Catherine Quirke House, 6 Gloucester Street, St. Helier - redevelopment

STATES OF JERSEY

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CATHERINE QUIRKE HOUSE, 6  GLOUCESTER STREET, ST.  HELIER: REDEVELOPMENT

Lodged au Greffe on 8th July 2003

by the Health and Social Services Committee

STATES GREFFE

PROPOSITION

THE STATES are asked to decide whether they are of opinion

(a ) (i ) t o a uthorise the transfer to Coolwater Limited of the property known as Catherine Quirke

House, 6 Gloucester Street, St. Helier (shown on Drawing No. 23/03/61) currently valued at approximately £700,000, in exchange for the ownership by flying freehold in a new development being constructed on the same site of 1,500 square feet of ground floor clinic space, to include internal fitting out, together with 5 purpose-built one-bedroom flats, on the second floor at no further cost to the Public with each party to be responsible for its own legal fees;

(i i) t o a u thorise the entering into a Development Agreement between the Public and Coolwater

Limited for the purposes of providing an area of the ground floor of approximately 1,500 square feet for the provision of a clinic, including internal fit-out of this area and 5 one-bedroom flats on the second floor which combined interests are estimated to be valued at approximately £1,200,000;

(c ) to authorise the Attorney General and the Greffier of the States to pass, on behalf of the public,

any contracts which might be found necessary to pass in connection with the said property referred to in paragraph  (a) and any interest therein;

(d ) to authorise the payment or discharge of expenses to be incurred in connection with the sale of the

said property and all interests therein from the Environment and Public Services vote of credit Acquisition of Land – Major Reserve' (Vote C0904).

HEALTH AND SOCIAL SERVICES COMMITTEE

Notes: 1. T h e Environment and Public Services Committee supports the proposition.

2 . T h e  Finance and Economics Committee  supports the  proposition,  recognising that there  are

benefits to be gained for the community, as well as the inherent financial benefits of the proposal.

REPORT

The property known as Catherine Quirke House, 6 Gloucester Street, St.  Helier (shown in Drawing No.  23/03/61 has been the subject of an ongoing feasibility study in connection with proposed development in the area. The study has included possible redevelopment opportunities, the need for Clinics and residential accommodation in the area and the existing use of the property in light of the core function of the Health and Social Services Committee.

The property currently accommodates "Wooden Wheels" retail outlet, 2 small offices, 2 small office suites, one 2- bedroom flat, 6 small bedrooms for medical students and associated facilities, all of which are sub-standard and in need of extensive refurbishment. The Department of Property Services has valued the property at £700,000 and recommended that due to the fabric and age of the building it would not be cost-effective for the Committee to carry out the necessary conversion work, recommending that instead the Committee rebuild the property providing the required type of accommodation.

The Feasibility Study Coordinating Group, with the assistance of the Department of Property Services, explored many varied options put forward by developers interested in a partnership deal with the Committee for the purpose of redeveloping the property but these were dismissed as they required the Public to contribute significant capital sums.

The Committee was approached in March 2001 by Coolwater Limited, a private developer, which is the owner of the Sandringham Hotel and currently represented by the agents Baker Almond. Coolwater Ltd. put forward a proposal to incorporate the Catherine Quirke House site into the redevelopment of the Sandringham Hotel site. After many months of negotiation with Coolwater Limited the Department of Property Services advised the Health and Social Services Committee that the most recent offer made by Coolwater Limited provided the Public good value.

Terms and conditions have now been agreed, subject to States approval, for Coolwater Limited to provide the Public with 1,500 square feet of ground floor Clinic space, comprising 3 separate clinics, reception, waiting area nurses' room, toilets and kitchenette including internal fit-out. Coolwater Limited also agrees to provide the flying freehold interest in 5 new one-bedroom flats with fully fitted kitchens and bathrooms which will be ready to furnish. The clinic space and 5 flats will be provided in exchange for the freehold interest in Catherine Quirke House in order to allow the development to proceed. The Environment and Public Services Committee has approved the Planning application submitted by Coolwater Limited. The Sandringham Hotel is largely demolished, so if States Assembly approval is granted, construction can commence in the near future.

The Health and Social Services Committee has already highlighted suitable alternative accommodation for the various parties currently located within Catherine Quirke House in other Committee administered properties.

The Department of Property Services fully supports this proposal and the build costs in relation to the finished property are estimated to be £920,000 (nine hundred and twenty thousand pounds sterling) with the completed property interests currently offered by Coolwater Limited being estimated to be valued at approximately £1,200,000 (one million, two hundred thousand pounds sterling).

It has been agreed that each party is to pay their own legal costs in relation to this transaction and there are no additional financial implications for the States arising from this proposition.

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