Clico Battle for No Man’s Land.That is what is shaping up on all fronts—from Government to the Clico owners of the property—as the spotlight continues to increase on one of the last pristine pieces of beachfront in the English-speaking Caribbean
It is now a particularly significant chip in T&T’s tourism portfolio following interest by Jamaican “Sandals” chain magnate Gordon “Butch” Stewart.
However, CL Finance majority shareholder Lawrence Duprey, who said yesterday he will use all legal measures to fight for the property—owned by Clico subsidiaries—also said he has been holding talks over the last 18 months with a major global brand name resort developer which also wants No Man’s Land.
And which he said was a bigger name than Sandals.
“We’ll protect our constitutional rights,” Duprey added. “The way things are going, we must guard against undemocratic action, so we’re prepared for court—any court anywhere—to protect what we have to.”
No Man’s Land is part of the Golden Grove estate at Bon Accord Lagoon, Buccoo. The estate, including environmentally important wetlands, comprises between 429.8 and 517 acres of freehold land owned by Clico subsidiaries, Occidental Investments Ltd (OIL) and Oceanic Properties Ltd (OPL).
In an increased T&T tourism thrust, Prime Minister Dr Keith Rowley has spearheaded moves for exploration of a possible Tobago Sandals development arguing that a brand name will earn significant benefits for Tobago tourism and increase hotel rooms by 750.
On June 25, Tobago House of Assembly (THA) Tourism Secretary Tracey Davidson Celestine was reported as saying the THA had had four meetings with Sandals founder/chairman Stewart. At the end of June, Government announced an eight-member team led by onetime PNM minister Wendell Mottley to pursue and handle all negotiations for the Sandals project.
In a Trinidad Guardian July 4 article, Stewart revealed a preference for No Man’s Land (NML), adding if it did not work out, he would examine another. But he said he had looked around Tobago and had not found another. Projecting development in three years or so, he had confirmed Rowley approached him to bring the Sandals chain to Tobago in 2015 before Rowley won the general election, and contacted him after winning.
At the PNM’s July 13 Tobago Council executive election, Rowley maintained the call for a Tobago Sandals development, noting the benefits it could bring. A July 14 Business Guardian story revealed the NML area was owned by Clico subsidiaries.
Replying to T&T Guardian queries on NML, on July 16, Finance Minister Colm Imbert said the land at Golden Grove was a “non-issue,” confirming, “The land is owned by Clico.”
Imbert said: “If and when an agreement is reached with Sandals for the construction of a resort at that location, the land will simply be acquired by the Government. This can be done in many ways. It can be sold to the Government and the proceeds of sale netted off against the amount owed by Clico to the Government, or it can simply be purchased.”
Imbert said the situation was not a “big deal” and has nothing to do with Duprey.” He said the project was still at the conceptual stage.
Imbert, who said negotiations are about to begin, said: “If and when agreement is reached by all parties, designs will be finalised and all relevant issues addressed at that time.”
Duprey: I have no ties with Sandals
Subsequently contacted, Duprey made it clear he had no ties with the Sandals proposal, nor is he giving his blessing to acquisition of the estate.
Rather, Duprey said he has been negotiating with a global investor comprising combined US and European interests concerning a proposed US$3.5 billion resort for the Golden Grove estate/NML.
He said the developers involve a “major brand name in the world market” but are not yet in the Caribbean and the brand was “way above Sandals’.”
“The NML is likely the last pristine beachfront in the English-speaking Caribbean and is uniquely high value over other resorts because of the Nylon Pool, hence our developers’ interest in investing such a sizeable sum.
“The group whose name I cannot publicise at this point has developed ventures in environmentally-sensitive areas and it’s one of the reasons we’re talking. In the 1990s, Clico had developed Buccoo Reef using money from the profitable Methanol plant in protecting environmentally important projects. The reef was one of three, but we weren’t able to continue. If we get permission to build, that protection (of Buccoo Reef) can resume. Any developer will have to be extremely careful to protect the reefs as they’re now global watch after being destroyed.”
Duprey said the number of rooms for the proposed resort will depend on Town and Country Planning permission.
He acknowledged a Certificate of Environmental Clearance for the spot had lapsed since 2009 and would have to be renewed and efforts towards that would start soon.
On Tobago environmentalists’ concerns that NML should remain pristine, Duprey said, plans to dialogue with groups and communities and involving them would be done.
