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Elizabeth Harbour Phase I warehouse - lease to Ferryspeed (C.I.). Ltd.

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STATES OF JERSEY

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ELIZABETH HARBOUR PHASE  I WAREHOUSE: LEASE TO FERRYSPEED  (C.I.) LIMITED

Lodged au Greffe on 2nd November 2004 by the Harbours and Airport Committee

STATES GREFFE

PROPOSITION

THE STATES are asked to decide whether they are of opinion

( a) to approve the lease to Ferryspeed (C.I.) Limited, the south-western unit of Elizabeth Harbour

Phase I Warehouse, designated E26, for a period of 9  years commencing 1st July 2004, to provide –

(i ) a n i n ternal warehouse area of 5,931 square feet;

(i i ) t h e e ntire demise to continue in its present use in connection with the business of storage,

handling and transit of goods through the Harbour;

(i i i) t h e rental for E26 an annual total of £51,599.70 based on a rate of £8.70 per square foot,

subject to an annual review in line with the retail price index;

(b ) to authorise the Attorney General and the Greffier of the States to pass the necessary contracts on

behalf of the Public;

(c ) to authorise the Treasurer of the States to receive the rents as they become due.

HARBOURS AND AIRPORT COMMITTEE

Note:  The Finance and Economics Committee supports these proposals on the basis that the Department of

Property Services of the Environment and Public Services Committee has assessed the proposed rental value as a fair reflection of comparable market rental values.

REPORT

Ferryspeed (C.I.) Limited currently lease the warehouse accommodation from the States, at a rate of £8.37 per square foot. This lease terminates on 30th June 2004. The terms and conditions including the rental are similar to those approved by the States for Condor Logistics which occupies the northern half of the building.

The heads of terms of the lease are as follows –

LESSOR: Harbours and Airport Committee on behalf of the Public of the Island.

LESSEE:

DEMISED PREMISES:

TERM:

OBJECT OF THE LEASE:

COMMENCING RENTAL AND REVIEWS:

TERMINATION:

USE: COMPLIANCE:

ALIENATION: INSURANCE:

REPAIR AND MAINTENANCE

LEGAL COSTS:


Ferryspeed (C.I.) Limited.

E26 – South Western Unit Phase I Warehouse, Elizabeth Harbour measuring 5,931 square feet.

9 years commencing 1st July 2004.

The intention is to allow the renewal of the present lease which terminated on 30th June 2004.

E26 £51,599.70 per year based on a rate of £8.70 per square foot.

E26 shall be subject to an annual review in line with the retail price index.

At the termination of the Lease howsoever caused, the tenant will give up possession of the demised premises including any additions thereto. The lease will also include a break clause to facilitate any operations development of new harbour premises.

To use the premises only in connection with the business of storage, handling and transit of goods through the harbour.

Conditions of the Harbours (Administration) (Jersey) Law 1961 and all directions given by the Harbours and Airport Committee and/or the Harbourmaster, pursuant to the Law and all Regulations made under it.

Assignment or sub-letting not to be unreasonably withheld.

The tenant shall also maintain in force a public liability policy of not less than £5 million in respect of any one occurrence or such other sum above this as the Lessors' insurance company from time to time may require.

The Lessee at all times to substantially repair, renew, paint, decorate, cleanse, maintain and make good.

Both parties are to pay their own legal costs.

The lease also contains the "Public Interest" clause whereby the premises can be returned to the Public.