PLANS for a £330 million finance centre on the Waterfront have been backed by the States – but politicians are still debating the terms of the deal.
Yesterday States Members approved by 40 votes to six the planning part of the proposal, which seeks to lower Route de la Libération between Gloucester Street and Liberty Wharf and build a grid-style development of office blocks, shops, a car park and a winter garden over the road and the Esplanade car park.
The States will make between £50 million and £75 million out of the deal, and developers Harcourt will pay to lower the road at an estimated cost of £45 million.
Concerns were being raised in the States this morning about a number of alleged civil courts cases involving the Irish-based developers. Deputy Gerard Baudains called for a reference back so that the allegations surrounding the company could be investigated before the States signed on the dotted line.
It was alleged that Harcourt were embroiled in multi-million-pound court actions concerning developments in the American state of Nevada, London and Jersey. However, the Deputy’s move was defeated and the main debate resumed.
If Members approve the financial aspects of the deal and the 150-year lease to Harcourt today, a formal planning application will be made and Jersey’s first public planning inquiry into the plans will be held in September.
Despite attempts to stall the debate with an earlier reference back and referral to Scrutiny, Members approved the planning side of the seven- to ten-year development in principle.
Environment Minister Freddie Cohen said that trying to stall the debate was not going to get the public anywhere. ‘Delay, delay, delay for 20 years – I have provided information in abundance,’ he said. ‘This masterplan has been in consultation form since November and I have made numerous presentations to the States and members of the public.’
He said that the plan had the potential to be ‘an architectural masterpiece’ and something which people would come to Jersey specifically to see.
Senator Cohen said that he had no doubt that there would be a demand for the office space in the next seven to ten years. He said that the development of 400 flats on the site had ‘an emphasis on A-H category’ but that some Members did not seem to accept this.
Earlier in the debate St Lawrence Deputy John Le Fondré quoted a letter from the Planning Department on 19 May this year saying that 50 per cent of housing would be A-H, 40 per cent would be A-J and 10 per cent A-K. Deputy James Reed said that that would mean that 200 flats could be bought by non-locals so only 50 per cent would actually be affordable.
In response, Housing Minister Terry Le Main told them that they should not believe everything they read.
Transport Minister Guy de Faye said that the tunnel would cost taxpayers £500,000 a year to maintain after 2012 but that the precise detail of how this would be funded had not been decided, although various suggestions had been made.
The Constable of St Helier, Simon Crowcroft, said: ‘If the cost of maintaining the underground road is £½ million a year, that is going to use up the £75 million quite handily over the 150 year period.’
Other concerns raised included where the waste from building the project would go, the levels of traffic disruption and the potential for the commercial heart to be ‘sucked out of St Helier’.
Chief Minister Frank Walker outlined the second part of the debate – the financial part of the deal – which will be voted on today. He said that some of the commercially sensitive information was not in the best interests of the public to hear. However, he said that if any Members requested to hear it, he would do this in secret.
Deputy Geoff Southern proposed to move in-camera, but he was not seconded.
Senator Walker reassured Members that the States – or public – would retain freehold ownership of the land and its value after 150 years. In answer to questions over whether or not it was a good deal for the people of Jersey, he said: ‘The developer will fund the construction of the tunnel at a cost of £45 million and associated roadwork costs. The Island gets the benefit of the tunnel at no cost and no risk, and it reflects well on those who have negotiated the deal.
‘In addition to getting the tunnel, the public, through WEB, will receive a base payment of £50 million from Harcourt.’
This total of £95 million would then be topped up with payments conservatively estimated at £25 million with the possibility of an additional £10 million to £20 million if the market develops as anticipated.
Senator Walker said that Harcourt had been given tight conditions to adhere to, which included completing the tunnel within 36 months and the car park within 47 months. The whole operation must be completed by 1 December 2018, he said.
Senator Walker added: ‘In the event that developers fail to make payments, WEB will have the ability to recover the site and any outstanding guaranteed payments of £95 million in compensation.’
The vote on the plans for the new financial district and the principle of sinking the road:
For: Senators Norman, Walker, Kinnard, Routier, Vibert, Ozouf, Le Main, Shenton, Cohen and Perchard; the Constables of St Ouen, St Mary, St Clement, St Helier, Trinity, St Lawrence, Grouville, St Brelade, St Martin, St John and St Saviour; Deputies Duhamel, Le Hérissier and Lewis (St Saviour), Huet, Fox, Hilton, de Faye, Le Claire and Maclean (St Helier), Hill (St Martin), Troy, Ferguson and Power (St Brelade), Labey (Grouville), Egré (St Peter), Le Fondré and Mezbourian (St Lawrence), Pryke (Trinity) and Gallichan (St Mary).
Total: 40.
Against: Senator Syvret; Deputies Breckon (St Saviour), Baudains (St Clement), Southern and Pitman (St Helier) and Reed (St Ouen).
Total: Six.
