When the States pulled its funding for the Leale’s Yard project in April, it looked like yet another long term stumbling block that the owner and developer would have to overcome before it can progress any further, but some election candidates might throw them a lifeline if they make it in to the next States.
The land behind the Bridge is owned by the Channel Islands Co op, while developer Omnibus is leading on the plans to convert the derelict space into a new retail and residential area.
Although it might seem like everything has gone quiet, the election could spark up some new conversations around public investment in the private project.
The current situation
The States had looked at investing £35million in the regenerative work, with a view to buying up housing stock for key worker and social housing.
However, in April, Policy and Resources pulled out saying the investment won’t progress “as it has not been possible to reach suitable terms”.
At the time, Deputy Lyndon Trott OBE, President of P&R said “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”.
“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,” explained the retiring States Member.
“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.”
Handing unfinished projects over to the next P&R, who will be elected by the new States after this week’s election results are known, Deputy Trott said the “other projects and initiatives” that could drive work to regenerate the Bridge includes enabling flood defences, and producing a delivery framework to co-ordinate delivery of housing sites and the infrastructure between them.
The current P&R also said that their successors will need to support the Guernsey Development Agency in realising its vision for the Bridge, and approve including the Local Planning Brief for the St Sampson Harbour Action Area.
“We expect to be able to share positive updates on the progress of these initiatives for the community in due course,” said Deputy Trott in April.
There have been no further announcements since and Deputy Trott, and other politicians, will be leaving the States at the end of this month.
The next States
Guernsey’s next States will be revealed later this week when the votes have been counted in the second fully island wide vote.
The new President of Policy and Resources will then be elected from the new States on 1 July, before the P&R committee members are chosen that same week.
The rest of the States committees will get new Presidents and committee members later in July.
The make up of the new States and how the committees are populated could dictate what happens next with Leale’s Yard and whether any public money ends up being invested in the project.
With the former head of the GHA among the candidates, all eyes have been on Steve Williams to see what he has to say about housing.
He said he wants to examine all current large housing projects to see why they have stalled, if he is elected.
He also wants to find out “what if anything the States could do to move them along faster”.
He gave Leale’s Yard as one example “which would make a huge difference to the provision of new homes as well as a major rejuvenation of The Bridge area”.
“The finances obviously need close scrutiny to ensure everyone is getting a fair deal, but this project is advanced and could start delivering new homes within this next States term,” he wrote in his manifesto.
Mr Williams is not the only one talking about Leale’s Yard either.
David Dorrity is another who is keen for work to progress at Leale’s Yard and he says that relies on other work beginning “swiftly on the Bridge flood defences”.
Some other candidates spoken to by Express have themselves queried why the project has stalled – and have hinted that if elected they would like to see the work already done to see if they can understand what has stopped it, and whether there could be a way forward.
Among the current deputies who want another go at leading policy from within the States of Deliberation are the former Vice-President of P&R, and the Presidents of Economic Development and Environment and Infrastructure.
Deputy Mark Helyar was ousted from the senior States committee but he has his sights set on a return to P&R as its President if he is elected to a second term.
In his manifesto he makes clear that he would look again at the Leale’s Yard funding if he gets that chance.
“It is also my view that the stalled plans for Leale’s Yard need to be urgently resurrected to provide the planned 300+ units before momentum is lost yet again. If necessary that should involve compulsory purchase of the property to unlock the development.”
Deputy Neil Inder has said his eye is on the Presidency of the States Trading Supervisory Board if he is re-elected, leaving his current position in charge of economic development available for someone else.
As well as wanting to personally focus on stemming Aurigny’s failings if he is re-elected, he has also already said that the next States should look again at investing in Leale’s Yard.
If the project is not viable then he would withdraw fully.
“The 300+ homes that would have been a game changer for St Sampson’s has failed to materialise. The economic benefits from that obvious to most, but the maths didn’t work for government. This project needs one final shot with a fresh new team to establish whether it will go forward. As an optimist, I’d like to think there’s a way; but if a fair deal for the developer and the taxpayer can’t be done, I would shelve the project and invest government money elsewhere.”
Deputy Lindsey de Sausmarez has been closely involved with the housing crisis as it’s evolved through her work as President of E&I.
While she doesn’t mention Leale’s Yard in her manifesto, her bid for re-election does focus on ‘delivering more affordable homes’ and ‘unlocking stalled developments’.
She believes that a ‘Housing Champion’ can help drive some of these projects through to completion once the next States is elected.
Recent revelations
The next States will have some additional information to hand if they do collectively wish to revisit the decision to withdraw States funding from Leale’s Yard.
Deputy Chris Blin – who is seeking re-election – recently asked some Rule 14 questions of Policy and Resources. They centred around finding out what work has been done on scoping out the feasibility of the Leale’s Yard project and how P&R reached its decision to withdraw.
In response to his questions, which can be found in full HERE, P&R said “it became evident that there were important matters that would need to be resolved if a commercial agreement was to be settled”.
P&R explained that “these were termed ‘reserved matters’ which were clearly explained to the developer”.
The ‘matters’ revolved around modular building concerns.
“The advisors were retained to support working through these issues with the developer to the Committee’s satisfaction in order that it could bring forward proposals for States’ scrutiny,” wrote P&R in response to Deputy Blin. “These were initially technical and logistical matters but as the Committee also intended to publish its policy letter by Autumn 2024, this also necessarily had to include commercial due diligence.
“The developer was engaged throughout the process as the solutions to these issues rested with it.
“This work ceased when the second manufacturer withdrew from the volumetric MMC market, and the developer advised it would return to more traditional construction. The viability criteria established by the reserved matters had not been fully discharged. For this combination of reasons the Committee was not able to bring forward its policy letter when it had hoped.”
Deputy Blin had sought to find out how a project, deemed a priority by P&R, could fail.
In response, the committee said: “The political priority on housing and infrastructure has not ‘shifted’. However, the approach to those objectives to secure the overall outcomes for the community has had to change because of the fiscal constraints facing the States”.
“The Leale’s Yard opportunity as originally presented to the Committee was exciting and the Committee maintained optimism it could be achieved. However it was not achievable as originally conceived when the developer’s preferred volumetric MMC manufacturer withdrew from the market.”
P&R added that it “remains very committed to Bridge regeneration as described in the States Resolution it is seeking to discharge. It is bringing forward, either directly or indirectly by supporting the work of other Committees, infrastructure priorities that seek to make the most impact given financial constraints.”
With four members of the current P&R retiring from the States at the end of this month, it will definitely be down to the next P&R to lead the next States through whatever might happen next regarding Leale’s Yard.