Disposal of former Ann Court Site to Andium Homes

STATES OF JERSEY

DISPOSAL OF FORMER ANN COURT SITE TO ANDIUM HOMES

Presented to the States on 14th September 2015 by the Minister for Transport and Technical Services

STATES GREFFE

2015   Price code: A  R.102

2 REPORT

Purpose of the Report

This Report presents to the States the endorsement of the Minister for Transport and Technical Services of the decision (MD-PH-2015-0053) of the Minister for Treasury and Resources to transfer the Public's land holdings on the former Ann Court site to Andium Homes, to assemble a site for a residential development with public car parking element, on the basis of an agreed methodology for determining a valuation of the residual site value and a Development Agreement.

Background

The site has been identified in the Revised 2011 Island Plan to provide (an estimated) 140 affordable homes, to be delivered by 2020; with the North of Town Master Plan also identifying the site for 185 public shopper car parking spaces. A further Transport and Technical Services and Planning Department review in 2013 revised this car parking number for the site upwards to 200. In order to achieve these numbers and include the affordable homes, a scheme including a basement car park was developed.

The Public entered into discussions with Jersey Homes Trust (JHT) with a view to the site being developed by JHT as a social housing site above a basement of public parking, to be funded by the Car Parks Trading Account. In this scheme, 180 below- ground spaces were to be provided and fully funded by the Department.

The Public were not able to reach an agreement with JHT and the Trust decided not to continue with the project.

Discussion

The Public has subsequently entered into discussions with Andium Homes  as an alternative developer of the site.

The original concept of providing the public car parking fully underground did not present good value for money and was found to be outside of the available budget held for these works in the Car Park Trading Account. On this basis, and following some further work, it has now been determined that the most economical model to provide the public car parking is a ground level car park. This inevitably reduces the numbers of  public  car  parking  spaces  that  the  scheme  can  produce,  but  will  nevertheless provide an increase in valuable shopper parking consistent with the North of Town Master Plan and Sustainable Transport Policy. The reduced numbers will require the refurbishment and extension of the life of Minden Place Car Park.

Initial  work  with  Andium  has  predicted  that  a  minimum  of  137 spaces  can  be achieved, and it is hoped this number can be increased following detailed design. Whilst this reduction in shopper car parking is not ideal, the Department accepts this compromise, as the reduction in numbers brings the predicted cost of the public car parking within the available budget held in the Car Park Trading Account.

Various discussions have taken place involving the Strategic Housing Unit (SHU), Jersey Property Holdings (JPH), Transport and Technical Services and the Treasury, all of whom have a role in the delivery of the site. The officer position of all the

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involved departments is that an agreement with Andium Homes is the most likely way to achieve the desired outcome for the site.

This position has been agreed by the Ministers for Housing and for Transport and Technical Services, and will be confirmed by respective Ministerial Decisions prior to a confirmation Ministerial Decision from the Treasury.

To move the project forward, Andium Homes will require certainty of ownership in order to be able to invest a considerable sum in working up plans for the site. It is, therefore, proposed that the Minister for Treasury and Resources agrees in principle to the disposal to Andium Homes of those parts of the site in Public ownership on the basis of the Outline Heads of Terms, subject to a detailed Development Agreement to be agreed prior to the confirmatory Ministerial Decision being produced in accordance with Standing Order 168.

Reason(s) for Decision

The  Minister  for  Transport  and  Technical  Services  endorsed  the  decision  of  the Minister for Treasury and Resources (MD-PH-2015-0053) of his intention to notify the States of his aim to dispose of the former Ann Court site to Andium Homes for residential development with public parking, subject to –

• the production of a Development Agreement;
• confirmation  by  Ministerial  Decision  of  the  support  of  the  respective Ministers for Housing and Transport and Technical Services; and
• confirmation that funding for the development is accessible to Andium.

The reason for the decision is that the site provides the increased numbers of shopper parking in the north of town as referenced in the Department's Sustainable Transport Policy and the North of Town Master Plan.

Resource implications

There are no immediate resource implications for the disposal of the site to Andium. If Andium can develop a suitable social housing scheme which includes a minimum of 137 public car parking spaces for shoppers, the full cost of the car park will be funded from  the  Car  Park  Trading  Account.  There  are  sufficient  funds  allocated  in  the Account to meet these requirements.

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