The Tribune

• Local entrepreneur says he has $7m financing

• 'Reaffirms' intent in 12th year after 4,000 days

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Royal Caribbean executives yesterday said they reduced their Paradise Island Crown Land demands by 43 percent in a bid to "untangle ourselves" from any "conflict" with Bahamian entrepreneur Toby Smith.

Michael Bayley, the cruise giant's president and chief executive, told Tribune Business he wished Mr Smith well in his bid to restore Paradise Island's lighthouse but declined to be drawn on whether the two projects can co-exist as neighbours or if Royal Caribbean would go back for the three acres it is relinquishing if the Bahamian's ongoing court challenge proves unsuccessful.

His comments came as Mr Smith released a statement "reaffirming" his project in response to the Government's request that he "reapply" for the necessary approvals. The Davis administration took that stance after the Supreme Court ruled the Paradise Island Lighthouse and Beach Club principal did not possess a valid, binding Crown Land lease for the collective five acres he was seeking on Paradise Island's western end.

Mr Smith, in a March 22, 2023, letter addressed to the Prime Minister, said he had "brought proof of financing" in excess of $7m with additional investors seeking to get into a project requiring just a $3m outlay. Calling on the Government to honour the original lease that was drafted under the former Minnis administration, he added: "Our Bahamian enterprise is overdue for success."

Royal Caribbean and Mr Smith have been in competition seeking to lease the same two-acre Crown Land parcel for their respective projects after it was effectively 'double dealt' to them by the former Minnis administration. Mr Bayley yesterday confirmed that Royal Caribbean reduced its Crown Land needs from seven to four acres, relinquishing the parcel it was contesting with Mr Smith, so the Royal Beach Club can proceed and avoid any potential legal battles.

"We knew it was locked up in an endless back and forth, and there was conflict over the Crown Land," he told Tribune Business. "In conversations with the Government, it was agreed to remove the three acres; take those out of the equation and uncomplicate the entire project.

"It will still be a stunning success. Would it be more of a stunning success with the extra acres? Yes, it would, but it's a great project and we will move ahead having untangled ourselves from the conflict..... We're super happy with the 17 acres (13 acres acquired from private owners). Our guests will love it, and we think it will enhance the total product offering."

Asked whether Royal Caribbean would go back for the same three acres if Mr Smith loses his legal battle, and his project does not proceed, Mr Bayley replied: "Let's see. Time heels everything. I don't know how it will work out." Given that the cruise line has reduced its Crown Land footprint, it is unclear whether a new lease will have to be drafted given that the original involves seven acres rather than the current four.

Then, asked if Royal Caribbean could co-exist with Mr Smith's own beach break activity and lighthouse restoration project, Mr Bayley said: "I wish Toby good luck in his endeavours." However, Jay Schneider, Royal Caribbean's chief product and innovation officer, backed the need to restore the Paradise Island lighthouse given that its present rundown state provides a poor impression for millions of cruise passengers entering Nassau Harbour annually.

"I'd love to see him succeed if he improves the tourism product, and that includes the lighthouse, which is in desperate need of restoration. The first impression that visitors get is a lighthouse in disrepair, so we'd love to see that improve."

Mr Smith, in a statement yesterday confirming that Paradise Island Lighthouse and Beach Club has reaffirmed its application for government approval, said he was now in his 12th year of seeking the necessary permits in an effort that has spanned four administrations.

"In our recent meeting on March 2, 2023, you instructed me to 'reapply' for the Paradise Island Lighthouse and Beach Club project," Mr Smith wrote in his March 22 letter to Philip Davis KC. "I write to you to reaffirm Paradise Island Lighthouse and Beach Club's all-Bahamian project on Paradise Island.

"As you are aware, we originally applied on April 12, 2012, and to this day continue to remain steadfast in bringing this project to fruition. It started out as a $2m project and is committed to invest $3m. We are ready to commence. We have brought proof of financing for our commitment to you in excess of the $3m the project calls for to the tune of more than $7m.

"We also have additional investment dollars on the sidelines seeking to invest in this bright investment opportunity. We seek to restore the Paradise 'Hog' Island lighthouse back to its former 1817 glory. While Paradise Island Lighthouse and Beach Club shall provide the financing for this significant undertaking, we have also received an overwhelming financial interest from others for the purpose of restoring the lighthouse with us."

Calling on the Government to honour the lease that is the subject of his ongoing legal battles, Mr Smith added: "Our Bahamian enterprise is overdue for success and we have endured four administrations of government. Your administration of government could, at any time, mitigate the need for court action by letting our project flourish. We are asking this of you today."

The Bahamian entrepreneur asserted that the lighthouse restoration and beach break activity will create 80 Bahamian jobs while, as a locally-owned business, its revenues and profits will remain circulating in the local economy and be spent with "cottage industries, micro, small, medium and large businesses and wholesale suppliers'.

Promising a low impact, environmentally sustainable project, Mr Smith wrote: "We seek to be able to offer greater beach access for Bahamians. We have been deprived over the decades from beach access and amenities available to Bahamians, and we will drastically change this immediately.

"We believe that a Bahamian project is long overdue for opening. Bahamians feel sidelined and made to feel as second-class citizens, and I believe are tired of 'stand aside and look'. We therefore conclude by reiterating our affirmation to receive everything necessary to move our all-Bahamian project forward, with your support, and without any further delay."

In a further letter to Mr Davis on March 29, 2023, Mr Smith pledged that a restored Paradise Island lighthouse will be a "'shining' example of Bahamian pride, a healthy first impression for new visitors and a symbol of salvation and hope for all. As you are aware, our Beach Club will be the best of the best in The Bahamas".

Mr Smith, in his e-mailed statement yesterday, said: "April 12, 2023, marks the start of our 12th year in bringing about this restoration and sustainable development for the benefit of all Bahamians and our guests. This is how hard a Bahamian company has to fight to fully restore the oldest lighthouse in our country, free of charge, and create a venue for Bahamians to have beach access and use of our Crown Land with modern amenities.

"We recognise that there is not a foreign component to our project, and we should not be penalised nor disadvantaged for this. We see foreign promises flying in a dime a dozen, and Bahamians have been sidelined and pushed aside. The playing field needs to be level. When did Royal Caribbean apply for Bahamian Crown Land; what lease are they referring to when they claim to have a Bahamian Crown Land lease?

"The Government of The Bahamas has the unique opportunity to demonstrate to the Bahamian public that we should be able to participate and to have a hand at the wheel in steering our own destiny. More than 4,000 days and here we are affirming our commitment that we have expressed since April 12, 2012," Mr Smith added

"The Government of The Bahamas already decided to offer Paradise Island Lighthouse and Beach Club a lease for Bahamian Crown Land. There is an agreement for a lease and the Government could, at any time, decide to honour this agreement and let Bahamians get to work."