Lease of site at Highlands College, St. Saviour.

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A decision made (04/10/2006) regarding Lease of site at Highlands College, La Rue du Froid Vent, St. Saviour.

Subject:	Lease of site at Highlands College, La Rue du Froid Vent, St Saviour
Decision Reference:	MD-PH-2006-0075	Exempt clause(s):		None
Type of Report: (oral or written)	Written	Person Giving Report (if oral):		N/A
Telephone or e-mail Meeting?	N/A	Report File ref:		1957/3
Written Report – Title	Lease of site at Highlands College, La Rue du Froid Vent, St Saviour	Written report - author		P Griffin
Decision(s): 1. For the Public to enter into a 99 year lease with La Petite Ecole (Property) Limited for the site to be known as Nursery Site, Highlands College, St Saviour from a date to be agreed between the parties. The rental will commence in the second year allowing a rent free period for the first year to allow the building to be constructed. The rental will then be as follows: Year 2 £2,500, Year 3 £5,000, Year 4 £7,500 and Year 5 £9,000. Thereafter it will be increased every five years in line with the Jersey Retail Price Index. On the 30th and 60th anniversary of the commencement of the lease, the rent is to be reviewed to “Market Rental Value” rather than in line with the JRPI figure and for the avoidance of doubt this will allow the rent to decrease as well as increase. 2. Under Standing Order 168 (1) (a) and 168 (3) the Minister for Treasury and Resources hereby notifies the States that he has accepted the recommendation of Property Holdings to agree to the above land transaction. 3. Under Standing Order 168(5) the Minister hereby authorises the Attorney General and the Greffier of the States to pass any contracts on behalf of the Public of Jersey that may be necessary. After the expiry of 15 days following presentation to the States the transaction may be concluded.
Reason(s) for decision: To allow the Public to formalise an agreement for the provision of a facility in order for the Lessee to invest in the provision of nursery facilities in the Island. 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: The Director of Property Holdings to request the Greffier of the States to notify the States of the above decision. The Greffier of the States to notify Property Holdings, and Law Officers’ Department of the date when the States has been notified. After the expiry of 15 days following presentation to the States, request the Attorney General and the Greffier of the States to pass any contracts on behalf of the Public of Jersey that may be necessary.
Signature: (Assistant Minister)[1] Deputy J Le Fondré			Date of Decision: MD-PH-2006-0075

Lease of site at Highlands College, St. Saviour.

TREASURY AND RESOURCES DEPARTMENT

PROPERTY HOLDINGS

Property Transaction for Ministerial Decision - Minister for Treasury and Resources

Lease of – Site at Highlands College , La Rue du Froid Vent, St Saviour.

PG 1957/3

Purpose

To request the Minister for Treasury and Resources to approve the lease of an area of land at Highlands College St Saviour to La Petite Ecole (Property) Limited for the provision of a Nursery.

Background

Jersey Teachers Nursery has provided nursery accommodation for 0-3 year olds for a number years. The existing units of accommodation now require replacing and Jersey Teachers Nursery has reached agreement with La Petite Ecole (Property) Limited in relation to the provision of such facilities on their behalf. Negotiation took place with Petit Ecole (Property) Limited who proposes to construct a new purpose built nursery facility on land to be let.

Terms and conditions have been agree by La Petit Ecole (Property) Limited and are proposed by Property Holdings.

LESSOR - Public of the Island

LESSEE - La Petite Ecole (Property) Limited (or such other approved name).

DEMISED PREMISES - Site known as “Teachers Nursery site”, Highlands, St Saviour, measuring approximately 13,500 sq ft (as shown on the attached plan for identification purposes only). The intention is to allow the Lessee to demolish the existing structure, make good and construct a new Nursery within an agreed period of time subject to Planning Permit Number P/2006/0461 or such other relevant permit number. Upon the termination of the lease however caused the Lessee to give up possession of the demised premises including any additions thereto.

LEASE TERM - 99 years deemed to have commenced on the 01/01/2007, “the commencement date” or such other date agreed between the parties.

An option by the Lessee only to terminate the lease during the twelve month period after the 30th and 60th anniversary of the commencement of the lease with that written notice being served on the Lessor at any time during the twelve month period after the above mentioned anniversary dates, termination of the lease being an agreed period of months from the date of the service of that notice.

RENTAL - The agreed commencing rental shall be based on £7,500 p.a.

RENT FREE PERIOD - A rent free period will be granted during the first year of the agreement to allow for the construction of the new approved facility.

Thereafter the payments will be as follows:

· Year 2 £2,500.00

· Year 3 £5,000.00

· Year 4 £7,500.00

· Year 5 £9,000.00.

RENT REVIEW - The rental shall be reviewed in line with the Jersey Retail Price Index at the end of the fifth year and thereafter every five years until the end of the lease.

The rental at first review will be £7,500.00 plus JRPI over the 5 year period or £9,000.00 which ever is the higher.

On the 30th and 60th anniversary of the commencement of the lease, the rent is to be reviewed to “Market Rental Value” (as define in the RICS Appraisal and Valuation Standards rather than in line with the JRPI figure and for the avoidance of doubt this will allow the rent to decrease as well as increase. For the avoidance of doubt the rental value will reflect the value of the ground site and not take into account any of the Lessees improvements.

USE - The demised premises used only for the construction and use as a children’s Nursery and associated facilities, as agreed from time to time with the Lessor.

REPAIRS & MAINTENANCE - Upon completion of the work being under taken by the Lessee on the demised premises the Lessee will be responsible for the repair and maintenance thereof. For the avoidance of doubt this will include any part of the buildings that may remain on site following the demolitions and redevelopment.

NON STRUCTURAL ALTERATIONS

- Upon completion of the building on the demised premises the Lessee may under take non structural alterations having provided the Lessor where appropriate with all the relevant plans drawings and permits associated with the proposed works.

STRUCTURAL ALTERATIONS To be with the Lessors prior written consent.

ALIENATION - Assignment shall be permitted at the absolute discretion of the Lessor. Sub-letting may take place, if in keeping with the user clause and with the prior written consent of the Lessor which shall not be unreasonably withheld or delayed.

INSURANCE - The Lessee is to put and maintain in place a building insurance policy, to include full reinstatement of the demised premises and two years loss of rent. The Lessee shall also maintain and enforce a public liability policy 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.

SERVICES - It is acknowledged that the Lessee shall be responsible for the payment of all costs and services associated with use and occupation of the completed development.

RATES - The Lessee will be responsible for both foncier and occupiers rates in relation to the demised premises.

FEES - The Lessee will agree to pay all reasonable legal costs of the Law Officers’ and Property Holdings fee (£500) incurred in relation to the preparation, drafting and the completion of this lease agreement.

ADDITIONAL CONDITIONS - The Lessor grants to the Lessee rights of access and egress (in common with the Lessor and all other persons having like rights) during the term to the demised premises

Car Parking and pick up and drop off rights shall be permitted by the Lessor or its authorised agent in such area or areas only as approved from time to time.

Conclusion

The lease terms stated above are recommended by Property Holdings.

Recommendation

It is recommended that the Minister for Treasury and Resources approves the entering into a 99 year lease between the Public and the La Petite Ecole (Property) Limited for the site to be known as Nursery Site Highlands College St Saviour.

Written By: Paul Griffin

Senior Valuer/Estates Surveyor

Signature …………………………

Authorised By: Eric le Ruez

Director of Property Holdings

Signature