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WRITTEN QUESTION TO THE MINISTER FOR ECONOMIC DEVELOPMENT BY DEPUTY S.S.P.A. POWER OF ST. BRELADE
ANSWER TO BE TABLED ON TUESDAY 29th APRIL 2014
Question
Would the Minister confirm that the proposed rent for the Elizabeth Harbour Cafe is approximately £50,000 per annum and that this is combined with a full repairing and maintaining lease and all the fit-out costs and, if so, does he consider that this could preclude many interested parties from expressing interest?
Would he agree that a high rental for the cafe concession at the harbour will simply ensure a longer void period and the risk of letting to a restaurant operator who will have to seek high prices to cover costs?
What market research, if any, has been undertaken to establish the price range and menu options which would be appropriate for customers waiting for a ferry from Jersey?
Answer
As part of the Expression of Interest (EOI) process for potential tenants, a list of proposed lease terms, including an annual rental guideline as well as likely insurance and repair costs were listed in the document. However, the EOI also made it clear that "variations to these lease terms will be considered on their merits" and that potential tenants have been advised that we would consider all reasonable variations to suggested terms such as incremental rent increases. Ports of Jersey are aware of the current poor state of repair in the café facility, which over and above being as a result of general wear and tear can also be attributed to essential maintenance not being carried out by the previous tenant.
Interest from potential tenants has been high and as such the process has taken slightly longer than was at first expected. However, further discussions with those short-listed potential operators will take place over the coming weeks and as a result we are hopeful of an announcement shortly afterwards.
Ports of Jersey do not intend to operate this facility and therefore a decision as to the style of service, menu and pricing is appropriately a decision of the appointed tenant as they are responsible for its commercial success. The suitability of their offering to ferry passengers is part of the appointment process. All of the shortlisted tenants are well established businesses, with proven experience in the catering trade. Therefore, Ports of Jersey are confident that whoever is appointed will make this a successful business, best serving both local residents and passengers using the ferry terminal.