Lease agreements: Upgrade of electricity supply to various housing estates: Jersey Electricity Company Limited

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A decision made 10 June 2011 regarding:

Decision Reference: MD-H-2011-0061
Decision Summary Title :	DS – Phase 2 -Sub Station Leases with JEC on Various sites		Date of Decision Summary:	23rd May 2011
Decision Summary Author:	Asset Management Officer		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	WR- Proposed leases of land to the JEC to allow for the upgrading of mains electricity supply on a number of social housing estates		Date of Written Report:	23rd May 2011
Written Report Author:	Asset Management Officer		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Approval of Lease Agreements with the JEC
Decision(s): The Minister; Approved the lease of the specified pieces of land at Le Squez, Princess Place, Grasset Park, Brighton Close, Tower Road Maisonettes and Orchid Court, to the Jersey Electricity Company Limited for a period of 99 years for a total consideration of £5,148.00. Requested that the Minister for Treasury and Resources approve the transactions in accordance with Standing Order 168, seek the approval of the States for the transaction and authorises the Greffier and Attorney General to sign the necessary contracts on behalf of the Public.
Reason(s) for Decision: To approve the transactions in accordance with States Standing Order 168
Resource Implications: £5,148.00 receipt for the Housing Department
Action required: Asset Management Officer to liaise with Property Holdings to seek the approval of the Treasury & Resources Minister and to oversee the passing of the necessary contracts.
Signature:		Position: MINISTER
Date Signed:		Date of Decision (If different from Date Signed):

Lease agreements: Upgrade of electricity supply to various housing estates: Jersey Electricity Company Limited

Date of Report: 23rd May 2011

REPORT TO THE HOUSING MINISTER

PROPOSED LEASES OF LAND TO THE JERSEY ELECTRICITY COMPANY TO ALLOW FOR THE UPGRADING OF MAINS ELECTRICITY SUPPLY ON A NUMBER OF SOCIAL HOUSING SITES

Purpose

To recommend to the Minister for Treasury & Resources that the public enter into a total of 6 lease agreements with the Jersey Electricity Company at:-

Le Squez

Princess Place

Grasset Park

Brighton Close

Tower Road Maisonettes

Orchid Court

Background

The Housing Department has embarked on a programme of heating replacements for a significant proportion of its social housing stock which will see, inter alia, all of the States owned social housing stock fossil fuel free by 2013. The chosen solution which is being supported in part by funding from the fiscal stimulus programme is to install a night storage based electric heating and hot water system in each home which will run off of the JEC’s Comfort Heating tariff.

However, the current supply of electricity to a number of sites is inadequate to cope with the increased demand necessitated by the switch of heating type and a programme of mains reinforcement is already underway. Phase 1 of these works was set out in MD-H-2011-0007 approved on 21st January 2011. The next phase of the mains reinforcement works are about to commence and it is proposed that additional JEC substations and distribution pillars will be constructed as set out below and shown on the attached plans.

The JEC will require way-leave agreements for the substations, distribution pillars and cable routes on some sites. The location of the sub station, distribution pillar and route of the cables are shown on the respective site plans annexed to this report. This will require the land on which each of the substations and pillars are to be built to be leased to the Jersey Electricity Company for a period of 99 years in return for the consideration set out below. These arrangements are consistent with existing arrangements elsewhere and the standard lease form agreed between the JEC, Housing Department, Jersey Property Holdings and Law Officers’ Department in 2009.

Le Squez

The lease of a room being the interior of a certain building constructed on a triangular shaped piece of land situate to the North of number 1 “Les Burons”, forming the site of Sub-station number 763 and appurtenances (having the UPRN 69383718). The Site is shown for identification purposes only on a certain plan prepared by Dyson and Buesnel Architects bearing the drawing number 405/07/B105 and dated September 2009. The lease will include associated wayleave rights.

Term of lease: 99 years

Rental (One total payment of): £990.00

Also at Le Squez, the lease of a small piece of land forming the site of shielded pillar number 1037. The site is shown for identification purposes only on Wayleave plan No.26M, Ref P2154 dated 24/03/10. To include associated wayleave rights.

Term of lease: 99 years

Rental (One total payment of): £99.00

Princess Place

The lease of a small piece of land situate to the South-West of the property bearing the number ‘4 Princess Place’ (having the UPRN 69142902) and forming the site of Shielded Pillar number 929. The shielded pillar is shown for identification purposes only on Drawing Number 69-P24 dated the 22nd December 2010 prepared by the JE Plc. To include associated wayleave rights

Term of lease: 99 years

Rental (One total payment of): £99.00

Grasset Park

The lease of a small piece of land in the Northern part of a grass verge bordering ‘Plat Douet Road’ forming the site of Sub-Station number 788 and appurtenances (having the UPRN 69383760), as shown for identification purposes only on Drawing Number 65-G24 dated the 23rd December 2010 prepared by the JE Plc. To include associated wayleave rights.

Term of lease: 99 years

Rental (One total payment of): £990.00

Brighton Close

The lease of a room being the interior of a building established against the North-Western side of the apartment block containing numbers 13 to 28 ‘Brighton Close’ and forming the site of Sub-Station number 786 and appurtenances (having the UPRN 69383722) and forming the site of Sub-Station number 780, as shown for identification purposes only on Drawing Number 109-B24-1 Revision A dated the 24th November 2010 prepared by the JE Plc. To include associated wayleave rights.

Term of lease: 99 years

Rental (One total payment of): £990.00

Tower Road Maisonettes

The lease of a small piece of land situate in the South-Western part of the property known as ‘Tower Road Maisonettes’ (having the UPRN 69408202) and forming the site of Sub-Station number 780, as shown for identification purposes only on Drawing Number 118-M24-1 Revision A dated the 17th October 2010. To include associated wayleave rights.

Term of lease: 99 years

Rental (One total payment of): £990.00

Orchid Court

The lease of a room being the site of Sub-Station number 778 and appurtenances at Orchid Court, Le Mont Millais, St Helier (having the UPRN 69206934), as shown for identification purposes only on Drawing Number 21-024 dated 31st August 2010 prepared by the JE Plc. To include associated wayleave rights.

Term of lease: 99 years

Rental (One total payment of): £990.00

Recommendation

That the Minister:-

Approve the lease of the specified pieces of land at Le Squez, Princess Place, Grasset Park, Brighton Close, Tower Road Maisonettes and Orchid Court, to the Jersey Electricity Company Limited for a period of 99 years for a total consideration of £5,148.00.

Request that the Treasury & Resources Minister approve the transactions in accordance with Standing Order 168, seek the approval of the States for the transaction and authorises the Greffier and Attorney General to sign the necessary contracts on behalf of the Public.

Report Prepared By: ______________________________ 23rd May 2011

David Reid, Asset Management Officer

Report Checked By: ______________________________ 27th May 2011 Jason English, Senior Management Accountant

Report Approved By: ______________________________ ……………2011

Carl B Mavity, Director of Strategic Development