Sale of properties

STATES OF JERSEY

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SALE OF PROPERTIES

Lodged au Greffe on 13th April 2004 by the Housing Committee

STATES GREFFE

PROPOSITION

THE STATES are asked to decide whether they are of opinion

(a ) to authorise the sale, on the open market, of the following unoccupied properties – 1 . O l d S tation House, Corbière, St.  Brelade

2 . W in c hester House, Winchester Street, St.  Helier

3 . 1 0 1 D on Road, St. Helier

4 . E a s t Telephone Exchange, St.  Saviour

5 . A m y 's House, St. Martin

6 . L ' H ô pital, St.  Martin;

( b ) to authorise the Housing Committee to utilise the proceeds of sale of the above properties to

undertake the phased refurbishment of Le Clos de Roncier, St.  Clement;

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

contract it may be necessary to pass in connection with the sale of the properties referred to in paragraph  (a) above.

HOUSING COMMITTEE

Notes: 1. T h e Finance and Economics Committee's comments are to follow. 2 .  T h e Policy and Resources Committee's comments are to follow.

REPORT

Introduction

The Housing Committee currently administers the 6 unoccupied properties, details of which are listed below –

1. O  ld Station House, Corbière, St. Ouen

A t w o-bedroom property situated on the headland of Corbière. The property is in need of complete

refurbishment.

2. W  in chester House,Winchester Street, St.  Helier

A 1 9 th Century property converted into 3 one-bedroom flats. The configuration of the flats is poor, with

one  flat  having  a  bedroom  separated  by  a  communal  corridor.  The  property  is  in  need  of  major refurbishment to bring it up to modern-day standards.

3. 1 0 1 Don Road, St. Helier

T h is property is converted into 2 units, a three-bedroom flat and a four-bedroom flat. The general layout,

sound insulation and standard of the property is poor. The building is in need of major refurbishment.

4. E a s t TelephoneExchange,St. Saviour

T h i s property has a three-bedroom flat to the rear. The remainder of the property is a large store and is

used by another States Department. This building is in need of major refurbishment.

5. A  m y's House, St. Martin

A tw  o-bedroom house in need of general refurbishment.

6. L ' H ôpital, St.  Martin

A o n e-bedroom cottage, L'Hôpital is affected by a significant land slippage. The Housing Committee is

advised by the Law Officers' Department to rectify the problem prior to any sale. Subject to approval by the States Assembly to sell L'Hôpital, the Housing Committee agrees with this advice.

The properties listed above are all in need of significant refurbishment, the cost of which is estimated to be in the region of £1  million. Their present condition, location and on-going maintenance burden, makes them unsuitable for social housing.

The collective  valuation of the 6  properties is in the region of £2  million net. This figure is based on the assumption that L'Hôpital would be sold once stabilisation works had been completed. The proceeds of sale from L'Hôpital would then be used to reimburse the Housing Committee for the works already undertaken.

It is proposed that once sold, the proceeds of sale of the 6 properties should be used to commence a phased refurbishment of Le Clos de Roncier, St.  Clement.

Le Clos de Roncier

This is a large family estate made up as follows –

4 t w o -bedroom houses constructed in 1952

1 4 t h ree-bedroom houses constructed in 1952

6 5 t h ree-bedroom houses constructed in 1971-73

The houses constructed in 1952, although in need of general refurbishment, have stood the test of time and are in better condition than those constructed in 1971-73, which are in need of significant refurbishment. The Housing Committee would like to undertake the following works –

• R e p l ace all windows with uPVC double-glazed units.

• E x t e rnally clad the buildings to provide high levels of insulation and improve appearance.

• R e p l ace gutters, fascias etc.

• R e p l ace existing heating systems.

• P r o v ide additional parking.

• E x t e nsively landscape communal gardens.

Realistic budget figures have been obtained for the works which are likely to cost in the region of £2,250,000. Expenditure from the Committee's Planned Maintenance budget in the sum of £275,000 has already been earmarked for the estate in 2005 and therefore this will be added to the proceeds of sale from the 6 properties to ensure that there are sufficient monies to complete the works. In addition, the management of this project will be handled in-house' to reduce the need for expensive project management fees.

Conclusion

The 6  properties recommended for sale are no longer required and are in need of significant expenditure. The disposal of the same, with the proceeds of sale utilised to commence work on a family estate in desperate need of refurbishment, is an imaginative use of the Housing Committee's property portfolio. Indeed it is an example of strategically managing that portfolio for the benefit of some 83 States Tenants.

There are no additional financial or manpower implications for the States. Indeed the refurbishment of Le Clos de Roncier will have a positive effect in terms of the anticipated reduced expenditure on maintenance over the first 10  years after completion.

The States are asked to support the Housing Committee with this proposal.