By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Hurricane Hole developer’s has received initial approval for a $352.2m development on Matt Lowe’s Cay that promises a desperately-needed boost for Abaco’s Dorian-ravaged economy, it was revealed yesterday.

Dr Hubert Minnis, in his contribution to the 2020-2021 budget debate, told the House of Assembly that affiliates of Sterling Global Financial have received preliminary government permission to proceed with an investment that will create 250 full-time jobs and 2,970 posts across the life of the project’s construction.

Bahamas-headquartered Sterling, which is chaired by David Kosoy, is already proceeding with its redevelopment of Paradise Island’s Hurricane Hole property into a high-end, mixed-use community featuring office, retail and residential components complete with an expanded marina targeted at mega yachts.

Dr Minnis said Sterling’s Abaco venture has yet to reach the Heads of Agreement stage, “and the requisite due diligence and approval measures will have to be done”, but he confirmed that the developer “took title” to Matt Lowe’s Cay last month ahead of its planned $40m acquisition.

The purchase will be completed through a Sterling affiliate, Sterling Montage Ltd, with the project to be known as Montage Cay and Marina. “The project is in the initial stage of designing plans. A Heads of Agreement is proposed to be executed later this year,” Dr Minnis said.

“The affiliates of Sterling Montage Cay - Sterling Global Developments and STAR Construction - will take the lead with respect to the proposed construction and development of the Montage Cay and Marina project. It is proposed that Montage Hotel & Resorts LLC will manage the operations and branding of the project. The estimated total capital investment is proposed at $352.2m.

“At present there are 12 persons working at Montage Cay inclusive of employees and independent contractors. It is anticipated that there will be 2,970 persons employed throughout the various phases of the proposed construction. At completion of the project, permanent direct employment is expected to be 250 people.”

Matt Lowe’s Cay is located in the Sea of Abaco, in close proximity to Marsh Harbour, with Hope Town to the east and Man O’ War Cay to the north. One source familiar with Abaco said much of the required infrastructure, including a marina, was already on-site prior to Hurricane Dorian’s arrival.

“That would be a big plus,” they said of the project. “My only question would be where are they going to put those workers. We need to get going. The only problem is all these projects are so far off.”

Dr Minnis, meanwhile, said the Baker’s Gay Golf & Ocean Club on Great Guana Cay was already beginning $400m worth of post-Dorian reconstruction via a project that will last three years.

In a nod to concerns about several hundred work permits being granted to specialist Mexican construction workers, the Prime Minister added: “As of today, I am advised that 472 persons are employed property-wide, 80 percent of whom are Bahamians.”

The Government, meanwhile, yesterday confirmed it had received no formal application from a Los Angeles-billionaire philanthropist over his proposed North Andros Green Free Trade Zone project.

Dr Minnis’ office, in a statement referring to Dr Patrick Soon-Shiong’s project, said: “The Office of the Prime Minister wishes to acknowledge that a draft proposal was submitted. The proposal has not been formally analysed nor reviewed to determine its viability, nor has it been presented to the National Economic Council for consideration.

“There is a well-established process for review and consideration of all major investment projects, which requires review and input from various agencies of the Government and public consultation prior to approval by the Government of The Bahamas.”

Dr Soon-Shiong, who was said by Forbes to have a net worth of $6.9bn as at March 2020, would appear to be the sort of legitimate, bona fide investor that The Bahamas needs to attract to reignite its economy and employment in the wake of the COVID-19 pandemic.

A part-owner of the Los Angeles Lakers, and owner and executive chairman of the Los Angeles Times and The San Diego Union-Tribune newspapers, his initial proposal - which as reported by Tribune Business has yet to be formally submitted to the government and its investment agencies - aims to create 750-plus full-time jobs, and 10,000 construction jobs over the build-out.

Some $200m-$250m will be invested over the first two phases of a development targeted at the Morgan’s Bluff area in North Andros. The project is focused on “value-added” manufacturing involving the creation of finished products from aragonite and other Bahamian natural resources, rather than simply exporting the raw material.

Besides an airport and seaport, the project’s other components include eco-tourism and medical tourism based on a medical research centre and clinic. Dr Soon-Shiong, who is based in Los Angeles, is heavily involved in the global healthcare sector through three foundations, visiting professorships at universities and his NantWorks network of health and technology start-ups.

It is also understood that the project has been significantly scaled-down in size compared to the 500,000 acres detailed in the initial proposal, and would require a much smaller footprint - especially since it would only be developed in stages should it receive the go-ahead from the government.