Treasury and Resources
Ministerial Decision Report
Transfer of Le coin site from JERSEY property holdings to HOUSING
- Purpose of Report
The Minister is asked to approve the transfer of the Le Coin site, St Helier from Jersey Property Holdings (JPH) to Housing for future development as social housing with effect from 1st August 2012.
- Background
The site was a former social housing site under the administration of the Housing Department. The sixteen flat units on site were in a poor condition and in need of development.
An initial proposal was to transfer the site in 2003 to the Jersey Homes Trust to develop 23 new units of social rented accommodation, comprising a mix of one, two and three bedroom flats. However, this did not progress and the properties were demolished in 2006.
Since then the site has been utilised for private car parking and latterly for public car parking to offset the reduction in availability on the temporary Ann Court parking site. The site will be rented by TTS from 1st September 2012 until April 2013 at a sum of £3,500 per month.
- Proposal
The site currently sits on JPH’s balance sheet as an asset identified for disposal as there was an expectation that it would either be developed as part first time buyer properties or sold to the adjacent landowner for incorporation into a larger scheme.
As a site suitable for the development of social housing by the Housing Department, it is appropriate that it be transferred to that department’s balance sheet.
The Housing Department will progress proposals to develop the site to provide 23 units of accommodation comprising 7 one bed, 14 two bed and two 3 bed flats that will contribute to the States provision of affordable housing. Subject to the availability of finance, development could commence in the latter part of 2013, which would provide a welcome impetus to the local construction industry and take advantage of the current low tenders achieved on similar scale developments.
The Minister will be required to consider the development proposals in detail when they are brought forward prior to tendering, in accordance with the requirements of Standing Order 168 (1)(d).
- Recommendation
That the Minister approves the transfer of the Le Coin Site, St Helier from JPH to Housing.
- Reason for Decision
The transfer reflects the appropriate accounting treatment for the property, based on the expectation that it will be developed by the Housing Department as social housing.
- Resource Implications
The transfer between two entities within the States has no impact on either JPH’s or Housing’s near cash revenue account on transfer. The rental payment from TTS until April 2013 will be received by JPH.
The Medium Term Financial Plan does not anticipate a receipt from the disposal of this site.
Report author : Interim Director JPH | Document date : 27/7/2012 |
Quality Assurance / Review : | File name and path: l:\finance\corporate capital\ministries\housing\hdf properties\le coin\mr transfer to housing 120726 rf.doc |
MD sponsor : Treasurer |