Reayrt Vradda

Summary

The request sought documentation regarding Port Erin Commissioner petitions for a campsite lease and evidence of due diligence on the grantee company. The Department of Infrastructure released 106 pages of correspondence detailing the petition process and legislative conditions, though the outcome was partially exempt.

Key Facts

• The Department of Infrastructure received a request for information on petitions regarding Field 411412 at Ballafesson Road, Port Erin.
• The lease proposal involves two terms of 7 years and one term of 6 years and 11 months.
• Approval for the glamping site lease is conditional on Section 25 of the Local Government Act 1985 and Section 26(1) of the Local Government Act 1963.
• Any associated works requiring borrowing would need separate approval under Section 51 of the Local Government Act 1985.
• Hon Graham Cregeen MHK queried the disparity in lease approval times between Port Erin and Castletown Commissioners.

Data Disclosed

• 2025-02-04
• 2025-04-02
• 29 April 2021
• 19 June 2021
• Field 411412
• 7 years
• 6 years & 11 months
• 106 pages
• 4 documents
• Section 25
• Section 26(1)
• Section 51
• 12:00 noon
• XX May 2021

Original Request

Please provide copies of any documentation or correspondence relating to petitions made by by Port Erin Commissioner in relation to the following petitions. http://www.porterin.gov.im/s.nl/it.I/id.667/.f http://www.porterin.gov.im/s.nl/it.I/id.706/.f Please also provide any evidence of any due diligence that the Department has undertaken into the grantee company in respect of the lease and the named directors. Please provide details of what action or review the department has taken to ensure the Port Erin Commissioners are acting in the best interests of ratepayers by ensuring that the site is being delivered in a manner that supports the detail and request made within said petition.

Data Tables (3)

Full Response Text

Sent: 29 April 2021 15:26

Subject: RE: Petition - Campsite (Field 411412)   Thanks Will amend that and get it back.   Re your last paragraph the Board is keen to get this progressed with many other projects slipping due to delays for various reasons, so a delay to this one could further impact plans to meet deadlines.   Do you feel the Dept would insist on an advert? If so, I will place that now but will need to know the date for your petition cut-off. Is two weeks enough? Draft wording below if required.     PORT ERIN COMMISSIONERS LOCAL GOVERNMENT ACT 1985 Port Erin Commissioners has submitted a petition seeking the approval of the Department of Infrastructure, under section 25 of the Local Government Act 1985, to lease field 411412 at Ballafesson Road, Port Erin for two terms of 7 years and one term of 6 years & 11 months. A copy of the plans showing the land proposed to be lease, and details of the Petition may be inspected at Port Erin Commissioners office during normal office hours or on the Commissioners’ website www.porterin.gov.im. The petition will be considered by the Department of Infrastructure in the week commencing XX May 2021. Any person wishing to submit views on this application should do so in writing to the Petitions’ Officer, Department of Infrastructure, Sea Terminal, Douglas no later than 12:00 noon on XX May 2021. J M Roberts, Clerk, Bridson Street, Port Erin. 28 April 2021   Regards,  

Sent: 29 April 2021 13:20 To:

Subject: RE: Petition - Campsite (Field 411412)   Good afternoon   Thanks for your email.   Having quickly looked at this and checked our files on this can I ask that the attached letter (sent by by email) be taken into consideration. You will see from our letter that the approval of the purchase of the field 411412 petition contained conditions. As you will see the letter stated that a glamping site could only be leased to an external provider following the approval under Section 25 of the Local Government Act 1985 and Section 26(1) of the Local Government Act 1963. We also stated in the same letter that if any associated works required borrowing then that would need spate approval under Section 51 of the Local Government Act 1985.   In the letter that you have provided there is no reference to which legislation the permission of the sender. If you are not the intended addressee of this e-mail, please delete it and notify the sender as soon as possible.     No employee or agent is authorised to conclude any binding agreement on behalf of the Commissioners of Port Erin with any party by e-mail without express written confirmation by the Clerk to the Commissioners or a person authorised by the Clerk.   Isle of Man. Giving you freedom to flourish WARNING: This email message and any files transmitted with it are confidential and may be subject to legal privilege. You must not copy or deliver it to any other person or use the contents in any unauthorised manner without the express permission of the sender. If you are not the intended addressee of this e-mail, please delete it and notify the sender as soon as possible. No employee or agent is authorised to conclude any binding agreement on behalf of any of the Departments or Statutory Boards of the Isle of Man Government with any party by e-mail without express written confirmation by a Manager of the relevant Department or Statutory Board. RAAUE: S’preevaadjagh yn çhaghteraght post-l shoh chammah’s coadanyn erbee currit marish as ta shoh coadit ec y leigh. Cha nhegin diu coipal ny cur eh da peiagh erbee elley ny ymmydey yn chooid t’ayn er aght erbee dyn kied leayr veih’n choyrtagh. Mannagh nee shiu yn enmyssagh kiarit jeh’n phost-l shoh, doll-shiu magh eh, my sailliu, as cur-shiu fys da’n choyrtagh cha leah as oddys shiu. Cha nel kied currit da failleydagh ny jantagh erbee conaant y yannoo rish peiagh ny possan erbee lesh post-l er son Rheynn ny Boayrd Slattyssagh erbee jeh Reiltys Ellan Vannin dyn co-niartaghey scruit leayr veih Reireyder y Rheynn ny Boayrd Slattyssagh t’eh bentyn rish. From: Cregeen, Graham Graham.Cregeen@gov.im Sent: 19 June 2021 13:35

