The Great Bahamian Land Rush: Part 2

by Sir Arthur Foulkes

A few weeks ago a real estate company in North Carolina, Infinity Partners, posted on its website a “Grand Bahama Island Update” purporting to be a status report on a proposal presented to The Bahamas Government for the development of east Grand Bahama.

The report, dated 7 February 2007, was quickly circulated over the internet and mentioned in several news stories in the local press; but there were no screaming headlines about it in the newspapers.

Perhaps reporters and editors did not give it much credence or maybe they thought it was a hoax since it quickly disappeared from the Infinity Partners website. Prime Minister Perry Christie had been hinting at something big about to happen in Grand Bahama but this was bigger than big.

Then Tourism Minister Obie Wilchcombe confirmed that the Government had indeed received a development proposal for east Grand Bahama. Even so, the Minister’s revelation was reported in the bottom half of a story about the possible acquisition of the closed Royal Oasis resort in Freeport.

The proposal was put forward by Beka Development Company through its Bahamian subsidiary, Bahamas Golden Beach. It was a genuine proposal Mr. Wilchcombe told The Tribune.

“The proposal has been sent in to the Government, and we are now looking at it. It’s now in the preliminary stages. We have not yet sat and discussed the matter.”

The proposal is for the biggest sale of publicly-owned Bahamian land since the Hawksbill Creek Agreement creating Freeport was signed in 1955. It is, in fact, bigger. Beka wants one hundred square miles of land in east Grand Bahama!

That works out to 64,000 acres; the original Freeport transaction was for 50,000 acres. And it is 20 per cent bigger than New Providence which is only 80 square miles. The proposed price is $2,800 an acre.

Of course, Beka wants a casino licence, what it calls a master casino licence for the rest of Grand Bahama. The proposal also calls for a number of other items including:

All the concessions granted to Kerzner, Baha Mar and Ginn; the right to full access use of the existing harbour; an option to purchase the lease of the entire harbour when the existing lease expires; the right to reopen a secondary airport and to facilitate the arrival of private and charter flights; the right to control the road plan and redirect existing roads to fit the master plan; the right to expand and change components of the project and partner in aspects without reapplication to the Government, and prohibition from others to access any canals or harbours within five miles of the company’s site.

According to Infinity Partners, the existing Bahamian Government will have elections on May 5 and “they would like to complete all the approvals and make a formal announcement at least 30 days in advance”.

Mr. Christie and his colleagues in the PLP Government must have taken leave of their senses even to entertain such a proposal. But it is obvious that preliminary talks have taken place and that Beka has been encouraged to proceed.

Whether Mr. Christie and his colleagues believe it or not, the country is already in an uproar over the giveaway and cheap sale of Bahamian land to foreigners for residential development.

The sale of the Government’s Cable Beach Hotel together with hundreds of acres of prime publicly-owned land in the same area for the scandalous price of $43 million -- and a raft of concessions to boot -- was a betrayal of the interests of the Bahamian people.

The sale to foreign developers of 10,000 acres of publicly-owned land in Mayaguana for just a few hundred dollars an acre with the promise of a 200-room hotel sometime in the future was also an outrageous abuse.

The Mayaguana developers are committed to build, in the first instance, only a boutique hotel which is really a necessary component and amenity for their real interest: the sale of lots on the international market.

It is also reported that the Government is negotiating for the sale of 275 acres of prime beachfront property in Crooked Island to foreign land developers. Fortunately, the local leaders on that island have more sense than the PLP Government and are resisting this deal.

It is easy to understand why foreign land developers and speculators are swooping down on The Bahamas. Mr. Christie and the PLP Government have spread out the red carpet for them in the form of “a new model” for the development of the country. The principal component of that new model is to sell as much Bahamian land to foreigners as they can.

This policy will create a multitude of problems for The Bahamas for many years to come. It is already putting land beyond the reach of many Bahamians, and that is going to cause huge social and political problems in the future.

The developers, for the most part, care little about the conservation of the environment which makes The Bahamas so attractive in the first place, and some of them are already doing irreparable damage to this wonderful natural heritage.

When it is all done they will simply walk away with their billions in profit from the sale of Bahamian land so generously parcelled out to them by the Government of The Bahamas.

