IFC6 (Formerly: Jersey International Finance Centre Building No. 6): Planning Obligation Agreement

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A decision made 30 May 2017:

Decision Reference: MD-PH-2017-0018
Decision Summary Title:	IFC 6 – Planning Obligation Agreement		Date of Decision Summary:	23 May 2017
Decision Summary Author:	Director of Estates		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title:	IFC6 (Formerly Jersey International Finance Centre Building No.6) – Planning Obligation Agreement		Date of Written Report:	23 May 2017
Written Report Author:	Director of Estates		Written Report : Public or Exempt?	Public
Subject: Public’s participation in a Planning Obligation Agreement as freehold owner of the site of the proposed IFC Building No.6 in respect of the requirement to make a payment of £176,865 as a Transport Infrastructure Contribution. (RFo 1783-01-001)
Decision(s): The Minister decided, as recommended by Jersey Property Holdings, to approve the Public entering into the Planning Obligation Agreement by the Minister signing the agreement in accordance with his delegated powers.
Reason(s) for Decision: Under Standing Order 168 (1) (b) the Minister has delegated authority to action the grant or acquisition of rights or servitudes over land on behalf of the Public of Jersey.
Resource Implications: There are no direct financial or other resource implications for the Public as a result of this decision. This payment is to be made by The States of Jersey Development Company as owner of the leasehold interest and developer of the site.
Action required: Minister to sign the Planning Obligation Agreement in accordance with delegated authority under Standing Order 168 (1) (b).
Signature:		Position: Deputy E J Noel Minister for Infrastructure
Date Signed:		Date of Decision:

IFC6 (Formerly: Jersey International Finance Centre Building No. 6): Planning Obligation Agreement

DEPARTMENT FOR INFRASTRUCTURE

JERSEY PROPERTY HOLDINGS

Property Transaction for Ministerial Decision - Minister for Infrastructure

IFC6 (Formerly JERSEY International Finance Centre Building No.6) – Planning Obligation Agreement

RFo 1783-01-001

Purpose

The Minister is asked to approve the Public’s participation in a Planning Obligation Agreement as freehold owner of the site of the proposed JIFC in respect of the requirement for the States of Jersey Development Company Limited (JDC), as leaseholder and developer through its subsidiary company JIFC (6) Limited, to make a payment of £176,865 as a Transport Infrastructure Contribution.

Background

The Minister for the Environment has issued a Planning Permit for the development of building IFC6 on the current Esplanade Car Park. The permit includes reference to a Planning Obligation Agreement that requires JDC to make payment of a contribution of £176,865 to the Treasurer of the States as a Transport Infrastructure Contribution. The development may not be occupied until the payment is made.

As the site is owned by the Public and leased to JDC, and sub-let to a Special Purpose Vehicle sub-lessee company JIFC (6) Limited, the obligation rests with both the freehold and leasehold owners, who jointly and severally covenant to agree and undertake the obligation.

In practice, as JDC are a wholly owned States company, should they cease to exist for any reason, the obligation would fall on the Public in any event, so there is no material financial risk to the Public in signing the Planning Obligation Agreement.

A copy of the Planning Obligation Agreement, which incorporates the draft Planning Permit, is attached as Appendix B (SD).

Authority to Sign

Article 25(1) of the Planning and Building (Jersey) Law 2002 states that "The owner of an interest in land may by agreement with the [Planning] Minister enter into an obligation ("a planning obligation").

Whilst there is no compulsion for the (freehold) owner to enter into an agreement under this Article, there is nothing preventing the Public being party to the agreement.

The Public’s participation in the Planning Obligation Agreement is one of the matters delegated to the Minister for Treasury and Resources under States Standing Order 168 (attached as Appendix A).

The Law Officers’ Department has confirmed that the Planning Obligation Agreement is considered to be a servitude on the land and, as such, is covered by paragraph 1(b) of the Standing Order.

There is no requirement for the decision to be notified to the States under paragraph (3) of the Standing Order as it does not fall within the category of land transaction for which such notification is required.

Recommendation

That the Minister approves the Public entering into the Planning Obligation Agreement and signs the agreement in accordance with his delegated powers.

Written By: Director JPH

Signature ………………………… 23 May 2017

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