The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Investors in a controversy-torn Exuma real estate project have been lobbying the Government to revoke its original developer’s permanent residency status, arguing that his continued presence casts “a pall” over their forward progress.

The Oceania Heights Homeowners Association (HOA), in its first-ever annual report to investors, said the legal revocation of Howard Obront’s status to be in the Bahamas was the second “key step” to put the development on a sustainable path.

The annual report said the continued presence of Canadian Mr Obront and his wife, Donna, was discouraging potential sales of Oceania’s remaining available lots because buyers feared they may be exposed to legal action from the couple.

Proceeds from these lot sales are vital to financing the completion of Oceania Heights’ infrastructure build-out, the HOA document adds, plus the development’s transformation into what the Obronts had initially promised.

A long-running campaign by several Oceania Heights homeowners, and which was driven by Tribune Business, saw the original developers - the Obronts and Bahamian attorney, Anthony Thompson - hand over ownership and control of the development to the HOA last year following government intervention.

But, while hailing this as a major accomplishment, the HOA annual report effectively says no further progress can be made until the Obronts are banished from the Bahamas.

“The second key step is for the Obronts to be legally removed as permanent residents from the Bahamas by government action,” the Oceania HOA report says.

“As long as the Obronts remain able to conduct business as full-time residents of the Bahamas, they cast a pall over Oceania Heights and our ability to sell lots, which is the pre-requisite for raising the capital to build the infrastructure which will enhance our community and our property values.”

The HOA document, which has been obtained by Tribune Business, adds: “The reason this is the case is that as long as the Obronts remain in good standing in the Bahamas, there will be concerns – among real estate agents and potential buyers - that the Obronts could bring legal action against new owners (contending that Oceania is somehow their property and that only they have the right to sell lots in the community).

“In short, a scenario could be fabricated that anybody buying into Oceania would be buying into a legal quagmire, not unlike the one in which we have struggled for the last several years. In fact, there have been clear indications that the Obronts’ continuing presence in Exuma, and the Bahamas, actually blocked potential sales of lots in Oceania, and of their former boat, during 2014.”

Tribune Business understands that the Oceania Heights ownership transfer was never formally agreed, or signed-off on, by Mr Obront or his representatives.

The handover, which resulted from government pressure and intervention led by Deputy Prime Minister Philip Davis, was negotiated and handled by Mr Obront’s former partner, Mr Thompson.

The possibility of a legal challenge by the Obronts thus cannot be discounted, hence the Oceania HOA’s concerns. And there was no confirmation that the Government will, or has moved, to take the action it is seeking.

“At the time of this writing, we do not yet have assurances that the Obronts will be denied continuing permanent residency status by the Government of the Bahamas,” the HOA annual report said.

“Your HOA has worked hard to achieve this objective but, as yet, we cannot inform you of victory and we will not do so until such time as we have definitive information that this has been achieved.

“This has been a very difficult task, involving multiple Bahamian government agencies and officials at the highest levels of the Government.”

The Oceania Heights homeowners also disclosed that they have sought to bring pressure to bear on the Government over the Obronts’ status via US and Canadian diplomats.

“Your HOA has sought and developed strategic alliances with US and Canadian government officials, who have also worked hard to accelerate this process. But things take time. We are guardedly optimistic and will keep you informed as we learn more on this matter,” the annual report promised homeowners.

Oceania Heights homeowners previously had a ‘laundry list’ of complaints against the Obronts and Mr Thompson over how their investments had been handled.

These included:

• Homeowners were unable to obtain title/conveyancing documents to the properties they have bought.

• Unresolved questions over whether more than $880,000 in Stamp Tax they paid has been passed on to the Treasury.

• Mr Thompson failing to disclose he was also a beneficial owner of Oceania Heights when acting for the buyers in their purchases.

• The same lots have been sold to different buyers.

• The hotel and other promised amenities have not been constructed.

Tribune Business previously revealed that to live up to its ‘tax free real estate investment’ billing, as stated on the marketing materials employed by Messrs Obront and Thompson, the Oceania project was seemingly structured as a giant ‘tax avoidance’ scheme.

Mr Thompson, as a Bahamian, was shown as the owner of land. This ensured it was not subjected to real property tax, due to the exemption for Bahamians owning Family Island real estate.

And it also meant no Stamp Duty was paid to the Treasury on the property sales either. This, though, also resulted in no conveyances being passed to Oceania buyers, meaning they did not obtain clear title to their land.

All these problems previously undermined Oceania Heights’ development. And, apart from the damage inflicted on foreign investors and the Bahamas’ business reputation, the project was also effectively a ‘rip off’ of the Bahamian taxpayer and Public Treasury.

Still, the HOA annual report suggested that the ownership transfer had set Oceania Heights on course for a better future.

“The significance of this change cannot be over-emphasised; it is of benefit to all of the Oceania investors, as will become increasingly apparent as we move forward,” the annual report said.

“The resort is now in the hands of the investors.... For the first time, everybody involved has the shared goal of making the resort all that it can be. In fact, the HOA is the only ‘owner owned’ resort in all of the Bahamas.”

This, it added, had “opened the door... to begin to sell unsold and abandoned lots, as well as those without clear titles whose ‘owners’ have not paid annual fees, in order to raise the capital required to build the community infrastructure”.

The HOA added that it had spent 2014 improving Oceania Heights’ physical appearance, removing overgrowth, painting buildings and installing a new water pump.

“At the end of 2013, the resort looked tired and un-lived in. Roads were overgrown; common buildings, including the entry way, guard house and administrative building, were in need of paint and cleaning; and the water system was inadequate and frequently non-functional,” the annual report recalled.