The signals sent to potential investors by opponents of the $175 million Baker’s Bay Golf & Ocean Club project on Great Guana Cay are “dangerous and potentially very harmful to the Bahamas’ economy and reputation”, the San Francisco-based company behind the development said last night.
Responding to a series of questions e-mailed to it by The Tribune, Discovery Land Company said the “signals and tactics” employed by the Save Guana Cay Reef Association in their bid to halt the project could have a negative impact on the Bahamas’ attractiveness for direct foreign investment.
The company said: “The group is likely unaware that they are signalling to onlookers that the Bahamas can be hostile to investors, who can find themselves with little – if any – recourse to rectify quickly and amicably events that should be addressed at the business table as opposed to court rooms.”
Discovery Land Company’s comments come in the wake of last week’s Privy Council ruling, which upheld an injunction obtained by the Association that has forced it to stop all work
Baker’s Bay developer says it remains committed to project, but warns opponents sending `dangerous’ signals to other investors on Great Guana Cay.
The work stoppage will last until either Supreme Court Justice Norris Carroll delivers his verdict on the merits of the substantive issues raised by the Association’s legal action against the development, or the Privy Council hears its application for Special Leave to appeal a Court of Appeal verdict in October – whichever is first.
Discovery Land Company acknowledged in its response to The Tribune that the planned construction of Baker’s Bay Golf & Ocean Club would have to be adjusted as a result of the Association’s legal challenges.
It said: “Plans for hiring of additional employees will have to be shelved, as well as plans to initiate selling of lots at the property, and the concomitant contributions of dollars in stamp and other taxes to the Treasury of the Bahamas.
“As recently indicated in our filings before the Privy Council, the Save Guana Cay Reef Association’s legal challenges threaten to deny employment opportunities to hundreds of Bahamians, which translates into lost economic opportunities for associated contractors, hospitality industry employees, real estate agents, merchants, accountants, and a host of other professionals and their families.
“Fiscal losses due to the initial voluntary undertaking and the current injunction are significant, and will likely be in excess of [the Association’s] ability to recompense by the time a ruling is handed down by the Freeport Supreme Court.”
An affidavit sworn by Joseph Arenson, a Discovery Land Company partner and attorney, alleged that the firm may lose $440,000 per week or $1.75 million a month, resulting from fixed costs related to operating expenses, staff costs, equipment and dredgers, if the injunction was upheld – as it has been.
Arguing that “the majority of these costs would remain if the injunction were not discharged”, Mr Arenson said its continuation would also result in Discovery Land Company losing potential real estate sales and employees, and harm the firm’s reputation.
He added: “Every time the development is interrupted, its attractiveness as an investment is materially prejudiced. These losses are extremely difficult, if not impossible, to quantify.”
As for the work stoppage’s impact on the wider Abaco economy, Discovery Land Company told The Tribune: “We do know that merchants and other entities with which we have transacted business since our arrival in the Abacos will realise a reduction in such transactions.
“We believe it’s safe to say that in general, this short-term halt will have an adverse effect on the Abaco economy, likely to the tune of hundreds of thousands to millions of dollars on a monthly basis.”
When asked about the effect recent developments would have on potential clients and real estate sales, Discovery Land Company said that while sales would be delayed, along with related tax payments to the Government, construction opportunities for contractors and real estate broker fees, it was “confident that once allowed to proceed, the tremendous quality and great charm of the Bahamas will attract significant real state opportunities over the long term”.
The company said the ruling by Justice Carroll was anticipated “imminently’, and hoped the affair would be resolved quickly and decisively thereafter”.
Arguing that the Association’s case was “baseless and frivolous”, Discovery Land Company said: “Discovery Land Company came to the Bahamas, entered into a Heads of Agreement with the Government of the Bahamas, and has since conducted itself consistent with Bahamian laws and sound development practices.
“Discovery Land Company will continue to abide by the laws and regulations of the Bahamas. We will continue to support our staff and ‘family’ at Baker’s Bay Golf & Ocean Club, and once we are successful in the legal matters, we will build the most dynamic and environmentally responsible development that the Bahamas and the region have ever seen.
“The Discovery Land Company/Baker’s Bay Club’s unwavering commitment to the environment and development of the project will continue, and the developers are as strong as ever in their resolve to create a truly great development.”
Discovery Land Company reiterated allegations that 72 residents on Guana Cay had signed a petition asking the Association to stop misrepresenting it in the battle against the project.
The Association denied it had received such a petition, and said it had delivered a petition with 170 names against the development to the Government.
By NEIL HARTNELL Tribune Business Editor
