The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A FORMER investments minister says he sought a legal opinion from the Attorney General's Office on the Schooner Bay developer's obligations under its 100-acre Crown Land license.

Khaalis Rolle, who held that post under the former Christie administration, confirmed that the then-government was "very concerned" by allegations from Bahamian-owned businesses that they were being denied access to the south Abaco property in seeming violation of the developer's commitments.

"We had written to the Attorney General's Office asking them to provide us with an opinion on what the developer is obligated to do, and what the potential business people had access to by virtue of the Heads of Agreement signed with them," Mr Rolle told Tribune Business in a recent interview.

This newspaper understands that Mr Rolle and the Bahamas Investment Authority (BIA) had been waiting at least a year to receive the requested 'legal opinion', and the former minister said he was unsure whether it was obtained before the Christie administration was voted out of office on May 10.

"It was something that we were very concerned about," Mr Rolle added of the Schooner Bay situation, "more so our office, the Investments Office, because we were approached by a number of individuals who were impacted by the process of gaining access to the land.

"We went up there, had a meeting with the community and all the interested parties, including the developer, and we had hoped that would bring it to an amicable solution. We were working back and forth for quite a bit of time. I don't know where it ended up. It was a back and forth between the individuals and some others."

Mr Rolle was speaking after a Tribune Business investigation (see other article HERE) raised serious questions as to whether Schooner Bay Ventures, the 220-acre project's developer, is violating the terms of its license for the 100-acre Crown Land tract known as 'the Commons'.

Documents obtained by this newspaper show that the 'Commons' property was initially approved by the Government with the condition that its ownership reside in a specially-formed Foundation, but this plan was abruptly abandoned and, within months, the land was licensed to the developer.

The license, though, reiterated that the 100 Crown Land acres be "used for the benefit of all residents of Abaco", not just Schooner Bay residents. However, the developer and its principals, Dr David Huber and his general counsel, Tina Gascoigne, appear to have been doing exactly the opposite of this stipulation.

Tribune Business has obtained documents showing how at least two Bahamian-owned businesses were denied their requests to lease land in the Commons, and reveals how one of the two remaining businesses - Driftwood Food Company - was summarily evicted from the property in late November after the developer cut off its water supply with just five minutes' notice.

Schooner Bay, when it was conceived in the mid-2000s, was hailed as a model of sustainable development - particularly for the Family Islands - via a strategy intended to move away from the limited economic opportunities and impact provided by so-called 'gated communities'.

Designed as an 'open plan' project, it was intended to provide Bahamians with far more lucrative opportunities beyond typical hotel jobs, such as maids and food and beverage. Schooner Bay was instead designed to provide 'business incubation' and entrepreneurial opportunities, serving as a catalyst for a south Abaco economy that desperately needed it, with the Commons central to this strategy.

Now, with Bahamian entrepreneurs having either been denied access to, or thrown off, Crown Land, many fear the original vision and ethos of Schooner Bay - and a development model designed to truly benefit locals - are in danger of being lost.

Vado Bootle, the Abaco Chamber of Commerce's president, told Tribune Business that the organisation had in its possession documents showing that the 100-acre Crown Land tract was "supposed to be for Bahamian businesses to benefit from and add to Schooner Bay's development".

He confirmed that the Chamber had sought to mediate between Glen and Tracy Kelly, Driftwood Food Company's principals, and Schooner Bay Ventures in the two-and-a-half year dispute over the former's presence on the Commons prior to their eviction late last month.

"We are always concerned when one of our members would have been negatively affected by any decision," Mr Bootle said. "Our stance at this point is that we've done our part by reaching out to both parties and trying to mediate a successful outcome so both can co-exist."

He confirmed that the former government had sought a legal opinion on the Crown Land license from the Attorney General's Office, but was unaware of whether one had been sent or its contents.

Reiterating that the Abaco Chamber was prepared to continue its mediation efforts, Mr Bootle added: "We are in possession of documents from the Government that show the Commons was supposed to be for Bahamian businesses to benefit from, and add to the development at Schooner Bay.

"I saw the document where the Government set out the terms on which the license should be granted. There's two sides to it, and it would be best to sit down and come to some clear understanding of where we're at."

