The Tribune

By KHRISNA VIRGIL

Deputy Chief Reporter

kvirgil@tribunemedia.net

THE Christie administration has agreed to approve between 400 and 500 work permits, in addition to the transfer of existing work permit holders from Baha Mar to Strategic Property Holding Ltd and Neworld One Bay Street Ltd, developers of The Pointe, to facilitate the phased completion of the $200m Bay Street project.

The government, according to the development’s heads of agreement, will also grant 75 work permits for jobs requiring special skills and expertise where the developers feel Bahamians are not available.

While it is understood that the overall Bahamian to non-Bahamian labour ratio will represent 70 per cent of the total work force, the document said the government and the developers, through mutual agreement, may decide to vary the employment ratio if it becomes necessary for earlier completion.

According to the agreement dated June 18, 2015, the government has also agreed to spend $1.5m over a three-year period to promote The Pointe under an arrangement that is to be concluded by developers and the Ministry of Tourism.

It is further noted that a completion date of April 1, 2017 is expected. However, in the event that the developer is unable to complete the components of the project, then the government is at liberty to proportionately reduce concessions, incentives, and benefits enjoyed by the developer.

But if the government is at fault for the delay, the date is to be extended beyond the first day of April by the amount of time that elapsed between the third quarter of 2015 and the actual date by which the developer is able to commence its obligations.

The document revealing the agreement was tabled in the House of Assembly by State Minister of Investments Khaalis Rolle nearly one year after construction on the development began and amid repeated calls by numerous opposition MPs for it to be made public – with the number of work permit holders and concessions chief among concerning factors.

However, Mr Rolle tabled the agreement in response to a request made by Leader of the Official Opposition Long Island MP Loretta Butler-Turner.

“It is acknowledged by the government of the Bahamas that the developer either directly through a designated subsidiary or affiliate may act as developer’s representative for the supervision and execution of the development,” the document read.

“Further it is acknowledged by the developer that contracting with Bahamians in connection with the construction of the development and in the operation of the hotel is of paramount importance to the government.

“The developer accordingly undertakes that during the course of the construction of the development it shall subcontract approximately 40 per cent of development work to local Bahamian contractors in various classifications.

“The owner further undertakes that post completion, it will require and employ approximately 500 employees in the management, operation and maintenance of the development.”

It continues: “The developer shall make every effort to fill as many jobs as possible with Bahamian citizens. The government recognises however that due to the development of the proposed high rise structures and the tight schedule to complete the development, non-Bahamian labour with special skills and expertise that are not readily available in the Bahamas.

“The government agrees to facilitate between 400 and 500 work permits to qualified persons on a short term basis or on a longer term depending on the job classification and the ability of the owner to find and or train suitable candidates for such jobs. It is understood and agreed that the workforce employed by the Bahamian subcontractor are part of the overall Bahamian to non-Bahamian labour ratio and Bahamians will represent 70 per cent of the total labour requirement for the development. The parties through mutual agreement may vary their employment ratio if it becomes necessary for earlier completion.”

Concessions

The Pointe is subject to all concessions permitted to hotels under the Hotels Encouragement Act as it relates to the development.

“Provided however that no subsequent amendment of the Hotels Encouragement Act shall operate to terminate or reduce any concession of Approval grant under, or by virtue of, this agreement.

“Exemptions do not extend to private residences and other components of the development which are not a part of the Hotels Encouragement Act.

“Exemption from payment of customs duty on materials relating the development (including surveying materials and engineering materials) furnishing, equipping and completion of the components of the development, being the hotel and related facilities, including the marina, parking garage, qualifying hotel villas and condo-hotel stores, and which qualify for concessions under the Hotel Encouragement Act.

“The developer and the government, through the Ministry of Finance, Ministry of Tourism and Ministry of Financial Services and the Department of Customs will put in place a system to adequately monitor the exemption from customs duties as set forth in this heads of agreement and expedite the importation of all the foregoing.”

Villas or condominiums, which are privately owned, placed in the general hotel rental pool for a minimum of nine months a year will also be granted exemption from the payment of customs duties on imports, maintenance, improvements and real property tax while such homes are in the general hotel rental pool and provided they are placed in the general hotel rental pool prior to construction, the document read.

It added that privately owned residences which are not in the general hotel rental pool must pay all taxes and do not qualify for concessions and benefits.

The Pointe is also responsible for the costs and fees associated with the Environmental Impact Assessment and the preservation of antiquities.

The developers have agreed to provide approximately 200 jobs for Bahamians during the peak of construction and support approximately 500 permanent jobs upon completion. These jobs are in addition to the 277 employees presently employed at the existing Hotel and Centre of Commerce.

The Pointe will consist of an up-market resort, including an eight-story condominium hotel, which will not exceed the highest point of the existing hotel roof line; and beachfront villas and spa, retail shops, a multi-purpose performing centre, night club with rooftop bar, movie theatre with up to six screens and restaurants.

The parking garage is newly opened and consists of approximately 900 parking spaces and 50,000 square feet of retail and office space.