The Tribune

By Neil Hartnell

Tribune Business Editor

nhartnell@tribunemedia.net

A former Cabinet minister has warned he may initiate legal action over the Government’s decision to lease a portion of Balmoral Island to Adrian Fox for part of his proposed $300m resort project.

Damian Gomez KC told Tribune Business he has already written to the Attorney General’s Office to “flag” his concerns that the 21-year deal struck with Island Luck’s co-founder “literally expropriates property that belongs to me” as a result of a pre-existing lease interest he holds.

Having obtained Supreme Court permission to seize 50 percent of the shares in Blue Illusions, the failed dolphin attraction that previously operated on Balmoral Island, over $1.25m in unpaid legal bills, he said he was unaware that Mr Fox’s project had received the go-ahead until Thursday’s Heads of Agreement signing with the Davis administration.

The former minister of state for legal affairs in the last Christie administration also told this newspaper he felt misled over the Balmoral Island situation. Having learned that Mr Fox and representatives of his Fox Group of Companies had been on the island, he said he first wrote to the Attorney General’s Office late last year to inquire “what’s going on” only to be reassured that nothing was happening. 

Ryan Pinder KC, the attorney general, did not respond to Tribune Business messages seeking clarity on the Balmoral Island lease situation before press time last night. This newspaper had asked whether the previous Blue Illusions lease had been terminated for non-performance, or was no longer valid for any other reason, and for a response in light of Mr Gomez’s position.

However, the latter confirmed that neither the Government nor Mr Fox have sought to buy out his interest in the lease nor approached him over their plans for the island, also known as Blackbeard’s Cay, which lies off New Providence’s north coast opposite Sandals Royal Bahamian. The island is Crown Land, with the latter resort using the eastern portion via a lease deal with the Government.

And Mr Gomez also argued that the five surviving dolphins rescued from Blue Illusions’ former attraction last year cannot be sold by the Government, and its Department of Marine Resources, without paying the outstanding $1.25m legal bills owed by the former operator.

“They didn’t buy it from me, nor did the Government give me notice of what they were doing,” Mr Gomez told Tribune Business of the Balmoral Island lease and resort deal with Mr Fox’s group. “I’ve written to the Attorney General’s Office to flag it and that may well lead to further litigation.

“I’m not sure what they’re trying to do. They also seem to want to sell [Blue Illusions] dolphins. I told them they cannot do that without paying me out.” Asked about his likely response, Mr Gomez added: “I’m just going to pursue the Attorney General’s Office. They really are the ones who have disturbed my interest.  

“Without giving me notice, they have allowed him to remove property from the island, Adrian and other people. They took the dolphins and haven’t gotten in touch with me. My view of it is they have literally expropriated property that belongs to me.” Asked when he became aware of Mr Fox’s resort project, Mr Gomez replied: “I heard like everybody else when they announced this new project.”

Adrianna Fox, Mr Fox’s daughter, confirmed during Thursday’s Heads of Agreement signing that the $300m resort project includes the lease of a 16.35-acre site on Balmoral Island. Given the island’s size, that almost certainly includes at least a portion of the site that was previously used by Blue Illusions for its dolphin encounter and associated tourist amenities that was mainly targeted at cruise ship passengers.

Mr Fox himself later confirmed that the Balmoral Island portion involves “a lease from the Government for 21 years”. Mr Gomez, who said it may be possible for him to reach an agreement with the Island Luck co-founder, said he had first learned of the latter’s interest in the property late last year but, when he approached the Government for clarification, he was assured nothing was happening.

“I may be able to do a deal with him. He might want the dolphins. I’m not sure what the Government is planning to do,” the former Cabinet minister revealed to this newspaper. “We got a letter back which was misleading with regard to what was being announced. They denied they had entered into a lease with him.

“What happened this [last] week is completely inconsistent with that letter. Adrian has been in possession for months. I wrote to them to ask what was going on and they wrote me back to deny it. That was the Attorney General’s Office. He [Mr Fox] wouldn’t go and take possession of the thing unless they gave him permission to do so. I’ll do what I have to do.”

Mr Gomez, who is presently embroiled in defending Long Island MP, Adrian Gibson, in a long-running Supreme Court jury trial, said he will likely instruct his attorney, Dywan Rodgers, of Meridian Law Chambers, to intervene as early as this week.

Prime Minister Philip Davis KC, in announcing Mr Fox’s Voir Beach project, said: “Balmoral Island will be transformed into a premier recreational paradise. That property will feature three clubhouses, each seating up to 500 guests, 23 land and over water cottages, a 100-slip marina, three pools, a performance area and entertainment stage, and a helipad and seaplane docking facilities.”

Tribune Business had previously reported that Blue Illusions had sub-leased the site for its Blackbeard’s Cay dolphin encounter from a Bahamian investor group, which included Cedric Saunders, the late Insurance Management chief; former Cabinet minister, the late Sir Charles Carter; and Abner Pinder. This newspaper also confirmed that the location was leased from the Government.

However, Mr Gomez told Tribune Business that “there was a Heads of Agreement which treated Blue Illusions as the tenant because they paid the Government directly”. Blue Illusions was initially headed by foreign investors, Samir Andrawos and Victoria Iglesias, but the development ran into financial challenges due to the lockdowns and restrictions imposed by the COVID-19 pandemic.

A series of Bahamian Supreme Court rulings obtained by Mr Gomez in 2020 and 2021 permitted him to seize 50 percent of Blue Illusions’ shares, previously held by Mr Andrawos, and then sell this interest to recover the $1.25m debt owed to him by the company unpaid legal bills.

Mr Davis, speaking at the Heads of Agreement signing, said the Voir Beach project will feature “world-class amenities”. While he estimated around 500 Bahamians would benefit from employment during the construction phase, Adrianna Fox said more than 1,000 will be hired for this aspect, while between 700 and 1,000 permanent jobs will be provided after completion.

“It calls for two 14-storey mixed-use buildings which will blend residential and hotel spaces with world class amenities,” Mr Davis said of the portion that will be constructed on the former Cable Beach manor site. “Guests and residents will enjoy restaurants, roof-top pools, a recording studio, a nightclub, a spa and a seaside bar, and jetty offering a fusion of leisure and luxury.”

Adrianna Fox spoke of Voir Beach breaking ground by summer 2025, adding: “Balmoral Island will be up and running, I think, by early June. We’re going to have some type of feature on that island by June, even if it’s just marine encounters and zip lining.”

However, the extensive nature of what is being proposed will likely require permits from several government agencies. Besides Town Planning Committee approval and the certificate of environmental clearance (CEC) from the Department of Environmental Planning and Protection (DEPP), the marina, seaplane landing and helipad will likely also require the go-ahead from the likes of the Port Department and Civil Aviation Authority.