Government proposed 21-year lease of reclaimed Crown Land to Peter Nygard

As of Monday, August 26, 2013

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government proposed a 21-year lease of reclaimed Crown Land at Nygard Cay to its fashion mogul owner, with an annual rental rate pegged at $25,000.

Documents obtained by Tribune Business reveal that the Christie administration sought to justify the lease on the grounds that it was needed to support an “estimated $50 million touristic development” at Nygard Cay.

The August 3, 2012, letter from Richard Hardy, the Department of Lands and Surveys’ acting director, provides the first concrete confirmation that the Government was assessing its options for granting a Crown Land lease - the issue at the heart of recently-launched Judicial Review proceedings.

The letter, described as a Memorandum, does not go into detail about the nature of the tourism project proposed by Peter Nygard for his Lyford Cay property.

However, the $50 million sum referred to matches the figure discussed at a meeting between Mr Nygard and Bahamas Investment Authority (BIA) officials, which was held two months’ prior to Mr Hardy’s letter.

Previously obtained notes of that June 2012 meeting revealed that Mr Nygard was proposing a $25-$30 million investment to rebuild his fire-destroyed Nygard Cay home, with the balance earmarked for a stem cell research and treatment facility targeted at medical tourism. It would thus appear this proposal is what Mr Hardy is referring to.

Mr Hardy’s memorandum, addressed to the permanent secretary in the Prime Minister’s Office, and which bears the director of investments’ (Joy Jibrilu) stamp, dated August 15, 2012, is headed: ‘ Proposed Lease of Land at Nygard Cay for a proposed touristic development’.

Referring to an August 1, 2012, missive he had received, containing two proposed “plans”, Mr Hardy disclosed that the minister responsible for Crown Lands - who is Prime Minister Perry Christie - had decided to lease a portion of the reclaimed seabed at Nygard Cay to Mr Nygard.

“It is noted in your second paragraph that the Minister Responsible for Crown Land has determined that appropriate acreage should be leased to Mr Peter Nygard to facilitate the proposed estimated $50 million touristic development,” Mr Hardy wrote.

Referring to one of the lease options presented to him, Mr Hardy said the “area coloured red is recommended on a 21 years renewable lease basis, at an annual rental of $25,000, (with reviews after seven and 14 years)”.

The Lands and Surveys acting director then effectively confirmed the acreage involved was Crown Land reclaimed from the sea.

He added: “In effect, this recommendation is in respect of the property between the December 1984 high water mark and the June high water mark.

“It does not include those areas..... which are covered by water (other than the northern lagoon) and are tidal, i.e. (4.779 acres minus tidal, non-lagoon, areas).”

A handwritten note at the bottom of Mr Hardy’s letter says a proposal was expected imminently, and that all these details “should factor into Cabinet/National Economic Council papers”.

While there is no evidence to suggest that the Nygard Cay lease was a ‘done deal’, the contents of Mr Hardy’s letter are likely to reignite the controversy surrounding its Canadian owner’s construction endeavours.

This is because the Save the Bays coalition, in its Judicial Review action, is challenging the Government’s alleged failure to prevent “unauthorised development” at Nygard Cay - the same development it claims has resulted in the seabed reclamation subject to the Crown Land lease.

In effect, if the coalition’s allegations are correct, the Christie administration’s plan to lease the reclaimed Crown Land to Mr Nygard, under cover of facilitating a tourism development, would be tantamount to legitimising/sanctioning wrongdoing.

Mr Nygard has argued that his Simms Point property has expanded through natural accretion, but this has been dismissed by both Save the Bays and the former Ingraham administration.

In the Attorney General’s draft defence and counterclaim, filed in response to a legal action initiated by Mr Nygard, the former government sought a court declaration that the Canadian fashion mogul had unlawfully “trespassed” on Crown Land through his construction activities.

Implying that Mr Nygard lacked the relevant permits and approvals, the Attorney General’s Office had also sought a court Order requiring Nygard Cay’s owner to remove - at his own expense - all the groins, docks and seabed infilling he has allegedly carried out, thus returning the coastline to its original 1984 boundaries.

The Christie administration’s Crown Land lease proposals thus represent a stunning U-turn on the position taken by its predecessor within three months of the 2012 general election. The $25,000 annual lease payment, which over 21 years would amount to a collective $525,000, also pales into insignificance alongside both the Government’s fiscal deficit and the alleged $25-$30 million valuation Save the Bays has placed on Mr Nygard’s reclaimed Crown Land.

And the coalition had previously warned that granting Nygard Cay’s owner his much-desired lease would set a bad precedent, sending signals to Bahamian and other foreign landowners that they could ‘do as they pleased’ with respect to developing their properties without reference to existing laws and regulations.

Further evidence that the Government was contemplating a Crown Land lease to Mr Nygard is contained in the August 16, 2013, affidavit by Hyacinth Smith, an attorney in the Attorney General’s Office.

