The official version of this document can be found via the PDF button.
The below content has been automatically generated from the original PDF and some formatting may have been lost, therefore it should not be relied upon to extract citations or propose amendments.
1240/5(1940)
QUESTION TO BE ASKED OF THE PRESIDENT OF THE POLICY AND RESOURCES COMMITTEE ON TUESDAY 9th SEPTEMBER 2003,
BY DEPUTY G.C.L. BAUDAINS OF ST. CLEMENT
Question
With regard to the report accompanying P.117/2003, Fief de la Fosse: proposed agreement with Les Pas Holdings Limited', would the President –
( a ) advise whether the £10 million valuation of the land in paragraph 35 includes estimated profit from the
development of approximately 100 homes on the site and, if not, could he supply an estimation of that development profit so that members can assess the true total value of the site proposed to be transferred to Les Pas Holding Limited?
( b ) inform members of the Committee's most recent estimate of the total legal costs that will be incurred by
the States if the litigation is pursued, and give a breakdown of that estimate into costs that have not yet been incurred and costs that have already been paid and will therefore be irrecoverable even if the case is settled?
Answer
- Yes. The calculation ofthevaluationof a site, such asthis,recognises the balance between potential profit and risk any developer faces, but it mustberemembered that, in ordertoobtainany profit at all, a developer will have to invest andriskaround £30 million in carrying out the development. Unlessthe States developed this site themselves, and took the same risks, whichhasnever been considered, the maximummarketvalue the publiccould have receivedwould be £10 million.
- The most recent estimateof potential legalcosts that couldbe incurred are the figures identified at paragraph 35 of the report accompanyingP.17/2003.The current splitbetweencosts that have already been incurred and estimated future costs isas follows:
Expended and irrecoverable (to end July'03)
External costs £1.57M
Funding of Court and judiciary £0.03M Officer time and associated resources £0.10M £1.70M
Estimated costs to end of trial
External costs £1.23M
Funding of Court and judiciary £0.07M Officer time and associated resources £0.10M Contingency £0.20M
£1.60M
Estimated additional costs of appeal
External costs £2.80M
Funding of Court and judiciary £0.40M Officer time and associated resources £0.30M Contingency £0.20M
£ 3 .7 0 M