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Andium Homes Ltd: Approval to enter into a Development Agreement relating to the Limes Site

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 27 August 2021

Decision Reference:  MD-TR-2021-0105

Decision Summary Title:

Andium Homes Ltd: Approval to enter into a Development Agreement relating to the Limes Site

 

Date of Decision Summary:

 23 August 2021

Decision Summary Author:

Head of Shareholder Relations

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

Andium Homes Ltd: Approval to enter into a Development Agreement relating to the Limes Site

 

Date of Written Report:

23 August 2021

Written Report Author:

Head of Shareholder Relations

Written Report :

Public or Exempt?

Exempt

Articles 26 and 33

Subject:

Andium Homes Ltd: Approval to enter into a Development Agreement relating to the Limes Site

 

Decision(s):

The Assistant Minister for Treasury and Resources decided to -

 

  • provide approval for Andium to enter into a Development Agreement relating to the development of the Limes Site (“the Development”); and

 

  • agree that the Development will be funded from Andium’s Revolving Credit Facility up to a maximum budget of £44,042,852.

 

The approval to be subject to the following conditions: -

 

  • that Andium should provide the Assistant Minister with a copy of the executed Government Agreement that provides for the transfer of Willow House and the Willows Day Care Centre to Andium by 31 October 2021; and

 

  • that Andium should provide confirmation to the Assistant Minister that vacant possession of the Site has been achieved by 31 December 2021.

 

Reason(s) for decision:  

In signing MD-TR-2020-0014, the Assistant Minister for Treasury and Resources required Andium to continue to seek his approval for all Agreed Projects, including their funding mechanism, prior to commencement. P.129/2014 (Budget 2015) Appendix C defines an Agreed Project as “…a project in Jersey selected by the Housing Trust/Association/Company and approved by the Minister for Treasury and Resources as part of an agreed Business Plan or otherwise.”

 

A third-party assurance review has been completed and has not identified any matter which raises risks which cannot be mitigated or addressed by Andium.

 

There are currently insufficient monies available in the Housing Development Fund to provide a loan for a development of this size, therefore Andium will utilise their Revolving Credit Facility to fund the cost of this Development.

 

This approval is required for Andium to progress its strategic objectives of delivering a further 3,000 units in the period to 2030 and is aligned to Andium’s vision and stated aims within its Strategic Business Plan and is compatible with the emerging Island Plan strategy.

 

Resource Implications:

There are no additional resource implications, financial or manpower as a result of this decision for the Government of Jersey. The costs of development of the Site will be borne by Andium.

Action required:

The Head of Financial Governance to notify the Head of Shareholder Relations once this decision has been approved.

 

The Head of Shareholder Relations to advise the Chief Operating Officer and Finance Director of Andium Homes Ltd that Ministerial approval has been provided to the entry by Andium into the Development Agreement.

 

Signature:

 

 

Position: Deputy L. Ash, Assistant Minister for Treasury and Resources

 

Date Signed:

 

Date of Decision:

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