PROMINENT private pilots are urging Customs to “pull back” and become “a team Bahamas player” over recent aviation fee hikes they fear will cost this nation “substantial” tourism business.
Jim Parker, a Bahamas ‘flying ambassador’ and principal of Caribbean Flying Adventures, told Tribune Business that this country’s booth at the recent EAA AirVenture Oshkosh fly-in, one of the world’s largest private aviation events, was “inundated” with pilots asserting they will no longer travel to this nation due to the increased costs.
He argued that, while the Public Treasury might receive a boost from the Customs fee increases, this will be more than offset by the drop in visitor spending by private pilots, their families and guests. Mr Parker urged The Bahamas
not to suffer the same fate as the Cayman Islands where private aviation “completely shut down” due to an increase in aircraft handling fees.
The industry veteran also told this newspaper that the Civil Aviation Department and Ministry of Tourism, Investments and Aviation might be preparing an economic impact analysis on the sector’s importance to Bahamian tourism and the wider economy, although this could not be confirmed with Greg Rolle, the lead tourism
official dealing with private pilots.
“I talked to Greg Rolle, the general aviation guy for The Bahamas, and Greg said the civil aviation guys are probably going to put together a package and run it up the flag pole,” Mr Parker said, “putting together an analysis of what’s going on and get it up to senior Bahamas government officials.
“It looks like Customs is doing this all by itself, and not considering the impact on the
tourism economy. It should be a team player; it’s team Bahamas, not team Customs. Customs is going to make a few more bucks but take money away from the tourism sector. It would be a real loss for the Bahamian economy. What a shame. There’s a limit, and they’re going in the wrong direction.
“Customs needs to pull back and work with the team to look at what makes sense. The economy as a whole is going to lose money. It’s a lose money situation. The Bahamas needs to focus on that. A three-fold increase in aviation fees, they are not going to put up with it. They’re not going to come. It’s had to put a number on that, but it will be a significant drop; way more offsetting those gains in Customs fees.”
Speaking to the negative industry reaction, which he witnessed at EAA AirVenture Oshkosh, Mr Parker
Private islands auction over $9.2m unpaid taxes blocked
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
FOREIGN investors have persuaded the Supreme Court to block the Bahamian tax authorities’ bid to seize and sell-off their private islands to recover an unpaid $9.2m real property tax bill. Acting justice Darron Ellis, in a July 31, 2024, verdict found it was “arguably irrational and procedurally unfair” for the Department
of
Inland Revenue to auction off the four Darby Islands in the Exumas chain when another Supreme Court judge had already approved the appointment of receivers whose primary responsibility was to settle the tax debt.
As a result, he imposed an injunction that - temporarily at least - “restrains” the Department of Inland Revenue “from exercising their power of sale” under the Real Property Tax Act. The tax collecting agency had already
issued a notice of its plans to sell the Darby Islands “by public auction” in ten days’ time on August 12, 2024, in a bid to recover tax arrears that have built-up over a 14-year period.
Acting Justice Ellis revealed that efforts to sell the islands, which lie around 100 nautical miles south-east of Nassau, and are located between Farmer’s Cay and Barraterre, had been disrupted after a shareholder dispute erupted between
their owners last August. As a result, the Department of Inland Revenue appeared to lose patience and, in its frustration, moved for the now-blocked auction.
And the Supreme Court has also given Darby Shores Ltd, the corporate entity that owns the four Darby Islands, permission to initiate a Judicial Review challenge to the tax authority’s bid to seize and sell-off the properties. In
URCA resists BTC, Cable calls for regulatory easing
By NEIL HARTNELL Tribune Business Editor
REGULATORS have resisted calls by both Cable Bahamas and the Bahamas Telecommunications Company (BTC) to remove price caps and ease the supervisory burden in markets where they are deemed dominant.
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
PLANNING authorities are recommending that a challenge to Adelaide Beach’s longestablished single-family zoning by the Public Hospitals Authority’s (PHA) chairman be rejected.
The Department of Physical Planning, in a July 2, 2024, document seen by Tribune Business, argued that a rezoning application by E. Andrew Edwards to enable construction of “a dormer-style duplex residential building” on Beach Drive be refused because “multi-family zoning is not permitted in the Adelaide Beach subdivision”.
Mr Edwards, who is an attorney at the Prime Minster’s former law firm, Davis & Company, as well as an ex-Progressive Young Liberals chairman and head of the party’s National Progressive Institute think-tank, declined to comment when contacted by Tribune Business over his bid to rezone a lot previously owned by the late Dr Perry Gomez, former minister of health.
However, the Town Planning Committee, whose members are appointed by the Government holding office, has to-date declined to follow Physical Planning’s rejection recommendation. It has instead decided to “defer” Mr Edwards’ application to a public hearing on August 12, 2024, so that Adelaide residents can provide their views.
Multiple applications seeking to rezone parts of the Adelaide Beach area for commercial use have previously been rejected by the planning authorities, including efforts to establish ‘swimming with the pigs’ businesses in the area.
