Process in place for the sale of States property following the review of the proposed sale of former JCG site

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WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY THE CONNÉTABLE OF GROUVILLE

ANSWER TO BE TABLED ON TUESDAY 3rd JULY 2007

Question

What processes for the sale of States' property has the Minister put in place following the recommendations made (and accepted by him) in the review of the proposed sale of the former Jersey College for Girls site (S.R.10/2007)?

Answer

The Corporate Services Scrutiny Sub-Panel when reviewing the proposed sale of the former Jersey College for Girls endorsed the recommendations of its adviser, which were accepted by me. I set out the nine recommendations below with my comments on each in italics.

Recommendations

1. T he States should review theirmethodofpropertydisposalto establish the correct methodappropriateto a specific site.

P r operty Holdings policy is to decide on the most appropriate method of property disposal on a site

specific basis.

2. The States should determine a criteria statement to enable them to consider proposals where a straightforward sale of a propertyis not possible.

P r operty Holdings will submit a disposals strategy for approval as part of a Strategic Property Plan to be

considered by the States early next year. The strategy will include proposals for managing the disposal of complex and high value properties.

3. M arketing strategies should be considered for anydisposalpriorto advertising and a decisionmadeas to whether such marketing shouldbecarried out in-houseor an externalagent/surveyor appointed.

P r operty Holdings currently applies this policy.

4. W here informal discussions are carried out prior to anyformalmarketing, the details ofsuchdiscussions should bedocumentedand the rationale for choosing the parties approached clearly stated.

P r operty Holdings currently applies this policy.

5. W here a disposal property requires a developmentbrief the Statesshould provide its Officers with clarity upon priorities relating to planning,economic viability, uses and social issues whichmay affect the brief.

W h en determining the most appropriate use for a property that has been identified for disposal, Property

Holdings takes full account of all relevant information to inform the development brief. Development briefs are amended in order to reflect changing prioritise, an example of which is the Belle Vue site identified in the 2007 Plan.

6. I n choosing a purchaser or preferred developerorjoint venture partner the States' Officers need clearly defined goals and objectives to enable them toconsider fairly eachoffer/proposal.

P r operty Holdings' overriding objective is to extract optimum benefit from property assets- this is not

restricted to financial benefit. The choice of disposal route, through sale or development, will support this objective.

7. Legal advice should be sought at an early stage so that the choice of a preferred developer can be

documented so that both parties have security in proceeding with a scheme.

S h ould Property Holdings enter into this type of agreement in future, legal advice will be taken at an early

stage.

8. W here disposals are for whatever reasons complexand/or likely to take a period of time to reach anoutcome independent advice should be obtained atappropriate stages in respect of values.

P r operty Holdings currently applies this policy.

9. P rior to thechoiceof any purchaser/preferred developer, due diligence should be carried out on the parties concerned to establish their financial standing and their ability to deliver their proposals. Whilst it is accepted that this may have to be duplicated at a later stage where a scheme such as the one under consideration takes a significant period of time toreach fruition, itis imperative at the outset that the chosen party is the right one from thebeginning.

P r operty Holdings will continue to apply this policy, where appropriate, in particular for transactions

which are not simple purchases.