The Tribune

ALTHOUGH the Christie administration had evidence that Canadian fashion mogul Peter Nygard had allegedly encroached on Crown land without the relevant government approvals, officials were still “minded” to grant him a 21-year renewable lease for the area, according to documents obtained by The Tribune.

A series of internal memos from Sir Baltron Bethel, senior policy advisor to the Prime Minister, and then-Permanent Secretary in the Office of the Prime Minister David Davis reveal that both men lamented the fact that Mr Nygard allegedly circumvented protocol and extended his massive property at Nygard Cay.

A memo dated August 3, 2012 - sent to the permanent secretary by Director of Lands & Surveys R S Hardy - explains that the proposed lease was to “facilitate his (Mr Nygard’s) proposed estimated touristic development”.

The lease was to have an annual rental fee of $25,000 with reviews after seven and 14 years. This $50m development, according to documents seen by this newspaper, was to be a $25m reconstruction on Nygard Cay, which had been

destroyed by fire, and the remainder to be spent building a stem cell and medical research centre.

A September 6, 2012 memo sent by Sir Baltron to the permanent secretary, and copied to Prime Minister Perry Christie, noted that it was “evident from the records and various building, excavation and other permissions granted by various government agencies including (the Department of Lands and Surveys), that Mr Nygard has been occupying Crown lands for some time”.

“In light of this and per the Prime Minister’s instructions, the matter ought to be regularised as soon as possible by the government by way of grant/lease with respect to the land and seabed occupied and the accreted beach area. Time is also of the essence because of the ongoing pumping of sand contributing to beach accretion and the hurricane season which has started.”

A memo prepared on September 12, 2012 by the permanent secretary and sent to Mr Christie and Sir Baltron went into detail about how Mr Nygard continued development, allegedly without the necessary government approvals. However, the government official lamented that it was too late to execute the law.

“Very clearly Mr Peter Nygard has abused the town planning provisions of our laws, but since no steps were taken by the various government agencies to stop such abuse we cannot at this late date seek to enforce the law,” the permanent secretary wrote. “Mr Nygard points to a number of approvals issued by various agencies of the government, but what is conspicuously missing is building approvals from the Ministry of Public Works. The structures that now maintain at Nygard Cay could never have been approved by the Ministry of Public Works. The development is foreign to the Bahamas and has no Bahamian character whatsoever.”

The permanent secretary wrote that the government previously sought to cause Mr Nygard to “reinstate the coastline to its former dimensions,” but added that this was “now impractical”.

“Mr Nygard’s development essentially sits on the Crown seabed and the previous beach on the northern side has been destroyed ... The evidence suggests that there was minimal accretion and the beach is man-made, built from the spoils from dredging to clear Mr Nygard’s marina.” The document added that Mr Nygard has made an application to construct “a number of berms to protect his investment.”

“Quite clearly these berms have already been erected on the seabed,” the permanent secretary wrote. “Permission is being merely sought to raise their height above the high water mark.”

Despite this, the permanent secretary recommended that a lease be approved for the seabed that was already encroached upon, but “no further encroachment should be tolerated”.

A notation on the document indicated that Sir Baltron agreed with the recommendations.

Another document written by the permanent secretary addressed to the Prime Minister, dated August 23, 2012, stressed that Mr Nygard was able to allegedly “substantially alter” the shoreline at Nygard Cay “without government approval”.

“The former (Ingraham) administration insisted that the coastline be restored to its previous condition following representation from Lyford Cay residents and a number of environmentalists,” the official wrote.

“This office at the time of the recent general elections was in negotiations with Mr Nygard to reinstate the coastline at his cost, estimated at just under $3 million. There was resistance to undertaking these works. The government’s position was that if Mr Nygard refused to reinstate the coastline, it would exercise its eminent domain and undertake the work at the government’s cost, subject to reimbursement. It is being suggested that the unauthorised dredging, altering of the coastline and placement of structures on the seabed have created adverse environmental impacts for the southwest coast.

“Also the government refused to entertain any application on behalf of Nygard Cay while this matter remained outstanding. It would appear that Nygard is seeking to proceed with his plans without regard to the position taken by the government on this matter.”

The permanent secretary also raised concern that Nygard Cay had allegedly been used as a resort with room rentals although it was not licensed as a hotel and that the coastline surrounding Nygard Cay expanded over the years through accretion, even though “accreted land automatically reverts to the Crown.”

However the permanent secretary ultimately suggested that Mr Nygard, subject to obtaining the relevant approvals, be allowed to reconstruct his home at Nygard Cay.

Mr Nygard is currently locked in a court battle with environmental group Save the Bays over the development at his property.