The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Sebas Bastian yesterday said he "smells a big fat rat" over the enforced eight-month halt to his $50m project, with the delay highlighting how Bahamian economic growth "is stifled".

The Island Luck chief told Tribune Business it was "little wonder investors are running scared of The Bahamas", branding the "Stop Order" imposed on the Veridian Corporate Centre by the planning authorities as "very suspicious".

Suggesting that the "halt" was little thanks for his decision to "invest in developing my country", Mr Bastian said the Department of Physical Planning, Ministry of Works and Town Planning Committee had imposed conditions never previously encountered in his 30-plus real estate developments.

Attorneys acting on behalf of Mr Bastian's Veridian Development Company and Brickell Management Group (BMG) yesterday threatened to launch legal action against the Ministry and Town Planning Committee within seven days unless the "Stop Order" on the corporate offices development is lifted (See story HERE).

Tribune Business sources yesterday suggested that the lengthy stall could have cost Mr Bastian's company up to $25m in real estate sales, while also forcing some 60 construction workers to seek work elsewhere.

These figures were not disputed by Mr Bastian yesterday, while a major foreign investor in the project - whose involvement has already been approved by both the National Economic Council (NEC) and Central Bank - was said to have totally lost confidence in The Bahamas and wants to withdraw their capital.

However, other contacts yesterday suggested the Department of Physical Planning was correct to halt the Veridian Corporate Centre project because it did not possess all the necessary permits required to start work.

Mr Bastian conceded to Tribune Business that the project did not have a 'building permit', enabling it to start physical construction, but said its contractors were only conducting civil works - installing piping and other below-ground infrastructure - when the 'Stop Order' was issued on October 3, 2017.

He suggested real estate developments were able to commence without having all the necessary permits in hand, with the relevant approvals obtained as projects progressed. Desmond Bannister, minister of works, could not be contacted for comment before press time, but other sources disputed Mr Bastian's assertions.

"He hadn't complied with all the requirements," one added of the reason for the 'Stop Order'. "You need all of the permits in place, but they weren't. This isn't his [Mr Bastian's] first rodeo. He should know better. He didn't have all the permits in place."

The Island Luck chief, though, said the planning authorities had imposed requirements on the Veridian Corporate Centre - such as dust protection and traffic impact studies - that he had never been asked for before on developments such as Venetian West.

"It's very strange the way it is being handled," Mr Bastian told Tribune Business. "They're asking for stuff they've never asked for before. It's quite apparent to me there's an intentional delay on this project for whatever reason.

"I've seen projects start after me move quite fine, and I'm pretty sure they've not been asked to do the things I've been asked to do. If it comes back on the traffic study that 100 extra cars come out of there, I can't widen the road. That's the Government's problem."

He suggested that the eight-month 'Stop Order' imposed on BMG and Veridian, after civil works had been in progress for seven months last year, typified the Bahamas' 'ease of doing business' woes.

"It's this type of thing that stifles economic growth," Mr Bastian said. "When you have these suspicious things happening around the project; the scale of the project, there's a foreign investor, there's no wonder people are running scared of this place.

"I could invest my $50 million abroad. I don't have to build a $50 million office out there. I don't have to spend my money to develop my country, but I choose to. We started in March last year, and people could have been in those offices already. It's been eight months since they did the 'Stop Order'."

Despite initially applying for the Veridian Corporate Centre's permits in late 2014, Mr Bastian said Venetian West and other real estate development projects that BMG was involved with meant it did not become a focus until 2016.

Architectural and civil drawings were submitted to the Ministry of Works, the latter were approved, and Bahamas Hot Mix was hired to begin the civil works. It was only on October 3, 2017, that the Department of Physical Planning issued its 'Stop Order'.

Mr Bastian said he had complied with all the planning authorities' subsequent requests, yet the 'Stop Order' remained in effect. He suggested that similar requirements were not being imposed on other developers, adding that he would have "no problem" if there was equal treatment for all.

The Island Luck chief said planning officials would "disappear", or not respond, when Veridian and BMG attempted to follow-up the progress of their submissions and approval applications.

"All this kind of stuff is not good for development," Mr Bastian told Tribune Business. "I can smell a rat."