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A decision made 24 July 2013:

Decision Reference: MD-PH-2013-0118
Decision Summary Title :	JIFC Building No4 – Planning Obligation Agreement		Date of Decision Summary:	23 July 2013
Decision Summary Author:	Director JPH		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Jersey International Finance Centre Building No4 – Planning Obligation Agreement		Date of Written Report:	23 July 2013
Written Report Author:	Director JPH		Written Report : Public or Exempt?	WR – Public SD – Appendices A and B – Public SD – Appendix C - Exempt 3.2.1.(b)
Subject: Jersey International Finance Centre (JIFC) Building No. 4 - Public’s participation in a Planning Obligation Agreement as freehold owner of the site . (RFo 1783-01-001)
Decision(s): The Minister decided, as recommended by Jersey Property Holdings, to approve the Public entering into the Planning Obligation Agreement by the Minister signing the agreement in accordance with his delegated powers.
Reason(s) for Decision: Under Standing Order 168 (1) (b) the Minister has delegated authority to action the grant or acquisition of rights or servitudes over land on behalf of the public of Jersey.
Resource Implications: There are no direct financial or other resource implications for the Public as a result of this decision. This payment is to be made by The States of Jersey Development Company as owner of the leasehold interest and developer of the site.
Action required: Minister to sign the Planning Obligation Agreement in accordance with delegated authority under Standing Order 168 (1) (b).
Signature:		Position: Senator P.F C. Ozouf Minister for Treasury & Resources
Date Signed:		Date of Decision (If different from Date Signed):

Jersey International Finance Centre - Building No. 4: Planning Obligation Agreement: Transport Infrastructure Contribution

TREASURY AND RESOURCES DEPARTMENT

JERSEY PROPERTY HOLDINGS

Property Transaction for Ministerial Decision - Minister for Treasury and Resources

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Jersey International Finance Centre (JIFC) Building No4 – Planning Obligation Agreement

RFo 1783-01-001

Purpose

The Minister is asked to approve the Public’s participation in a Planning Obligation Agreement as freehold owner of the site of the proposed JIFC in respect of the requirement for the States of Jersey Development Company (JDC), as leaseholder and developer, to make a payment of £172,190 as a Transport Infrastructure Contribution.

Background

The Minister for the Environment is minded to issue a Planning Permit for the development of building No4 JIFC on the current Esplanade Car Park. The permit includes reference to a Planning Obligation Agreement that requires JDC to make payment of a contribution of £172,190 to the Treasurer of The States as a Transport Infrastructure Contribution. The development may not be occupied until the payment is made.

As the site is owned by the Public and leased to JDC, the Obligation rests with both the freehold and leasehold owners, who jointly and severally covenant to agree and undertake the obligation.

In practice, as JDC are a wholly owned States company, should they cease to exist for any reason, the obligation would fall on the Public in any event, so there is no material financial risk to the Public in signing the Planning Obligation Agreement.

A copy of the Planning Obligation Agreement, which incorporates the draft Planning Permit, is attached as Appendix B.

Authority to Sign

Article 25(1) of the Planning and Building (Jersey) Law 2002 states that "The owner of an interest in land may by agreement with the [Planning] Minister enter into an obligation ("a planning obligation").

Whilst there is no compulsion for the (freehold) owner to enter into an agreement under this Article, there is nothing preventing the Public being party to the agreement.

The Public’s participation in the Planning Obligation Agreement is one of the matters delegated to the Minister for Treasury and Resources under States Standing Order 168 (copy attached as Appendix A).

The Law Officers Department has confirmed that the Planning Obligation Agreement is considered to be a servitude on the land and, as such, is covered by paragraph 1(b) of the Standing Order. They refer to advice given by the Attorney General in relation to a previous Planning Obligation Agreement (copy of letter dated 24 May 2010 attached as Appendix C).

There is no requirement for the decision to be notified to the States under paragraph (3) of the Standing Order as it does not fall within the category of land transaction for which such notification is required.

Recommendation

That the Minister approves the Public entering into the Planning Obligation Agreement and signs the agreement in accordance with his delegated powers.

Written By: Director JPH

Signature ………………………… 23 July 2013

Appendix A

Standing Order 168 - Land Transactions

(1) This standing order applies to the following actions –

(a) the disposal, acquisition, letting or rental of land on behalf of the public of Jersey;

(b) the grant or acquisition of rights or servitudes over land on behalf of the public of Jersey;

(d) the approval of plans for the construction or alterations of buildings where the work is to be funded wholly or partly by money voted by the States.

(2) The prior agreement of the States shall not be needed for any of the actions if –

(a) the action is recommended by a body established by the States to manage land and buildings owned by the public of Jersey; and

(b) the recommendation is accepted by the Minister for Treasury and Resources.

(3) The Minister for Treasury and Resources must, at least 15 working days before any binding arrangement is made for the disposal, acquisition, letting or rental of land on behalf of the public of Jersey which does not, by virtue of paragraph (2), require the prior agreement of the States, present to the States a document setting out the recommendation which he or she has accepted.

(4) Nothing in this standing order requires the States to agree, or the Minister for Treasury and Resources to accept or present to the States any information regarding, the grant, renewal, extension or variation of a tenancy that is terminable upon giving 3 months’ notice or less.

(5) The Attorney General and the Greffier may, under the authority of the Minister for Treasury and Resources, pass any contract which is required to be passed on behalf of the public of Jersey.

Appendix B

Planning Obligation Agreement

Appendix C

Letter from Attorney General dated 24 May 2010

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