Cc: Reeve, Deborah Deborah.Reeve@gov.im; Baker, Tim (MHK) Tim.Baker@gov.im Subject: Lease on local authorities land   Dear   I have just been informed that Port Erin commissioners have got approval to lease the land for private development on a 7+7+6 basis in Port Erin could you please advise why Castletown Commissioners have been unable to get a lease on the tennis courts sorted out over the last five years and Port Erin seems to have got approval https://www.cowleygroves.com/property/reayrt-vradda-ballafesson-road-port-erin/? fbclid=IwAR35N-XidEcc-OogBCSIt1uYK8dHAiBfvf_tYiHTYQYbCTSJ-xnTlPXyqd4   Regards  Graham Hon Graham Cregeen MHK Member of the House Of Keys for Arbory Castletown and Malew Minister for Justice and Home Affairs, Department Home Affairs The Drill Hall Tromode Douglas Isle of Man IM2 5PA Contact numbers Department + 4401624 694313 / 694370 Parliamentary +44 01624 651529 Home +44 01634 823370

To: Cowley, Babs Subject: RE: Field 411412 - Glamping & Campsite at Ballafesson Rd, Port Erin - petition - Port Erin Commissioners Date: 01 June 2022 16:45:05 Hi Babs,   We got a response from Port Erin Commissioners, please see below,   In regard to the current reserves and financial position at March 2022 we are currently in the process of collating our year end with our accountant attending w/c 13 June to review and complete. As reported to the RFO meetings which attends, the cash position of LA with larger than normal housing arrears and increased rates arrears means that we do need to borrow to undertake these works.   Hope this helps.   Kind regards   From: Cowley, Babs Sent: 27 May 2022 11:55

Cc: Quine, Karen Karen.Quine@gov.im; Subject: RE: Field 411412 - Glamping & Campsite at Ballafesson Rd, Port Erin - petition - Port Erin Commissioners   Hi   Could you please ask to see their 31 March 2022 Accounts.  They will be unaudited but that’s OK.   Thanks Babs   From:

Sent: 27 May 2022 10:19 To: Cowley, Babs Subject: RE: Field 411412 - Glamping & Campsite at Ballafesson Rd, Port Erin - petition - Port Erin Commissioners   Hi Babs,   We are not in a position to answer this but we can ask Port Erin. Could you please advise what we need to ask them?   Thank you.   Kind regards

Petitions Officer Local Government Unit Department of Infrastructure Sea Terminal Douglas IM1 2RF

17 May 2022

Re: Field 411412 – Glamping & Campsite at Ballafesson Road, Port Erin

Dear Sirs, Under Section 51 of the Local Government Act 1985, Port Erin Commissioners wish to seek the Department’s approval to borrow a sum of money not exceeding

repayable over a period of twenty years in respect of the creation of an entrance, pedestrian crossing, water & electricity connections, and making good the surrounding wall at field 411412, Ballafesson Road, Port Erin. These works are required as part of the creation of a glamping & campsite within Port Erin. Please find enclosed the Stage I3 report from Silva Consulting. A public notice for the petition has been placed on our website and will also appear in The Examiner week commencing 23rd May 2022. The indicative annual repayments are expected to be per quarter; with the total repayable being of which is interest based on the HSBC variable rate of 1.598%. I would be grateful if the petition can be considered and I look forward to hearing from you in due course. Yours faithfully, Copies to Mr Lincoln Forrest, Silva Consulting Department of Infrastructure

Highway Services Division

MEMORANDUM

To:

Petitions Officer, Department of Infrastructure

From:
Design, Highway Services

Date:
19 May 2022

Your ref: NK

Re: Glamping and Campsite at Ballafesson Road, Port Erin

Introduction

The project encompasses the proposal to provide infrastructure works to the proposed Glamping pods site on Ballafesson Road, Port Erin, for Port Erin Commissioners. The site is in the ownership of the Commissioners; however, the site has been let to the Glamping Pods site operator.

Description of the Scheme

The petition is for the creation of an entrance, pedestrian crossing, water and electricity connections and making good the surrounding wall at field 411412, Ballafesson Road, Port Erin as part of the creation of a glamping and campsite within Port Erin.