Research by Tribune Business shows the property subject to Mr Edwards’ application, lot 25 on Beach Drive, is the same location that one of these ‘swimming with the pigs’
By FAY SIMMONS Tribune Business Reporter
jsimmons@tribunemedia.net
And, for those markets where they are considered dominant, both BTC and its BISX-listed rival cannot “increase their prices of entry-level standalone” phone, TV and Internet products “above last year’s inflation” rate without first obtaining approval from URCA.
The regulator’s final decision is likely a blow for the Bahamian communications industry’s dominant operators, as they had each been urging URCA to move
The Utilities Regulation and Competition Authority (URCA), in its final decision on fixed communications regulation, has maintained the significant market power (SMP) designations for both Cable Bahamas (broadband Internet and pay TV) and BTC (fixed-line voice and broadband Internet) despite both carriers arguing that competition is sufficiently robust to make this need redundant.
lower than last year’s “record” tourism numbers.
Speaking to Tribune Business, she said that although bookings are not as strong as they were in 2023 the resort is still seeing
a “good number’” of guests and revealed it is already 90 percent booked for the Christmas holiday. Ms Brittain said: “Occupancy is down this year, about 15 percent from last year. Last year was a record year for us and for tourism in general. The bookings have been good, but definitely not what we expected to see. We are hoping to end the year strong. We are currently already 90 percent booked for Christmas.”
Emmanuel Alexiou, owner of Abaco Beach Resort & Marina and president of the Out Island Promotion Board, said members have reported a
ROYAL CARIBBEAN NAMES PI PROJECT’S ENVIRONMENT HEAD
ROYAL Caribbean yesterday said Stacy Lubin has been appointed as director of environment and sustainability for its Royal Beach Club project on Paradise Island.
The cruise line, in a statement, said the 20-year conservation professional will oversee all environmental initiatives for the 17-acre beachfront experience in Nassau that is set to open in 2025. It added that she will work closely with the Department of Environmental Planning and Protection (DEPP) to ensure the facility’s environmental practices meet both Royal Caribbean standards and Bahamian regulations.
“Stacy Lubin has built an inspiring career on the very combination that also drives Royal Caribbean’s vision for Royal Beach Club Paradise Island: The passion for conservation and the commitment to protecting The Bahamas’ natural resources, combined with advocating for innovative and sustainable methods to steer development,” said
Philip Simon, Royal Beach Club’s president and general manager. “With the preparations for the construction of the beach club underway, Stacy and her 20 years of experience will guide our environmental work to focus on both preserving the natural beauty of our home and making Paradise Island more accessible than ever before.”
Royal Caribbean last April said the environmental plans for its $110m Beach Club are built on six priorities - zero waste going
Citi named Bahamas best corporate bank
CITI was named as The Bahamas’ “best bank for corporates” by Euromoney, the global financial markets magazine, at its recent annual Awards for Excellence for 2023.
John A. Lopez, Citi Bahamas chief commercial officer, said the award was an honour “reflecting our dedication and exceptional financial solutions. We remain committed to driving innovation and excellence, continuing to build on an extensive network of industry expertise, on-the-ground experience and in-depth understanding
of local conditions. A huge thank you to our dedicated team who make this possible”.
“The range of awards Citi has received from Euromoney is both an honour and affirmation that we are making progress to reach our full potential,” said Tim Ryan, Citi’s head of technology and business enablement. “Winning the ‘World’s Best Digital Bank’ award is a testament to the hard work and dedication of our people that help create a more seamless experience for our clients.”
into the New Providence landfill (Bahamas Ecology Park); renewable energy; no dredging and no overwater cabanas; wastewater treatment; protecting and enhancing the surrounding habitats; and environmental monitoring.
Ms Lubin has previously worked as an adviser for the Bahamian private and public sectors on sustainability, environmental policy and compliance. She earned a bachelor’s degree in marine biology and coastal ecology from the University of Plymouth in the UK, and a master of science in sustainable environmental management from Middlesex University in London. She has held senior positions in several Bahamian organisations, having recently served as the project manager of environment and operations for Sterling Global, where she was responsible for securing government bonds for the development of
“We are advancing our vision to be the preeminent banking partner for clients with cross-border needs. Our wins validate our commitment to have global conversations with our clients to grow their businesses and seamlessly deliver to them the breadth of products and services across the firm,” said Ernesto Torres Cantú, Citi’s head of international.
“We have shifted our business mix to focus on what we are really good at. We are modernising the bank, sharpening our focus on risk and controls, and implementing processes to deliver the consistently high level of service our clients expect from Citi across markets.
STACY LUBIN
EXUMA RESORTS MIXED ON SANDALS REVAMP STRATEGY
By ANNELIA NIXON
FELLOW Exuma resorts yesterday said they would seek to hire Sandals staff impacted by Emerald Bay’s temporary closure while voicing concern that it might negatively affect airlift in the short-term.
Joe Eustice, Grand Isle Resort and Residences’ general manager, said he and others were officially informed of the resort’s closure - to facilitate its transformation into Sandals’ Beaches brand - during a meeting with his Emerald Bay counterpart on July 31.
“The general manager, Jeremy Mutton, had what they call the local stakeholders— those people who supply goods from Exuma to Sandals, like the tour operators and certainly the Labor Department— they
were invited,” Mr Eustice said. “So we got a message directly from Jeremy Mutton, and we were allowed and given the opportunity to ask any questions and get clarification.”