The Kellys' eviction has also drawn protests from existing residents at Schooner Bay. One homeowner, in an e-mail seen by Tribune Business, accused the developer of "privatising Crown Lands" in violation of its license terms with the Government.

Tom Scheerer, a New York-based interior designer, whose Schooner Bay property was featured in Architectural Digest magazine, wrote in an e-mail that his investment "has been a major disappointment on many levels".

Referring to the Driftwood Food Company situation, Mr Scheerer wrote: "Schooner are privatising the Crown Lands contrary to the original spirit of the agreement with the Bahamas government, which intended it as a place for Bahamian-owned support services at Schooner.

"The entire crop of the Driftwood Food Company will fail within days. Their [the developer's] motivation is to drive away this business run by Abaconians on Crown Land. This is an outrageous action which should be stopped by the Government immediately."

Mr Scheerer credited the Kellys and their farm for providing Schooner Bay and its homeowners with fresh organic vegetables and greens, and added: "Their Crown Land farm is also providing food for others along the length of Abaco, as well as providing a stellar model for sustainable agriculture, nutrition, small business and employment much-needed by Abaconians.

"The Government must come to the rescue of the Driftwood Food Company and the Schooner Bay residents if they don't want to risk the future of further development of Abaco and the Bahamas at large."

Another Schooner Bay resident, Bill Higgins, in e-mails to Renward Wells, minister of agriculture and marine resources, and south Abaco MP, James Albury, reiterated the demand for government intervention on the Kellys' behalf.

"Apparently the developer wants the Crown Land for their own use and they want the Kellys out," Mr Higgins wrote.

"You should know that I was attracted to Schooner Bay due primarily to the development plan that was presented to me. It's a hardbound community development handbook outlining rules and regulations , and it required the full knowledge and consent of the Bahamian government.

"Among the plans described was 'Crown Land' to be set aside to foster local Bahamian business development. This was something property owners fully supported and bought into. Clearly there is something wrong here. It's been wrong for a long time," Mr Higgins continued.

"We need your [the Government's] immediate help to save a local Bahamian business loved by all at Schooner Bay, and hold the developer accountable for agreements made."

One contact, familiar with Schooner Bay's origins and development, accused Schooner Bay Ventures and its principals of "killing" the Bahamian business 'incubation' potential intended by the original Commons plans.

"That farm was one of the great success stories of Schooner Bay," the source, speaking on condition of anonymity, said of the Kellys. "Many people bought properties there for the farm to provide them with food. It's tragic.

"It was on the Commons, which was supposed to be licensed to a Foundation, but Schooner Bay Ventures got the license in their name when the Government had approved the land for the Foundation. That license was never supposed to be issued in the name of a foreign developer. Now, six to seven years later, all the business incubation is dead at the Commons."

The source said that apart from Driftwood Food Company, other businesses that have been evicted, closed down or asked to leave the Commons include ventures in eco-tourism, destination management and events, property management, a clinic and Antonius Roberts' art gallery and studio.

They added that the only business still to enjoy a presence on the Commons is the Blackfly Bonefishing Lodge, with previous plans for engine repair shops and other facilities now also 'on ice'.

"The foreign developer has systematically dismantled and curbed that whole incubation system," the source told Tribune Business. "It's absurd. No one knows why. We had an incubator business model, the seeds were in the ground, and Schooner Bay killed it all. Now the place is stagnant."

Another source, also familiar with events at Schooner Bay over the past decade, added: "The whole ambition, design and planning for what it was to operate as could really have been groundbreaking as a development model, but it went sideways."

Mr Bootle, meanwhile, agreed that Schooner Bay would be "a big deal" for the island's economy if the 220-acre property was developed as originally intended.

"It is very much needed," he said of the development, "and that portion of Abaco has a great deal of potential. If Schooner Bay was to be what it was set out to be initially, it would be a big deal in that area of Abaco.

"It would be a fantastic thing for Schooner Bay to take off and become what it was planned to be in the first instance... It would be nice moving forward to know what the plans will be or have a firm idea, and then we could encourage more business growth in that area.

"We are still awaiting that, and are hoping with this new government that all parties can sit down and come to a mutually beneficial arrangement, and clarify everything not understood by the parties concerned."