| Land Disposal Policy - reproduced text |
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PART 1: INTRODUCTION
The Governor in Council approves this policy ("the Policy"), for
the guidance of the public and members of the Public Service in dealing with
applications for the purchase or lease of Crown land for commercial use or
for house building; it does not affect existing policies and practices relating
to:
1. agricultural or forestry land or buildings;
2. Government Landlord housing;
3. management of Chief Secretary housing stock (except those houses earmarked
for development in the SHG Tourism Policy).
The policy takes effect on 12 March 2007; it will be reviewed (with particular reference to the price matrix, in view of market trends) at intervals not exceeding 12 months.
PART 2: GENERAL PRINCIPLES
1. The St. Helena Government seeks to support and encourage the development
of a vibrant and sustainable private sector economy and, as part of its objective
to reduce all forms of deprivation, to encourage private house building.
2. The general purpose of this policy is to promote those objectives, so
far as they are consistent with the overall need to secure the efficient
and
effective use of St. Helena’s natural resources, by making Crown Land
available for sale or lease. Generally, a lease will be offered in the first
instance, usually with an option to purchase freehold once development of
the land has been completed.
3. As far as is practicable, the process should be managed by officials,
without recourse to the Governor in Council; but the Governor in Council
needs to
retain:
• oversight of the process, and
• direct control over significant development proposals.
Accordingly, any proposal to sell or lease a parcel of land (either in a
single transaction or in a series of related transactions) exceeding one
acre in area must be referred to the Governor in Council.
4. Subject to paragraph 3, the Lands Officer has authority to approve the
disposal of Crown Land in accordance with the following provisions of this
policy.
5. Nothing in this policy obliges the Government to sell or lease any land.
PART 3: LAND FOR COMMERCIAL PURPOSES
6. The Government is willing, subject to the provisions of this policy, to make suitable Crown Land available for the purpose of enabling persons or companies to establish places of business.
7. Land may be made available under this part of the policy:
7.1. for mixed-use, where the primary purpose is business/commercial but
includes provision of residential accommodation for use by persons engaged
in the
business activity; or
7.2. for the creation of residential accommodation for the purposes of
renting out that accommodation by way of a business;
7.3. for the construction of two or more units of residential accommodation
for sale;
but any proposal to sell or lease land under this paragraph must be referred to (and may only be approved with the consent of) the Attorney General. For land released under 7.2 or 7.3, the rent or price shall be 75% of the amount otherwise payable under this part of the Policy, but this concession is not available to a person who does not have St. Helenian status. (Such a person, if acquiring the land for the purposes of an Approved Investment, will be entitled to concessionary terms associated with Approved Investments.) In exceptional cases, not being Approved Investments, where the cost of providing utility services to the plots might otherwise inhibit development, the Attorney General may authorise a further reduction in the rent or price.
8. Terms: Land will be made available by lease, on detailed terms approved (subject to the guidance in this policy) by the Attorney General. The lease will be for twenty years in the first instance, with an obligation on the lessee to establish a specified type of business and construct any relevant buildings, within the first five years. The lease will contain an option (exercisable at any time after the business has been established) to purchase the freehold. In exceptional circumstances, where the proposed development cannot economically proceed on the basis of such a lease, the Attorney General may approve an immediate sale of freehold.
9. Rent Except where some other formula is expressly provided for (eg for an Approved Investment under the SHG Investment Policy – see paragraph 12 below) annual rent shall be determined in accordance with the relevant parts of the Pricing Matrices in Appendix A to this policy, or by tender in accordance with paragraph 23 below.If a lease is renewed, the rent for the new lease will be determined in accordance with the matrix in force at the date of renewal.
10. Exercise of Option to Purchase: any sale of the freehold pursuant to an option to purchase shall be at the price which would be charged for the freehold under the relevant price matrix in force at the time the lease was granted, but index linked (to the St. Helena Retail Price Index) from the date of the lease to the date the option is exercised.