Mr Eustice said he had mixed feelings over Sandals Emerald Bay’s temporary closure, which is scheduled to last for six to eight months, to enable the $100m investment that will convert it into the Beaches brand and double the property’s workforce from the existing 425 to 850.
He added that it will affect tourism and, as a result, also Grand Isle Resort and Residences in the short-term.
“It’s going to impact our resort because it will probably cause a change in what we call the airlift on to our island - how often the planes fly, what size planes come in,” Mr Eustice said. “We do have regional
coverage from Nassau, but from Fort Lauderdale, from Miami, from Atlanta, from Charlotte...
“There are some regional planes that come from there, but the large planes that come in from Canada, in particular, and from the north-east [US], we expect they may limit their flights and they may reduce the size of the planes, which will put possibly more costs to the flights, less frequency of flights and [make it] more challenging for our guests to get here.”
Despite the short-term pain, Mr Eustice said he is happy to welcome another property that caters to both families and couples. Despite the airlift concern, he still anticipates strong guest turnout for the remainder of 2024 and into 2025 with Grand Isle’s advanced bookings for next year equal to or “ahead of
2024, which again has been a great year”.
Reginald Wood, management consultant for Exuma Palms Resort, said he was initially concerned about Sandals Emerald Bay’s potential closure. However, once this was confirmed to be a temporary closure, Mr Wood said he was not worried about a decline in visitors to the Exumas.
“One player temporarily removing themselves from the game is not going to diminish the game in any bit,” Mr Wood said. “In this case, the game being tourism. That same market share would be there because Sandals is a familyoriented resort. Then the catering would be more towards families. However, with the ratio of Airbnbs to hotel rooms in the Exumas, I think the Airbnbs are just going to have a very good season.”
STS CONSTRUCTION, one
Carnival unveils extra $600m port amenities
CARNIVAL yesterday
unveiled the Pearl Cove Beach Club that will provide a retreat for adult visitors to its new $600m Grand Bahama port when it opens in 2025.
The cruise line, in a statement, said it has also opened reservations for shore excursions, super villas, cabanas and daybeds for guests booked on cruises visiting Celebration Key beginning in July 2025. Based at the western-most point of Celebration Key, Pearl Cove Beach Club will feature an 11,000 square foot private infinity pool with a large sun shelf, water loungers and a swim-up bar.
“Celebration Key will give our guests elevated
options and experiences across its five portals, and we’ve specifically designed Pearl Cove Beach Club as the perfect place for adults to lounge, unwind or relax in their own paradise,” said Christine Duffy, Carnival Cruise Line’s president.
“Guests booked on cruises to Celebration Key can now start planning their day as we open reservations for Pearl Cove, along with daybeds, cabanas and our unique super villas, as well as shore excursions that celebrate the culture and beauty of Grand Bahama.”
CELEBRATION Key construction empowers Grand Bahamian workforce: Over 85% of workers
Carnival said reservations for Pearl Cove Beach Club are now available through January 2, 2026. For all guests spending the day at Celebration Key, Carnival is opening reservations for eight types of villas, cabanas and daybeds, located in 14 zones across the destination, which are available for booking through January 2, 2026.
The cruise line said guests looking to venture beyond Celebration Key can also choose from a variety of Carnival Adventures shore excursions that are now available for booking through May 2026. These include a kayaking quest that immerses guests in the island’s natural beauty, a snorkelling safari, a tour of Grand Bahama by Jeep and a glass bottom boat experience.
The conversion of Sandals to Beaches will displace many Sandals employees.
However, Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, said staff will be provided with alternative employment opportunities while others will be “retained to secure and manage the facility”. He added that there will also be the option to transfer to Sandals’ Turks & Caicos Island properties. A jobs and entrepreneurship fair will be held on August 9 for Sandals employees and other Exuma residents.
“We will have a presence at the job fair on August 9 at Sandals and we will be taking applications,” Mr Eustice said. “There are a handful of positions that initially we’ll be looking to fill, and then we will certainly keep on file those
applications of people who would be interested.
“So in October, November, when we come back into season, we’ll be able to consider those for further opportunities of employment with us. We would welcome, as needed, employing any Sandals employees before we look elsewhere.”
Mr Wood said that, “once the pool expands” and they have a wider range of applicants, Exuma Palms Resort is open to hiring Sandals employees.
“Finding suitable employees here in the Exumas is a challenge,” Mr Wood said. “So obviously those people [Sandals employees] are going to be looking for employment elsewhere. Those that do not relocate back to Nassau or other Family Islands, they will be looking for employment here in the Exumas and we welcome them to come in.”
Airline set to resume Bimini flights after fire truck repairs
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
BIMINI’S major source of commercial airlift is set to resume flights to the island today after the airport fire truck was repaired and brought back into service.
Dr Kenneth Romer, the Government’s aviation director, confirmed the fire truck at South Bimini airport has been repaired to meet Silver Airways’ demands. The airline has cancelled flights to Bimini from Tuesday this week due to the 44 year-old fire truck not being operational.
