Government of Jersey

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A decision made to agree to the lease surrender and renewal of Les Landes Race Track.

Subject:	Les Landes Race Track, St Ouen lease surrender and renewal
Decision Reference:	MD-PH-2006-0004	Exempt clause(s):
Type of Report: (oral or written)	Written	Person Giving Report (if oral):
Telephone or e-mail Meeting?		Report File ref:	PG 19/1278/1
Written Report – Title	Property Transaction Les Landes Race Track, St Ouen - Lease Surrender and Renewal	Written report - author	Paul Griffin
Decision(s): 1. To agree to the surrender of the existing 21 year lease with the Jersey Race Club and enter into a new lease of 99 years for the property known as Les Landes Race Track, St Ouen with a commencing rental of £2,500 a year. 2. Under Standing Order 168 (1) (a) and 168 (3) the Treasury and Resources Minister hereby notifies the States that he has accepted the recommendation of Property Holdings to agree to the above land transaction. After the expiry of 15 days following presentation to the States the transaction may be concluded.
Reason(s) for decision: To allow the Lessee, Jersey Race Club, to increase its security of tenure and make a major capital investment in the Public’s property known as Les Landes Race Track, St Ouen. Under Standing Order 168 (1) (a) and 168 (3) the Minister is required to notify the States of his acceptance of recommendations to dispose, acquire, let or rent land on behalf of the public of Jersey.
Action required: Director of Property Holdings to request the Greffier of the States to notify the States of the above decision. Greffier of the States to notify Property Holdings and the Law Officers’ Department (Bob Aubert) of the date when the States has been notified.
[1] Deputy J Le Fondré	Date of Decision:
			[1] Under delegated powers approved by Treasury and Resources Minister 22 December 2005

Les Landes Race Track - lease surrender and renewal

PROPERTY HOLDINGS DEPARTMENT

Property Transaction For Ministerial Decision - Treasury and Resources Minister

Les Landes Race Track, Les Landes, St Ouen

Lease Surrender and Renewal

PG 19/1278/1

The Jersey Race Club currently lease the property known as Les Landes Race Track, St Ouen from the Public via a 21 year lease and which has approximately nine years remaining until 28 September 2014. Planning permission has been granted to construct new facilities for the Race Club to improve and further support horse racing activities in the Island. The total cost of the investment is circa £630,000 with a grant of £250,000 from the Tourism Development Fund.

The Race Club has therefore requested to surrender its existing lease and enter into negotiations for a new lease to extend the period over which to amortise the investment and secure horse racing in the Island in the long term.

Terms and conditions have been agreed between the Jersey Race Club for a new 99 year lease to commence on completion of the contract before the Royal Court. The demised premises remains as described in the existing lease dated 11 April 1997. The use will be as a racecourse, training and practise track for the schooling and training of horses and any other ancillary purposes relating to the foregoing with the permitted use of grazing also being allowed, where appropriate. The Lessee is also permitted to undertake the new development in accordance with Planning Permit No P/20021650 dated 12 August 2003 and all conditions contained therein in relation to the demised premises and the use of the buildings and additional facilities being constructed.

The commencing rental shall be £2,500 per annum subject to rent review every three years in line with the Jersey Retail Price Index. The Lessee shall be responsible, for all costs associated with the use of the demised premises; for all repairs and maintenance to both the demised premises as a whole and any structures now or in the future built thereon. No alterations are to be made to the demised premises or to any buildings now built or to be constructed thereon without having first received the written confirmation thereto from the Lessor; such consent shall be given or refused at the absolute discretion of the Lessor. The assignment of the Lease is not to be permitted but the Lessee may sublet or otherwise part with possession of the whole or part of the demised premises with the previous written consent of the Lessor, such consent shall not be unreasonably withheld or delayed. The Lessee shall obtain and maintain in force the necessary building insurance for the full reinstatement of value of the properties constructed on the demised premises from time to time and shall obtain and maintain in force a public indemnity liability policy of not less than £5,000,000 or such sum as the Lessor may notify from time to time. It is agreed that the Lessee has the right to hypothecate the lease.

The Lessee has also agreed to pay the Public’s reasonable legal fees in relation to this transaction with such amount to be agreed with the Law Officers’ Department. The remaining terms and conditions are based upon the principles found within the existing contract.

Recommendation

For the Public to agree to the early surrender of the existing 21 year lease and enter into a new lease of 99 years to allow the Lessee to invest a major capital sum in the Public’s property known as Les Landes Race Track, St Ouen in accordance with Planning Permit No P/20021650 dated 12 August 2003 and all conditions contained therein in relation to the demised premises and the use of the buildings and additional facilities being constructed. Lessee shall be responsible, for all costs associated with the use of the demised premises; for all repairs and maintenance to both the demised premises as a whole and any structures now or in the future built thereon.

………………………………………. Date …………… 2006

Paul Griffin

Senior Valuer/Estates Surveyor

………………………………………. Date …………… 2006

Paul Tucker

Director