It has been one year since the closure of the Royal Oasis Resort in Grand Bahama, but the government insists it remains as determined as ever to secure a new buyer for the hotel property – even if it has to get in on the deal.
Prime Minister Perry Christie made that revelation on Monday, following what he called a very constructive and fruitful recent meeting with J. Flannery, managing director of the Lehman Brothers group, which is the financier for the Driftwood Group of Companies, owner of the resort.
According to Mr. Christie, it was agreed that the government would partner with the company to ensure that a purchaser for the hotel is found in “the shortest possible time”.
“As an incentive, I further indicated that we would ensure that it is even more attractive than it was in the past, so as to virtually guarantee that that part of Freeport – where significant numbers of people were employed and are now unemployed – receives a new impetus and new life,” Mr. Christie said.
“I have indicated that the government – as is most certainly the case with Lehman Brothers – has significant interest in the property because of the amount of money owing (to both parties).”
Tourism Minister Obie Wilchcombe had revealed earlier this year that the Driftwood Group owed millions of dollars to various government and non-government entities.
During his 2005/2006 budget contribution in the House of Assembly, Housing and National Insurance Minister Shane Gibson indicated that the National Insurance Board had been able to secure $2.6 million from the hotel property.
More than 1,200 workers lost their jobs when the resort closed following Hurricane Frances last September. Many of them remain unemployed in a job market officials admit is also constrained.
Government officials have further admitted that they do not know when the resort might reopen under a new buyer, but said they are working hard to get it sold.
But Prime Minister Christie has reassured the public that this will take place.
“In our discussions, I ensured that it is clearly understood that we must together ﾖ even if it means the government becoming part owners ﾖ provide a guarantee to the economy of Freeport that this facility and its casino will reopen,” he said.
“We cannot allow that to remain closed one year after the hurricane. I was able to demonstrate to Lehman Brothers that a government with a licensing right of a casino cannot allow those rights to simply sit and remain inactive.
“The government, looking at Grand Bahama, must reassess the options available to us with a view to ensuring that we are able to make a contribution to persons who are investing substantial sums of money to give real hope that Freeport will not only rebound as we believe that is now doing, but expand.”
Mr. Christieﾴs comments were made during Mondayﾴs press conference at his Cable Beach office, where a formal announcement was made for the development of another multimillion-dollar investment for Grand Bahama.
The New Hope Holding Company, developer of real estate and marinas, proposes to build a condo hotel of some 120 rooms and a number of high end homes in Freeport.
The goal is to begin the five-year project before the end of the year, investing between $220 and $250 million.
The idea to introduce another investment comes at a time when Grand Bahamaﾴ economy is still struggling to rebound following the devastation Hurricane Frances left behind.
The government is also looking forward to a number of additional projects like the new small hotel announced for Old Bahama Bay in West End, Grand Bahama, which has already been approved.
A groundbreaking ceremony has already taken place for a new condominium development in Bootle Bay, while another is in the works for Deadmanﾴs Reef.
“These are in varying stages of progress and we believe that real hope is already evident to the people,” Prime Minister Christie said.
Macushla N. Pinder, The Bahama Journal
