United States-based resort developer has run into trouble with its plans to acquire a Bahamian island that features a hotel and marina complex, although it told The Tribune that the potential deal "has not completely fallen apart" yet.
Cay Clubs Resorts & Marinas has been attempting to acquire Walker's Cay in the Abacos, having announced this February that a deal had been completed in principle with its owners, the New York-based Abplanalp family.
However, sources told The Tribune that the acquisition had fallen through, with environmental issues concerning Walker's Cay said to be the reason.
Frank Rego, Cay Clubs Resorts & Marinas vice-president of operations for the US eastern seaboard and the Caribbean, yesterday acknowledged that the purchase had run into difficulties when contacted by The Tribune.
He said: "It has not fallen through completely. We're still in negotiations with the owners. It's still going back and forth. It's not completely fallen apart.
"There's issues on the island that we're trying to resolve."
When pressed as to the reasons why the acquisition had run into trouble, Mr Rego said they related to "environmental" concerns with Walker's Cay, but he could say no more because of confidentiality agreements signed with the owners.
"It's nothing I can talk about," he said. "There is ongoing negotiations. That is as much as I can tell you at this time.
"Hopefully, we'll have it resolved soon. But there's no exact timeline we can put on it right now."
Mr Rego had last week told The Tribune that while Cay Clubs & Marinas was waiting for environmental studies on Walker's Cay to be completed, the closing date for the acquisition had only been delayed.
The 71-room Walker's Cay Hotel & Marina, which has 62 guest rooms, three villas and the three-bedroom Harbour House, was heavily damaged during Hurricanes Frances and Jeanne in 2004, and has been closed ever since.
The 100-acre Walker's Cay, though, has the advantage of being the northernmost island in the Bahamas, thus making it the first stop-off for US boaters and yachtsmen as they move down the Abacos chain – a well known destination for this market.
This is what Cay Clubs & Marinas was planning to capitalise on, plus Walker's Cay's reputation among boaters as a leading sports fishing destination. Some 80 per cent of the world's game fishing records are said to be held by boats that came out of Walker's Cay.
The island provides access to both shallow water and deep water fishing, with boaters in deep water within minutes of leaving.
Apart from the 2,800 foot airstrip, Walker's Cay also houses the Conch Pearl and Lobster Trap restaurants, two bars, the Treasure Chest gift shop, the Sea Below dive shop, freshwater and saltwater swimming pools, tennis courts and 75 marina slips. The hotel is 50 feet above sea level. Michael Redd, of Michael Redd & Associates, the company that would be responsible for masterplanning the Walker's Cay development on Cay Clubs Resorts & Marinas behalf, said back in February: "Walker's is definitely one of the rare jewels in the Bahamas chain of islands. This will be one of the truly unique
Bahamian projects."
Mr Rego added then that his company's "reciprocal use type of membership" would ensure that Walker's Cay would receive a consistent, year-round flow of business once the development was completed and re-opened.
He said Cay Clubs Resorts & Marinas had selected Walker's Cay as the site of its first international expansion due to its proximity to the US, "ease of doing business and ability to develop the project".
The island also fitted into the company's philosophy of sustainable eco-tourism. The only facilities currently open on Walker's Cay are the Customs and Immigration post, plus the utilities plant that supplies nearby Grand Cay with power and water.
Cay Clubs & Marinas owns and operates resort and marina properties throughou't the Florida Keys, Clearwater, Sarasota and Las Vegas. It develops waterfront style living and communities.
By NEIL HARTNELL Tribune Business Editor