11. Plot sizes: The Lands Officer may exercise discretion as to the sizes of individual plots, subject to paragraph 3 above, and subject to being satisfied that the area allocated is appropriate to the business proposal.
12. St. Helena Investment Policy: The Governor in Council has approved a separate policy statement as to procedures and pricing for land and buildings released under the Government’s Investment Policy. The statement is reproduced (with additional text by way of clarification) as Appendix B to this policy.
PART 4: EXISTING BUILDINGS FOR COMMERCIAL PURPOSES
13. Existing Government buildings (including the Chief Secretary Houses earmarked for disposal in the SHG Tourism Policy) may be made available for lease for commercial purposes. Where it appears that there will be no future Government use for a building, it may be sold, but only with the specific approval of (and on terms approved by) the Attorney General.
14. Except as provided in paragraph 15, paragraphs 8 to 12 above apply to leases of buildings under this part of the policy.
15. In the case of Heritage Properties (that is, any building which is a Listed Building in Grade I or Grade II, as defined in the Land Development Control Plan, but not any such building designated for disposal under the SHG Tourism Policy), leases may be for up to 99 years, but will not contain an option to purchase. The duration of the lease in each case will be individually negotiated having regard to the nature of the building, the proposed use thereof, and any other relevant considerations. The terms must be approved by the Attorney General.
PART 5: LAND FOR PRIVATE HOUSE BUILDING
16. The Government is willing, subject to the provisions of this policy, to make suitable Crown Land available for the purpose of enabling persons to construct their own homes. However, land will not be sold or leased under this policy to anyone who already owns or leases a residence or land suitable for residential development, or to anyone who does not have St. Helenian status.
17. Terms: Land will be made available by lease, on detailed terms approved (subject to the guidance in this policy) by the Attorney General. The lease will be for twenty years in the first instance, with an obligation on the lessee to construct a residential property within the first five years. The lease will contain an option (exercisable at any time after the property has been substantially completed) to purchase the freehold; and a covenant not to carry on any business on the land. In exceptional circumstances the Attorney General may, on the application in writing of the purchaser, amend the covenant so as to allow small non intrusive business purposes. The Attorney General on receipt of such application may notify any persons who he believes may be affected by the proposal and may take into account any representations received as a result of such notification.
18. Rent*: The annual rent shall be determined in accordance with the relevant parts of the Pricing Matrices in Appendix A to this policy, or by tender in accordance with paragraph 23 below. If a lease is renewed, the rent for the new lease will be determined in accordance with the matrix in force at the date of renewal.
19. Exercise of Option to Purchase: any sale of the freehold pursuant to an option to purchase shall be at the price which would be charged for the freehold under the relevant price matrix in force at the time the lease was granted, but index linked (to the St. Helena Retail Price Index) from the date of the lease to the date the option is exercised. The transfer will, usually, contain a covenant on the part of the purchaser to use the land and building only as a private residence and not to carry on any trade, profession or business, however the Attorney General may allow amendment of the covenant as in Paragraph 17 above.
20. Plot sizes : The Lands Officer may exercise discretion as to the sizes of individual plots, and shall have regard to the prevailing policies in the Land Development Control Plan in relation to housing density in the relevant part of the Island. Plots exceeding ½ an acre will only be allowed in exceptional circumstances and with the approval of the Attorney General.
21. Garage Sites Applications for the lease of a site, on which to erect a garage, shall be considered, where the applicant has little or no suitable space on the land that he currently occupies. Leases for this purpose shall be restricted to persons who require the land as ancillary to their residential parcel of land and shall be on a year-to-year basis at a fixed rental of £10.00 per annum. The size of a garage site shall not exceed 35m2, unless the Lands Officer, for any special reason, decides otherwise.
22. Finance: SHG recognises that persons wishing to take advantage of the sale of the freehold of Crown land, under this part of the policy, may not be able to pay the full purchase price at the time of purchase. In this event, the Government agrees that payment of the purchase price may be made by suitable instalments over a period not exceeding 12 months.
