Horizon Development, Waterfront, St. Helier: Various Approvals

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A decision made 4 May 2018:

Decision Reference: MD-TR-2018-0057
Decision Summary Title:	SoJDC – Horizon Development – various approvals.		Date of Decision Summary:	3rd May 2018
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 – Horizon Development – various approvals.		Date of Written Report:	3rd May 2018
Written Report Author:	Head of Shareholder Relations		Written Report : Public or Exempt?	Exempt: FoI Article 33
Subject: States of Jersey Development Company (“SoJDC”) – Horizon Development – various approvals.
Decision(s): The Minister approved:- the sale of 50% of the freehold interest in the Horizon site for £6.25 million and SoJDC entering into a 50:50 Joint Venture (“JV”) agreement with Group Legendre (“GL”) to carry out the development of Horizon, a 280 residential apartment scheme with associated basement car parking and ground floor commercial units; the pre-sale proposals put forward; that subject to sufficient pre-sales, the JV company be permitted to enter into a funding agreement with a third-party funder in accordance with the heads of terms to fund the development using the Horizon development as security and for SoJDC to provide a joint and several guarantee (together with GL); that subject to sufficient pre-sales, the JV company be permitted to enter into a JCT 2011 Design & Build contract for a construction sum of not more than that set out in the written report that is split into phases and allows for each phase to be varied into the contract once sufficient pre-sales have been achieved. This approval is given on the basis that SoJDC accept the key points and recommendations that have been made by the independent advisor and work with the Treasury and Resources Department to ensure these are actioned, monitored and reviewed.
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 section 13.1 and 17.1 of SoJDC’s MoU and P.73/2010. The Board of SoJDC has reviewed and approved the proposed Horizon Development scheme and requested approval by the Minister for Treasury and Resources.
Resource Implications: At this stage no specific agreement has been reached with SoJDC as to the dividend (amount and timing) to be paid to the States of Jersey in respect of this development. The Shareholder intends to develop a minimum dividend policy for both commercial and residential developments by SoJDC which will be reflected in the next Medium Term Financial Plan. There will be costs incurred with engaging the independent adviser during the duration of the project to monitor and review their key points and recommendations. These will be met from within the current budget allocated for Shareholder Relations.
Action required: Head of Decision Support to inform the Director of Treasury Operations and Investments once the decision has been approved. The Director of Treasury Operations and Investments to inform the Managing Director of SoJDC that the Minister has approved the request. In accordance with Section 12 of P.73/2010, this decision will not take effect for 15 days from the date of signing.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision: