Belle Vue Site, St. Brelade: Transfer from Property Holdings to Housing for development of social housing

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A decision made 30 January 2012:

Decision Reference: MD-TR-2012-0004
Decision Summary Title:	Transfer of Belle Vue Site from Property Holdings to Housing		Date of Decision Summary:	10/1/2012
Decision Summary Author:	Interim Director - JPH		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Transfer of Belle Vue Site from Property Holdings to Housing		Date of Written Report:	10/1/2012
Written Report Author:	Interim Director - JPH		Written Report : Public or Exempt?	Public
Subject: The transfer of the Belle Vue site, St Brelade from Jersey Property Holdings (JPH) to Housing for future development as social and affordable housing.
Decision(s): The Minister approved the transfer of the Belle Vue Site, St Brelade from Jersey Property Holdings to Housing.
Reason(s) for Decision: The transfer reflects the appropriate accounting treatment for the property on the basis that the site will be developed by the Housing Department as social and affordable housing. Article 15(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.
Resource Implications: The transfer has no impact on either JPH’s or Housing’s near cash revenue account on transfer. The Medium Term Financial Plan will be adjusted to reflect the foregone receipts assumed from the disposal of this site, which will have an impact on the forecast Consolidated Fund balance.
Action required: Treasury to arrange for the asset and any associated budgets to be transferred from the JPH to Housing Department area of the States balance sheet.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Belle Vue Site, St. Brelade: Transfer from Property Holdings to Housing for development of social housing

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Treasury and Resources

Ministerial Decision Report

Transfer of belle vue site from property holdings to HOUSING

Purpose of Report

The Minister is asked to approve the transfer of the Belle Vue site, St Brelade from Jersey Property Holdings (JPH) to Housing for future development as social and affordable housing.

Background

The site forms part of the land acquired by compulsory purchase known as the ‘Lesquende’ land. Following the withdrawal of the Health and Social Services Department’s requirement for the site to be developed as a Day Care Centre and Residential Care Home, the site was identified as suitable for residential development.

Since an initial feasibility in 2007, a number of schemes have been produced and considered by planning. The latest scheme, comprising 35 two bed apartments for social rental and 20 two bed houses for the over 55’s based on the Life Time Home concept has been submitted for Planning Approval.

The tenure arrangements for the two bedroom ‘Life Time Homes’ has yet to be finalised, but the concept of disposing of a reversionary interest only is being actively explored by the Housing Department.

Proposal

The site currently sits on JPH’s balance sheet as an asset identified for disposal as there was an expectation that it would be developed as part first time buyer properties and part social rented housing to be developed by a Housing Trust.

Under IFRS accounting regulations this designation is no longer permissible as there is no expectation that the site will be sold within the next year.

As a social and affordable housing site that can be developed by the Housing Department, it is appropriate that it be transferred to that department’s balance sheet together with the associated budget.

The proposed development will contribute to the States provision of affordable housing and, subject to planning, development of the 35 apartments could commence in the last quarter of 2012, with development of the 20 housing units following in 2013, subject to agreement as to tenure.

The Minister will be required to consider the development proposals in detail when they are brought forward prior to tendering, in accordance with the requirements of Standing Order 168 (1)(d).

Recommendation

That the Minister approves the transfer of the Belle Vue Site, St Brelade from JPH’s to Housing.

Reason for Decision

The transfer reflects the appropriate accounting treatment for the property, based on the expectation that it will be developed by the Housing Department as social and affordable housing.

Article 15(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.

Resource Implications

The transfer between two entities within the States has no impact on either JPH’s or Housing’s near cash revenue account on transfer.

The disposal receipts currently forecast in the Medium Term Financial Plan will be adjusted to reflect the foregone receipts assumed from the disposal of this site, which will impact on the forecast Consolidated Fund balance.

Report author : Interim Director JPH	Document date : 10/1/2012
Quality Assurance / Review : Assistant Director Estates JPH	File name and path: l:\treasury\sections\corporate finance\ministerial decisions\dss, wrs and sds\2012-0004 -\mr transfer to housing 111207 rf.doc
MD sponsor : Treasurer