If the lots being put on the market in this Great Bahamian Land Rush are sold and occupied then we will have foreign settler communities all over The Bahamas, together with some “second-home owners” who will rent their houses on the internet. This is a recipe for tension and conflict between settlers and natives and, consequently, political problems.

It will also present challenges to our sovereignty because the settlers can be counted on later to make unpalatable demands of us and to resist attempts to regulate or tax their properties. And they will seek the support of their own governments.

Our deluded PLP Prime Minister obviously believes that God is guiding him in his mad rush to sell his people’s birthright to strangers, and that God is looking over his shoulder approvingly as he signs it all away in heads of agreement. That must be why he beams from ear to ear and happily does his shuffle.

But Mr. Christie will learn that God did not give this country to the PLP, as one of his colleagues claimed years ago, and did not personally anoint him as king of The Bahamas with the divine right to dispose of it as he sees fit.

He might also come to understand that God loves all His children – including FNMs – just as much as He loves PLPs, and that we are all put here to do what is right.

There must be some people left in the PLP whose heads have not been disturbed by the rarefied atmosphere of power, who are still in touch with reality, who are not blinded by greed -- people who can stay the hand of this Prime Minister before he signs away all our land.

We are still today dealing with the challenges of certain provisions of the Hawksbill Creek Agreement that was signed half a century ago. Some of the problems with that agreement were apparent from the beginning, some were not. Surely, that in itself is a lesson for Mr. Christie not to do more foolishness in 2007.

It ought to be unthinkable that he and his colleagues would inflict this monstrous insult on the Bahamian people and that he intends to get it all done before the election, but one cannot be sure. That Mr. Christie and his Ministers are “looking at it” is cause for deep worry.

Comments

[drew Roberts]

"This policy will create a multitude of problems for The Bahamas for many years to come."

Yes it will. I think large mistakes are being made.

There is one thing I seldom see discussed with relation to this issue though and I think it does play a part, I am not sure how large. though.

When it comes to the out islands, bahamians do not pay property tax and non-bahamians do. This leads to a conflict of interest where the government, for tax purposes, would prefer the land to be owned by non-bahamians so that the land will generate revenue for the government.

Would anyone care to comment on this and then discuss the whole issue further?

all the best,

drew

http://www.youtube.com/watch?v=ls1QealrmLk

[will]

What frightens me is that the plp has no statment on this, they just ignore it everytime its raised or say oh well the fnm gave away land too. This must become an election issue! These land give aways are obviously benefitting certain members of the government who think the natives of our islands are too stupid to catch on or to desperate for investment to care it is the result of years of neglect, in the 1990's the bahamas development bank could have lent small sums to aspiring bahamian hoteliers. helped them develop bussiness plans and build small locally owned hotels. but no theyd rather give land on mass to companies who are blantently useing the bahamas!

[drew Roberts]

And they also turn around and put up roadblocks to deter us from taking our money and investing as we see fit in other countries.

That is another thing that is long overdue for correction.

all the best,

drew

http://www.youtube.com/watch?v=ls1QealrmLk

[David]

Both PLP and FNM govnt's have grappled with this dilema. One can argue that the negative side is that it prices natives (though we're not Lucayan nor Arawaks, but I'll use the term "native")out of the real estate market. But for years Bahamians were uninterested in the Family Islands. Many of us left the our rural beginnings for the fast-paced high stakes glitz of Nassau while turning our backs on where we came from. Now we want to go back for regatta dis, and fest dat. Now we want to claim Cat Is, Ragged Is., Oh! my Andros....I could go on and on. If we are to become "Global Citizens" and claim our stake in this global economy, there are pros and cons. Bahamians need to step up their game and unleash the inner talents of industry I know us to pocess. Pennsylvania Ave. (Wash. DC) maybe owned by America, but Park Ave. (NYC) surely isn't. If we want to play in this global monopoly game, we'd better do our homework and step up our game. Don't let both FNM and PLP blind you by this outcry about selling out the Bahamas. Both parties would do it regardless. Instead both parties should be creating ways for Bahamians to get in on the game. It's amazing how both parties and the "black" Bahamian Elite keep us Bahamians polarized on insignifacnt issues while they go on setting up their lil under the table deals and what not while you and I fight over the lil peice a cheese they throw out from time to time. If it's one thing that rings true in this world wherever you are and that's "MONEY TALKS, BULLS*T WALKS". Release yourself from the B.S. Foulkes is one a dem too.

