The Tribune

BY NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net

THE GRAND Bahama Chamber of Commerce’s president yesterday urged all parties in the Port Lucaya Marina hold-up to “sit at the table and work at it” given the $22m project’s potential to revive a near ten-year “ghost land”.

Ralph Hepburn told Tribune Business that “patience” is required from both Bahamaland Waterways, the marina’s new owner and prospective developer, and both the Grand Bahama Port Authority (GBPA) and Grand Bahama Development Company (DevCO), as the issues that caused the ‘stop work’ order halting the property’s demolition are solvable.

He reiterated, though, that it is vital “the rule of law be followed to the ‘t’”, and to ensure that all parts of the permitting and approval process are “done properly” to ensure the Port Lucaya Marina’s redevelopment moves forward with everything necessary in place.

And, speaking after the public back-and-forth between Bahamaland Waterways and the GBPA/DevCO dominated media coverage earlier this week, Mr Hepburn told this newspaper it may have been unwise for both sides to air their “dirty laundry” given that it will be picked up outside The Bahamas and could impact the very investor confidence essential to driving Grand Bahama’s long hoped-for economic revival.

Bahamaland Waterways and its principals, Peter Hunt, the Port Lucaya Marketplace proprietor, and his business partner, Shmuel Herschkowitz, have maintained that they submitted extensive compliance documentation and believe the demolition permitting process became unnecessarily complicated despite their efforts.

They are arguing that the “immediate danger” posed by the marina’s “life-threatening conditions” must take priority over the administrative procedures they say regulators are citing for imposing a ‘stop work’ order on its demolition. However, the GBPA is countering that it is merely enforcing long-standing permit requirements designed to protect public safety and ensure legal compliance.

It added that DevCO, as the Port Lucaya Marina’s landlord, must sign-off on and authorise the demolition but it has yet to do so. DevCO, which is 50 percent owned by the GBPA’s Port Group Ltd affiliate, explained it has not done so because Bahamaland Waterways has yet to provide it with the necessary documents and paperwork to show they are now the actual owners and authorised representatives able to speak for Port Lucaya Marina Company, which holds the 99-lease on the property.

Mr Hepburn, suggesting the impasse can be resolved relatively easily, told Tribune Business: “It’s just a matter of having the trail properly mapped out between tenant, landlord and all the legal work, and alll the ‘i’s’ dotted and the ‘t’s’ crossed. Some persons are eager to move on. Everyone wants to make sure everything is done properly at the end of the day.

“I can say this from the Chamber’s point of view. After having discussions with both sides, we still have to be patient and make sure that we have done everything properly before we run ahead to get things done. We have to make sure we have covered all our bases and keep people properly informed with the facts by both sides so that no one is guessing what’s going on.

“Everyone knows these are the steps to be taken, these are the steps that have to be followed through, both parties are responsible for their own side, and let’s work together to bring about the best possible outcome for Grand Bahama.”

Mr Hepburn said the Port Lucaya Marina approval process “still needs to follow the rule of law”, adding that the Chamber is “watching, waiting and listening to everything going on”. He called on all parties - the developer, DevCO as landlord and the GBPA as regulator - to “sit at the table and work it out as opposed to public expressions things may be out of order”.

“We don’t want to go out with that look, not only on Grand Bahama, but where it will go outside,” the GB Chamber president explained. “We want to keep investor confidence high and deal with dirty laundry in private, not in the public domain.

“It’s going, but we need to be patient at all levels to make sure we are following all the points, and all the ‘i’s’ are dotted and the ‘t’s’ are crossed. Not everyone wants to do things a particular way, but we have to understand this is how the process works.”

Mr Hepburn said a revived Port Lucaya Marina could attract high-end yachts and boats, whose crews and passengers have major spending power and disposable income to revive a key area in Grand Bahama’s tourism product that has been badly in need of a lift for a decade since Hurricane Matthew struck the island.

“Port Lucaya Marketplace has been almost a ghost land from 2016,” he told Tribune Business. “Seeing activity back at Port Lucaya would be a good boost to the economy of Grand Bahama if it gets back to the level where we will be able to have traffic in that area.

“When you are dealing with yachting and boats, they are persons who are high-end, have a high level of disposable income and, based on that, I can see the economic benefits to Grand Bahama when we have people coming to our area and spending. It will result in a good benefit to Grand Bahama.

“It allows retail shops to open, straw vendors to open. It will also allow restaurants in Port Lucaya Marketplace to open. I had one or two I managed down there. They are good restaurants that have fallen away because the business was not there,” Mr Hepburn added.

“The spill over from persons in the Port Lucaya area working; they will have income that spills over into spending in other areas of the economy. Tour operators and taxi drivers will bring guests to Port Lucaya. All that is a good boost to the benefit of Grand Bahama.”

Bahamaland Waterways, in a notice issued to the GBPA earlier this week, warned on the economic consequences of ordering Executive Marine Management’s demolition work to halt. “The issuing parties further record that the timely reconstruction of Port Lucaya Marina is a matter of substantial public and economic importance to Grand Bahama,’” it said.

“A functioning modern marina is expected to restore significant visiting-vessel activity, and support employment and commercial activity throughout Port Lucaya, including Marketplace tenants, restaurants, entertainment venues, the Straw Market, marine contractors, fuel and transport providers and other local suppliers.

“Any continued suspension of the demolition and reconstruction of Port Lucaya Marina will have serious and far-reaching consequences for the future viability of Port Lucaya Marketplace. Following two major hurricanes, hotels closures and the COVID-19 period, the owners of Port Lucaya Marketplace continued to maintain the property in a clean, attractive and fully operational condition,” Bahama Land Waterways added.

“The Marketplace was among the fastest commercial properties in Grand Bahama to reopen after the hurricanes, and remained operational throughout the COVID-19 period. Despite these efforts, occupancy declined at approximately 50 percent, while rental rates have not been increased for more than 12 years.

“In the present economic circumstances, Port Lucaya Marketplace cannot be expected to sustain its long-term operations without the restoration of the marina, which is of substantial importance to increasing visitor traffic, strengthening existing tenants, attracting new businesses and restoring commercial activity throughout Port Lucaya.

“The strategic importance of Port Lucaya Marketplace and the marina has also been discussed with the principals and management of MSC (Mediterranean Shipping Company) and CTL Maritime [its subsidiary] during recent meetings with the owners of Port Lucaya Marketplace concerning the planned development of the beach club and the broader revitalisation of the area.” That latter statement refers to MSC’s redevelopment of the former Breaker’s Cay property at the Grand Lucayan.