The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamian entrepreneur says fragile negotiations to resolve the dispute over his Paradise Island project have been undermined by the government executing a crown land lease in Royal Caribbean’s favour.

Toby Smith, principal of Paradise Island Lighthouse & Beach Club Company, told Tribune Business it was “mind boggling” that the government would proceed to lease a seven-acre parcel to the cruise giant when at least some of that crown land is already the subject of Supreme Court litigation he launched over his own lease.

Accusing the government of “double dealing” the same crown land tract, Mr Smith said the move had disrupted talks between himself and Royal Caribbean that were exploring whether their separate projects in the Colonial Beach area can co-exist and if there is a possible compromise over their competing crown land desires.

“I think it’s comical and highly amusing that the Government of The Bahamas is double dealing crown land, and negotiating crown land with a third party, namely Royal Caribbean, that is involved in litigation from Paradise Island Lighthouse & Beach Club Company,” he blasted.

“Michael Bayley, Royal Caribbean’s president and chief executive, personally requested for me to have dialogue with Royal Caribbean, and I have obliged. It’s an attempt to kindle a relationship of good neighbours. In the middle of those negotiations, Royal Caribbean announces they’ve received a signed Crown Land lease from the Prime Minister.

“They said in the spirit of good negotiations, we’ve been advised by our lawyers that we’ve received a signed Crown Land lease from the Prime Minister’s Office. I find it laughable. The Supreme Court is not going to look favourably on the Government negotiating Crown Land that is in litigation, and they have negotiated with an international investor on such a large scale.”

The development was confirmed by Russell Benford, Royal Caribbean’s vice-president of government relations for the Americas, who in response to Tribune Business inquiries said: “Pursuant to the January 2, 2020, letter of agreement received from the Government of the Bahamas, Royal Caribbean has received the executed Crown Land lease and seabed lease associated with the Royal Beach Club project on Paradise Island.

“As steps in the project approval process continue, we will engage and work with local interests on business opportunities as the project moves forward.” Mr Smith, though, suggested that the Government’s actions had effectively overturned efforts by himself and Royal Caribbean to achieve common ground.

“Why is it that the Prime Minister, as minister of Crown Lands, is double dealing Crown Land, apparently in favour of a foreigner, when there’s a Bahamian sitting right there?” he asked. “I’ve reached out to Michael Bayley for a chat in an already-difficult situation where the Government is creating conflict, straining an already-strained relationship....

“What Paradise Island Lighthouse & Beach Club Company are both trying feverishly to obtain is to be able to co-exist if Royal Caribbean’s development goes through. I appreciate that Royal Caribbean is now making an effort to understand my project. Paradise Island Lighthouse & Beach Club Company wants what’s best for The Bahamas and to get unemployed Bahamians working again.

“Our objective has been to see if we can go to the Government holding hands, and say to the Government: ‘We have resolved it’. That would take the embarrassment away from the Government, as we’ve come up with a plan that works, and they could take the credit for it. Paradise Island Lighthouse & Beach Club Company is highly surprised that in the midst of sensitive, delicate negotiations that Royal Caribbean and the government would take such provocative actions.”

Questions have already been asked as to whether the Town Planning Committee, and Department of Physical Planning, could hold a public consultation on Royal Caribbean’s Paradise Island plans when the cruise line had yet at that stage to obtain an executed Crown Land lease for a parcel that includes several acres which are presently the subject of Supreme Court legal action involving a rival developer.

Royal Caribbean has steadily amassed around 13.5 acres on Paradise Island’s western end by buying out private landowners in the area, but it is also seeking to lease some ten acres of crown land in the Colonial Beach area to complete its Royal Beach Club development as part of a total $110m investment billed as creating $26m in local spend and 200 full-time jobs.

This has brought it into potential conflict with Mr Smith, who is seeking himself to lease two crown land parcels at Paradise Island’s western end, one of which involves two acres around the lighthouse and another three acres for the “beach break” element of his own $2m project.

Mr Smith’s court action is alleging that he was granted a valid crown land lease over both parcels, including the lighthouse and the area at Colonial Beach for his “beach break” destination, which is now legally binding. The case is based on a January 7, 2020, letter from Richard Hardy, acting director of Lands and Surveys, that was headlined “approval for crown land lease” over the two tracts he wanted.

Two of the acres sought by Mr Smith are included in Royal Caribbean’s Crown Land lease. He yesterday said he has now written to the Department of Lands and Surveys seeking to lease a five-acre parcel that the cruise line also wants at Paradise Island’s western end.