Silver Airways released a statement notifying passengers that due to the South Bimini Airport’s “inability to repair their firefighting and rescue vehicle” flights would be suspended until August 2. The statement said the fire truck has been “unserviceable” since July 24, and despite “repeated requests for updates and solutions” the issue has not been resolved.
“Silver Airways regrets to inform you that all flights to and from South Bimini Airport (BIM) are expected to be cancelled through August 2, 2024. Unfortunately, this disruption is due to the airport’s inability to repair their firefighting and rescue vehicle, which has been unserviceable since July 24, 2024,” said Silver Airlines.
“Despite repeated requests for updates and
solutions, the airport has not been able to resolve this critical safety issue, leading to the necessity of cancelling flights to ensure passenger safety.” The Ministry of Tourism, Investments and Aviation in a statement said the Airport Authority has secured the part needed to repair the fire truck and repairs would be completed by yesterday. It said that despite “proactive preventative maintenance” the decades-old fire truck still experienced a mechanical issue. The Ministry also advised a new fire truck is enroute to South Bimini and will arrive next week, ahead of the ground breaking for the South Bimini Airport.
A Bimini resort owner said Silver Airways suspension of flights to Bimini had a “terrible” impact on guests. Stephen Kappeler, general manager of Bimini Big Game Club, said visitors were inconvenienced with the suspension as Silver Airways is the only international commercial carrier with regular flights to Bimini and guests were left to find alternative arrangements to return to the US or rearrange prospective vacation plans.
The Davis administration launched a $260m Family Island Renaissance Programme to transform 14 Family Island airports and improve their deteriorating state. South Bimini Airport is slated to receive $80m of upgrades.
hail from Grand Bahama.
of the many Grand Bahamian construction crews working on Celebration Key, pours a foundation. Workers from Grand Bahama make up over 90 percent of the workforce on the project.
CUSTOMS TOLD: ‘PULL BACK FOR TEAM BAHAMAS’ SAKE
added: “The Bahamas booth was inundated with pilots saying: ‘We’re not going to go.’ The impact is going to be significant.”
The Customs Management (Amendment) Regulations 2024 changed the aircraft inbound and outbound fee structure such that it appears a private plane with more than four seats now pays three times’ what a regularly scheduled commercial jet does.
Under the new fee structure, commercial jets have to pay a $50 “inbound” and $50 “outbound” fee for a total of $100. However, a private plane with four seats or less “including all seats in the cabin” is now faced with paying $75 each way for a total of $150.
That is slightly more than the $100 fee for a commercial jet, but private aircraft with more than four seats “including all seats in the cabin” now face having to pay $150 “inbound” and “outbound” fees to Customs for a total $300. So-called “recreational” flights will only pay $150 “inbound”, but cargo flights will see a $150 fee levied on both “inbound” and “outbound” trips involving The Bahamas.
For private planes and private aviation, the fee increases represent a threefold and six-fold increase, respectively, on the previous Customs fee structure which was $50 “inbound” and zero “outbound”.
Mr Parker, in a message to Bahamian aviation officials, said the Customs fee increase from $50 to $150 for private recreational flights was “exceedingly odd” given that these are non-revenue earning flights. He contrasted this with the lower fees have been set for revenue-generating charter flights.
“Private aircraft owners are very cost conscious,” he added. “The Cayman Islands recently increased handling fees by a substantial amount. This completely shut down private aviation tourism, causing huge losses for the tourism sector I was the only piston plane for tourism to land in the Caymans the entire month of November, and I only flew there to meet with government officials advocating for reduced fees.
“I have direct personal contact with thousands of pilots throughout the year at shows and presentations, and I can verify what
EAST COAST HOLDINGS LTD.
Reg. No. 176905 B
NOTICE OF DISSOLUTION
Notice is hereby given, in accordance with Section 138(4) of the International Business Companies Act of 2000, that the above-named Company commenced dissolution procedures on the 15th day of July 2024 and that Sterling (Bahamas) Limited of 202 Marina Lane, Sandyport, P.O. Box N-9934, Nassau, Bahamas has been appointed voluntary Liquidator of the Company.
Notice is also hereby given that any person having a claim against the Company is required, within 14 days of the date of this Notice, to send their names, addresses and particulars of their debts or claims to Sterling (Bahamas) Limited, the Liquidator of the Company, or in default thereof they will be excluded from the benefit of any distribution made before such debts or claims are proved. Dated this 1st day of August 2024
Sterling (Bahamas) Limited Liquidator
you have already heard at Oshkosh. There is going to be a substantial reduction in private aviation tourism flights to The Bahamas and a corresponding loss in revenue for The Bahamas’ tourism sector.
“Perhaps you can share the recent experience of the Cayman Islands with your government colleagues. It is proof positive that big airport fee increases can have an immediate negative Impact on tourism revenues. Bahamas Customs needs to be a part of Team Bahamas instead of making decisions just for themselves.”
Mr Parker told Tribune Business that, with the increase in Customs fees and other levies such as departure taxes, “you’re now talking a couple of hundred bucks just to show up. A lot of pilots go to The Bahamas just to have lunch. It’s not going to happen. It’s counter-intuitive and will impact tourism”.
