Former La Pouquelaye School

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A decision made (15/10/2008) regarding: Former La Pouquelaye School - Proposed Lease.

Decision Reference: MD-PH-2008-0083
Decision Summary Title :	Former La Pouquelaye School – Proposed Lease	Date of Decision Summary:	14 October 2008
Decision Summary Author:	Philip Ahier	Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written	Person Giving Oral Report:	N/A
Written Report Title :	Former La Pouquelaye School, Le Hurel, St Helier – Proposed 21 Year Lease to the Centre Point Trust PBA 0095	Date of Written Report:	14 October 2008
Written Report Author:	Philip Ahier	Written Report : Public or Exempt?	Public
Subject: Former La Pouquelaye School, Le Hurel, St Helier – Proposed 21 Year Lease to the Centre Point Trust PBA 0095
Decision(s): 1. The Minister approved, as recommended by Property Holdings, a 21 year lease of the former La Pouquelaye primary school to the Centre Point Trust, the annual rental being £10, with each party to meet their own fees in connection with passing the contract.
Reason(s) for Decision: 1. Under Standing Order 168 (1) (a) and 168 (3) the Minister hereby notified the States that he had accepted the recommendation of Property Holdings to agree to the above land transaction. 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.

Resource Implications:

Other than those detailed in the report there are no further financial Implications. There are no manpower implications.

Action required:

1. In accordance with Standing Order 168 (3) this decision must be presented to the States at least 15 working days before the contract is passed. After the expiry of 15 working days following presentation to the States the transaction may be concluded.

2. 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 Deputy Treasurer.

Signature:

Position: Deputy J A N Le Fondré

Assistant Minister*

MD-PH-2008-0083

Date Signed:

15/10/08

Date of Decision:

Former La Pouquelaye School - Proposed Lease.

TREASURY AND RESOURCES DEPARTMENT

PROPERTY HOLDINGS

Property Transaction for Ministerial Decision - Minister for Treasury and Resources

Former La Pouquelaye School, Le Hurel, St Helier –

Proposed 21 Year Lease to the Centre Point Trust

PBA 0095

Background

The former 1960s La Pouquelaye primary school, Le Hurel, St Helier, which ceased use in 2005, has a site area of 2.4 vergées and single storey buildings with a floor area of approximately 14,300 sq ft.

In 2001 the States approved the construction of a replacement facility for La Pouquelaye primary school on the d’Auvergne playing field. A decision had not been made at the time over the future use of the former school, although two options - redevelopment for housing, or a community centre – were being considered.

In September 2005, the former Environment and Public Services Committee granted a six month licence to the Parish of St Helier for the former La Pouquelaye school. This was intended to provide the Parish with an opportunity to trial the use of the former school as a community centre – the intention being that if the trial was deemed successful, the freehold of site would be offered to the Parish at its market value.

In June 2007 the States debated a proposition lodged by the Constable of St Helier for the former school to be sold to the Parish at a price to be agreed with the Treasury and Resources Minister to reflect the restricted use of the site as a community centre. The proposition was not approved, with the assembly voting instead to bring the debate to a close without reaching a conclusion, although States members generally supported the principle of using the site for community purposes.

Since that debate, discussion has taken place between Property Holdings and the Parish to reach an arrangement for the lease or sale of the site. However, an agreement has not been reached with the Parish which Property Holdings is willing to recommend to the Minister for Treasury and Resources.

Former Jersey College for Girls site and Centre Point Play-Care Facility

Following the 2007 States’ decision not to support the proposed sale of the former JCG site to a developer for residential purposes, Property Holdings has progressed an alternative use strategy for the building.

This strategy also complements the proposal to utilise the site of the adjoining former ‘Farewell Wing’ for re-development (currently occupied by Centre Point Trust as a play-care facility), and potential synergies arising from adjoining sites.

As such, there is a need to relocate the Centre Point Trust from the former ‘Farewell Wing’ adjoining JCG. In addition, the development of the former JCG requires the demolition of two link corridors with the ‘Farewell Wing’, with associated making-good of the Centre Point Nursery accommodation at significant cost. The relocation of the Nursery to La Pouquelaye would avoid these costs associated with making-good the building.

Proposed lease of the former La Pouquelaye school to Centre Point Trust

Negotiations have taken place between Property Holdings and the Centre Point Trust over a proposed lease of the former La Pouquelaye School for use as a play-care facility and Youth & Community centre, with heads of terms having being agreed (see below). Discussions have also been held with the Parish regarding the continuation of the Youth and Community facility in the building, and in addition the Parish has indicated its support for the move by Centre Point to this location.

