Omnibus Investment Holdings Ltd has been working on plans for the Channel Islands Coop-owned site for several years, with the States Assembly agreeing to examine the potential of investing up to £35m. in the Bridge regeneration.
But Policy & Resources has now slammed the brakes on investing in Leale’s Yard.
The committee had been gathering details, required by the States, to make an investment decision. Part of that work included possible States involvement in the Leale’s Yard development.
Policy & Resources president Lyndon Trott said it had discussed the developer’s proposals for a considerable time, with the aim of presenting information to the Assembly for a final decision on whether taxpayer money should be invested.
‘We all know and recognise that housing is arguably our number one priority, but it remains essential to carry out the necessary checks and balances to ensure taxpayer funds are invested sensibly with clear and tangible benefits for the community,’ he said.
‘This project has now been progressed as far as the States can invest, having prioritised significant staff and considerable financial resources to help to try and achieve an affordable solution. The States remains focussed on improving the delivery of needed housing development and are continuing to invest resources in other projects and initiatives as part of the wider Bridge regeneration to support housing delivery in the Bridge main centre.’
Charles McHugh has been working on plans for the site for more than five years – initially under The Bridge Regeneration Company and now as a director of Omnibus Investment Holdings Ltd.
‘This public-private partnership would have brought together £35m. of public investment with over £100m. in private capital to unlock the regeneration of a vital site and deliver 314 new homes for islanders,’ he said.
He felt the proposal would kick-start the regeneration of the Bridge, but had now been informed the States would not be investing.
‘The reasons we have been given were based upon the “shifting sands of politics”,’ he said.
‘We do not understand what that means, but it is surprising to hear that there are other higher priorities.’
JW Rihoy chairman Jeremy Rihoy said after there were difficulties with the original modular unit plans, Omnibus had tabled a full re-design based upon more traditional construction methods.
‘The proposal to the States would have involved them in buying units of accommodation at an attractive below-market price,’ he said.
‘We believe that this offer represented excellent value for money in the current market. We would also be interested to know where the public sector can procure the quantity of new build apartments, either by purchase from a third party developer or by building themselves, for anything like the price we have offered.’
He added that there was not ‘a queue of private investors knocking on the States’ door, willing to invest £100m. in the island’.
‘This is indeed a golden opportunity missed.’
P&R has said it would now be focusing on supporting the Guernsey Development Agency and approving local planning brief for St Sampson’s Harbour to encourage development.
It will also look to create a delivery framework to co-ordinate delivery of housing sites and also improve flood defences.
‘We expect to be able to share positive updates on the progress of these initiatives for the community in due course,’ Deputy Trott said.
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