The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

SuperClubs Breezes owner yesterday said outstanding issues over its land swap agreement with Baha Mar were proceeding to resolution, with his property “ready, willing and able” to fulfill all its obligations.

Indicating that the parties were moving to settle their differences ‘out-of-court’, John Issa also denied Baha Mar’s allegations that Breezes owed at least $80,000 in unpaid rent on a land parcel it originally leased from the Hotel Corporation of the Bahamas.

And, further responding to Baha Mar’s counterclaim, filed in response to Breezes’ own statement of claim, Mr Issa said the $2.6 billion developer had not produced any evidence to back its claim that his hotel’s original wastewater treatment plant was responsible for pollution.

Referring to the original land/wastewater treatment plant swap agreement with Baha Mar, which was agreed in September 2011, Mr Issa said he understood that both sides would execute their obligations shortly.

He told Tribune Business: “We have a Letter of Intent with Baha Mar, which I understand is likely - from both sides’ attorneys - to be executed. Both parties’ attorneys are in contact to try and complete all the obligations.

“We are ready to perform everything on our side, and I understand Baha Mar is, too. We have always stated from the very beginning that we are ready, willing and able to fulfill all our obligations under the Letter of Intent.”

Sounding a conciliatory note, Mr Issa said it was in the best interests of all parties for the Baha Mar project to move ahead rapidly, and open on schedule in December 2014.

“It’s in the best interests of the Bahamas, the economy and the tourism industry for everything to go ahead swiftly, and for Baha Mar to open on schedule,” he added.

Tribune Business revealed last week that the proposed land and wastewater treatment plant swap agreement had ended up the subject of Supreme Court litigation that remains live, despite both sides’ moving towards settlement and agreement execution.

Breezes and its parent company, PPL Ltd, had alleged that for 18 months Baha Mar has “continued to fail or refused” to complete the land transfers envisaged in the two sides’ September 18, 2011, agreement.

Superclubs was also claiming that Baha Mar trespassed on land that it currently leases from the Hotel Corporation, and that there were numerous leaks and design flaws in the new wastewater treatment plant that the Cable Beach developer had built on Breezes’ behalf.

But Baha Mar Baha Mar “categorically denied” all Breezes/PPL allegations, adding that it never attempted to “hide” the demolition of the former Breezes treatment plant from its fellow resort.

It also rejected the assertion that there were “design flaws or problems” with the new plant, and said the conveyancings related to the land parcel transfers were awaiting “Breezes’ ability to perform its obligations for the exchange of documents”.

Baha Mar also filed a counterclaim, alleging that Breezes owes it at least $80,000 in rent after it took over ownership of a three-plus acre parcel from the Hotel Corporation of the Bahamas.

Mr Issa, though, denied this claim, telling Tribune Business: “The rent for that land has been paid before time or one time since the inception of the lease.

“We lease that land from the Hotel Corporation, and the rent has been paid to the Corporation ahead of time every year since the inception of the lease.”

As for the wastewater treatment plant allegations, Mr Issa said Baha Mar was claiming it had to act, and demolish and clean-up the former plant ahead of the schedule agreed with Breezes, because of alleged soil pollution.

“They have never sent us any back up to that statement (supporting evidence) in their court documents,” Mr Issa told Tribune Business, “and did not inform us they have followed the law, which was to inform the relevant government agencies as soon as they were aware of that.

Mr Issa said Breezes wrote to those departments informing them of Baha Mar’s allegations, in order to bring it to their attention.

“We have fulfilled all our obligations under law, and have no evidence there has been any pollution,” he added.