Ann Court Site, St. Helier: Transfer to Jersey Property Holdings

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[THIS DECISION HAD BEEN RESCINDED BY MD-H-2013-0059] A decision made 28 June 2013:

Decision Reference: MD-H-2013-0047
Decision Summary Title :	DS – Proposed transfer of former Ann Court site		Date of Decision Summary:	19th June 2013
Decision Summary Author:	Director of Strategy		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Proposed transfer of former Ann Court site		Date of Written Report:	19th June 2013
Written Report Author:	Director of Strategy		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Ann Court site- transfer to Jersey Property Holdings
Decision(s): The Minister agreed to; Recommend to the Minister for Treasury & Resources that the former Ann Court site presently being utilised by T&TS as public car parking be transferred to the Jersey Homes Trust as soon as practicable and on terms to be agreed between the Trust and Jersey Property Holdings and on the basis that any residual value following development being transferred to the Housing Department or the new Housing Company proposed to be incorporated on 1st July 2014. Immediately transfer the whole site with the exception of 65 to 70 Ann Court, 33, 35, 37 & 39 Ann Street and 1 & 2 Clifton Place, from the balance sheet of the Housing Department to that of Jersey Property Holdings subject to the rental income from T&TS continuing to be paid to the Housing Department until the end of the present lease on 15th January 2015. The future transfer of 65 to 70 Ann Court, 33, 35, 37 & 39 Ann Street and 1 & 2 Clifton Place at such time as it is necessary to allow development to commence.
Reason(s) for Decision: The transfer reflects the appropriate accounting treatment for the property, based on the expectation that it will not be developed by the Housing Department.
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 January 2015 will be received by JPH.
Action required: Asset manager to oversee the transfer of the assets
Signature:		Position: HOUSING MINISTER
Date Signed:		Date of Decision (If different from Date Signed):

Ann Court Site, St. Helier: Transfer to Jersey Property Holdings

Date of Report: - 19th June 2013

REPORT TO THE HOUSING MINISTER

PROPOSED TRANSFER OF THE FORMER ANN COURT SITE

PURPOSE

To recommend the transfer of the former Ann Court site to Jersey Property Holdings in order that the disposal of the site to the Jersey Homes Trust can be negotiated ultimately for the development of a scheme of social rented housing for occupation by persons designated as being in need of housing subject to the Affordable Housing Gateway.

BACKGROUND

The former Ann Court site is owned by the Public of the Island and remains in the administration of the Housing Department.

The site is made up of a number of social rented housing assets, 1 - 64 Ann Court – all demolished in 2008 together with 65 to 70 Ann Court, 33, 35, 37 & 39 Ann Street and 1 & 2 Clifton Place, all of which remain in use as social housing. A number of these remaining units are afforded protection under the Island Plan.

Since 2008 the Ann Court site has been used as public car parking and is let for that purpose to the Transport & Technical Services Department on a lease which will expire on 15th January 2015. Transport & Technical Services make a rental payment to the Housing Department for the use of the site.

A small area of the site has been made available for the sinking of the Phillips Street Shaft to facilitate the extension of the Town Flood Alleviation Scheme.

The entire site is shown shaded on the site plan attached at annex a.

FUTURE USE

It has always been intended that the Ann Court site be redeveloped to provide social rented housing.

The North of Town Master plan identifies the site for residential use and also recognises its potential importance for providing some public car parking to support shoppers and town residents.

The site is likely to accommodate a significant number of new homes, subject to planning approval and development could commence once the use of the site for public car parking has come to an end.

The Jersey Homes Trust has been keen to undertake a significant new development scheme to increase its social housing portfolio and the Trust is considered to be in a good position to develop the site in 2015.

If development by the Trust is agreeable then to commit to a development timetable which might see work commence in 2015 the Trust will need to commence work on a scheme immediately. To that end they have already engaged the services of Riva Architects. Preparing a scheme will involve a significant investment of fees by the Trust and it is clear that the Trustees can only agree to commit those funds if they have some certainty over the availability of the site. Greatest certainty comes from the Trust having ownership of the site or as much of it as practicable given that 65 to 70 Ann Court, 33, 35, 37 & 39 Ann Street and 1 & 2 Clifton Place are all still occupied by Housing Department tenants.

It is envisaged that two transfers of property will be required.

The first will be the area of the current public car park less the new drainage shaft

The second will be the area of land making up 65 to 70 Ann Court, 33, 35, 37 & 39 Ann Street and 1 & 2 Clifton Place, which will be retained by the Housing Department and occupied by tenants until the site is required in order for development to commence. At that point 65 to 70 Ann Court, 33, 35, 37 & 39 Ann Street and 1 & 2 Clifton Place will also be transferred to the Trust on agreed terms.

TERMS OF THE TRANSFERS

A stakeholder group from Jersey Property Holdings, Housing, Planning and Transport & Technical Services Departments, has considered key outcomes for the public from the development of the site.

These include certain expectations in respect of the numbers of homes to be developed, on site infrastructure and public car parking. These have been communicated to the Trust and it is anticipated that Jersey Property Holdings will enter into detailed negotiations with the Trust to develop a full set of Heads of Terms prior to specific recommendations for transfer being made to the Minister for Treasury & Resources in accordance with States Standing Order 168.

PROPOSAL

That as a first step the former Ann Court site less 65 to 70 Ann Court, 33, 35, 37 & 39 Ann Street and 1 & 2 Clifton Place be transferred from Housing to Jersey Property Holdings

REASON FOR DECISION

The transfer reflects the appropriate accounting treatment for the property, based on the expectation that it will not be developed by the Housing Department.

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 January 2015 will be received by Housing.

RECOMMENDATION

That the Minister:

Recommend to the Minister for Treasury & Resources that the former Ann Court site presently being utilised by T&TS as public car parking be transferred to the Jersey Homes Trust as soon as practicable and on terms to be agreed between the Trust and Jersey Property Holdings and on the basis that any residual value following development be transferred to the Housing Department or the new Housing Company proposed to be incorporated on 1st July 2014.

Agree to immediately transfer the whole site with the exception of 65 to 70 Ann Court, 33, 35, 37 & 39 Ann Street and 1 & 2 Clifton Place, from the balance sheet of the Housing Department to that of Jersey Property Holdings subject to the rental income from T&TS continuing to be paid to the Housing Department until the end of the present lease on 15th January 2015.

Agree to the future transfer of 65 to 70 Ann Court, 33, 35, 37 & 39 Ann Street and 1 & 2 Clifton Place at such time as it is necessary to allow development to commence.