The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Port Lucaya Marketplace’s new owner yesterday said he had “no alternative” but to lock the adjacent marina operator out of its fuel farm and other facilities, citing “hundreds of thousands of dollars” in unpaid rent.

Peter Hunt told Tribune Business that the “silence” from Preben Olesen over the future relationship between the latter’s Port Lucaya Marina, and the Marketplace, left him with no choice but to take action last week.

Apart from the fuel tanks, which sit on property leased from the Marketplace, the marina also rents from it its washroom facilities, plus an office building that houses Customs and Immigration - which provide visiting boaters with ‘port of entry’ clearance.

Mr Olesen confirmed that Port Lucaya Marina had been locked out of its fuel facilities and washrooms when contacted by Tribune Business, but denied that this was impacting its operations.

He told Tribune Business that fuel was being supplied to boaters from his other property, the Grand Bahama Yacht Club, and promised that the ‘lock out’ would not impact services provided to the upcoming Grand Bahama Shipyard fishing tournament.

Mr Olesen is understood to feel that the ‘lock out’ is an attempt to squeeze him, and force him to sell the Port Lucaya Marina on more favourable terms - and at a lower price - to Mr Hunt and his fellow investors.

Tribune Business previously revealed that the Port Lucaya Marketplace’s new owners were indeed interested in purchasing the marina and other assets, viewing the facility as complementary to their $5.5 million investment.

But, while, confirming his willingness to acquire the Port Lucaya Marina, Mr Hunt told Tribune Business this was not his primary objective.

Instead, he said his priority was to upgrade Grand Bahama’s tourism product and ensure that the Marina matched what he and his group planned to do with the Port Lucaya Marketplace.

Mr Hunt added that he would only be interested in acquiring the Port Lucaya Marina if Mr Olesen either decided not to upgrade it, or could find no other buyer.

He explained to this newspaper that the Port Lucaya Marketplace acquisition involved the purchase of the property’s assets and liabilities from the vendor, the Grand Bahama Port Authority’s (GBPA) affiliate, Bourbon Street Ltd.

Included in the purchase was the Marketplace’s receivables, including rent that was owed. One of those in arrears, Mr Hunt said, was the Port Lucaya Marina.

“That debt had reached up to hundreds of thousand of dollars,” he added, explaining that the new owners had little choice but to try to collect on this sum.

In addition, the two fuel tank leases had expired, and Mr Hunt said he was happy to renew these if the marina desired, and come to an agreed payment plan with Mr Olesen for the rent alleged to be owing.

“I met with him, but then it went silent,” Mr Hunt said. “We had no alternative but to do what we did, which was to close him out, shut him out, and lock things down.

“This is not the new owners being difficult. It’s not personal. It’s just silent night, and we’ve not heard anything from him. We’re still willing to talk, are very businesslike, but Preben has got to come and see us.”

Mr Olesen confirmed to Tribune Business “that [the lock out] has happened”, but alleged that Mr Hunt had breached an undertaking to give him 30 days to move the Customs and Immigration offices to the Grand Bahama Yacht Club, and a 60-day window in which to relocate the fuel farm/tanks.

Mr Hunt confirmed these timelines to Tribune Business, but emphasised that it was “the lack of communication” from Mr Olesen over what he planned to do with the Port Lucaya Marina, and the alleged outstanding rent, that prompted the ‘lock out’.

But, shrugging off the ‘lock out’ impact, Mr Olesen told Tribune Business: “Right now we are pumping fuel at Grand Bahama Yacht Club. We will be pumping diesel and gas there for sure. It’s not hurting our customers.”

Pledging that it would be ‘business as usual’ as far as the Grand Bahama Shipyard’s charity event was concerned, Mr Olesen said: “I met with Peter Hunt on the Thursday. He confirmed we had 30 days to move Immigration, and 60 days to move the fuel farm. The next day he put the locks on.”

Mr Olesen told this newspaper that he had “very quick, aggressive plans to move the marina forward”.

This, he added, would involving a rebuilding and addition of new floating docks, and a meeting was planned with the Port Authority next week to begin the approvals process.

This is in line with one of the three options that Mr Hunt wants to see Mr Olesen take at the marina - upgrade it; sell it to a buyer; or, if one cannot be found, sell it to him and his fellow investors.

Tribune Business understands that previous negotiations between Mr Hunt and Mr Olesen for the former to acquire the Port Lucaya Marketplace foundered after they were unable to agree terms, or a purchase price.

Mr Hunt confirmed that he would be willing to invest $5-6 million in “completely and totally redoing” the Port Lucaya Marina if it became necessary to purchase it, and a deal could be worked out with Mr Olesen.

The emerging dispute over a key marina/tourism asset, which is one of the first ‘ports of entry’ for visiting boaters, does not on the surface bode well for Grand Bahama tourism in the near term.

Yet it could prove beneficial if the current or new owners deliver on the upgrades both are pledging.