The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

DEPUTY Prime Minister Chester Cooper is “disheartened” after learning specific details of the deal for the sale of the Grand Lucayan property in Grand Bahama.

He said he still thinks the deal is an “egregiously bad” one, a view he held while in opposition.

Without disclosing a specific amount, he revealed the cost already associated with the property to date is costing Bahamians close to $200m.

During his first official visit to Grand Bahama yesterday, Mr Cooper met with the board of Lucayan Renewal Holdings (LRH), the special purpose vehicle created to own the assets of the Grand Lucayan resort.

Following his two-hour briefing at the resort with the board, Mr Cooper told reporters: “We had a good briefing from Lucayan Renewal Holdings Ltd, the board responsible for this property and ongoing negotiations as it relates to its pending sale. I am happy we have been briefed over what might be the next course of action over the next several weeks.”

“We will be discussing along with our colleagues at Cabinet next week and making a further statement as to the immediate cause of action,” he said.

 Attorney General Ryan Pinder, Minister for Grand Bahama Ginger Moxey, and Parliamentary Secretary in the Ministry of Tourism John Pinder were also in attendance.

 “We have looked at the details extensively, I can tell you it is costing the Bahamian people,” Mr Cooper said. “And I can tell you that sometime during the last several years we would have made certain public comments to the deal itself.

 “I specifically recall saying that it was an egregiously bad deal. I am disheartened to say I did not hear anything to change my view.”

 Although no details were disclosed about his briefings with the board, Mr Cooper indicated negotiations concerning the Grand Lucayan are a top priority for the Davis administration.

 “As it relates to this property, we won’t go into extensive details as to the briefings. So, suffice it to say, we are keen to move with respect to the negotiation one way or the other.

 “We do not anticipate going into specifics today, but suffice it to say, this is front and centre on our radar. And, therefore, we will move with dispatch to cause there to be some additional movements.”

 He also said: “When we spoke to this issue some time ago, I actually said it was an egregiously bad deal. And I can confirm for you today that I did not hear or see anything that would cause me to change my mind.”

 Mr Cooper said he intends to make a detailed statement next week on the issue.

 “I had forecasted prior to coming to government that the (FNM) government would have spent already in the region of $200m. I am also unhappy to tell you that I believe that is close.

 “And so, the specifics of what will happen moving forward, we will discuss. There is a legal agreement in place, and we will follow the law, and will pursue this agreement in the best interest of the Bahamian people.”

 Mr Cooper also indicated there is no plan right now to change the board of Lucayan Renewal Holding.

 “We had a good briefing from Lucayan Renewal Holdings Ltd, the board responsible for this property and ongoing negotiations as it relates to its pending sale. I am happy we have been briefed over what might be the next course of action over the next several weeks.

 “We will be discussing along with our colleagues at Cabinet next week and making further statements as to the immediate course of action.

 “We are assessing the board at the moment, and I am very thankful to a very competent board that has been in place,” he said. “And we anticipate once there is an election, boards would change. But I have been assured by the professional Bahamians who sit on this board that their expertise will always be accessible, whether the board has changed or not.

 “So, whilst it is customary, we are not at that point yet. There is a lot of institutional knowledge, and these are effectively volunteers who love our country the way we all do. And therefore, I know they will offer their expertise on an ongoing basis whether formally or informally,” said Mr Cooper.

 The stalled sale of the hotel property has been a burden on taxpayers for the past 18 months.

 In 2018, the Minnis administration purchased the property for $65 million from Hutchinson Whampoa. Prior to the general election, it had allocated more than $3 million in subsidies in the 2021-2022 budget for the property.

 Royal Caribbean Cruise Line and the ITM Group had signed a Heads of Agreement in March 2020 for a joint venture purchase and redevelopment of the hotel. This also included redevelopment of Freeport Harbour. However the deal has not yet been finalised.

  Mr Cooper said the resort is “critical” to the island, and they are eager to get the negotiation moving again.

 “As DPM, this is my first official visit outside of New Providence. I wanted to do that to demonstrate to the people of Grand Bahama the significance of Grand Bahama to the overall economy of the Bahamas, and overall tourism product.

 “We are very minded to say this property is critical, not just for the development of tourism, but also in support to other industries in Grand Bahama that we hope we will be able to nurture moving forward around maritime, the transshipment facility, and Shipyard, etc. We think there is a significant opportunity in Grand Bahama.

 Mr Cooper also toured the Grand Bahama International Airport, which he described as “heartbreaking”. The Minnis administration bought the airport earlier this year.

 “We will take a look at the airport. We see it when we come in and it is still heartbreaking to see that after so many months not a lot has changed. So again, it is a constant reminder as to the state of plague here in Grand Bahama,” he said.