Beresford House, Bellozanne Road, St Helier: variation of lease

BERESFORD HOUSE, BELLOZANNE ROAD, ST.  HELIER: VARIATION OF TERMS OF LEASE _______________

Lodged au Greffe on 17th April 2001 by the Public Services Committee

______________________________

STATES OF JERSEY

STATES GREFFE

180             2 0 0 1 P . 6 6 ( r e- i ssu  e )  

Price code: A

PROPOSITION

THE STATES are asked to decide whether they are of opinion -

  to r e fe r to their Act dated 25th April 1995 in which they approved the lease to Killmister, Cameron and Co. of

4,300 square feet of office accommodation on the southern periphery of the Bellozanne Treatment Works, St. Helier for a period of nine years at an initial annual rent of £50,000, subject to triennial rent reviews to open market value; and -

  (a ) to agree that the public should enter into an agreement with Killmister, Cameron and Co. to vary the terms of

the lease to allow the lessee to surrender the lease in respect of 823 square feet of office accommodation with effect from 29th September 2000; and to agree that, following the reduction in the area demised to the lessee, the annual rent be revised to £47,800 with effect from that date;

  (b ) to authorise the Greffier of the States to sign the necessary agreement to give effect to the variation. PUBLIC SERVICES COMMITTEE

Notes:  1. T h e Planning and Environment Committee supports this proposition.

  2 .  T  he Finance and Economics Committee supports this proposition on the understanding that the loss of

income and any additional costs are met from the Public Services Committee's existing Cash Limits.

Report

On 4th August 1995 the Public Services Committee entered into an agreement whereby an area of 4,300  square feet of office accommodation, 450  square feet of storage accommodation and parking for 18  vehicles, was let to Killmister, Cameron & Co.

In July of last year the Public Services Department was approached by Killmister, Cameron & Co., with a request to relinquish part of its office accommodation at the earliest possible opportunity.

The Property Services Department was instructed by the Public Services Committee in August to enter into negotiations with Killmister, Cameron & Co. in order to modify the terms and conditions of the lease. This will allow the Public Services Committee to take back the section of office accommodation which Killmister, Cameron & Co. wish to vacate. Due to the fact that the Public Services Department has an urgent requirement to relocate the Water Resources Section, which is working in extremely cramped conditions, this is considered to be most beneficial.

The area that Killmister, Cameron & Co. wish to surrender totals 823 square feet of office accommodation. The current rent passing equates to approximately £12 per square feet and at this rate it has been agreed that £10,000 should be deducted from the current passing rent, which is £57,800, giving a new rental of £47,800.

The surrendered area is to be converted  by the Public Services Department  into  office accommodation  for its Water Resources Section, with the Public Services Department being responsible for the cost associated with erecting temporary partitioning to divide the accommodation. It is proposed that these works are carried out at the earliest opportunity to relieve the current cramped working space that the Public Services Department is experiencing.

The States are asked to approve a surrender of this area of office space from 29th September 2000 and to authorise the invoices for the final quarter of last year to be adjusted to reflect this change.

There are no financial or manpower implications for the States arising from this report and proposition.