The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Ross University is set to close its Freeport-based medical school in early 2014, Tribune Business can reveal, dealing a fresh blow to Grand Bahama’s ailing economy just as several positive developments loom on the horizon.

This newspaper was able to confirm the move after being tipped to it by private sector sources on Grand Bahama.

A small section in the 10-K annual report filed by Ross University’s parent, DeVry University, with the Securities & Exchange Commission (SEC), said: “During fiscal year 2009, Ross University School of Medicine opened a 31,700 square foot leased location in Freeport, Grand Bahama.

“Currently, Ross University School of Medicine and American University of the Caribbean School of Medicine offer a Medical Education Review programme at the Freeport location. These operations are expected to be consolidated to a US location in early calendar 2014.”

Tribune Business was unable to contact Ross or DeVry officials for comment yesterday evening.

However, Ross University’s impending departure from Freeport will also harms the goals of diversifying the Bahamian economy, and creating a potential cadre of employees that could boost this nation’s efforts to position itself as a medical tourism hub in the wake of the Stem Cell Research and Therapy Bill’s passage.

Grand Bahama-based businessman, Jeff Butler, confirmed to Tribune Business he had heard of Ross University’s plans to leave the Bahamas, blaming it on factors such as new and increased taxes plus the high cost of power on Grand Bahama.

These factors could not be confirmed as the reasons for Ross/DeVry’s decision, but Mr Butler said the ripple effects from the pull-out would be felt throughout Grand Bahama’s economy, especially by landlords who rented property to students and faculty.

Mr Butler, who owns Butler’s Food World in Freeport, said: “I don’t know what their student base is, but all of those students pay for accommodation.

“They don’t stay in hotels; they rent properties like condos and apartments from individuals. They all shop at my supermarket. That’s a whole income level going out.

“They were supposed to build a larger campus and do a whole lot of things, which they now aren’t going to do.”

Upon arrival in Grand Bahama in 2008-2009, Ross University had promised to build a 60,000 to 8,000 square foot campus in Freeport, replacing its rented accommodation.

The developments come just as Grand Bahama starts to enjoy some positive economic news, via Sunwing’s renovations and late-year opening of the Reef Village resort at the Grand Lucayan, and the Island Outsourcers call centre that promises 100 new jobs. Together, those two developments hold out the promise of 1,000 jobs.

Mr Butler, though, struck a more pessimistic tone, telling Tribune Business that the island’s economy continued to be held back through a combination of high energy costs, new and increased government taxes and high bank lending rates.

“There’s just nothing happening,” Mr Butler said. “I’ve talked to Grand Bahama Shipyard, Polymers and Pharmachem, and not one of them’s expanding. They are not doing anything. It’s a sad situation, and no one is doing anything about it.

“Grand Bahama continues sinking, and no one has a bucket to bail it out. For the poor and middle class, it’s a sad situation.”

Recalling how the man in the line behind him at the gas station yesterday morning only put $3 in his tank, because that was all he could afford, Mr Butler said he and Butler’s Food World were going to “hang on and see what November brings”.

That month typically sees Grand Bahama businesses get a boost from the return of European and Canadian winter residents, and Mr Butler revealed that over the three summer months his food store business had lost $20,000 per month.

He added, though, that the store remained “fully staffed” with 100 employees, as he held the line on lay-offs.