The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

THE Downtown Freeport Business Association (DFBA) yesterday urged the Government to extend the Hurricane Dorian-related tax breaks and help revive an area where one in three buildings sit empty.

Antoine Brooks, its president, told Tribune Business that extending the present Special Economic Recovery Zone (SERZ) order, which is due to expire in one month’s time is helping to keep downtown and the wider economy afloat by encouraging Grand Bahama residents to shop at home. The tax concessions enable Freeport merchants to be more price competitive with Florida rivals, thereby ensuring more money and spending stays within The Bahamas.

“It’s keeping a lot of money at home because really we can jump on a boat and go to Florida and get our materials,” Mr Brooks said of the SERZ. “It’s not like Nassau because it is just a three-hour trip. We can load up the boat and be back.

“So it’s very easy for people to go on the boat and shop in America and come back. But with that SERZ order, people are staying home because they are realising that we can buy stuff bonded here in Freeport. That allows people to stay at home and keeps businesses open, and keeps money circulating in the local economy.”

Mr Brooks’ plea for the existing SERZ order to be extended thus bolsters similar calls from the Abaco Chamber of Commerce and other businesses on the other island that was devastated by Dorian in September 2019. The Order, though, is due to expire on December 1 and the Government has already signalled it will not be extended in its present blanket form.

Michael Halkitis, minister of economic affairs, has said at least twice that the Davis administration believes the current SERZ format is giving away too much in revenue. It feels that the tax breaks are being exploited by those who do not require them, especially wealthy foreign second homeowners, and that the SERZ is also being abused for tax evasion and other nefarious purposes by Bahamians living outside Grand Bahama and Abaco.

The minister has indicated, though, that a structure will be established where Abaco and Grand Bahama residents and businesses will still be able to apply for relief on a case-by-case basis. It is unclear, though, how this will work and whether it is likely to become mired in bureaucracy and red tape.

Mr Brooks, meanwhile, said of The Bahamas’ city centres: “Downtown has really gone down. Some parts of downtown Nassau look almost the same and it looks empty, a lot of broken windows and vagrants hanging around.

“It was a slow and gradual decline, and then from Hurricane Dorian that really made a decline in the economy of Grand Bahama and a lot of stores closed are empty. People have broken the windows out of a lot of these places. Now, with Solomon’s coming back and a couple other people that are interested coming back, I think we will see it totally change.”

Unable to speak specifically to which companies outside of Solomon’s Fresh Market will be locating in downtown Freeport, Mr Brooks said interest has been shown by different “restaurants, nightclubs, coffee shops and a few electronics stores. Somebody told me about a Yoga café and the usual sneaker stores and things like that”.

“At least one in three buildings are empty in downtown Freeport; there is a lot of empty store space,” Mr Brooks continued. “But I know a lot of people are interested and a lot of people are calling me about it. I think downtown Freeport is poised for a great comeback and, with the University of The Bahamas being downtown, it’s a totally different aspect that’s going to add to the flavour of downtown.

“Because college students, they go to school during the day and they don’t leave and go home when they have to come back for evening classes. So with that dynamic in place a lot of businesses should be able to open up and really benefit.”

The Association is working with the Grand Bahama Port Authority (GBPA) to beautify the downtown area, with the latter pledging to install new street lights before the year’s end. “In this venture with the DFBA they have been very helpful with their business and development team,” Mr Brooks added.

“They showed us their plans to beautify downtown with lighting and security. They are putting up a lot of cameras, and it is actually supposed to start this week. They are taking it section by section, and the first section is supposed to start this week because they promised us by next week we would see some movement on the ground. So the GBPA has been very helpful because our success is their success.”

Mr Brooks, also a member of the Grand Bahama Chamber of Commerce, added: “I think we have a great relationship with the Chamber. I think we can always improve, and there is room for improvement in the relationship and to come together on different events. It’s a work in progress. I would like to see there be a seat on the Chamber board for the Association, but I haven’t discussed it with them as yet.”