Approval of drawings and cost estimate for redevelopment of Le Marais

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A decision made (28/04/2006) regarding Approval of drawings and cost estimate for redevelopment of Le Marais - Phase 2.

Subject:	APPROVAL OF DRAWINGS AND COST ESTIMATE FOR REDEVELOPMENT OF LE MARAIS PHASE 2
Decision Reference:	MD-H-2006-0030		Exempt clause(s):	n/a
Type of Report: (oral or written)	Written		Person Giving Report (if oral):	n/a
Telephone or e-mail Meeting?	n/a		Report File ref:	Report - Approval of drawings and estimate for Hsg Minister 20-4-06cm
Written report – Title	APPROVAL OF DRAWINGS AND COST ESTIMATE FOR REDEVELOPMENT OF LE MARAIS PHASE 2
Written report – Author (name and job title)	Carl Mavity Director of Estate Services
 seek the formal approval of the Treasury & Resources Minister to provide the necessary funding from the Housing Development Fund.
Reason(s) for decision: To progress the redevelopment.
Action required: Copy of Decision to Treasury & Resources Minister
Signature: (Minister)		Date of Decision: 28 April 2006

Approval of drawings and cost estimate for redevelopment of Le Marais - Phase 2.

REPORT TO THE HOUSING MINISTER

DATE OF REPORT: - 20th APRIL 2006

APPROVAL OF DRAWINGS AND COST ESTIMATE FOR REDEVELOPMENT OF LE MARAIS PHASE 2

The Minister will recall that, the Housing Committee at its meeting on 27 September 2002 supported the proposed demolition of the existing 84 Low Rise units at Le Marais and their replacement with predominantly three bedroom houses. This redevelopment would take place in three phases in order to avoid mass relocation of tenants and thereby ease the pressure on the Committee’s existing housing stock. The Committee noted that it would commence with the then Phase III (subsequently renamed Phase I) due to the proposed works on the neighbouring development of Hodge Phase II.

On 9th March 2004, the States adopted a proposition of the Housing Committee for the redevelopment of Le Squez and part of Le Marais Estate. In so doing, the States:-

(a) authorised the sale to Housing Committee tenants of certain properties at Le Squez and Le Marais, at prices to be agreed with the Finance and Economics Committee, and with the resultant income to be utilised in the redevelopment programme for both estates;

(b) authorised the Greffier of the States to sign the said drawings on behalf of the States; and authorised the Attorney General and the Greffier of the States to pass on behalf of the Public any contracts, and

Phase I is due for completion at the end of May 2006.

Le Marais Low Rise Phase II & III (now referred to as Phase 2) involves the demolition of blocks A, B, C & D (containing 12no. bedsits, 16no. one bedroom flats and 20no. two bedroom flats) and the construction of 24no. three bedroom houses and 4 no. four bedroom houses for sale to First Time Buyers and 16no. one bedroom flats, 1no. one bedroom disabled adapted flat and 1no. two bedroom disabled adapted flat, all to be retained for social rented use, drawings 4460/16a to 4460/28 inclusive refer.

All residents within the Phase 2 area have been visited and their housing needs established. There remain 45 occupied units within Blocks A – D inclusive and it is expected that these tenants will be relocated to alternative accommodation by the end of 2006, a number will be moving into the flats to be retained as part of Phase I.

The costs for Phase II have been estimated at £6,623,000 (at November 2003 prices).

This estimate indicates that the average construction cost for a house will be £148,750.00 and £129,368.00 for a flat.

If all the houses were sold as follows:-

24no. 3 bedroom houses @ £220,000 £5,280,000

4no. 4 bedroom houses @ £240,000 £960,000

They would generate a total income of £6,240,000 which would create a shortfall of approximately £383,000. However, it would be necessary to review the sale prices once a completion date is established to ensure that the prices reflect the then market values less 10%.

Recommendation

The Minister is asked to:

approve the proposals, drawings and cost estimate for the redevelopment of Le Marais Low Rise Phase 2.

seek the formal approval of the Treasury & Resources Minister to provide the necessary funding from the Housing Development Fund.

C Mavity

Director of Estate Services

20-4-06