, proposed that the Minister for Treasury and Resources agrees in principle to the disposal of the site to Andium Homes those parts of the site in Public ownership on the basis of the Outline Heads of Terms subject to a detailed Development Agreement to be agreed prior to the confirmatory Ministerial Decision being produced in accordance with Standing Order 168.

Recommendation

4.1. That the Minister for Housing endorses the decision of the Minister for Treasury and Resources to transfer the Public’s land holdings on the former Ann Court site to Andium Homes (MD-PH-2015-0053) for development of social housing and public parking, in accordance with the Outline Heads of Terms and subject to the production of a Development Agreement;