The affidavit, sworn in support of the Government’s bid to have Save the Bays’ Judicial Review action thrown out, refers to “the consideration of any lease options by the Government” in relation to Nygard Cay.

Other documents filed in support of the Government’s application, though, have also revealed previously unknown facts related to the Nygard Cay situation.

The former Ingraham administration obtained two $2.7 million-plus bids from construction firms to return Nygard Cay’s size, and coastline, to 1984 conditions. The work, it told Mr Nygard, would have to be paid by himself.
The Christie administration issued Mr Nygard an annual dredging permit, via the Department of Lands and Surveys, for the period June 13, 2012, to March 12, 2013. The issuance came just six weeks after the general election.

A transcript of the court hearing at which Save the Bays obtained permission to file its Judicial Review action saw its attorney, Fred Smith QC, disclose the contents of a January 9, 2009, letter sent by the then-government to Mr Nygard.

Referring to talks with the fashion mogul’s then-attorney, Sidney Collie, the Government said it was its “intention to cause the coastline at Simms Point... to be reinstated”.

It added: “The Government has sought and obtained bids from two suitably qualified firms, Tycoon Management and Bahamas Marine Construction, in the amount of $2.75 million and $2.73 million respectively, to undertake the proposed reinstatement work.

“The two bids are being reviewed, and you will be advised of the successful bid shortly. It is the Government’s determination that the full cost of the work be borne by you.”

Tycoon Management is headed by James Curling, while Bahamas Marine is part of the Mosko Group of Companies.

Ms Smith’s affidavit for the Government, though, questions the “bona fides” behind the Save the Bays’ Judicial Review claim.

She alleges that the action is nothing more than the latest extension of the battle between Mr Nygard and his Lyford Cay neighbour, hedge fund billionaire Louis Bacon, who is a prominent member of Save the Bays.

This, she added, “throws doubts on the bona fides of the Judicial Review claim”. And the application’s reference to the Bahamas Investment Authority meeting “speak clearly to the collateral interest of the coalition in opposing the consideration of any lease options by government with respect to the Nygard Cay matter, and a stem cell facility connected to Mr Nygard”.

All three of the Government, Mr Nygard and the latter’s attorney, Keod Smith, are seeking to have the Judicial Review action dismissed on legal technicalities.

For example, the Attorney General’s Office and Mr Smith are alleging that in obtaining leave to file its Judicial Review action at a hearing where only it was present, Save the Bays and its attorneys failed to properly disclose all material facts relevant to the case.

Indeed, Mr Smith’s summons blasted those behind the Judicial Review action as “busybodies with misguided complaints”.

Mr Nygard, for his part, wants the injunction halting all further construction works at Nygard Cay thrown out on the grounds that he is not a public official or body subject to Judicial Review. He is also seeking damages for the injunction.

And the Attorney General’s Office has blasted the document discovery order imposed on the Government as a “fishing expedition”.

Tarzan 10 years, 7 months ago

Well there is the proof. All of Mr. Nygard's posturing cannot get around the facts. He says the accretion to his land is "natural" when there are hundreds of photos showing his crews dredging the sea bottom day in and day out, to build up his land.

The government has the evidence, yet each time this comes up there is the pretense of action by someone suggesting: "let's get some expert to study this".

There are concrete structures built onto the coral on the north side of his property. No one needs an expert, Mr. Christie, please just go look!

Mr. Nygard claims he is not against the protection of Clifton Park's seabed, but of course that is exactly what he is against. All of Koed Smith's nonsense is just a smoke screen. If the seabed next to the park were put under the auspices of the BNT, they know Mr. Nygard's depredations would have to stop.

The FNM government gave him a cease, desist and restore order. So far the Christie administration is giving him a green light.

Who owns the Bahamas? Is it Peter Nygard as he claims in his notorious video? Is it a few PLP insiders who think they can sell the sea for some get out the vote cash? Or, is it the Bahamian people?

concernedcitizen 10 years, 7 months ago

your Tals alter ego ,,only not too alter ,,,,,,,,,,,,,,lmfao

B_I_D___ 10 years, 7 months ago

Outrageous...simply outrageous...waiting for the die-hard PLP crew to come in and justify this as anywhere near acceptable...let's hear it...

ThisIsOurs 10 years, 7 months ago

And cue..

banker 10 years, 7 months ago

Comrades, it's the red shirts fault. If they hadn't lost the election, this unfortunate incident would not have caught Perry Christie in a lie, and the PLP government in wrongdoing. That damn Ingraham!

concernedcitizen 10 years, 7 months ago

After a long day ,thats my laugh for the day ,good one Comrade Banker ..

ohdrap4 10 years, 7 months ago

Tal, Tal, are you there?

242realtalk 10 years, 7 months ago

Tal, has a minion called Rory. Who ask for proof from one side, but has yet to make the same demand from his PLP.

