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SoJ Investment in JDC

There continues to be significant misunderstanding about JDC using taxpayers money and confusion over whether the money / land transferred into JDC is public or not.  Ultimately cash / land transferred into the Company is no longer taxpayers’ money – it is the ownership of the Company for the Board of Directors of the Company to deliver the remit set down by the States of Jersey.  Yes the Company remains 100% by the States of Jersey but funds only become taxpayers again on transfer out of the Company via payment of a dividend.

The States of Jersey established the Waterfront Enterprise Board Limited in February 1996 with a mandate for co-ordinating the development of St. Helier Waterfront.  With the exception of the refurbishment of the Havre Des Pas pool and lido, the focus of the activities of the company has been the reclamation site to the West of Albert pier. 

Between the period 1st January 1997 to 31 December 2000, the Company received £20million of share capital from the States of Jersey.

From incorporation to 2007, WEB received annual grants from the States of Jersey to fund its running costs.  These totalled £4.5m over the 12 year period. 

In 2004 the remaining (undeveloped) land sites at the Waterfront were transferred into the Company.  These sites were independently (Red Book) valued at the time of transfer.  The value of these sites was £20.196m and they are included on the Company’s balance sheet as “Capital Contribution” under sub-heading “Equity attributable to equity holders of the Company”. 

The States of Jersey has invested £44.696m into WEB/JDC since 1996. 

To date the Company has provided the following:-

This entire £20million was spent on the following infrastructure projects:-

 

 

£’000

 

  •  

Waterfront Car Park and public park

7,858

  •  

Waterfront Road Network, services and sewers

4,239

  •  

Les Jardins de la Mer public park and La Fregate café

2,203

  •  

Promenades around the Waterfront / Elizabeth Marina

1,406

  •  

Stockpile removal & general site preparation works

1,322

  •  

Boat Hoist at La Collette

1,000

  •  

Public park around the Steam Clock and the Steam Clock

856

  •  

Lorry Park wall & upgrade to marina lights

566

  •  

Refurbishment of Havre des Pas lido

422

  •  

Relocation of Immigration Department

128

 

TOTAL

20,000

 

In addition to the above, WEB co-ordinated and directly funded the relocation of the buses from the Weighbridge, funding both the creation of Liberation Bus Station (£3m) and funding the regeneration of the former bus depot at the Weighbridge into a new public square (£1.5m).

WEB also directly funded the creation of a new marina services facility (showers, WCs and washing facilities) for the Elizabeth Marina boat owners at Harbour Reach (c.£0.4m). 

The revised remit of the Company which was approved by the States of Jersey in 2010 resulted in a new Company, new Memorandum and Articles of Association and a new Board of Non-Executive Directors.  These changes took place in 2011 and allowed the Company to undertake development directly where it was in the best interests of the Company and subject to certain risk mitigation measures.  

The Company has now been established as a property development company and the Company is borrowing from private sources (banks) to fund its development activity and is utilising its asset base to support this funding.  JDC’s current projects are/will be funded by private bank finance without any States of Jersey borrowing, guarantees or letters of comfort. 

All profits generated by JDC activities will be repatriated to the States of Jersey either via dividends and/or via the provision of new/upgraded public infrastructure.

In terms of 5 year project pipeline, JDC is currently targeting the following:-

  • IFC 1                                                    2015 to 2017     Completed
  • College Gardens                               2016 to 2019     Under construction
  • IFC 5                                                   2016 to 2018     Under construction
  • Castle Quay Phase 2                         2018 to 2022
  • IFC 6                                                   2018 to 2020
  • IFC 2                                                   2019 to 2021

 

Please note these are only forecast dates and they remain subject to pre-lets / pre-sales and with regards to IFC 2 subject to Planning permission.

Over the next 5 years, as a direct result of the Company’s development activity, JDC is forecasting making dividend payments totalling £15m and having £20m cash to invest in the new 520 space underground public car park and other public infrastructure to be delivered as part of the Esplanade Quarter.