5-7 Newgate Street, St. Helier - purchase of land

5-7 NEWGATE STREET, ST. HELIER: PURCHASE OF LAND _______________

Lodged au Greffe on 23rd April 2002

by the Health and Social Services Committee

______________________________

STATES OF JERSEY

STATES GREFFE

150             2 0 0 2    P . 5 8          

Price code: B

PROPOSITION

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

(a)  ( i) to agree the transfer by the Public of the property known as Nos.  5, 6 and 7 Newgate Street, St.  Helier (as shown on Drawing No.  1420/02/40) to a nominee company of Dandara Jersey Limited;

   (ii  ) to a u th o rise the entering into a Development Agreement between the Public and a nominee company

of Dandara Jersey Limited for the purposes of providing an area of the ground floor of approximately 464 square metres for the provision of a Dental Clinic as shown on Drawing No.  2000/18/03 with each party responsible to pay their own legal fees; and

(ii i ) to a u th o rise the payment of £230,000 (two hundred and thirty thousand pounds sterling) for the flying

freehold interest in the said ground floor upon completion of the combined redevelopment and delivery of the shell and core;

  ( b ) to  authorise the payment of any legal expenses in connection with the proposed scheme and all interests

therein;

  (c ) to authorise the Attorney General and the Greffier of the States to pass on behalf of the Public any contracts

which may be found necessary to pass in connection with the transfer, the Development Agreement and all interests therein; and

( d ) to authorise the payment or discharge of any expenses incurred in connection with the transfer of the

properties and any interest therein from the Planning and Environment Committee's Vote of Credit C0904 "Acquisition of Land - Major Reserve".

HEALTH AND SOCIAL SERVICES COMMITTEE

Notes:  1. T  he Planning and Environment Committee supports this proposition having given development approval

(No.  PB/2001/1495) on 28th November 2001.

  2 . T h e Finance and Economics Committee agrees that a Development Agreement be entered into with Dandara

Holdings Limited (or a nominee company) and that, upon completion of the proposed development, the public freehold interest in Nos.  5, 6 and 7 Newgate Street, St.  Helier should be sold to Dandara and the sum o £230,000 paid to Dandara for the flying freehold interest in the ground floor of the combined property.

Report

The Health and Social Services Committee instructed the Department of Property Services by Act No.  12 dated 6th January 1999. Property Services was to investigate the potential for a joint development with Dandara Island Homes of Nos.  5, 6 and 7 Newgate Street with a view to providing a Community Dental Clinic in close proximity of the existing site of the General Hospital in St.  Helier.

The Public of the Island, on behalf of the Health and Social Services Committee, purchased Nos. 5, 6 and 7 Newgate Street on 19th April 1996 for the consideration of £172,500. The premises consisted of a warehouse, outbuildings and appurtenances and were bought from Mrs. Joy Stella Grigg, née Taylor , wife of Mr. Donald Brian Grigg, Mrs. Valerie Ann Gage, née Taylor , wife of Mr. John Leonard Gage and Miss Christine Mary Taylor .

The property was purchased using monies from the E. Bailhache Trust Fund Account, administered by the Health and Social Services Committee. On Monday 1st July 1996 the Health and Social Services Committee opened a Visitors' Clinic in Newgate Street and until May 2001 Nos. 5, 6 and 7 Newgate Street have provided consulting rooms adjacent to the General Hospital.

During this period the Health and Social Services Committee has been diligent in ensuring any opportunities to allow further consolidation of the area adjacent to the General Hospital have been fully investigated. The Director of Estates and the Department of Property Services have been in discussion with Dandara Jersey Limited, owners of the Sydney Horman Site, for some considerable time. It was clear that there were some potential advantages in a joint development to provide the Health and Social Services Committee with the required accommodation for the Dental Clinic.

The property at 5, 6 and 7 Newgate Street was considered as part of the negotiations with Dandara Jersey Limited and in this respect the Department of Property Services valued the property at £205,000.

In order for the sale of 5, 6 and 7 Newgate Street to proceed, it was required that money was transferred to the E.   Bailhache Trust Fund Account from the Acquisition of Land - Major Reserve, Capital Vote C0904, and this was authorised by Planning and Environment Committee Act B6 dated 25th October 2001.

Terms have now been agreed for the transfer of ownership of 5, 6 and 7 Newgate Street and for the public to enter into a development agreement with a nominee company of Dandara Jersey Limited. The finished development is to provide 5,000  square feet of office accommodation on the ground floor combining the Sydney Horman Site and 5, 6 and 7 Newgate Street. Further, the combination of these two premises will allow the development of 30 two-bedroom apartments and 10 one-bedroom apartments on the first to fifth storey which are to be sold by Dandara.

It has been agreed that a further cash sum of £230,000 (two hundred and thirty thousand pounds sterling) is to be paid by the Public to Dandara at the end of construction. The ground floor area of 5,000 square feet will provide the space for the Health and Social Services Committee to fit out a Dental Clinic as required.

The States are asked to approve the transfer of Nos.  5, 6 and 7 Newgate Street and to authorise payment in the sum of £230,000 (two hundred and thirty thousand pounds sterling) on completion of the proposed shell and core of the ground floor area shown on the plan.

Once complete, the development will allow the Health and Social Services Committee to fit out the shell and core for use as a Community Dental Clinic. The fit-out will be completed using monies from the 2001 Capital Vote as confirmed in the Resource Plan 2000. This scheme will represent good value to the Public of the Island.

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