The Tribune

By NEIL HARTNELL Tribune Business Editor A ROYAL Bahamas Police Force (RBPF) investigation is "hanging over our heads like the sword of Damocles", developers of a $40 million Exuma-based real estate project have told Tribune Business, arguing that several project homeowners are trying to make their dispute a 'criminal matter' to force them to settle. Responding to a series of Tribune Business questions over what is effectively a 'civil war' they are fighting with certain residents at the Oceania Heights subdivision, Canadian citizens, Howard and Donna Obront, said the more than two-year dispute with those homeowners was commercial and civil-related in nature. The Obronts said they and Nassau-based attorney, Anthony Thompson, visited six Bahamians islands before deciding, in the mid-1990s, upon Exuma for their 125-lot Oceania Heights development, situated five miles from Georgetown and just one mile from Great Exuma's international airport. Telling Tribune Business that more than 100 lots had been sold, generating $40 million in sales revenues, the Obronts said: "Our vision for Oceania Heights is to be an exclusive gated high end resort that offers an incredible lifestyle, and to be one of the premier locations for homes in Exuma. The views are magnificent. "If you could see the photos of the quality of these multi-million dollar homes, you will appreciate all the blood, sweat and tears of 15 years of our lives." Expressing hope that the Police investigation into the $40 million Oceania Heights project and its management had been "discontinued", the Obronts alleged that less than 5 per cent of the more than 100 lot owners were opposed to them, adding that they had been "riled up by one bad apple". A letter sent to Prime Minister Hubert Ingraham on October 7, 2011, detailing alleged complaints about how Oceania Heights was being run, is signed by some 16 homeowners: Chris and Marilyn Fleming; Terry Swaine; Chris and Jane Bain; Dr Jack and Alice de Long; Dr Richard Matza; Dr Rod Belyea; Derrick Nedzel; Dr Dave and Kate Johnson; Robyn Jackson; Gary Close; Dr John Daglanis; Wilford Letto; Sheri Greene Zweigert; Dr Rush Ross Edmonds; Dr Michael Belinson; Dr Dave and Shirley Litrenta; Wayne Goff; and Dr Janell Beck. Contacted by Tribune Business last week, US citizen Chris Fleming, whose Fleming Family Real Estate Trust acquired two Oceania Heights lots for $1.84 million in June 2007, confirmed the dispute with the Obronts and Bahamian attorney, Anthony Thompson, was still ongoing. Describing his dealings with Oceania Heights as "a nightmare", with many other buyers having invested their "life savings" into purchases at the development, Mr Fleming effectively said a total lack of confidence in the Bahamian justice system had prevented him from taking his complaints to the Bahamian Supreme Court. "Things will be delayed, and there will be no justice," he told Tribune Business. Mr Fleming was the "one bad apple" referred to by the Obronts, a charge he vehemently denied. Asked by this newspaper as to the factors driving the complaints against themselves, Mr Thompson and Oceania Heights, the Obronts responded: "There are accounting issues relating to water, garbage, security, electricity, completion of the amenities, common area maintenance, homeowner maintenance, and the creation of a homeowner's association - control of the development. "These are not insurmountable and, with good faith, can be worked out. Instead, we are faced with bully tactics. These are not issues with 90 per cent of the lot owners....about seven or eight owners, led by Fleming, are being adversarial instead of co-operative in resolving the issues. "We have decided that instead of being adversarial, for instance by suing for arrears of maintenance or electricity, etc, we continue to proffer the olive branch, and we are fully committed to engaging the Fleming Camp in a co-operative exercise. Our attorney was on the brink of bringing everybody to the round table, to attempt to co-operate and work together with the Fleming Camp to create value, rather than devalue the development by pursuing negative smear campaigns." The Obronts said their attorney, Fred Smith, the Callender's & Co attorney and partner, had been corresponding regularly with the homeowners' attorney, Andy O'Brien at Glinton, Sweeting & O'Brien, until recently. Tribune Business was shown a May 19, 2011, letter from the Obronts' Canadian attorney, Stephen Hart, in which they offered to sell their interests in Oceania (unsold lots, their residence, and common areas and improvements) to Mr Fleming and his group. The other alternatives offered were "a ceasefire", with all Oceania homeowners resuming their maintenance payments, and the development passing title to property owners as it had "always been ready, willing and able to do so". The final alternative was "war", with writs flying in all directions. In a May 31, 2011, response, Mr O'Brien said his clients had two goals. The first was to create a Homeowners Association that would collect maintenance fees, manage common areas and oversee the provision of necessary services. The second was to obtain all due title documents, with Oceania Heights paying any late Stamp Duty charges. The Obront proposals, though, were rejected. Dismissing the 'buy out' offer, Mr O'Brien wrote: "Our clients seek to have title or control of the common areas transferred to a homeowners' association that operates with proper accountability and transparency. "Additionally, our clients seek the installation of the amenities that were promised when they purchased - namely a state-of-the-art fitness centre, tennis courts and beach access. The lack of amenities is likely one reason that recent appraisals have valued properties within Oceania Heights at significantly less than what clients paid for their properties." The 'ceasefire' alternative was rejected due to a lack of confidence in Oceania Heights' current management. The Fleming Group's October 7, 2011, letter to Prime Minister Hubert Ingraham alleged that some 11 separate complaints had been filed with the RBPF in relation to Oceania Heights, but the Obronts and Mr Thompson are steadfast in maintaining that the dispute is a civil one - not criminal. Noting that they had retained Henry Bostwick, QC, to handle this angle for them, the Obronts told Tribune Business: "Regrettably, Messrs O'Brien's clients successfully persuaded the Royal Bahamas Police Force that the civil matters in contention between them and ourselves, and the matter that is currently en route to the Privy Council, are not only civil in nature but have criminal elements. This has resulted in investigations, arrests........ The matters in dispute are not criminal in nature, but are continuing civil disputes. We have made representations to the Attorney General and to the Police requesting them to investigate the matter, and to prevent any further involvement by the police in these civil disputes....... "In our view, Mr O'Brien's clients are attempting to use the Royal Bahamas Police Force as leverage to pressure us into resolving the civil disputes favourably to [themselves]. The arrests, threats of arrests, threats of charging and criminal prosecutions hang like swords of Damocles over us." Asked how they wanted the dispute to be resolved, Howard Obront said: "This is not a question of prevailing. We are creating a community in which we have also built a $3 million home. We want to be in harmony with our neighbours, investors and friends, so we will continue to approach all issues [in] a non-contentious and non-adversarial way. We do not have a problem with 90 per cent of the lot owners. It is regrettable that Fleming and company can't be more sensible and reasonable. "I have spent 37 years in the Bahamas; I have done so much for Exuma and all of its lovely people - from education, churches, employment. I have developed some of the most lifelong friendships with the local people. Never have I done anything wrong."