It is really funny to see how far PLP spin doctors will go... Go spin, tell us that the abuse and apparent questionable link of the PLP to Nygard does not matter. Tell us minion, how the stealing and abuse of our land is not important...PLP clowns...lol

concernedcitizen 10 years, 7 months ago

You mean they didn,t let you out of the attic and give you a break from your usual routine of beating on pots and pans with a wooden spoon ,to vote on election day ??

realfreethinker 10 years, 7 months ago

Concern man too funny i have my popcorn and drink wAtching the side show

242realtalk 10 years, 7 months ago

Hey leave ya mamma out of dis...who cares!

242realtalk 10 years, 7 months ago

You yellow shirt freak

242realtalk 10 years, 7 months ago

Rory, you must be very old and inadequate, I will not continue on this trend. The reality is the issues re bigger than your lacking and mamma issues.

Your excuses for the PLP and the mess that is going on is remarkable. It is incomparable to anything the FNM has done. Please show me where it is even close, you and your PLP spin doctors manufacture matters keep saying it and then call it a scandal.

The reality is you yellow shirts can campaign, but can't govern!

These matters of which you wish to ignore are significant and if allowed to spiral further out of control does no good for any of us...However, keep your spinning and excuses for the nonsense of the yellow shirts.

concernedcitizen 10 years, 7 months ago

HEY put down your wooden spoon ,The FNM are not the government .What happens from now until 2017 falls on one mans desk the Prime Minister of the Bahamas ...Now "if" people were beaten and' if " there was a cover up talking about what did or didn,t happen btw, 2007 and 2012 has about as much worth as talking about if you had a spaceship you would marry a martian ..

realfreethinker 10 years, 7 months ago

242realtalk the issue here is all the lies they tell and when challenged on them they say you are against bahamians. I am against being lied to constantly

242realtalk 10 years, 7 months ago

Thanks Rory, your book should be written obviously you are such a great wit, with an excellent grasp of language and nuances.

You remain in your state of denial you Yellow one, because it would be a shame if you were green.

Fortherecord 10 years, 7 months ago

This is all just too,too sad! The beloved Bahamas is falling apart and all you can do is trade insults with each other! In the meantime the present government takes all the glory for the wonderful LOP airport: the brand new hospital building almost to completion: Bahamar, finally progressing beautifully. Has anyone looked closely at all the aged people who have been promoted to positions of importance around the world (and at home?.) Where are all the bright new young people who should be out there waving our bright banners high? our bridge to the future. Again - does anyone really care??

realfreethinker 10 years, 7 months ago

I do care but what I find interesting are the young one who supported this regime are stone cold silent,that is really sad. if they cant get aplay what chance does those who voted against them have.

242realtalk 10 years, 7 months ago

Rory, to me you are four letter word that happens to be blue. How is that you yellow or yellow shirts is racist? Interesting that you will cuss out people and name call and now you want to scream like a scared little child for being called yellow shirt or yellow supporter.

I smile... However, back to the issue - how do you feel about Nygard and what is being alleged in the article about taking of we tings - our land?

proudloudandfnm 10 years, 7 months ago

SICKO!!!! I found ya azz!!! Wassup Rory?

proudloudandfnm 10 years, 7 months ago

This story is amazing. The corruption of the PLP is just so damned blatant. We need a process of prosecuting government heads, a non government body to monitor and persecute when the need arises. If we had one in place Perry Christie would have been the shortest serving PM in history.

Perry how does it feel to got bed every night knowing you are considered an utter failure by all and sundry? I could not live my life like that. how can you?

ThisIsOurs 10 years, 7 months ago

I don't know if he thinks that far ahead ....probably just concerned about what suit to wear to the next grand opening and cocktail party

Muddasick 10 years, 7 months ago

Peter Nygard is wrong I know for a fact that he took a pump and removed sand from the sea to create the beach. I was there when he did it. I would testify to it as well if required to. All he does is shell out a few dollars to stay under the radar. He hires foreigners and they work there illegally and exploits them and Because of the location of his property immigration has difficulty catching him although they have tried a few times. He brings in workers from his la and Canadian offices to work without work permits etc.

If you think what I'm saying is untrue reply to this comment and ask me a question related to his operations and I bet you I can answer.

tribunespeaker 10 years, 1 month ago

This statement needs to be close to the top. People have this idea that even the US government is this one cohesive entity that cooperates with itself. When in fact is is VERY faction heavy and constantly competing with itself for resources and powerhttp://www.casualcollision.com/profil...">. It puts all of us in danger all of the time. The great illusion that binds it all is that the only divide is in between the two partieshttp://www.kidsgamehouse.com/profile/...">, (oh, and all the evil terrorists in every corner) but this is just to keep the population at it's own throat in fear so they don't notice. As long as American Idol is on, it is all good.

The funny thing is that GTAV has an AMAZING narrative on this whole subject. And while most are probably thinking it is an exaggeration, it is closer to the reality than most want to admit.

Sign in to comment

Or login with:

OpenID

The Tribune