Esplanade Quarter: Planning Obligation Agreement – endorsement.

STATES OF JERSEY

ESPLANADE QUARTER: PLANNING OBLIGATION AGREEMENT – ENDORSEMENT

Lodged au Greffe on 5th August 2010 by the Deputy of St. John

STATES GREFFE

2010   Price code: B  P.111

PROPOSITION

THE STATES are asked to decide whether they are of opinion

1. to agree that the development of the proposed Esplanade Quarter and other areas of the St. Helier Waterfront (including the sinking of La Route de la Libération) should be deferred until there is a significant improvement in the economic situation in Jersey, with clear indicators of economic growth, and to request the Chief Minister, in accordance with Article 22(a) of the Articles of Association of the Waterfront Enterprise  Board  Limited,  to give  directions  to this  effect  to that company;
2. to request the Minister for Planning and Environment to bring forward the  Planning  Obligation  Agreement  in respect  of  the  Esplanade Quarter for endorsement by the States, prior to the commencement of any works on site.

DEPUTY OF ST. JOHN

REPORT

It  is  idiosyncratic  to  think  that  within  12 months  the  state  of  our  economy  has improved to such a degree that a £350 million development can begin. We are paying witness to the worst economic crisis since World War II. Jersey is clearly feeling the effects. On the same page of the Jersey Evening Post that the Press Release article relating to the Esplanade Quarter was printed, it was also reported that voluntary redundancies will begin throughout the States of Jersey. This has been borne out, not only within the States sector where redundancies are happening, but also across the private sector, with 5 members of my own family being made redundant in the last 9 months from industries as varied as Banking and Childcare: all are feeling the pressure. On top of this we are facing a black hole in our economy of £100 million. We cannot afford this scheme. Now is the time to be tightening our purse-strings.

How can we ask the public to tighten their belts and increase taxes if we are to begin the construction of the largest and most expensive development of recent times? We have  our infrastructure  to  maintain,  including  roads,  drains  and  sea-defences;  the Harbours at St. Aubin and Gorey are in need of urgent repair; States-owned properties like Overdale Hospital are in need of proper maintenance or redevelopment; and there is a large amount of work to be undertaken in order to achieve the North of Town regeneration. Yet instead of putting these in place first, we are looking to increase the turmoil for Islanders with the proposed building of an underpass, just after 6 months of traffic  disruption  whilst  works  on  Victoria  Avenue  were  completed.  The  media estimate a 7 year build programme for the Waterfront, but I would say the timescale is closer to 10/12 years for all works to be completed.

Serious consideration must be given to the well-being of the Island residents. Given the problems across the world, and on our own doorstep in Europe with Portugal, Spain, Greece and other E.U. neighbours in financial difficulties, we need to take note of the possible difficult times ahead.

Other than the aforementioned reasons why development should not commence, it is in clear violation of my proposition P.77/2009 approved by the Assembly on 15th July 2009. It appears that the Chief Minister has given the Waterfront Enterprise Board and Planning and Environment directions which seem to break the terms agreed when the proposition was approved by the States, which specifically restricted the sinking of the road.

Financial and manpower implications

I do not believe there are any additional financial or manpower implications as the land can simply continue to be used for its current purpose if it is not developed at present.

APPENDIX

PROPOSITION

THE STATES are asked to decide whether they are of opinion

to agree that the development of the proposed Esplanade Quarter and other areas of the St. Helier Waterfront (including the sinking of the Route de la Libération) should be deferred until there is a significant improvement in the economic situation in Jersey, with clear indicators of economic growth, and to request the Chief Minister, in accordance with Article 22(a) of the Articles of Association of the Waterfront Enterprise Board Limited, to give directions to this effect to that company.

DEPUTY OF ST. JOHN _____________________________________________________________________

REPORT

Since September 2008 the Island and world has been seriously affected by the credit crunch; given that many Islanders have serious concerns as to where Jersey will find itself in the next 3 to 5 years, now is not the time to move forward on developing the underpass/sunken road or building on the Esplanade Quarter/Waterfront.

Serious consideration must be given to the well-being of the Island and to completing the many projects that need to be put in place; like work on the infrastructure, an extension  to  the  hospital,  building  the  Town  Park,  the  Ann  Street  Development, Overdale, etc., before embarking on a grandiose scheme at the Waterfront/Esplanade Quarter and underpass.

Financial and manpower implications

I do not believe there are any additional financial or manpower implications as the land can simply continue to be used for its current purposes if it is not developed at present.

ESPLANADE QUARTER AND WATERFRONT DEVELOPMENT: DEFERRAL (P.77/2009) – AMENDMENT

PAGE 2 –

Before the words "of the proposed Esplanade Quarter" insert the words "works by Harcourt Developments Limited".

DEPUTY OF ST. JOHN _____________________________________________________________________

REPORT

This amendment is to identify the works currently proposed, but yet to be undertaken, by Harcourt Developments Limited and WEB, rather than the works being progressed at present on the former abattoir site.