*Rent is related to freehold price; the freehold prices per acre for resident development have been assessed on the basis of 50% of the estimated open market price in the private sector land market. (Click here to go back)
PART 6: GENERAL
23. Procedure: The Lands Officer will actively seek to identify sites which are suitable (having regard to the policies and practices of the Land Planning & Development Control Agency, the current or foreseeable availability of essential services, and the needs of Government Departments in relation to land use and management) for sale or lease under this part of the policy. Sites so identified will be advertised in the media. If there is more than one applicant for any such site, the successful applicant will be identified by a tender exercise. Tenders will be assessed by the valuation panel established for the purposes of this policy (not by the Tender Board constituted under SHG Contracts Regulations); a tender at a price below the price determined in accordance with the pricing matrices will not be accepted. However, in the case of a site identified by the potential purchaser/tenant, the site will not be advertised. The applicant, subject to the other provisions of this policy, will have the opportunity to lease/purchase at the rent/price determined in accordance with the price matrices.
24. The Lands Officer shall ensure that a system is established whereby other interested departments of Government are consulted before any sale or lease is approved (this shall not apply to the renewal of a lease, unless any significant change is proposed to the terms and conditions of the lease).
25. The size of any particular parcel of land to be leased or sold shall
be determined by the Lands Officer who shall take into account the following:
• the wishes of the prospective lessee or purchaser;
• the views, if any, expressed by Government Departments;
• the need for the size of the parcel of land to be such that the lessee
will enjoy reasonable occupation of his intended dwelling or business and have
an adequate means of access thereto;
• the need to ensure that effective and efficient use is made of the Island’s
natural resources;
• the preservation or, where appropriate, improvement of the visual amenity
of the area in which the parcel of land is located;
• the requirements of the Land Development Control Plan;
• environmental conservation and protection;
and such other matters as appear to be relevant in each particular case.
26. Infill Where it appears to the Lands Officer that any area of Crown Land is not being beneficially used, and that such land cannot be put to any beneficial use unless it is incorporated with an adjoining parcel of land, then the Lands Officer may make such arrangements to effect the adjustment of the boundaries of the land concerned as are consistent with the beneficial use of the land. For the avoidance of doubt, any arrangements made under this paragraph may, but need not, involve financial adjustments between Government and the adjoining landowners.
27.Subject to this policy or any general or specific directions issued by
the Governor, the Attorney General shall have authority to:
27.1. determine the terms and conditions of any lease or sale;
27.2. determine any question that may arise regarding the sale or lease (or refusal to sell or lease) of any land in accordance with this policy, and may, for this purpose undertake or direct such surveys or enquiries as appear to him to be appropriate in the circumstances of the case;
27.3. prescribe such forms, for the use in the implementation of this policy, as appear to him to be necessary or desirable.
28. Administration Fee: The following fees shall be payable for administration costs incurred in the implementation of this policy:
28.1. Grant of a lease: £25.00
28.2. Renewal of Lease (new site inspection required) 25.00
28.3. Renewal of Lease (no new site inspection) £15.00
28.4. Sale of Freehold £25.00
29. Access Roads: As a general principle, Government should take all necessary steps to ensure that every parcel of land sold or leased in accordance with this policy has a proper means of access. Due regard shall be given to existing access roads when new parcels of land are leased or sold in accordance with this policy. To this end, the Lands Officer shall:
29.1. give due consideration to means of access when considering all applications for the lease/purchase of land in accordance with this policy and, where necessary, set aside appropriate areas of land as means of access to other unoccupied Crown land;
29.2. take steps to ensure that no new access or road is created over Crown land without his written approval.
30. Rent Reviews: All leases will provide for rent reviews at intervals of 5 years.
Approved by the Governor in Council this 26th day of February 2007.
C A George
Clerk of Councils.
For the original publication, with appendices, see
http://www.sainthelena.gov.sh/government/policys/land_disposal_policy.htm
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