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A decision made (21/12/2006) regarding Channel Islands Yacht Club (Jersey) Limited – Sale of Car Parking Area, Bulwarks, St Aubin.

Subject:	Channel Islands Yacht Club (Jersey) Limited – Sale of Car Parking Area, Bulwarks, St Aubin
Decision Reference:	MD-PH-2006-0100	Exempt clause(s):		None
Type of Report: (oral or written)	Written	Person Giving Report (if oral):		N/A
Telephone or e-mail Meeting?	N/A	Report File ref:		15/427/1&3
Written Report – Title	Channel Islands Yacht Club (Jersey) Limited – Sale of Car Parking Area, Bulwarks, St Aubin	Written report - author		Neil Sproston
Decision(s): 1. That the Public sell an area of land of approximately 1,876 sq.ft. to the Channel Islands Yacht Club (Jersey) Limited for the sum of £93,000, subject to a restriction upon future development and with each party to bear its own professional fees. 2. Under Standing Order 168 (1) (a) and 168 (3) the Minister for Treasury and Resources hereby notifies the States that he has accepted the recommendation of Property Holdings to agree to the above land transaction. The Minister hereby authorises the Attorney General and the Greffier of the States to pass any contracts on behalf of the Public of Jersey that may be necessary. After the expiry of 15 days following presentation to the States the transaction may be concluded.
Reason(s) for decision: Under Standing Order 168 (1) (a) and 168 (3) the Minister is required to notify the States of his acceptance of recommendations to dispose, acquire, let or rent land on behalf of the public of Jersey.
Action required: 1. The Director of Property Holdings to request the Greffier of the States to notify the States of the above decision. 2. The Greffier of the States to notify Property Holdings and Law Officers’ Department of the date when the States has been notified. 3. After the expiry of 15 days following presentation to the States, the Attorney General and the Greffier of the States to pass any contracts on behalf of the Public of Jersey that may be necessary.
Signature: (Assistant Minister)[1] Deputy J Le Fondré			Date of Decision: MD-PH-2006-0100 21 December 2006

Channel Islands Yacht Club (Jersey) Limited – Sale of Car Parking Area, Bulwarks, St Aubin

TREASURY AND RESOURCES DEPARTMENT

PROPERTY HOLDINGS

Property Transaction for Ministerial Decision - Minister for Treasury and Resources

Channel Islands Yacht Club ( Jersey ) Limited – Sale of Car Parking Area, Bulwarks, St Aubin

Purpose

Further to previous negotiations to consider the possible sale of the above Public owned land to the Channel Islands Yacht Club (Jersey) Limited.

Background

Since the mid 1960’s the Public has let land at the Bulwarks to the Royal Channel Island Yacht for car parking and boat storage. Presently the Club has the use of 15 car parking spaces adjacent to its Club house, for which a rent is presently payable of £6,496 per annum. This rental figure was originally established in 1998, inclusive of an additional 7 spaces that have historically been used for boat storage. The use of this area was relinquished by the Club in December 2005 and has now been incorporated into a revised car parking layout.

Following protracted negotiations with the Club over a further lease and queries concerning land ownership (now dispelled by the Law Officers’ Department) the Club has requested the opportunity to purchase the area of land situated adjacent to its Club house.

Heads of terms setting out the Public’s proposal to sell an area limited to 8 car parking spaces was originally tabled in November 2005 for a price of £110,000. The terms of sale specify that no building or development was to be permitted in respect of the land to be conveyed.

After clearing significant rental arrears in June 2006, the Club through the Constable of St Brelade, submitted a counter offer of £50,000 for the land concerned with the majority of the terms being accepted. In an attempt to reach a negotiated settlement Property Holdings made a further revised offer to the Club in July 2006 of £93,000 for estimated area of 1,847 square feet, capable of accommodating 12 car parking spaces.

Current Situation

Whilst the Club membership, together with their own independently appointed Valuer appear to accord with the level of value arrived at by Property Holdings, the Club, through the Constable, is requesting a sympathetic approach be taken in finalising a price for the land. In its correspondence the Club objects to the loss of boat/dinghy parking and associated facilities in proximity to the harbour, though no rational argument is put forward to counter the Public’s valuation. Based on 12 car parking spaces the sum of £93,000 reflects a rent per space of circa £550 per annum, which is felt reasonably reflects the value associated with parking for residential use in the area as well as the values generated by the spaces on the Public’s own car park. Should the land be purchased by the Club it would have the ability to let spaces privately to local residents, should it so choose.

It is not considered there is any significant marriage value generated through the sale of the land, though if the Club house were to be converted to alternative use, subject to usual consents, the availability of some car parking would be critical in this regard.

It is proposed that possible use of car parking at the Bulwarks for boat storage for the Club, principally in the winter months be deferred until the level of demand for parking can be more accurately assessed. Should this be at an appropriate level then agreement could be made with Transport & Technical Services for this facility.

The Club has requested that an area of 1,876 square feet be conveyed to it. Although this is a larger area than the initially proposed by Property Holdings it is considered acceptable by Property Holdings and Transport & Technical Services, though the area will be verified by a site survey.

Recommendation

It is proposed that the Public dispose of an area equivalent to 1,876 square feet for the sum of £93,000 subject to a suitable restriction on development and with each party to pay its own professional fees.

Written By: Neil Sproston

Signature …………………………

Authorised By: Assistant Director Property Holdings

Signature ………………………… Date 12 December 2006