The developer hoping to build hundreds of new homes at Leale’s Yard has said it is “deeply disappointing” that the States has pulled its funding from the project.
Omnibus had been in talks with the Policy and Resources Committee over the plans to develop the brownfield site that sits behind the Bridge.
The land, owned by the Channel Islands Coop, has been at the centre of development plans for decades with the most recent designs for 314 residential units approved by the DPA last year.
By then, the States had already committed up to £35m of taxpayers money towards the development.
Now P&R has said the States won’t be committing any money to the project, after they failed to agree terms with Omnibus.
Jeremy Rihoy, of Omnibus’s construction partner Rihoy & Son, has confirmed the talks failed after it was decided to move away from the modular design plans that had previously been put forward, with “traditional construction methods” now planned for the Leale’s Yard site.
Omnibus still wanted the States to invest through agreeing to buy some of the new units of housing that were planned for the site – but the talks collapsed with P&R saying “this project has now been progressed as far as the States can invest…”.
“Following difficulties with the original plan to deliver a project using modular units, Omnibus tabled a full re-design based upon more traditional construction methods,” said Mr Rihoy.
“The proposal to the States would have involved them in buying units of accommodation at an attractive below market price.
“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.”
Charles McHugh, Director of Omnibus Investment Holdings Limited, believed the States investment coupled with his company’s money would have kick-started the regeneration of the Bridge while meeting an island priority in delivering new houses.
“This public-private partnership would have brought together £35 million of public investment with over £100 million in private capital to unlock the regeneration of a vital site and deliver 314 new homes for islanders.”
Mr McHugh added that he doesn’t understand why P&R has backed out of the talks, at this time.
“The reasons we have been given were based upon the ‘shifting sands of politics’, we do not understand what that means but it is surprising to hear that there are other higher priorities.”
Between them, Mr McHugh and Mr Rihoy have decades of experience in the construction industry and the delivery of large projects, including housing developments.
Together they said it is deeply disappointing that the States funding for the Leale’s Yard project has fallen through, “given the urgent need” for investment in infrastructure and housing.
“Despite numerous protestations of support from the public sector, in the final analysis it was not forthcoming,” said Mr Rihoy.
“There is not a queue of private investors knocking on the States’ door, willing to invest £100 million in the Island. This is indeed a golden opportunity missed.”
Leale’s Yard is owned by the CI Coop.
It has intended to redevelop the site since it bought it in 1998.
Numerous plans have been submitted, and approved since then, with some designs being redrawn based on feedback from the public and planning officers.
The most recently approved plans included a modular design, but Omnibus said that there have been difficulties with that plan so it will instead now be re-focusing on “more traditional construction methods”.
For now, the Coop can’t comment further on the latest developments, as it wasn’t involved in the talks between P&R and Omnibus, said its CEO.
“The Channel Islands Coop note the announcement by the States of Guernsey Policy and Resources Committee about their withdrawal from discussions with Omnibus Investment Holdings Limited, the Development Partner, on the Leale’s Yard site,” said Mark Cox.
“The CI Coop was not directly involved in discussions between the Development Partner and the States of Guernsey. As such, whilst we had followed these discussions and retain the ownership of the Leale’s Yard site, we have no comment to make on the announcement by the States of Guernsey.
“The CI Coop will continue to liaise with the Development Partner on any next steps, and we will update our Members at the Annual Members Meetings in Guernsey and Jersey next month.”