The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Abaco’s Chamber of Commerce president is “hoping and praying” that the developers of a $985m south Abaco resort project “do everything they can to preserve the natural beauty” of that area.

Daphne DeGregory-Miaoulis told Tribune Business it would be sound business sense for the Kakona investors to safeguard the very environment that attracted them to the location after their recently-published Environmental Impact Assessment (EIA) warned construction activities could have “severe adverse impacts” at the three sites they plan to develop.

Public consultation on the South Abaco Land Development Company’s (SALDCO) EIA is scheduled for October 24, 2024, at 6pm at the Sandy Point community centre, and Mrs DeGregory-Miaoulis said it was vital the Government ensure the developers have the necessary finances, resources and expertise to avoid “the worst case scenario” of an unfinished development and scarred landscape.

Acknowledging that the developers are targeting locations close to the Abaco National Park, an area of major ecological significance that contains breeding and nesting grounds for multiple bird species, including the Abaco parrot, she told this newspaper that a “balance” must be struck between environmental preservation and creating much-needed jobs and economic activity in that part of the island.

The Kakona project, for which a Heads of Agreement was signed in late 2022, has been “kicking around” for at least 17 years in various guises and first surfaced in 2007 - just prior to the financial crisis and 2008-2009 recession - under an entity called the Valencia Group. Its lead principals now are the Harrell Family Trust, and a Town Meeting for the project was held in Abaco during January 2023.

Nothing was heard subsequently until last week’s release of the EIA, compiled by Bahamas-based consultants Bron Ltd, and the date for its public hearing. Mrs DeGregory-Miaoulis said the developers appear “committed”, given that they have stayed the course for 17 years, but questions remain over the environmental impact and the project’s sustainability given its scale.

The EIA, which Tribune Business has reviewed, confirms that South Abaco Land Development Company plans to develop three sites - one on Abaco’s south-western tip, and two on the eastern side. To the west, Leeward Harbour will be located one mile south of Sandy Point with its northern boundary immediately adjacent to the community’s air strip. Among the planned amenities is a 225-slip marina.

The project, which will be flagged by the high-end Setai resort brand, also intends to develop two sites to be called High Bank Bay and Conch Sound Point on the Abaco’s south-eastern tip. The former will cover 503 acres, and feature a 30-room resort, 25 cottages and 150 residential lots available for sale, plus an 18-hole golf course.

Conch Sound Point, meanwhile, is a 375-acre tract that will include another hotel, 25 cottage and 100 “private estate lots”. The EIA confirms that High Bank Bay “abuts” the Abaco National Park on its western boundary, and acknowledges that “the park protects a critical breeding habitat for the endemic Abaco Parrot”.

While detailing a series of mitigation strategies that “have the potential to lessen and even eradicate environmental impacts” from the project’s development activities, the EIA added: “The potential socio-economic benefits of this project are much-needed among the locals and stakeholders of South Abaco. 

“Despite the potentially adverse impacts associated with the construction and operation of the proposed project, the overall design of the project and developer’s commitment to a low density, low impact residential community will allow for effective mitigation strategies to be employed during construction and operations phases of the project.”

Breaking down Kakona’s impact by site, the EIA said: “The project’s activities at Leeward Harbour, which have the potential to cause severe adverse impacts, include impacts to terrestrial and marine habitats due to upland clearing and creation of upland infrastructure associated with the marina and aerodrome, as well as the impact to the marine environment due to the creation of the marina and flushing channels....

“The proposed project development at High Bank Bay and Conch Sound Point will have some moderate to severe impacts on-site and potentially on the immediate environments surrounding the properties. High Bank Bay and Conch Sound Point project activities which have the potential to cause severe adverse impacts include impacts to terrestrial habitats and bird populations due to land clearing during the creation of the golf practice courses and upland infrastructure.” Historical ruins could also be affected by construction and road clearing.

It is unclear, though, whether the Kakona developers have assembled all the land their ambitions require. In particular, the EIA states that they are still in talks with the Government to acquire more than 47 acres of Treasury Land that are vital to facilitating the planned Leeward Harbour marina.

“Currently, the developer owns approximately 400 acres at the High Bank Bay and approximately 300 acres at the Conch Sound Point locations,” the EIA says. “The Leeward Harbour site consists of approximately 48.74 acres and is owned by Leeward Harbour Investments. This area is under contract with closing to occur by July 2024.

“Another parcel, of which approximately 52.54 acres is Treasury Land with the addition of another five-acre privately held tract, is under negotiation. The total parcel, including the Leeward Harbour Investments tract, is approximately 105 acres. The developer is in the process of negotiating the purchase of this land per an approval from the Bahamas Investment Authority (BIA).

“Additionally, the developer has an approval to purchase - and has under contract - approximately 75 acres at Conch Sound Point, approximately 103 acres at High Bank Bay, and approximately 105 acres at Leeward Harbour made up of privately held and Treasury land.”

This was confirmed by Robert Coakley, an attorney with SALDCO’s lawyers, Davis & Co, confirmed in a May 8, 2023, letter to the Department of Environmental Planning and Protection (DEPP) and Forestry Unit that the Treasury Land purchase was to “facilitate its proposed marina”.

“There’s been a tremendous amount of concern,” Mrs DeGregory-Miaoulis told Tribune Business of the Kakona proposal. “While it’s been said it will never get approved because there’s so much opposition to it from the Bahamas National Trust (BNT) and everyone in the environmental business, as far as south Abaco and Sandy Point are concerned they need opportunities and they need investment.

“From a business standpoint, it’s a bit unfortunate it is where it is located because of all the controversy as Sandy Point and the southern part of the island needs major development. They’re looking at dredging harbours and marinas, and a lot of things that could potentially damage the environment, but there’s a balance with bringing development and business.

“There’s two sides of the coin and two outlooks,” the Abaco Chamber president said. “I, for one, have tremendous respect for the environment but I also understand the need for development and communities to have expansion. There are those people who believe they should have business opportunities and those who believe it shouldn’t happen in that area. I have to say it’s a very mixed view.”

The EIA said the Kakona development is forecast to boost Bahamian economic output, or gross domestic product (GDP), by $366m over the ten-year, $985m construction build-out. Construction activity alone, it added, is estimated to generate a $264m GDP boost over that period. 

“Direct construction employment averages over 736 persons, peaking at 1,000 jobs for Bahamians,” the EIA said. “Over a 23-year period, this new project will generate an estimated $1.9bn in government revenues, the majority of which will come from import duties.” However, these projections appear to be based on a dated Tourism Economics analysis from 2007.

“We can only hope and pray they will do minimal damage to the environment,” Mrs DeGregory-Miaoulis told Tribune Business, “and the economic outcomes and long-term benefits will outweigh whatever damage there is going to be.

“Every time you disturb nature there’s going to be some impact. We just have to hope and pray the developer is going to do everything they can to preserve the natural beauty which is what attracted them there in the first place. It’s going to be just as important to them as anyone else because they are the ones looking to benefit from that location so they have to do everything they can to preserve it.

“God forbid they go in and tear everything up. I just hope they have all the finances and permits approved before they do anything. The worst case scenario will be if they go in and disturb everything and it doesn’t come to fruition. Do they have the resources? Are they going to run out of money or do it stage by stage in a sustainable way?” she asked.

“It [the project] has been kicking around for a number of years, which leads you to believe they are really committed. Why would someone stick with it this long if they are not committed? But that’s the thing. Are they going to allow each phase to fully develop before they start tearing up our environment?”