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as regards investment strategy there were no significant
changes made to the portfolio over the quarter.However, since the
end of the quarter there has been a reduction in equity holdings
and this has been done by reducing the overweight position in Asian
equities which have proven very successful - profits have been
taken because the markets have been very strong;
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Resolved to accept The H.S.B.C. Investments (UK)
Limited Report for the third quarter period to 30 September 2005,
and to thank the H.S.B.C.Investments (UK) representatives for the
information.
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Submitted - the report of the Treasurer outlining certain
long-term strategic issues concerning the Charitable Trust’s
use of land at Amlwch Port as well as more short term matters
requiring a decision.
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The Committee’s attention was drawn to the
considerations as follows -
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5.1
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the Charitable Trust owns land at the west side of Amlwch
port.A parcel of land was transferred to the former Borough Council
by Shell (UK) Limited under the Cessation Agreement, then
transferred to the Charitable Trust by deed of Trust.Part of that
land was sold to Great Lakes Chemicals in 1996 for s sum of
£236,500.The present land is what remains in the Charitable
Trust’s ownership following that sale;
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5.2
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unlike the Charitable Trust’s land at Rhosgoch, the
remaining land at Amlwch Port has not been considered to have the
same market potential due to a variety of reasons including the
following -
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i.
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land contamination issues arising from the previous use of
the land as a municipal waste tip and there once being a chemical
industry on site.A contamination study commissioned by the former
Borough Council concluded that expenditure of up to £1.5m
would be required before any development could take place.It is
suggested that the need to ameliorate contamination is a liability
which should be set off against any development value;
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ii.
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Mona Mill, a Grade II listed building dating to the early
19th century, stands on the land.In 199, the Council and Charitable
Trust secured a Derelict Land grant of £127,542 to renovate
and make safe this structure in return for which the Trust was
expected to allow a public access agreement to the Mill;
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iii.
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since 2003, discussions have taken place with Dwr
Cymru-Welsh Water who wish to construct a waste water treatment
works on adjacent land.In return for the Charitable Trust’s
agreement to allow some landscape work to be undertaken on its land
to facilitate the proposed treatment works, Dwr Cymru-Welsh Water
agreed to make some improvements to the Charitable Trust’s
land involving control of vehicular access, an interpretation board
and bollards to restrict movement of vehicles and promote safety.
These proposals are still in abeyance and are not
certain;
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iv.
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in 2004, the Charitable Trust agreed to the placement of a
memorial to a local man on the site.
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5.3
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the land is currently used as an amenity by walkers, by
people who enjoy its amenity as a viewpoint and, as the land
includes part of the west side of the historic harbour at Amlwch
Port, it is also in use as part of a working port operated by the
County Council as Harbour Authority. The land does not yield any
income to the Charitable Trust;
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5.4
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the decisions of the Charitable Trust as at ii, iii, and
iv above suggest its dedications as an open space for the
public’s enjoyment, and this appears to be its actual usage
in practice.As with many spaces open to the public, there are
owners’ liability risks for the landowner if members of the
public were to have accidents there;
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5.5
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the Charitable Trust objectives include
the preservation for the general public
benefit of persons resident in the Borough of buildings of
aesthetic, historical, architectural, constructional or scientific
interest or importance as well
as the conservation of land or other
property within the Borough which is of aesthetic, historic or
scientific value.The Conservation
Management Plan recently produced for the Amlwch Industrial
Heritage Trust (and part-funded by the trust) lists a number of
historical buildings on this land. (listed as part of Appendix 2 to
the report).Charities whose objectives include ones of preservation
or conservation are able to hold assets in furtherance of those
objectives and to designate these as heritage assets.The Charitable
Trust’s actions to date in respect of this land are entirely
consistent with the land being a heritage asset.
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It is recommended therefore, that the Charitable Trust
should formally confirm that this land is designated as a Heritage
Asset.Following this, it is appropriate that the Charitable Trust
should take steps to allow the public greater information and
enjoyment of, these assets.
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As the land formed part of a package of lands transferred
under the Cessation Agreement, the Charitable Trust has no record
of its historical cost.The valuation of the land would be
problematic given the contamination issues and a full valuation of
the probable liability presented by contamination would add little
benefit to the Charitable Trust or to readers of its accounts.It is
recommended therefore that the land need not be valued for the
accounts.
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5.6
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However, the land does have potential as a heritage asset
particularly as part of the possible wider development of the
Amlwch and Mynydd Parys areas.The Copper Kingdom Project, sponsored
by the Amlwch Industrial Heritage Trust and part funded by the
Charitable Trust, envisages an ambitious ,publicly-funded
development of Amlwch Port aimed at regenerating the area.The
Business Plan for this scheme would require a reconstituted Amlwch
Industrial Heritage Trust, or a new development organisation to
steer the whole project.This would almost certainly require common
management of the east and west sides of the harbour, including the
operation of the port.For this to be achieved, it would be
necessary for the Charitable Trust (in respect of the west side)
and the County Council (in respect of the east side) to agree to a
lease of their land to the Copper Kingdom project, any land
value being considered a contribution to match-funding.For the
Charitable trust, this would be a means of achieving its
conservation and regeneration objectives whilst relieving it of any
operational obligations, subject to its being satisfied that any
arrangement minimises the liabilities falling on it.As the
Charitable Trust’s land holdings are less than the County
Council’s, and the Council will have other interests to
represent, it is suggested that the lead role in this matter should
be taken by the Council’s officers on behalf of the local
authority.This should not subordinate the Charitable Trust’s
interests, and it may be that any eventual agreement will require
the consent of the Charity Commission because of the involvement of
both the Trust and the Trustee.
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It is recommended therefore that the Charitable Trust
should agree in principle to the lease of its land to such a
project, subject to further consideration of terms if and when the
County Council should identify such terms as feasible.The final
decision would need to be taken by the full membership of the
Trust.
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5.7
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There are also some works which can be undertaken in the
short-term to improve the land in a way that fulfils the charitable
objectives.These arise form the Copper Kingdom project but are not
conditional on the remainder of the project.The Amlwch Heritage
Trust has identified potential works on the Charitable Trust land
involving floodlighting of Mona Mill, improvement of footpaths and
interpretation.These would complement, not replace the works
potentially to be undertaken under the agreement with Dwr
Cymru-Welsh Water.The Charitable Trust itself ought to conduct a
risk assessment of the occupier’s liability risk at the
site.This is likely to inform the footpath development and may
identify other works to be undertaken in the interest of
safety.
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In response to the Copper Kingdom Project, the Charitable
Trust’s Regeneration Committee has responded to the
application for the Amlwch heritage Trust by releasing a tortilla
of £38,800 to be spent on the Charitable Trust land, but to
be spent by the Charitable Trust itself.The Regeneration Committee
was advised that the decision to release funding was its to take,
but that the matter of undertaking work on the land is the
responsibility of the Investment and Contracts Committee and as
such, is now referred to the Committee.
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5.8
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As part of the conditions of the 1996 sale, the Charitable
Trust had a right of pre-emption to buy back a very small part of
the land in the event of the chemical works closing.If exercised,
the Trust would have to buy at market value.The right was triggered
in August, 2004, but was not exercised then.The trust’s
officers have recently been approached again by the new owners of
the land, asking of it wishes to exercise the pre-emption rights
before a proposed transfer to another party.The land in question
comprises part of the roadway to the Breakwater and the site of a
former fire pond which has since been filled in.Continued access
over the roadway would be of value to the Council as Harbour
Authority.The land is currently within the fenced enclosure of the
former Great Lakes Works, so is not readily accessible.As the
Charitable Trust would have no functional use for this land and it
has no heritage content, it is considered highly unlikely that the
pre-emption rights should be exercised.
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The Committee's authority was sough for the Treasurer to
continue to deal with this matter on behalf of the Charitable
Trust.
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It was resolved to adopt the recommendations of the
report as follows -
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to confirm that the land at Amlwch Port be designated
as a Heritage Asset;
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to confirm that the land need not be valued in the
balance sheet on the grounds that to do so would be too onerous
compared to the benefit to users of the accounts;
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to agree in principle to leasing the land to a
development organisation subject to agreeing terms in negotiations
to be led by County Council Officers;
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to use funds already allocated by the
Regeneration Committee to undertake work on the site, authorising
the Treasurer to make arrangements with Amlwch Industrial Heritage
Trust or other organisations to undertake this;
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to authorise the Treasurer and Solicitor to take
advice as necessary and respond to the invitation to exercise
pre-emption rights
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Submitted - The report of the Treasurer in respect of the
above.
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It was reported that a workshop of the Chairmen of the
Trust and its committees, Trust Officers, and Officers who have a
contribution to the Trust’s affairs had been convened during
the week with a view to agreeing a risk matrix for the Charitable
Trust.Following the meeting, a draft Risk register was drawn up
(copy circulated at meeting) incorporating information relating to
the risks identified, the existing control measures, the level of
the risk and any further action required.A total of 15 risks were
identified and graded.High level risks identified included
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loss of value of investments due to falling markets and/or making the wrong type
of investment - several control
measures are in place which indicate
that this risk is being addressed and managed.The risk was judged
acceptable given the expected long term returns, but it was
recognised that it needs to be kept under review;
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grants awarded on projects on moral or historical
grounds which do not necessarily meet priorities
- no control measures in place but further
action will entail a review of annual grants to take account of
priorities;
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occupiers liability risks (e.g. injury to users of land, trespassers, fly-tipping,
breach of statutory planning and environmental duties - control
measures include the fact that land is restricted to two sites,
Rhosgoch and Amlwch Port and the risk is being addressed by plans
to sell the Rosgoch site and by the production of a management plan
for Amlwch Port.
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It was resolved to note the information
presented.
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