The site is in the ownership of the Commissioners, however, has been let to the glamping pods operator on a long-term lease.

Works within the main site are to be undertaken by the site operator, however the Commissioners are obliged to provide mains services and access/entrance works to the site. Some of the cost within this tender report are to be borne/shared with the Glamping Pods site operator.

Financial Provision

The scheme is rate borne.

Tenders Received and tender Analysis

The works covered by the tender are in compliance with the planning approval obtained for the site in September 2020 under application no. 20/00496/B obtained by Samson Designs. This report relates to the conclusion of a tender process to obtain tender prices for the following works: - • Formation of new road access, including surfacing, repairs at the existing road abutment • Provision of a new electric supply from the existing mains in Grammah Avenue to the position of the new visitor centre • Provision of new water supply by removal of a section of the existing asbestos water main in Ballafessson Road • Limited repairs to the stone boundary walling to the site • Costs for provisional Section 109A agreement works – pedestrian crossing works – 2 locations

Tenders

Due to the Manx Utilities (MU) elements being a sizable portion of the project, tenders were sought from the list of MU approved contractors based upon the electrical connection works and connection to the asbestos cement water main works. Please note however that the tenders do not include the MU connection fee costs as these will be billed directly to the Commissioners or the Glamping Pod site operator. The costs have not been included in the tenders, however, are set out in the section of this report detailing Capital Costs.

On this basis the tender list of contractors was as follows: -

Tender documents were issued to all of the above contractors on the 12th April 2022. Tenders were sought on a cost only basis.

Tenderers were requested to submit their FIXED price tenders to the Clerk to Port Erin Commissioners by Tuesday 3rd May 2022 on the approved form of tender.

Tenderers were opened by the Chair to Port Erin Commissioners, Mr Godfrey Egee, in the presence of Mr Jason Roberts Clerk to Port Erin Commissioners and Lincoln S Forrest FRICS MIoD MAPM of Silva Consulting Limited at 12.15pm on Wednesday 4th May 2022.

Arithmetical Check

No errors were found in the arithmetic of the adjusted PCS Limited tender. The tender submitted did not contain any qualifications.

Comment on Tendering Levels and the content of the tenders

The tender is in line with the Pre-Tender estimate, save for the preliminaries section and the road surfacing works. The preliminaries are related to an estimated shorter duration.

Regarding the surfacing elements, we believe that we may have been a little pessimistic on the bitumen macadam works, however this has been contrasted with an equal optimism in the pretender estimate for the excavation works to for the main entrance. This results in the surfacing works being more than the pre-tender estimate

Overall prices are generally as expected.

The breakdown of the tender for the main section headings compared with the pre- tender estimate are set out below: -

• Provision for Design engineer to consult with DOI and close out the Section 109A agreement • Provision for additional fees for potential Section 109A works

Considering the content and value of the foregoing are considered reasonable having regard to the protracted nature of the approvals elements and planning conditions imposed.

It should be noted that elements of the tender works are for the Glamping Pods site operator and those costs equate to the following items: -

Provisional Sums

At this stage, the project elements tendered contain the following provisional sums: -

Contract Guarantee Bond A Contract Guarantee Bond is not required for this project in line with Treasury directives.

Programme A request was made for the tenderers to submit a programme with there tender. Due to the short contract period and scope of works, PCS submitted a bullet point programme with their tender which adequately sets out their sequence of works.

All tenderers were requested to indicate their likely duration of the works and PCS stated that the works were to take 6 weeks from commencements.

Commencement in the tender was indicated as 23rd May 2022, however this is subject to Commissioners approval, financial approval, and conclusion of the Section 109A agreement for planning purposes.

Value for Money

Conclusion & Recommendation The results of the tender process indicate that whilst the adjusted PCS Limited is the only tender, it is generally in line with the contents of the Pre-Tender estimate.

The dearth of tenders is demonstrative of the current buoyant market for construction and civil engineering works. However, it should also be noted that tenderers are currently reticent regarding the submission of tenders due to the volatile nature of the quotations for materials and supplies that are being received. The relatively lengthy period by which tenderers must hold their prices is being factored into their determinations and tender submissions.

In review of the only tender being that of PCS Limited, the tender appears to meet the Clients requirements in the most effective manner and aligns with Port Erin Commissioners aspirations for promoting tourism in the area.

Following examination of the buildup to the cost element of the adjusted tender, we are satisfied that the tender as submitted by PCS Limited is fair and reasonable.

This tender report requests approval to establish PCS Limited as the preferred bidder, with a view to appoint them via a Minor Works contract once the Section 109A agreement is finalised.

Pre-petition Procedures

The Department confirms that all relevant pre-petition procedures have been complied with. The Department’s Local Government Unit have asked the Commissioners to advertise the proposed purchase in accordan

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