The proposal is that the Trust will lease the whole building and will have sole occupation of approximately 80% of the floor area for use as a play-care facility. The remaining 20% of the floor area will be sub-let as a Youth and Community facility (organised through the Parish of St Helier) on the same terms as the head lease. In addition, the Trust will make available the Hall/Gymnasium for use by the ‘Community’ sub-tenant during evenings (after 6.00 pm). The final division of the building and external areas between the Trust and the Youth and Community sub-tenant will be agreed through negotiation.

The former school is deemed suitable by the Trust for use as a play-care facility, and as with the current occupancy of the site at JCG, the States will maintain the exterior of the building, with the Trust being responsible for the interior. In addition, the Lessor will, prior to the commencement of the lease, or to a programme agreed with the Lessee, carry out at its own cost, repair works necessary to render the building fit for purpose for the intended use. This is estimated at approximately £250,000, subject to specification and contractor’s tenders. Subject to Ministerial approval, this funding will be off-set against the financial gain made on the redevelopment of the ‘Farewell Wing’ site at the former Jersey College for Girls.

The following head of terms have been agreed:

Lessor:	Public of the Island
Lessee:	Centre Point Trust
Demised premises:	The property known as the former La Pouquelaye School, Le Hurel, St Helier, as shown on the enclosed plan. The Trust will lease the demised premises and will have sole occupation of approximately 80% of the floor area. The remaining 20% of the floor area will be sub-let as a Youth and Community facility (organised through the Parish of St Helier) on the same terms as the head lease. In addition, the Trust will make available the Hall/Gymnasium for use by the ‘Community’ sub-tenant during evenings (after 6.00 pm). The final division of the building and external areas between the Trust and the Youth and Community sub-tenant will be agreed through negotiation.
Lease term:	21 years to commence on the date of passing contract before Royal Court, “the commencement date” or such other date agreed between the parties.
Option to renew:	The Lessee shall have the option to renew the lease for a further 21 years on the same term and conditions as the existing lease save as to rent and the option to renew.
Break option:	Should the Lessor require the demised premises for development purposes during the term of the lease, there shall be an option to break the lease at a notice period mutually agreed by the Lessor and Lessee, and on the condition that alternative suitable premises are made available to the Lessee.
Rental:	The rent payable shall be £10 per annum, payable as a lump sum of £210 for the 21 year lease period on the commencement date.

Use:	The demised premises shall only be used as a play-care facility and for community use, or other such use agreed in writing by the Lessor, such consent shall be at its absolute discretion. In the event the demised premises materially cease to be used for this purpose, then the site shall revert back to the Lessor forthwith.
Repairs:	Prior to the commencement of the lease, or to a programme agreed with the Lessee, the Lessor shall carry out at its own cost such repair works to the demised premises to render them fit for purpose for the intended use. The Lessor shall thereafter be responsible for maintaining the demised premises in a wind and watertight condition.
	The Lessee will be responsible for maintaining the interior of the demised premises, the services installations (internal and external), the external decorations, the external hard and soft landscaping, and the boundary enclosures including maintenance in connection with the ‘Branchage’.
Alterations:	The Lessee shall not undertake any structural or other alterations to the demised premises without the Lessor’s prior written consent, such consent not to be unreasonably withheld or delayed.
Alienation:	The Lessee shall not assign the whole or any part of the demised premises.
Sub-letting:	Other than the sub-letting arrangement mentioned under ‘Demised Premises’ above, the Lessee shall not sub-let or part with possession of the whole or any part of the demised premises without the prior consent of the Lessor, such consent to be granted at the absolute discretion of the Lessor.
Insurance:	The Lessee shall maintain building and contents insurance.
	The Lessee shall maintain public liability insurance of not less than £5,000,000 in respect of any one occurrence or such other sums the Lessor may require from time to time.
Rates:	The Lessee shall be responsible for all rates and other charges arising in connection with the demised premises.
Services:	The Lessee shall be responsible for all and any payments and costs associated with the occupation of the demised premises.
Fees:	The Lessor and the Lessee shall be responsible for their own fees in connection with the drafting and passing of the lease contract before Royal Court.
Additional conditions:	At the end of the lease howsoever caused, the Lessee shall give up the demised premises in accordance with the terms of the lease and that there shall be no claim of compensation in respect of a any monies spent by the Lessee during the term of the lease in relation to the demised premises.

Conclusion

Whilst St Helier’s proposal to use the former school as a community centre offered benefits to the parishioners, there was little benefit back to the wider public, who had effectively funded the property since the purchase of the land in the early 1960s. The current proposal to lease the school to the Centre Point Trust provides that wider benefit through the provision of a play-care facility, the freeing-up of a public property for redevelopment and the creation of a community centre.

Recommendation

It is recommended that the public enters into a 21 year lease of the former La Pouquelaye primary school to the Centre Point Trust, the annual rental being £10, with each party to meet their own fees in connection with passing the contract.

Written By: Philip Ahier

Signature …………………………

Authorised By: David Flowers, Director of Property Holdings

Signature ………………………… Date: 14 October 2008