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Elizabeth Harbour Phase I Warehouse - lease to Commodore Express (Jersey) Limited

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STATES OF JERSEY

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ELIZABETH HARBOUR PHASE  I WAREHOUSE: LEASE TO COMMODORE EXPRESS (JERSEY) LIMITED

Lodged au Greffe on 13th April 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 leasing by the public to Commodore Express (Jersey) Limited of the northern half

of the Elizabeth Harbour Phase I Warehouse, lean-to annexe and outside working area, designated E27, E25B and E27A, for a period of 21 years commencing on 1st July 2004, to provide –

(i ) a n in ternal warehouse and lean-to annexe area of 10,427  square feet and 1,650  square fee

respectively along with the outside working area E27A measuring 20,372  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;

( ii i) t h e rental for areas E27 and E25B at an annual total of £105,069.90 based on a rate of

£8.70 per square foot, subject to 5-yearly market review;

(i v ) t h e rental for E27A at an annual sum of £10,186.00 based on a rate of £0.50 per square

foot and subject to review in line with the market on 1st September 2004 and 5-yearly thereafter;

(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

Notes: The Finance and Economics Committee supports these proposals on the basis that the Property Services

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

REPORT

Following the completion by Jersey Harbours of the Phase  I Warehouse, Elizabeth Harbour in 1992, the northern half E27 was leased to Commodore first on a 3-year lease, followed by a 9-year lease which expires on 30th June 2004. The lean-to extension E25B was constructed in 1993. The external working area E27A is immediately outside the Phase  I Warehouse E27.

Current  annual  yield  from  the  property  in  question  is £102,779.18;  the  new  annual  total  will  amount  to £115,255.90.

The heads of terms for the proposed lease before the States are

LESSOR: The Public of the Island of Jersey. LESSEE: Commodore Express (Jersey) Limited.

DEMISED E27 – northern  part  Phase  I  Warehouse,  Elizabeth  Harbour PREMISES: measuring 10,427 square feet.

E25B – northern lean-to of Phase  I measuring 1,650  square feet. E27A – external working area measuring 20,372  square feet.

LEASE TERM: 21-year lease to be granted commencing 1st July 2004.

COMMENCING E27 and E25B £105,069.90 per annum based on a rate of £8.70 per RENTAL: square foot.

External working area E27A £10,186.00 per annum based on a rate of £0.50 per square foot.

RENT REVIEWS: E27 and E25B shall be reviewed every 5  years to an amount agreed

to represent the open market value. Likewise, E27A, but the first review to occur on 1st September 2004 (to coincide with another leased area) and 5-yearly thereafter.

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

USE: To  use  the  premises  only  in  connection  with  the business  of

storage, handling and transit of goods through the harbour. Such condition to apply to any sub-tenants.

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