TREASURY AND RESOURCES DEPARTMENT
PROPERTY HOLDINGS
Property Transaction for Ministerial Decision - Minister for Treasury and Resources
Site of Former Mont Mado Shed, La Rue de la Mare des Pres, St John –
Proposed Sale
PBA 1861
Introduction
The site was included in the disposal schedule of the Property Plan element of the States Strategic Plan 2006-2011 (P40/2006), which received States’ approval.
An application was submitted to the Planning Department for three x four bedroom houses, with consent being given in April 2008.
Following that, the site was tendered for sale through an independent agent, with 18 tenders being received on 02 July 2008. On 08 July 2008 the Minister accepted the highest tender – decision ref MD-PH-2008-0057.
Unfortunately there was a delay in the production of the draft contract of sale, and the tenderer withdrew. The next five highest tenderers were then approached, but all declined to stand by their tenders due the downturn in the property market.
Current Situation
The site was re-tendered with the benefit of a draft contract of sale in place, and nine tenders were received on 18 March 2008.
The highest tender received is considered to be a fair and proper price for the site, and the Minister is advised to accept the tender and to cause the sale of the site.
The department advises that the tenders received should not be made Public during the period leading to the passing of contract, firstly on data protection grounds, and secondly, that the disclosure of the tender figures could affect the sale being concluded. The tender details are therefore contained under Appendix A of this report, which Appendix is exempt from Public disclosure.
As part of the proposed contract of sale of the site, it is necessary for the owners of two neighbouring properties “Corner Cottage” and “Eileenid Villas” to be party to the contract in order to ratify boundary and drainage arrangements. Terms have therefore been agreed with the respective neigbouring owners.
Recommendations
- It is recommended that the Minister rescinds his decision of 08 July 2008 (ref MD-PH-2008-0057) to sell the Mont Mado Shed Site to the highest tenderer of the tenders received on 02 July 2008.
- It is recommended that the Minister approves the sale of the Mont Mado Shed Site to the highest tenderer – tenders having been received on 18 March 2009, with each party to be responsible for its own legal fees in passing contract before Royal Court.
- It is recommended that the Minister agrees to the owners of “Corner Cottage” and “Eileenid Villas”, which adjoin the Mont Mado Shed Site, being party to the contract of sale of the site to the highest tenderer, in order to ratify boundary and drainage arrangements.
Written By: Principal Property Manager
Signature …………………………
Authorised By: Director of Property Holdings
Signature ………………………… 23 March 2009