[drew Roberts]

"If we are to become "Global Citizens" and claim our stake in this global economy, there are pros and cons."

So, get rid of the "investment dollar" and set us free to invest where we may on as equal a footing as other country's governments will allow. Then fight on our behalf for those governments to level the fields.

I assume that block is still in place. I certainly haven't heard of it being repealed.

all the best,

drew

http://www.youtube.com/watch?v=vcaf2ThG7q4

[Laurie D]

The Bahamian government needs to get out of this current economic model which involves the cheap sale of land (at least sell the Bahamas for what its worth)in the country.They supposedly creating "jobs" in our country which these investors make three times their initial purchase of land on.Tourism is the number one industry in the country, not everyones calling is to be a taxi driver, housekeeper, or straw vendor and they also call on bahamians to be entrepreneurs, rather this encourages them to saturate the already overly service tourism sector by catering to the needs of these hotels. One of the characteristics of a developed country involves the development of the country by in large part by its citizens and not primarily foriengers. I mean when is the government going to realize this type of model is not condusive to long term economic growth within the country.Both the current government and the opposition need to look at whats in the best interest of the country and not their own personal gain, or gaining momentum in the race during the political season. This current model is deeply disturbing because soon at this rate there will be no land in the FUTURE for Bahamians to live and invest just enourmous hotels and resorts that facilitates the oh so cherished jobs in the country

[David]

Laurie D/Drew

Point well taken. I agree. Until we stop looking at this as an FNM or PLP-created problem, it'll never change. Bahamians are some of the most intelligent people on the planet, but the present culture nueters our industrious spirit. Like you said, we are bred and educated to be someone's waiteress, butler, housekeeping, resort specialist, cook, etc.. How can we break that glass ceiling?

[Bob Knaus]

More food for thought: recognize that not all foreign investment is equal.

Want better jobs than the tourist industry offers? Easy. Let foreigners start businesses in desirable sectors (tech, pharma, logistics, whatever) with no restrictions on hiring 1st-world foreign workers, and no requirement for a Bahamian investment partner. These businesses will bring in a few high-salaried experts from the US & Europe, and fill the rest of their slots with Bahamians. Bahamians will learn the skills to compete globally through hands-on work. Eventually some of them will start businesses of their own.

Do you, as a Bahamian, find the concept of working for a foreiegn firm with foreign bosses to be offensive? Think long and hard. This is exactly what your best and brightest do when they go to college in the US/Canada/UK and don't come back. Would you rather the brain drain continue? Or can you see that swallowing your pride might just get you out of the tourist industry trap?

There is no easy way to get ahead, no way to leapfrog to prosperity. It is work, hard work. I speak from personal experience.

[drew Roberts]

"Do you, as a Bahamian, find the concept of working for a foreiegn firm with foreign bosses to be offensive?"

Nope, done it, not a problem for me. Especially since I have never considered myself to be somehow inferior to those who have been my bosses nor superior to others I have happened to be the boss of.

"Or can you see that swallowing your pride might just get you out of the tourist industry trap?"

I am not sure what pride you are referring to. I am not sure where you are from either Bob.

The particular issue I have hit here is that while many who come here to invest do not need the permission of their governments to bring their assets here to invest, our government requires us to get permission to take some of our capital to other countries to invest, and the last time I checked, required a hefty percentage of us when they gave that permission.

We are not "Free" by our own laws to get in the global game. And we seem not to be concerned enough to insist our "leaders" set us Free to do so.

"Let foreigners start businesses in desirable sectors (tech, pharma, logistics, whatever) with no restrictions on hiring 1st-world foreign workers, and no requirement for a Bahamian investment partner."

And...

"Would you rather the brain drain continue?"

Actually, I have suggested in the past and will suggest again here. We have a unique advantage here with respect to something like that...

We should take ONE good sized island and implement your plan for that island only. This could be a controlled experiment. We can see if that island does better than the others. We can see if it is better for Bahamians on that island than on the others.

But what I am really calling for in this thread is for our givernment to set us Free to take our capital and play in other people's countries.

all the best,

drew

http://www.youtube.com/watch?v=vcaf2ThG7q4
UFO seen in skies over Winton!