16 Clairvale Road, St. Helier - Adult Mental Health Rehabilitation Unit - proposed purchase

STATES OF JERSEY

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16 CLAIRVALE ROAD, ST. HELIER: ADULT MENTAL HEALTH REHABILITATION UNIT – PROPOSED PURCHASE

Lodged au Greffe on 5th July 2005

by the Health and Social Services Committee

STATES GREFFE

PROPOSITION

THE STATES are asked to decide whether they are of opinion

to r e fer to their Act dated 9th October 2002 in which they approved inter alia an agreement with Retail

Ventures Limited to develop and lease an Adult Mental Health Rehabilitation Unit at 16 Clairvale Road, St. Helier , and their Act dated 14th December 2004 in which they approved inter alia the allocation of £1.4 million in the Capital Programme of the 2005 Budget to purchase the said property, and

(a ) to authorise the purchase from Retail Ventures Limited of the said property as shown on Drawing

No.1854 D1 for a sum of £1,288,000, with each party to be responsible for their own legal costs in connection with passing the contract before the Royal Court;

(b ) 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 purchase of the said property and any interest therein;

( c ) to authorise the Treasurer of the States to pay all monies due to Retail Ventures Limited in

connection with the purchase of the said property from the 2005 Capital Programme.

HEALTH AND SOCIAL SERVICES COMMITTEE

Note:  The Finance and Economics Committee's comments are to follow.

REPORT

On 9th October 2002 the States approved P.167/2002 (16 Clairvale Road, St. Helier: Adult Mental Health Rehabilitation Unit – development agreement and lease) to enter into a development agreement with Retail Ventures Limited to procure the Unit, and to lease the Unit for an initial 2 year period.

The Report explained that an option had been negotiated to purchase the completed building in 2005 at a cost of £1,288,000, subject to States' approval of the necessary funding in the 2005 Capital Programme.

The 2005 Capital Programme funding, which included £1.4 million for 16 Clairvale Road, was approved by the States on 14th December 2004.

The commencement date of the initial 2 year lease was 31st July 2003, and the most logical date therefore to acquire the property is Friday 29th July 2005. If this date is not met, it will be necessary to enter into new interim lease terms up to the actual date of purchase.

Financial and manpower statement

There are no additional manpower implications for the States in purchasing the property, nor are there any additional financial implications above the acquisition cost.