Private planes brought 323,000 air arrivals, or one out of every six higherspending stopover visitors, to this nation in 2023. Some 95,000 of that number came from Florida alone and, giving an insight into what is at stake, the total was
more than combined visitor numbers from Canada, Europe and Latin America.
Rick Gardner, another Bahamas Flying Ambassador and director of CST Flight Services, told Tribune Business that pilot reaction to the increased Bahamas aviation fees at EAA AirVenture Oshkosh was “predictable”.
He said of one private pilot group he has worked with, who provide relief flights in the aftermath of natural disasters such as hurricanes: “Their attitude was that The Bahamas, if they don’t appreciate us, when they need us some of our members might not be quite so willing to jump in and help, which is understandable if you’re going to be nailing them for all these fees. That’s the only thing I had not heard before.
“Everyone else was the same attitude. I said: ‘Go to Hangar D, The Bahamas is there’. Greg Rolle and the civil aviation people had a log book and they were keeping a record of all the complaints. I don’t know how many names they got, but they showed me a clip board logging all the names and addresses.”
Both Mr Gardner and Mr Parker disputed assertions
by Simon Wilson, the Ministry of Finance’s financial secretary, that charter jets account for the majority of incoming private and general aviation traffic to The Bahamas. And, in response to his argument that this nation needs more funding to upgrade its airports, they both said the income from previous fee increases appeared not to have been used for such purposes.
“He’s saying most of the traffic is charter jets, but charter jets are paying less
than private planes who do not have paying passengers,” Mr Parker said. “He’s just totally misinformed. Fees for charters, which are revenue-generating commercial flights, are $50 in and $50 out.
Royal Caribbean names PI project’s environment head
FROM PAGE B2
Montage Cay in Abaco and obtaining permits for in-slip fuelling at Paradise Island’s Hurricane Hole Marina.
Ms Lubin also worked for Baha Mar Development Company as project co-ordinator, where she took responsibility for various initiatives, including environmental compliance during the construction of the ,ega resort’s Baha Bay water park.
Ms Lubin’s appointment follows that of Grand Bahama native, Captain Cameron Gibson,
as harbourmaster for the Royal Beach Club Paradise Island where he will be responsible for day-to-day harbour operations. Royal Caribbean marked the start of its commitment to local recruitment in May 2023 by opening its first Bahamasbased office in downtown Nassau to drive hiring efforts.
The first in Royal Caribbean’s Royal Beach Club Collection, Royal Beach Club Paradise Island will be a public-private partnership (PPP) in which Bahamians will have up to 49 percent equity ownership.
NOTICE
NOTICE is hereby given that YVES COLAS of #9 Fox Hill, Sandilands Village, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 26th day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that SYLLY JOSEPH of Golden Isles Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 26th day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that CRISTA BECKFORD of #16 Willet Road Eastern Estates, Nassau The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 26th day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
“The fees for private aircraft, which are nonrevenue generating, they were increased from $50 to $150. That’s going to drop drastically because of the three-fold increase in private aviation fees.” NOTICE
and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 26th day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
Private islands auction over $9.2m unpaid taxes blocked
addition, it gave the company the go-ahead to add Shunda Strachan, the Department of Inland Revenue’s acting controller, as a defendant in her role as chief valuation officer for real property tax.
Setting out the origins of the dispute, acting justice Ellis said Darby Shores Ltd was incorporated in 1992 as a joint venture company to own and manage the islands. Its four partners were all shareholders in the entity at that time - William Cook, Richard Davis, William Saeger and Dr William Chester, all of whom are foreign investors.
The verdict said real property tax arrears started to accumulate “in or around 2010”, resulting in Darby Shores Ltd and its owners moving to sell-off “one or more of the islands” so that the sales proceeds generated could settle the debt owed to the Public Treasury.
However, in the absence of any sale, the unpaid real property taxes continued to climb until it hit $9.204m in 2023. This was split between the four islands, with Darby Shores Ltd and its investors owing some $4.656m on Big Darby Island; a further $3.441m on Little Darby; $986,279 for Guana Cay; and $120,346 on Betty Cay.
“As a result of these outstanding sums and demand notices [for payment from the Department of Inland Revenue], and given that the islands produced very little income, on July 10, 2023, the shareholders of the applicant unanimously resolved to sell all the islands,” acting justice Ellis wrote.
Mr Cook, as Darby Shores president, just one week later signed an exclusive listing agreement with Bahamian realtor, Coldwell Banker Lightbourn Realty, to market and sell the islands for a combined $44.5m. However, this price was not based on any appraisal assessment, and only the two larger islands were placed up for sale. Then the Department of Inland Revenue, acting on behalf of the Government and treasurer, “issued a final demand” for payment of all the outstanding real property tax on August 9, 2023. But, just two days later on August 11, the shareholder dispute among Darby Shores Ltd’s owners saw the launch of separate Supreme Court litigation.
Dr Chester wanted receivers to take over the company and four islands and, on August 29, 2023,
Justice Donna Newton appointed Lindsay Cancino and Marcia Woodside to that role with a mandate to “resolve the outstanding property taxes” via selling the Darby Islands or any other method that would “prevent [their] being subject to a forced Bahamas government sale at auction”.
The receivers subsequently signed a deal to sell the islands for a $33.316m net purchase price on September 18, 2023, and applied to senior justice Deborah Fraser for approval of the deal on November 16 last year. This was not opposed by any party but, despite giving a verbal approval for the sale, the judge’s order “was never perfected”.
“Since the making of the approval Order, appraisals have been conducted that demonstrated that the agreed selling price was very likely a significant undervalue,” acting justice Ellis noted. “The two appraisals listed the value of the islands at $67.884m and $65m, respectively.”
As a result, some of the Darby Islands shareholders sought to persuade senior justice Fraser to set aside her oral approval and have Mr Cancino and Ms Woodside replaced as receivers by Igal Wizman, the EY Bahamas partner and accountant, and one of his Bermuda-based colleagues, “to conduct a proper sales and marketing process” and sell the Darby Islands for a price closer to “true market value”.
However, two shareholders still back the original approval order. As a result, Mr Cancino and Ms Woodside have agreed not to close the Darby Islands’ sale until the dispute over the approval order is heard by senior justice Fraser on October 4, 2024.
However, the Department of Inland Revenue, despite being kept abreast of the legal manoeveres, decided to press ahead by issuing a June 20, 2024, notice that it will use its Real Property Tax Act ‘powers of sale’ to auction off the Darby Islands on August 12 to recover the tax debt.
This sparked the legal challenge by Darby Islands Ltd and its warring shareholders, who argued that the “extraordinary and wide-ranging power” granted to the Department of Inland Revenue to auction-off delinquent properties without first requiring court approval meant its actions can only
be challenged via Judicial Review.
Kenria Smith, of the Attorney General’s Office, who was representing the Treasurer, argued that the Judicial Review bid was “irrational” and there was no arguable case. “Counsel adds that the [Government] has for years been trying to co-operate with the applicant and collect the outstanding taxes, and that the decision to sell the properties under a power of sale is rational and reasonable, and the only way.. to collect the taxes due,” acting justice Ellis said of the Government’s case.
But, while Darby Shores Ltd had been served with “final demand” for payment on October 15, 2022, along with the threat of legal action, it argued that the proposed August 12, 2024, auction “circumvents” justice Newton’s Order that the islands be sold to settle the unpaid real property tax.
The company and its attorney, Christopher Jenkins KC of Lennox Paton, said a public auction would “inevitably be on less favourable terms” than those achieved by the receivers. They also argued that the Department of Inland Revenue had not obtained its own appraisal of the islands’ value; it was listing them for sale at a “tremendous undervalue”; and there had been inadequate marketing.
As a result, Mr Jenkins and his client argued that “the sale of the islands will be at less than the actual market value to the detriment of the applicant, the respondent and the Bahamian people. A sale at a lower price will result in a shortfall of taxes that could be collected”.
Acting justice Ellis agreed with this assessment, writing: “If the properties are undervalued, their taxes are being under-assessed and a further sale at a lower price will result in a shortfall of taxes that could be collected.
“It is at least arguable that no reasonable decision-maker would make the decision having not conducted an appraisal of its own, armed with the knowledge that the properties are likely grossly under-valued and therefore under-assessed, and that a sale could result in a
shortfall of taxes that could be collected.”
He added that the Department of Inland Revenue, by moving so swiftly to a public auction, was showing “apparent disregard” for the previous Orders by his fellow Supreme Court judges mandating that the receivers sell the Darby Islands to settle the unpaid real property taxes.
Suggesting that the tax authority’s plan was seeking to “circumvent” these Orders, which were designed to “prevent a sale by the manner” it was seeking, acting justice Ellis said “it would have been more prudent for the Department of Inland Revenue to hold-off.
Thus proceeding with any sale by auction was “unreasonable”, and going down this route was “arguably irrational and
procedurally unfair” given that the Government had not participated in the court proceedings to-date. As a result, acting justice Ellis granted the Orders that Darby Shores Ltd and its owners were seeking.
Big Darby Island and Little Darby cover some 793 acres combined. Coldwell Banker Lightbourn Realty, in a brochure to market the property, said: “Big Darby, a 554-acre island, boasts an historic structure known affectionately by locals as ‘The Castle’, which was built by a previous owner, Sir Guy Baxter, in 1938.
“During his ownership, Big Darby island was a working plantation with goat, cotton, palm oil and fruit as its products. The ‘castle’ is in great need of repair, but will make an incredible private home or community club house for a future investor. Darby
Island is home to over 14 beaches, two miles of ocean frontage and features a few stunning caves dotting its perimeter.
“Positioned in close proximity to Darby, only about 50 metres between them, the 238-acre island of Little Darby includes a 1,600 foot runway, a threebedroom main home, three renovated cottages offering a total of seven bedrooms and multiple powder sand beaches.”
IN THE ESTATE of GENEEN RORY RIVIERE late of Emerald Coast Subdivision, in the Western District, of the Island of New Providence, one of the Islands of The Commonwealth of The Bahamas, deceased.
have Doctorate of Optometry degree from an accredited college of Optometry or trained at a college of Optometry from the UK. Must be licensed to practice in country of training. Must be proficient in OCT and Humphrey’s Visual Field.
Notice is hereby given that all persons having any claim or demands against the above named Estate are required to send their names, addresses and particulars of the same duly certified in writing to the undersigned on or before the 9th day of August A.D., 2024, and if required, prove such debts or claims, or in default be excluded from any distribution; after the above date the assets will be distributed having regard only to the proved debts or claims of which the Administrator shall then have had Notice.
And Notice is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the aforementioned date.
MICHAEL A. DEAN & CO., Attorneys for the Administrator Alvernia Court, 49A Dowdeswell Street P.O. Box N-3114 Nassau, The Bahamas
“The proposed development is considered an incompatible land use relative to the prevailing low-density residential land use along Bach Drive,” Town Planning said in its March 15, 2022, rejection for that venture.
Kareem Wallace, an assistant physical planner in the Department of Physical Planning, wrote in a July 2, 2024, paper for the Town Planning Committee that Mr Edwards wanted lot 25’s eastern portion rezoned from “single family residential” to “duplex residential”.
Noting that the site is on the southern side of Beach Drive, also known as African Liberation Way, within 875 feet “of the gate that blocks off the roadway”, Mr Wallace said the western side of lot 25 immediately adjacent to Mr Edwards’
4,919 square foot property already contains two wooden structures that are used for beach gatherings and events.
“According to the submitted survey plan, the eastern portion of lot 25 is where the applicant proposes to construct a dormer-style duplex residential building,” he added.
“In the Adelaide Beach subdivision, lots are zones for single family residential use. Multi-family lots have not been permitted in this section of the subdivision....
“Findings from the site visit confirm that along Beach Drive there are currently no lots zoned for or acting in the capacity of duplex residential development. Furthermore, the applicant has not put in a formal lot severance application for lot 25. The Department also notes that the road reservation for Beach Drive is a maximum width of 20 feet.
“The Department cannot support the rezoning of a portion of lot 25 to multifamily as the request goes against the established single family zoning of the subdivision.” As a result, Mr Wallace and the Department of Physical Planning recommended that the application be “refused” because “multifamily zoning is not permitted in the Adelaide Beach subdivision”.
The Town Planning Committee, though, decided to “defer” its decision in favour of holding a public hearing “to obtain the views of nearby residents” on August 12, 2024. The original application was submitted to it on May 6, 2024.
Sam Duncombe, the environmental activist and reEarth president, who lives on Beach Drive, hailed the Department of Physical Planning’s stance as “wonderful” while voicing
Family Island resorts see double-digit business fall
slow start to the year and occupancy levels lower than 2023. He added that Americans tend to travel less during election years, and speculated it is playing a role in the reduced occupancy levels Family Island resorts are seeing.
“It’s generally getting better,” Mr Alexiou said.
“At the beginning of the year, the first two months throughout The Bahamas tended to be a little slower than it was the previous year, but we made up for it and in March, April, May, June. July was marginally better, not what we expected or hoped for, and August is too early to tell.
“It’s an election year, so one should always expect election years in the US that we become a little slower here. That does affect
us.” Tony Hanna, owner of Bahama Go, said his booking numbers are down 38 percent from last year and he has seen a reduction in all Family Islands. Bahama Go provides tours, flights and hotel bookings throughout The Bahamas, and Mr Hanna said business has been “extremely dead” since May although he expects the situation to improve by October.
He said: “May to now has been extremely dead. This is traditionally the down season. However, it’s been extremely slower than normal. I don’t expect things to pick up until possibly mid to late-October; that’s when we start to see things pick back up.
“That should carry us through to the end of Easter of next year, which is usually the busy
season. Normally I would still be getting some business around this time. Right now it’s absolutely dead.”
Nathaniel Adderley, owner of Nathan’s Lodge, South Andros, said bookings at his resort have been “steady” due to domestic travellers but he expects occupancy levels to increase when the bonefish season reopens.
He said: “We’ve been steady, not overwhelming, but bookings have been steady. The bookings have been pretty much the same. We haven’t seen any stark differences from last year. We’re still getting the locals and we get some Americans, Canadians, Europeans; not overwhelming, but they’ve been dropping in.
“The bonefish season is closed now, so in a couple of months we expect to see
fears that any approval for the proposed rezoning would set a precedent that could expose the residential community to further commercial and property development exploitation.
Adelaide Beach Drive is located in an area that is zoned as ‘Low Density Residential 1’, meaning commercial activity is not supposed to take place, although Mr Edwards’ application does not fall into that latter category. However, Mrs Duncombe argued that the same standards must apply to all as she revealed how a neighbour was denied planning permission for several cottages due to the zoning restrictions.
“One of my neighbours has a fairly large lot, but before they erected their home they were going to put a couple of cottages on it and were denied,” she told Tribune Business. “It’s wonderful that
an increase in bookings. We can’t always predict because a lot of them come in on short notice.”
The Bahamas saw over nine million visitor arrivals in 2023, making it a record year for tourism. The Ministry of Tourism revealed last month that The Bahamas has recorded 4.812m arrivals between January to May 2024.
Latia Duncombe, the tourism director-general, gave a breakdown of the arrivals by air and sea with cruise ships bringing in 3.929m passengers, 821,334 visitors arriving by air and 61,694 sea arrivals. She said arrivals for the first five months of this year represent a 13.5 percent increase from the same period last year, which saw 9.65m arrivals, and the ministry is targeting 12m visitors by the end of the year.
