College Gardens Development, St. Helier: Shareholder approval to commence construction, funding and sale

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A decision made 9 August 2016:

Decision Reference: MD-TR-2016-0066
Decision Summary Title:	SoJDC – College Gardens – approvals relating to construction, funding and sale.		Date of Decision Summary:	2nd August 2016
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:	SoJDC – College Gardens – approvals relating to construction, funding and sale.		Date of Written Report:	2nd August 2016
Written Report Author:	Head of Shareholder Relations		Written Report : Public or Exempt?	Exempt: Article 33
Subject: Shareholder approval for the States of Jersey Development Company (“SoJDC”) to commence construction of the College Gardens development, its funding and resultant sale.
Decision(s): The Minister decided the following in accordance with Article 27 of the Company’s Articles of Association and in accordance with 13.1 and 17.1 of SoJDC’s MoU. To approve SoJDC to:- create six subsidiary companies to College Properties Limited to hold the six blocks of apartments; enter into a sale and development agreement for an agreed amount with the Jersey Homes Trust (Block F); enter into a funding agreement with HSBC; enter into two construction contracts for construction blocks A,B,C,D,E and F for an agreed total sum; complete the sale of the units created in blocks A, B,C,D and E to third parties as and when the blocks complete. The above approvals are subject to:- a sufficient level of legally binding pre-sales being in place which exceed construction costs (net of any amounts paid from SoJDC’s own resources), as set out in the Memorandum of Understanding (“MoU”) and P.73/2010. formal confirmation being received by the Minister from the Board of SoJDC, prior to the two construction contracts and the funding agreement being signed by the company, that:- The cost of the construction contracts do not exceed the agreed amount. The level of pre-sales required by P.73/2010 and the MoU have been met. The other requirements of P.73/2010 and the MoU relating to the project have been met. There are no significant changes to Funding Agreement to be signed. This confirmation should be in the form of a formal Board minute or letter signed by the Chairman.
Reason(s) for Decision: The Minister’s approval is in accordance with the requirements of Article 27 of the Company’s Articles of Association and in accordance with sections 13.1 and 17.1 of SoJDC’s MoU and P.73/2010. The Board of SoJDC has reviewed the proposed College Gardens scheme and requested approval by the Minister for Treasury and Resources.
Resource Implications: The current timetable identifies that the payment for land and profit to the States is now anticipated to be made at the end of the second quarter of 2019 whereas at the time the MTFP 2016-2019 was produced it was anticipated that it would be in the final quarter of 2018.
Action required: In accordance with Section 12, Projet P.73/2010, this decision will not take effect for 15 days from the date of signing.
Signature:		Position: Connetable J M Refault Assistant Minister for Treasury and Resources
Date Signed:		Date of Decision: