After many months of intense negotiations, Prime Minister Perry Christie last night said that he was tremendously relieved to sign a heads of agreement with the Baha Mar Development Company Ltd.
ﾓIt has been without doubt the most complex, comprehensive and time consuming process ever undertaken in The Bahamas on such a major project,ﾒ Mr. Christie said at the official signing ceremony which took place at a packed Cabinet Office in downtown Nassau.
ﾓThis historic development, which envisages an expenditure of not less than $1 billion in Phase I, will completely revitalize the entire Cable Beach resort area in accordance with my governmentﾴs bold economic vision and plans for world class touristic development.ﾒ
The agreement, which includes the purchase of the Radisson Cable Beach Resort from the government-owned Bahamas Hotel Corporation, comes seven days after the group announced its purchase of the Nassau Beach Hotel and Wyndham Nassau Resort & Crystal Palace Casino from American developer, Phil Ruffin.
Sarkis Izmirlian, chairman and CEO of Baha Mar, said he has long been aware of the potential of Cable Beach.
The Izmirlians have lived in The Bahamas for the past 15 years.
Prime Minister Christie said, ﾓThey have set out to create a must-see, one-of-a-kind experience, using the creative genius of the best international and Bahamian professionals, supported by what I believe to be an invaluable Bahamian human resource team now employed at the Cable Beach hotels, and those who will swell their ranks as expansion takes place.ﾒ
The development will be ﾓthe best resort development in the worldﾒ, Mr. Izmirlian said last night.
ﾓToday, I am very happy to begin the process of development of the new Cable Beach, which will be called Baha Mar,ﾒ Mr. Izmirlian said.
ﾓWe will create a one of a kind resort which in Phase I will be the single largest investment at $1.2 billion in the history of The Bahamas.ﾒ
The major redevelopment and construction of the properties is scheduled to being in 2007, although management has announced immediate plans to make substantial investments in improving guest and employee areas.
Baha Mar officials said the project will create a world-class resort and gaming destination incorporating globally recognized hotel and casino brands with their enormous marketing power and high service standards.
Phase I of the multi-property mega resort will accommodate 2,700 guest rooms across a broad spectrum of price points and multiple hotel experiences; 175,000 square feet of meeting and convention facilities; and a new 18-hole championship golf course.
At 75,000 square feet, the proposed ﾑLas Vegas styleﾴ casino will be the largest in the Caribbean. The resort will also boast a number of unique attractions and activities available to guests of the resort, cruise passengers and the Bahamian public.
Prime Minister Christie said a new atmosphere, sense of place and aesthetic appeal will be created by landscaping the highway all the way from Nassau International Airport and creating a dramatic new entrance to Cable Beach adjacent to the eastern end of Lake Cunningham.
ﾓThe spectacular new diverted West Bay Street including extended jogging trails among lush gardens and waterfalls, will also provide a breathtaking experience for the Bahamian public and visitors alike,ﾒ he added.
He announced that Baha Mar will, at cost, replace the Cecil Wallace Whitfield Centre, the Bahamas Development Bank, Gaming Board, police station and straw market buildings within the boundaries of the project or elsewhere should the government prefer alternative sites.
ﾓUnder the terms of the heads of agreement, the $1 billion project is being scheduled to avoid, as far as possible, disruption for staff and facilities,ﾒ the prime minister assured. ﾓThe work will be staged so that only one hotel is closed at a time to enable the completion of 2,700 rooms between 2007 and 2009.ﾒ
He said $12 million is to be allocated by the new owners for the retraining of staff during the construction period.
ﾓDuring construction, Baha Mar will work closely with the government and the relevant unions to develop a comprehensive programme that is fair and equitable to employees. The bulk of the construction at Cable Beach will commence when Atlantis Phase III is ready for opening, thereby creating many new employment opportunities within the hotel industry,ﾒ Prime Minister Christie said.
He added that Baha Mar is to use its best efforts to enter into final agreements with its resort partners by August 30, 2005, and its casino partners by December 31, 2005.
Mr. Christie also informed that the concessions which the government is granting to Baha Mar for its $1 billion project parallel those granted to Kerzner International for its $1 billion Phase III development.
They include concessions on casino tax for 21 years, exemption from stamp tax on construction materials and joint marketing contributions for eight years.
ﾓOn a present value basis, these concessions amount to some 20 percent of both $1 billion projects,ﾒ the prime minister said. ﾓKerzner in phases I and II were proportionately higher at approximately 49 percent and 35 percent of the investment respectively.ﾒ
He also said that the Baha Mar Economic Impact Study reveals that Phase I of the project will create upwards of 5,000 full time jobs and generate approximately 3,000 jobs during construction.
ﾓOver the period of the tax concessions, the Economic Impact Study projects that the GDP impact will reach nearly $10 billion and the cumulative taxes generated to the government should be over $2.5 billion,ﾒ Mr. Christie said.
Candia Dames, The Bahama Journal