No Man’s Land worth $2bn
The Mottley team mandated to pursue negotiations for a Sandals development project has met only once, T&T Guardian confirmed last Friday, and is now “getting together.” Mottley was said to be overseas.
The team does not yet officially know what location will be pursued for Sandals, but expects that information “as soon as it’s finalised.” It was noted Government gets ten per cent on every hotel room fee and room expansion would benefit T&T revenue.
But former Clico executive official Claudius Dacon said, government’s “unilateral” proposed Sandals development for NML “is being conducted without consultation or permission from its rightful owners.”
He said: “It’s been more than seven years since Clico management approached Central Bank and Government, seeking clarification on its strategy for dealing with the domestic implications of the global disaster. But new laws were hastily drafted and enacted enabling the Government to seize control of Clico and CL Financial without the courts’ permission and virtually no accountability.
“Sale of MHTL shares alone at a price of less than 50 per cent of its market value made the Statutory Fund solvent (as was said in 2015). Other assets have increased in value by over a staggering $14 billion (as the Finance Minister said this month). Now the anticipated development of a hotel by Sandals exposes the hidden value of another of Clico’s investments.”
Saying No Man’s Land (NML) is a significant piece of Tobago real estate, he said: “But it belongs to a wholly owned subsidiary of Clico and the value now placed on NML/estate is approaching $2 billion. Such a valuation makes Clico solvent even on the basis of Minister Imbert’s strange assertion in the Senate recently.
“This is because the wholly-owned subsidiary of Clico that holds title to the land is valued in the latest accounts at an unbelievable $18 million...
“Armed with this information as they surely are, the minister and Central Bank governor should move immediately to relinquish Section 44 control of Clico. If the conditions that gave rise to the control have ceased to exist, as they have, then by virtue of the same Central Bank Act, control must be relinquished.
“Continued use of the powers granted under then act might well be unlawful particularly in this case to the continuing sale of assets. What is worse is that many other assets are believed to be similarly undervalued...(but) Clico is solvent. It needs to be taken off the backs of taxpayers...”
Clico owners already turn down WASA bid
Already, Clico subsidiary owners of the estate, Occidental Investments Ltd and Oceanic Properties Ltd, have rejected an offer by the Water and Sewerage Authority (WASA) to purchase some of its lands for $4.6 million for a proposed sewerage system for south-west Tobago, according to June 2016 documents
These state that only 23 per cent of the overall acreage (120 acres) has been approved by the Town and Country Planning Division for development. “The remaining lands are deemed environmentally reserved lands (wet lands).”
WASA had indicated in 2013 it intended to install a wastewater treatment system in south-west Tobago and requested that OIL and OPL transfer to it certain parcels of land.
But Clico commissioned a valuation of the proposed parcels of lands to be transferred to WASA and in April 2016, GA Farrell and Associates valued them at $7 million.
By letter dated June 8, 2016, to Clico’s executive chairman, WASA offered to pay $4,555,855 for the land.
Documents stated: “The Boards of Occidental Investments Limited and Oceanic Properties Limited having considered both the WASA offer and GA Farrell valuation have decided the WASA offer is too low and should be rejected. The Boards also decided a letter be issued to WASA advising of their decision and to indicate that our asking price is $7 million.”
Lambeau Tobago resident Dedan Daniel, who started a petition to preserve NML, has called for the THA to give full disclosure on any Sandals development and host public discussions. His petition has 2,113 signatures of the targeted 2,500. The THA subsequently stated the petition was premature.
THA Chief Secretary Orville London has reportedly said NML will remain a public space. Yesterday, THA Tourism adviser Neil Wilson said Tobago needs a brand name development.
“Since we lost Hilton we’ve lost arrivals.” He said NML was a spit of land and he was uncertain if it could accommodate a hotel, but felt the allure of the area was its name.
Duprey mum on Colman report
Duprey was asked about the hints from government officials about the contents of the Colman report on the Clico/HCU Commission of Enquiry which included “serious allegations of misconduct on the part of a handful of privileged few, who were part of Clico management.”
Duprey said, “We didn’t perform any egregious actions. We had no criminal intent. It was a privately owned company and we ran it as such.”
He declined comment on whether the report should be published or laid in full in Parliament and queries about Government urging the Director of Public Prosecutions to act speedily on the report. Duprey said there had been no reply from Central Bank or Government to his April letters outlining plans to seek to regain control of the Clico companies.
Source:
http://www.guardian.co.tt/news/2016-07- ... 0%99s-land
