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Clos du Ruisseau and Clos Le Gallais: Planning Obligation Agreements: Amendment

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A decision made 29 October 2012:

Decision ref:

MD–PE–2012-0111

Subject:

Amendment to the planning obligation agreements for Clos du Ruisseau and Clos Le Gallais

Decision Summary title:

DS – amendment to the planning obligation agreements for Clos du Ruisseau and Clos Le Gallais

DS author:

Principal Planner – Policy and Projects

DS date:

23 October 2012

DS Status:

Public

Written Report title:

WR - Barclays and Jersey Homes Trust – Proposed security revision requiring amendment to the planning obligation agreements for Clos du Ruisseau and Clos Le Gallais

WR author:

Legal Adviser Property - Law Officers’ Department

WR date

25 September 2012

WR Status:

Public

Oral rapporteur:

Principal Planner / Director

Decision(s):

  1. The Minister agreed to amend the planning obligation agreements in respect of Clos du Ruisseau and Clos Le Gallais, in accordance with the Law Officer’s report, and
  2. delegated responsibility to the Chief Executive Officer to sign the necessary documents.

Reason(s) for decision:

  1. The revision to the planning obligation agreements for Clos du Ruisseau and Clos Le Gallais will enable Barclays Private Clients International Limited to revise its security arrangements with The Jersey Homes Trust.
  2. The Treasurer of the States has approved the proposed security revision subject to approval of the security documentation

Legal and resource implications:

None

Action required:

  1. The department to advise the Law Officers of the Minister’s decision;
  2. The Law Officers to prepare the necessary documentation for the Chief Executive Officer’s signature.

Signature:

 

 

Position:

Deputy RC Duhamel, Minister for Planning and Environment

Date Signed:

 

Date of Decision (If different to Date Signed):

 

Clos du Ruisseau and Clos Le Gallais: Planning Obligation Agreements: Amendment

 

 

Item No:

 

 

Date:

 

DEPARTMENT OF THE ENVIRONMENT

 

Barclays and Jersey Homes Trust

Proposed security revision requiring amendment to the planning obligation agreements for Clos du Ruisseau and Clos Le Gallais

 

Purpose of the report

To seek the Minister’s agreement to revise the planning obligation agreements for Clos du Ruisseau and Clos Le Gallais to enable Barclays Private Clients International Limited to revise its security arrangements with The Jersey Homes Trust. The Treasurer of the States has approved the proposed security revision subject to approval of the security documentation.  

 

Background and discussion

Barclays Private Clients International Limited ("Barclays") and The Jersey Homes Trust ("JHT") have agreed to a revision of the security arrangements for the 18 JHT properties funded by Barclays. Under the new arrangements, each such property will be subject to a charge (judicial hypothec) in favour of Barclays covering all amounts due by JHT to Barclays in relation to the funding of the various Barclays-funded JHT properties but capped in respect of capital in each case at a specified amount corresponding to the open market value of the property concerned as valued in 2011. The Treasurer of the States has approved the proposed security revision subject to approval of the security documentation.  

 

Clos du Ruisseau and Clos Le Gallais, in common with the majority of the other Barclays-funded JHT properties, are subject to provisions under which the property must be used as social rented housing unless, in an insolvency of JHT, the States are offered, and decline, the option to step into the shoes of Barclays. In the case of Clos du Ruisseau and Clos Le Gallais these provisions are contained in the relevant planning obligation agreements (clause 6 in each case) rather than in the title to the properties as is the case with the other relevant properties.

 

As drafted, the provisions of clause 6 require there to be a judicial hypothec charged on the property "to secure the repayment of monies loaned with the consent of the Housing Minister to the Social Rental Landlord to enable it to proceed with the acquisition and/or development of the [Social Rental] Land". This does not quite accord with the new security arrangements because under them each charge will secure (albeit on a capped basis as referred to above) all monies loaned by Barclays to JHT in respect of all the Barclays-funded JHT properties.

 

By amending clause 6.2 of each planning obligation agreement as proposed, Clos Le Gallais and Clos du Ruisseau will be placed on a par with the other relevant JHT properties in that the social rental restriction/States step-in provisions will apply where the funder has a charge on the property concerned which has been approved in writing by the Treasurer of the States. 

 

Clos Le Gallais – P/2005/1998

Clos du Ruisseau – P/2006/0048

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