Safety stumbling block delays development of Leale’s Yard

A States debate on proposals to invest up to £35m. of taxpayers’ money in the development has been repeatedly delayed and Policy & Resources president Lyndon Trott admitted yesterday that there was now no chance of meeting his ambition to have bulldozers on the site by the end of this year.

‘Recent correspondence with the developer enables me to remain hopeful that we will bring a policy letter to the Assembly during the final quarter of 2024,’ said Deputy Trott.

‘I would say that it could be as late as 2026 before development commences.

‘It’s not what I want to say and it’s not what you want to hear, but it’s the honest answer.’

This time last year, the P&R president’s predecessor, Deputy Peter Ferbrache, told the States it could expect to start receiving rental income from the first tenants living at Leale’s Yard late in 2024 or early in 2025.

Deputy Trott said he could not criticise the ambitions of the previous P&R but he had found progress on the scheme ‘frustratingly slow’ since taking over the leadership of the senior committee last December.

‘What has transpired is that there are enormous complications associated with the site,’ he said.

‘Currently there isn’t even an appropriate planning permission for where the developer would prefer to build this accommodation. But the real stumbling block is ensuring not only value for money for the taxpayer but also all the safety requirements, particularly around fire risks and the issues which are essential for the development to be appropriately insured.

‘All these things are deeply frustrating.’

Omnibus Investment Holdings is working with the owner of Leale’s Yard, the Channel Islands Co-operative Society, on plans to build more than 300 homes and various commercial buildings on the site. Concerns were raised in the States last year about fire risks allegedly associated with the type of modular housing which Omnibus has said will be necessary to keep down building costs and make the project economically viable.

Omnibus director Charles McHugh has said consistently that the proposed method of construction would exceed all the island’s fire safety standards.

Deputy Trott told the States that P&R needed more information from companies involved in the proposed development before it could submit investment proposals to the Assembly.

‘There are a range of technical matters which need to be worked through and addressed by the developer and proposed manufacturer of the buildings,’ he said.

‘We are reliant on them to provide this information to move this forward and we are doing all we can to ensure this information is available as quickly as possible.’

He also revealed that P&R and the developer were still yet to agree on how much the States would invest to buy homes on the site.

An independent valuer has been asked to provide a valuation of the homes the States is considering purchasing.

‘This will help inform the negotiation and agreement of a final price,’ said Deputy Trott.

‘Discussions have taken place to progress the full range of commercial matters, such as warranties and guarantees, parking, pavements and so on. The States is providing all professional support at its disposal and funding an experienced and highly respected independent reviewer to ensure technical and financial risks associated with the project are mitigated and managed.’

Deputy Trott said the States had recently written to Omnibus ‘to confirm outstanding matters and a route to their resolution’ and held meetings with the company ‘ to resolve a range of commercial and legal matters’.

Successive P&R committees have identified Leale’s Yard as a key part of plans to accelerate housebuilding in the island, which remains sluggish despite the States agreeing last year that nearly 1,600 additional homes were needed by the end of 2027.