She said: “We’ve seen 4.8m visitors that visited our shores for the period of January to May, and we’re certainly excited about it.
“There’s also some commentary as it relates to
they’re [Physical Planning] already following the basic strengths of the area. It is encouraging that there is some push back from Physical Planning on it.
“I think they just need to follow what the zoning restrictions are and have been for ever. If this guy needs to build, then he should build somewhere else. The zoning does not allow it. It just never ends, it just never ends. If people would just be respectful of communities none of this has to happen.”
Arguing that developers too often try “to push the envelope” with their proposals, Mrs Duncombe added that if Mr Edwards’ application received the go-ahead it would “open up every property owner to doing the same thing”. She voiced particular concern about the extra traffic congestion that would result for a Beach Drive roadway that is only 20 feet wide.
performance because we are 13.5 percent above last year, which was our best year ever. We saw 9.65m visitors last year, and DPM
“It’s still a residential community and that’s the way we want it to stay,” the environmental activist said. “Enough already. Just be respectful of the area you are operating in, and if you want to do something outside the boundaries you should probably not purchase the property. Find out what’s allowed and proceed accordingly.
“Why, time after time, do we have to defend our properties that we’ve invested our whole lives and money in? Don’t go around and obliterate what has been for decades and decide you want to change it because you want to put up what property you want to put in there.” Mr Edwards acquired the subject property in October 2023 from the late Dr Gomez. Acting as attorney for the latter was Camille Gomez-Jones, the current Registrar General.
Cooper, the number for this year is 12m. So we’re certainly working together to see those results.”
URCA resists BTC, Cable calls for regulatory easing
from a so-called “ex-ante” regulatory approachwhere it takes action before an event happens, thereby telling all participants how to behave - to an “ex-post” regime where it only acts after anti-competitive and other events have occurred.
Detailing the results of its industry consultation, URCA noted that both Cable Bahamas and BTC disputed its assertion that both are dominant players in the pay-TV market.
“Cable Bahamas considers there to be no SMP in this market, as it sees OTT (over-the-top) streaming services to form part of this market,” URCA said of the BISX-listed communications provider’s arguments.
“Cable Bahamas mentions that its countervailing bargaining power (CBP) with content providers has declined. Content creators and programmers - Disney, Warner, NBA, etc - can now offer services directly to consumers instead of using linear pay-TV services.
“Cable Bahamas argues that while OTT streaming providers are large multinational companies with superior access to resources and finances, Cable Bahamas has incurred significant losses in pay TV services.
To Cable Bahamas, the fact that it has not increased its retail prices is an indicator that Cable Bahamas is constrained by market forces,” URCA added.
“In particular, Cable Bahamas points out that it has not asked for a price increase for its Prime TV services since 2014, arguing there should be no concern about price increases. Going forward, Cable
Bahamas claims it is faced by competition from both BTC and OTT streaming providers.
“Finally, according to Cable Bahamas, consumer protection concerns regarding standalone TV services should be addressed through universal service and consumer protection regulations.”
URCA, in its rebuttal, argued that Cable
Bahamas’ arguments were irrelevant because it believes OTT streaming services are not included in this market.
“Instead of comparing its infrastructure with that of streaming services, Cable Bahamas should have, if at all, compared its infrastructure with that of BTC being the only other provider of pay-TV services in The Bahamas,” URC argued.
“Cable Bahamas currently provides standalone pay-TV via HFC and DTH, while BTC has not deployed the necessary technology to provide standalone pay-TV services.
Considering the high financial and non--financial costs of deploying the relevant infrastructure for supplying cable or satellite TV services, URCA remains of the view that this criterion supports Cable Bahamas’ dominance in this market.”
As for multi-product bundles, URCA noted: “Cable Bahamas is of the view that URCA is not sufficiently factoring in the competitive threat of entry, such as Starlink, on the behaviour of the incumbent operators.
“While Starlink does not provide the full range of fixed communications services that BTC and Cable Bahamas offer, by offering fast broadband connections to Bahamian end users, Starlink enables those users to gain access to voice over Internet Protocol (VOIP) and OTT streaming services.
“Cable Bahamas also considers if Starlink can enter the Bahamian market, so can other satellite operators offering similar services, and this threat acts as a forceful constraint on Cable Bahamas.” However,
URCA suggested that this argument was overblown.
“URCA considers unlikely that Starlink will enter the market for multiproduct bundles, including pay-TV services, as it would have to launch IPTV services in The Bahamas, which is not to be expected as this has not been its strategy in any of the other markets where its present,” the Bahamian regulator added.
“Cable Bahamas’ analysis can be considered misleading as it tries to present Starlink as a competitor in the market for multiproduct bundles, arguing that its customers can rely on its broadband service to access VOIP and streaming services.
“The use that Starlink customers make of their fixed broadband service is not a reason to consider Starlink a relevant competitor in the market of multi-product bundles considering it does not offer such plans. More importantly, this argument goes back to previous product market definitions of both fixed voice and pay-TV services, where in both cases, the decision was to exclude OTT services from the market.”