There are no financial or manpower implications for the States arising from this amendment.

EXTRACT FROM STATES MINUTES OF 15TH JULY 2009 Esplanade Quarter and Waterfront development: deferral P.77/2009

THE STATES, adopting a proposition of the Deputy of St. John , agreed that the development works by Harcourt Developments Limited of the proposed Esplanade Quarter and other areas of the St. Helier Waterfront (including the sinking of the Route de la Libération) should be deferred until there was a significant improvement in the economic situation in Jersey, with clear indicators of economic growth, and requested the Chief Minister, in accordance with Article 22(a) of the Articles of Association of the Waterfront Enterprise Board Limited, to give directions to this effect to that company.

Members present voted as follows –

POUR: 37

Senator P.F. Routier

Senator P.F.C. Ozouf Senator A. Breckon

Senator S.C. Ferguson Senator A.J.D. Maclean Senator B.I. Le Marquand Connétable of St. Helier Connétable of Trinity Connétable of St. Brelade Connétable of St. Martin Connétable of St. John Connétable of St. Saviour Connétable of St. Lawrence Connétable of St. Mary Deputy R.C. Duhamel (S) Deputy of St. Martin

Deputy R.G. Le Hérissier (S) Deputy J.B. Fox (H)

Deputy J.A. Martin (H) Deputy G.P. Southern (H) Deputy of St. Ouen

Deputy of St. Peter

Deputy J.A. Hilton (H) Deputy J.A.N. Le Fondré (L) Deputy S.S.P.A. Power (B) Deputy K.C. Lewis (S) Deputy I.J. Gorst (C) Deputy of St. John

Deputy M. Tadier (B) Deputy A.E. Jeune (B) Deputy of St. Mary

Deputy T.M. Pitman (H) Deputy A.T. Dupré (C) Deputy T.A. Vallois (S) Deputy M.R. Higgins (H) Deputy A.K.F. Green (H) Deputy J.M. Maçon (S)

CONTRE: 4

Senator T.J. Le Main Connétable of St. Ouen Connétable of St. Clement Deputy P.V.F. Le Claire (H)

ABSTAIN: 3

Senator T.A. Le Sueur Connétable of Grouville Connétable of St. Peter

In  accordance  with  the  provisions  of  Standing  Order 106(b),  the   Connétable s  of Grouville and St. Peter and Deputy Edward James Noel of St. Lawrence , declared an interest in this matter as States Directors of the Waterfront Enterprise Board and Senator  Frederick  Ellyer  Cohen,  in  accordance  with  the  provisions  of  Standing Order 106(b),  declared  an  interest  in  this  matter  in  view  of  his  responsibility  as Minister for Planning and Environment, but remained in the Chamber for the duration of the debate.

NEW RELEASE FROM THE CHIEF MINISTER

EMBARGOED UNTIL MONDAY 2 AUG AT NOON

2 Aug 2010

Chief Minister welcomes Esplanade Quarter planning consent

Jersey's Chief Minister has endorsed the Planning and Environment Minister's decision to issue an outline planning consent for the Esplanade Quarter.

In 2008, the States Assembly supported the Esplanade Quarter Masterplan - the development of an area that will provide a balanced mix of offices, homes and community facilities in St Helier. Under the plans, the area would link the Esplanade to the Waterfront development.

The outline planning consent agrees the principles for the development of the land which comprises the Esplanade Quarter. It is not a development agreement and the decision on who will develop the area is still to be made.

Chief Minister, Senator Terry Le Sueur said: "This is a positive step towards delivering a much needed business and community area which has been strongly endorsed by the States. A high quality development on this reclaimed land will help to relieve pressure on our valuable countryside and preserve our natural environment.

"Jersey relies on a thriving economy fuelled by the Finance Industry and if we are to maintain and grow our economy, then a modern business centre is a vital component in our offering. In order to keep taxes as low as possible while providing good quality public services for the island, we need a sound and secure financial services sector. The Planning Minister's decision is an important step to securing that future."

The Esplanade Quarter land is under the control of the Waterfront Enterprise Board but its ultimate ownership rests with the States of Jersey. As a result, the Treasury Minister has agreed an outline Planning Obligation Agreement

(POA) to ensure that any development meets the standards required by the Planning Minister and that the Esplanade Quarter development is delivered.

Treasury Minister, Senator Philip Ozouf , said: ""As Treasury Minister, I have ultimate responsibility, on behalf of the States, for this land and the financial viability of the scheme and as such I have agreed a Planning Obligation Agreement which safeguards the public interest.

"In developing the Planning Obligation Agreement I have insisted on additional clauses being added so that as Treasury Minister I have the final sign off on any development. These include the requirement for all necessary financial guarantees in the form of bonds and securities etc from the developer to ensure the public is not put at any risk from the developments. The Waterfront Enterprise Board must agree any deal with me, and I guarantee to protect the public interest and ensure that any risk is minimised."