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A decision made (06/10/2008) regarding: The Old Sail Loft, Gorey Pier - Three Year Lease.

Decision Reference: MD-PH-2008-0080
Decision Summary Title :	The Old Sail Loft – proposed three year lease	Date of Decision Summary:	17 September 2008
Decision Summary Author:	Philip Ahier	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 :	The Old Sail Loft, Gorey Pier, St Martin – proposed three year lease to Gavroche Ltd	Date of Written Report:	17 September 2008
Written Report Author:	Philip Ahier	Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: The Old Sail Loft, Gorey Pier, St Martin - proposed three year lease to Gavroche Limited PBA 0356
Decision(s): 1. The Minister approved, as recommended by Property Holdings, the granting of a new three year lease to Gavroche Limited for The Old Sail Loft, Gorey Pier, St Martin, for a period of three years deemed to have commenced on 29 September 2006 and to terminate on 28 September 2009, at an annual rental of £12,800 with no rental reviews - the final rental of the previous nine year lease also being £12,800 per annum.
Reason(s) for Decision: 1. Under Standing Order 168 (1) (a) and 168 (3), the Minister hereby notified the States that he had accepted the recommendation of Property Holdings to agree to the above land transaction.
Resource Implications: There are no financial or manpower implications associated with this decision.

Action required:

1. In accordance with Standing Order 168 (3), this decision must be presented to the States at least fifteen working days before the contract is passed. After the expiry of fifteen working days following presentation to the States the transaction may be concluded.

2. The Director of Property Holdings is to pass any contract which is required to be passed on behalf of the Public, and to copy this decision to the Minister, Treasurer and Deputy Treasurer.

Signature:

Position: Deputy J A N Le Fondré

(Assistant Minister)*

MD-PH-2008-0080

Date Signed:

06/10/08

Date of Decision

The Old Sail Loft, Gorey Pier - Three Year Lease.

TREASURY AND RESOURCES DEPARTMENT

PROPERTY HOLDINGS

Property Transaction for Ministerial Decision - Minister for Treasury and Resources

The Old Sail Loft, Gorey Pier, St Martin –

proposed three year lease to Gavroche Limited

PBA 0356

Background

The Old Sail Loft retail unit is leased to Gavroche Ltd, the last formal contract being for a nine year period from 29 September 1997 to 28 September 2006, with the final annual rental being £12,800. The lessee has been ‘holding-over’ on the lease since then.

The property, including the former marine workshops and stores to the rear, was included in Property Holdings’ 2006 disposal plan, which was subsequently approved by the States.

In order to secure the best value for the site, an architect’s scheme was produced with a view to gaining planning consent prior to tendering the property for sale on the open market.

The scheme produced was not considered to achieve the best value for the site and therefore a revised scheme for residential development on the rear part of the site is being drafted. It is anticipated, subject to planning consent being gained, that the site will be sold in mid 2009.

It is therefore proposed to formalise the continued occupancy of The Old Sail Loft with Gavroche Ltd for a three year period deemed to have commenced on 29 September 2006 and to terminate on 28 September 2009.

Proposed heads of terms of lease

Lessor: The Public of the Island of Jersey

Lessee: Gavroche Limited

Demised Premises: The ground and first floor retail unit measuring approximately 989 sq ft, with associated storage/

office room measuring 275 sq ft, known as The

Old Sail Loft, Gorey Pier, St Martin.

Use: The use of the premises is retail with associated storage/office area.

Term: A three year term deemed to have commenced on

29 September 2006 and to terminate on 28 September

2009.

Rent: £12,800 per annum payable quarterly in advance on

29 September, 29 December, 29 March and 29 June.

Rent reviews: None

Lessee repairs: To repair and maintain the interior of the premises’

including the services, to a standard consistent with

that prevailing at the commencement of the lease.

Lessor repairs: To keep the exterior of the premises in a wind and water

tight state.

Buildings’ insurance: The lessor is to insure the building.

Public Liability

Insurance: The lessee is to hold public liability insurance for not less than £2,000,000 and shall indemnify the lessor against all claims arising from the lessee’s occupation of the premises.

Alterations: The lessee shall not alter the premises without the prior

approval of the lessor.

Sub-letting/Assignment: The lessee shall not be permitted to sublet the premises

or assign the lease.

Termination: Upon termination of the lease, the lessee is to remove all

its fixtures and fittings and to make good any associated

damage to wall, floor and ceiling surfaces.

Parish Rates: Lessor - foncier rates, lessee - occupier rates.

Recommendation

It is recommended that the Minister grants a new three year lease to Gavroche Limited for The Old Sail Loft, Gorey Pier, St Martin, deemed to have commenced on 29 September 2006 and to terminate on 28 September 2009, at an annual rental of £12,800 per annum with no rental reviews.

Written By: Philip Ahier

Signature …………………………

Authorised By:

Signature ………………………… 17 September 2008