The Tribune

By Neil Hartnell

Tribune Business Editor

nhartnell@tribunemedia.net

Two Opposition MPs yesterday challenged the $1.6m purchase price for a land parcel that is vital to “unlock” Baha Mar’s $350m expansion, with one asserting: “Don’t let the boys with the mega bucks rob us.”

Dr Hubert Minnis, the former prime minister, and Iram Lewis, the independent MP, both used the House of Assembly debate on the resolution to approve the Treasurer and government’s sale of the 2.077-acre parcel to the Cable Beach mega resort developer to argue that public land was being disposed of for at least around 50 percent of its true value.

The Killarney MP asserted that the parcel’s worth was really in the $3m-$4m range, which would be at minimum around double what Baha Mar is paying for it, and he subsequently urged the Government to adopt a policy where Crown Land not be sold to foreign developers and only leased to them if essential for job-creating expansion that boosts economic activity.

Mr Lewis, meanwhile, argued that per acre prices for “prime commercial land” in that high-end part of western New Providence were at least around $1m. “We need to know on behalf of the Bahamian people that we are getting fair market value,” he added.

He was followed by Dr Minnis, who urged the Government: “Do not give our land away for $1.6m. It’s worth $3m-$4m.” The ex-prime minister argued that land and real estate prices, especially in western New Providence, have increased substantially since his administration agreed to sell the 2.077 acre parcel - located on the southern side of West Bay Street - to Baha Mar in 2019 as part of a revised Heads of Agreement.

“Let me give you an example: That land has gone up exponentially,” Dr Minnis said. “An individual close to me had purchased a piece of land in the west for $60,000. The price of land has gone up so drastically and exponentially that he sold the property just recently for $750,000. I’m giving you an example of what has happened since the agreement was signed. That’s gone up exponentially with all the development going on there. Look at it again.”

Dr Minnis later suggested that some of his constituents, when they heard the price being paid by Baha Mar, said they would buy the 2.77-acre parcel themselves. “Don’t let the boys with the mega bucks rob us,” he asserted. “We have to look again at the price. Everything has gone up. We must look at the price very seriously. We cannot sell land in that area for $1.6m for use of a two-acre property.”

The Killarney MP said his administration, recognising that rising land and real estate prices were becoming increasingly unaffordable, especially for working and middle class Bahamians, had explored introducing a policy where Crown Land would never be sold to foreign developers and buyers - and only leased for projects that benefited economic activity and employment.

“Many Bahamians cannot afford the price of land in The Bahamas, especially in New Providence,” Dr Minnis argued. “The Government owns 77 percent of the land in The Bahamas; the Crown. We should enforce a policy that Crown Land should always remain in the hands of Bahamians; the private land you can sell, no problem.

“The Crown must always remain in the hands of Bahamians. If investors needs such facilities for expansion of their developments, and they will have a good impact on The Bahamas; on Bahamians, then yes, one may consider it, but it must be leased.” Dr Minnis argued that this was critical to protecting Bahamian interests now and moving forward.

“There should be a government policy to protect our land, protect our future generations. We should not sell our Crown Land,” the ex-prime minister added. Dr Minnis and Mr Lewis, in focusing so heavily on the purchase price, did not appear to account for the estimated 400 construction, and 500 full-time, jobs plus millions of dollars in annual economic activity that will be facilitated by Baha Mar’s fourth hotel property.

Prime Minister Philip Davis KC, speaking in the House of Assembly, described the project - located on the 12-acre site of the former Melia Nassau Beach Resort on the Cable Beach strip - as “the real deal” and “a new chapter” for a mega resort that already employs 5,000 Bahamians.

“Baha Mar and the Government have signed a Heads of Agreement for a further expansion on the former Melia site. It is a $350m capital investment that will bring a fourth luxury resort and about 50 branded residences to 12 acres along Cable Beach,” he said

“The new resort, designed by the acclaimed firm Foster + Partners, will include approximately 350 rooms, four new restaurants including a roof-top.. experience and a beachfront restaurant with a celebrity chef, a 14,000 square foot spa and fitness centre, luxury retail, pools, an outdoor bar, entertainment lounges and 25,000 square feet of event space, with a 10,000 square foot ballroom at its core.

“Groundbreaking is scheduled for 2026 and opening is targeted for 2029. The project is expected to employ roughly 400 workers during construction, with over 500 permanent roles once it is fully open,” Mr Davis added.

“So when we approve this resolution, we are not simply moving a piece of paper from one file to another. We are helping to unlock a $350m expansion that will secure hundreds of jobs, deepen our luxury product and strengthen Cable Beach as a leading district for high-end travel.”

The Prime Minister also pledged that The Bahamas has “moved aggressively to fix a long-standing weakness of our model” in the form of airlift and stopover visitor access, adding that the Baha Mar expansion is part of “a much bigger story about tourism”.

“From January to October this year, The Bahamas has welcomed about 9.9m visitors. That reflects a strong recovery and new growth across both cruise and air arrivals,” Mr Davis said. “But our focus is wider than sheer numbers. We are working to secure more spend per visitor, more nights on our islands, and more participation of Bahamian entrepreneurs in the tourism value chain.”

Touting the Government’s multiple Family Island airport redevelopments as vital to boosting stopover visitor numbers and access to the destination, he also pointed to 45 new direct international routes that The Bahamas has added in recent years as well as Bahamasair’s interline deal with Emirates opening up connectivity to Asia, the Middle East and Africa.

“Seat capacity now exceeds pre-pandemic levels,” Mr Davis said. “We are modernising the digital spine of the industry. The Smart City pilot in and around Nassau Cruise Port is bringing free high-speed connectivity to key tourism corridors so visitors can share their experiences in real time and local businesses can market directly to them.

“The Google Street View project has captured millions of images across the islands, boosting online visibility for Bahamian hotels, restaurants and attractions and supporting national planning and emergency response…. When we add all of this together, a clear picture emerges. The Bahamas is building a tourism sector that is higher quality, more connected, more resilient and more deeply rooted in Bahamian culture and community.”

Mr Davis, arguing that the Baha Mar land deal boosts investor confidence in The Bahamas’ credibility, and stability and continuity of government with successor administrations honouring deals by their predecessors, said: “This parcel at the Melia vacant land parking site may be 2.077 acres on paper. In strategic terms, it carries far greater weight.

“It allows Baha Mar to organise its next phase properly. It helps unlock a $350m expansion that will bring hundreds of jobs and new opportunities. It reinforces the credibility of our word as a country….Our tourism industry is setting new records, our aviation and digital systems are catching up with global best practice, and investors are lining up to build across our islands.”