"The Company was originally formed to manage the development of the St. Helier Waterfront area on behalf of the States of Jersey. In 2004, The States of Jersey transferred land holdings to the Company at market value as a capital contribution totalling £20.2m. In 2010 the States adopted P73/2010 which set a new remit for the Company, changed the name of the Company and the Memorandum and Articles of Association. "
New remit: "The principal activities of the Company and its subsidiaries (together, ‘the Group’) are property holding, property development, car park operation and estate management in Jersey."
This is remarkably "fuzzy" and vague, allowing the company to do almost anything, although curiously the ability to hold an "Arctic Village" with Ice Rink would seem to be stretching matters.
So we have Property Holdings, Andium and JDC all competing!
Public / Private - A Taxing Conundrum
"The Group is exempt from paying Income Tax in Jersey. On 19 October 2007, the Minister for Treasury and Resources exempted the Company and its fully owned subsidiaries from income tax under Article 115 of the Income Tax (Jersey) Law 1961 as the profits of the Company are to be expended wholly and exclusively to improve and extend public infrastructure and works for the good of the public of the Island. "
But the remit has changed? Surely this should be revisited? Now it is paying no income tax but competing against the private sector. Surely that is not a level playing field?
It also begs the question of when the millions to be returned to the States will ever emerge under the new remit!
Jersey College for Girls
“In addition to providing more housing stock and restoring the historic building, the Company is predicted to secure a profit in excess of £5m on this development which will be paid out as a dividend to the States of Jersey”
Thats' good to know, because it 2015 the States sold the site to the Jersey Development Company for for £1.5m – despite a local developer offering £5m for the site - and that was 3 years ago. I wonder how much "in excess" it will be, and how it will compare to the £5m adjusted for inflation?
"By investing in direct development, rather than selling land to developers, the Company ensures that returns to taxpayers are improved as well as retaining control over design and quality."
Isn't there something called Planning anyway for "retaining control over design and quality"? And a Minister for Planning?
"The first units will be ready for occupation in April 2018. Phased completions will take place thereafter until final completion in May 2019. 100% of the profit generated from the development will be paid to the States Treasury as a dividend in 2019."
Believe that when I see it! In the meantime...
States Subsidy
"The States of Jersey receive £45,000 per annum (2016: £45,000) in rental in respect of La Fregate at Les Jardin de la Mer and passes this amount onto the Company as a contribution to the upkeep of Les Jardins de la Mer public park."
"In September 2007, a lease was entered into for Liberation Station whereby rental income receivable from the States of Jersey was at a level the Directors considered equivalent to market rates. The total recognised in the consolidated statement of comprehensive income for the year ended 31 December 2017 in respect of this contract is £100,000 (2016: £84,166)"
"The Company receives £759,000 (2016: £759,000) from the States of Jersey in respect of a licence to operate Les Jardins Car Park."
So... the States pay money to the States of Jersey development company... but don't get any dividend from the company?
The IFC (International Finance Centre)
"The IFC has finally come to life after years of planning, with the first building having been completed and occupied and providing our new tenants with the only super-prime grade A office space in Jersey. "
Oh yes, what about the RBC Dandara site??! Is that not super-prime Grade A office space? Whatever that is and however it can be quantified is not explained, which is typical of a cliché – but doesn’t it sound good! Better than iconic or world class, which are both by now rather tired clichés..
A google search reveals only about a dozen mentions of "super-prime Grade A office space", half of which are from the Jersey Development Company, and none of which have any definition.
Expanding Empire
"JDC is also in dialogue with its shareholder to undertake the regeneration of any surplus States owned assets such as St. Saviour’s Hospital and South Hill."
They want to get there instead of Andium, the logical developers of the site for housing. That, after all, is Andium's SOLE REMIT.
No Surprises?!!
"The Company has entered into a Memorandum of Understanding with its Shareholder which emphasises a ‘no surprises’ culture and specifies those strategic and other issues for which the agreement of the Shareholder’s representative should be sought. The shareholder function is exercised by the Treasury and Resources Minister, whose duty is to act on behalf of the States of Jersey."
So what about this....
"In one of his final acts as Treasury Minister before he hands over the reins to his successor at the start of June, Senator Alan Maclean has signed a ministerial decision authorising the sale of 50 per cent of the planned 280-apartment Horizon development at the Waterfront for £6.25 million to
Group Legendre, which will enter into a 50/50 joint venture agreement with the SOJDC."
Maybe not a surprise to the Senator, who said "the joint venture had been discussed since October but an agreement had not been reached until recently" but certainly a surprise to the States Assembly! And wasn’t the Minister supposed to be acting on behalf of the whole States in ensuring they didn’t get any surprises?
Posts
No comments:
Post a Comment