SIGNING OF THE HEADS OF AGREEMENT
PARK RIDGE SECURITIES CORPORATION

THURSDAY NOVEMBER 9TH, 2006, AT 10:00 AM.
 

Over the last four plus years my Government has been vigorously pursuing bold and ambitious development initiatives, within carefully prepared guidelines.

Among the goals for our first term in office was to bring about a major integrative transformation of The Bahamas.

I am pleased to show you that the project being announced today will lead to the completion of capacity for major resort development in New Providence.

My Government’s forward-thinking planning and development initiatives will positively impact the economy of the entire Bahamas for many, many years to come.

The developing new face of The Bahamas includes:
i) New or expanded anchor development projects in each of the Family Islands;
ii) The mega resort/residential project for West End, Grand Bahama;
iii) The early redevelopment and re-opening of the Royal Oasis Resort, and further expansion as well as upgrade of the Grand Bahama tourism product;
iv) With respect to New Providence –
a. The spectacular Atlantis Phase III expansion at Paradise Island;
b. Adjacent a Ritz Carlton mixed resort development on Rose Island;
c. The massive redevelopment of the Cable Beach resort area;
d. The long term revitalization of downtown Nassau;
e. The transformation of the Lynden Pindling International Airport into a premium world class facility; and
f.      An integrated master plan for southwestern New Providence.

The master plan for the southwest of New Providence, of course, includes:
A new sea port of the highest international standard;
A national park inspired by the Clifton Heritage site;
A newly developed upscale South Ocean hotel casino mixed resort;
Albany, a major luxury resort, high end exclusive signature golf and resort residential community;
A large affordable housing sub-division; and
Significantly expanded and improved public beach access, new recreational public parks and wildlife sanctuaries.

Taken together, this list represents the planning and future of the Bahamian economy well into this 21st century.

And most of these initiatives are already well on their way to notable success.

Of particular importance for the purpose of these proceedings, however, is this highly significant development project that we have come to officially announce today.

This project will constitute one of the glittering jewels in this transformation of southwestern New Providence now underway.

Today, after over two years of the most prudent and systematic planning and, yes; spirited negotiations, I am pleased to announce this major step.

This morning’s signing of the Heads of Agreement between the Government and Park Ridge Securities Corporation is a great leap forward in the implementation of the integrated Master Plan for the southwestern sector of New Providence.

This Agreement represents a great benefit to the Bahamian people and to the development of The Bahamas.
My Government is pleased to welcome this important investment by Mr. Joe Lewis and his Park Ridge Securities Group, developers of the Albany Golf and Beach Club.

It also gives us great pleasure that Mr. Lewis’ Group includes two of the greatest golfers in the world, Tiger Woods and Ernie Els who will be instrumental in creating Albany on its pristine 565 acre site.

This development is destined to become one the world’s finest golf resort communities.
I am confident that Albany will add significantly to the attractiveness and appeal of The Bahamas to residents and visitors alike.

I also wish to especially congratulate and welcome to The Bahamas, the President of Park Ridge Securities Corporation, Mr. Christopher Arnand.

We look forward to working together with you and your group in implementing the development plan under this Heads of Agreement.

Some of the more interesting features of this $1.3 billion project have already been outlined to you.

It is, however, especially noteworthy that according to an independent economic study, this unique resort community will generate some 1600 jobs during the peak of construction and support over 1100 permanent, full time jobs when it is complete.

This same independent study also forecasts major increases for Government revenues with $1 billion in incremental GDP to be derived by the Bahamian economy.

As a luxury project, Albany will conform to the highest environmental standards and preservation guidelines, particularly with respect to historical or cultural artifacts which might be found on the site.

Following careful studies both by the BEST Commission and the Monuments & Antiquities Corporation and other relevant Government authorities, suitable and effective protective provisions have been enshrined in the Heads of Agreement.

I cannot stress enough how much the Albany Golf and Beach Club and the wider re-development of the whole southwestern section of New Providence will benefit from each other.

The new state-of-the-art commercial sea port which will cut across Southwest Bay Road inland just west of the South Ocean Beach Resort and significantly impact the developments in the area, necessitating other road extensions and realignment.

The creation of a major national park at Clifton, which is of enormous cultural, archeological, and historical significance to all Bahamians, bringing together as it does the physical remains of  pre-Columbus, European and African civilizations that together constitute the heritage of our country.

A major new luxury resort is to be built on the site of the South Ocean Beach resort.  In this regard the Government is now involved in negotiations with a buyer and developer, the Stillman Group, which has submitted a proposal for its re-development.

Community enhancements are planned at Adelaide Village;
There will be improved and expanded beach access in southwestern and western New Providence;

I mentioned a new, large subdivision of affordable homes… It is, in fact, hundreds of acres of land to be acquired at low cost by the Government, which will comprise a new township for Bahamians.

All required public facilities for this new Bahamian township are to be provided on land owned by the developer’s group of companies.

At the same time my Government was planning and negotiating this landmark agreement, we were also carrying out dynamic development of hundreds and hundreds of affordable homes.

These hundreds and hundreds of homes for Bahamians also in the south, but farther to the east, will now be complemented by this new township.

The Government’s negotiators have left no stone unturned.  Indeed this Heads of Agreement will set a benchmark for others to follow.

This is especially true in relation to my Government’s solemn and ongoing commitment to restore, improve and expand public beaches and access for all Bahamians to the pleasures of the seaside.

The developer here is making significant contributions to expansion and maintenance of public beaches…
…Significant contributions to public infrastructure costs…
…Significant contributions to provision of land for affordable housing…
…Significant contributions to preservation of historic and cultural artifacts…
…Significant contributions in making land available for public causes on attractive terms…
…Helping to promote The Bahamas as a premier resort destination; and…
The developer will also give ongoing community contributions through established foundations.

Specifics of these special undertakings on the part of the developer include a number of important features that I would now like to touch on:
1. Isolation, preservation, and protection of the historic site within the boundaries of the Project.

2. Provision of non-disruptive access to the historical site in accordance with a protocol to be mutually agreed between the Antiquities, Monuments and Museums Corporation and Park Ridge.
3. At the developers’ cost; design and construct, in accordance with standards and specifications of the Ministry of Works and Utilities and other relevant agencies, a road re-alignment of the current Southwest Bay Road and junctions;
4. Upon completion of the construction of the Proposed Port Road to the satisfaction of the Ministry of Works and Utilities and other relevant Government agencies, Park Ridge will transfer the Proposed Port Road to the Government.
5. The transfer the Proposed Port Road to the Government will be in exchange for a portion of Southwest Bay Road which runs through the project.
6. In order to construct the Proposed Port Road, the Government would acquire approximately 14 acres of land from New Providence Development Company.
7. Park Ridge would contribute the necessary funds to the Government for acquiring the 14 acres plus any private land from other parties for the construction of the road.
8. The developer will also meet the cost of road construction.
9. At its own cost, the developer will design, construct and provide, in accordance with requirements and to the specifications of the Water & Sewerage Corporation a Waste Water Treatment System…
10. The system will consist of a collection force main and waste water treatment module at the Airport Industrial Park.  This collection system will enable adjacent property owners to tie in and take advantage of the Waste System.
11. Any revenue-making activity in relation to the Waste System would be subject to a revenue sharing arrangement to be mutually agreed between the Park Ridge and the Water and Sewerage Corporation.
12. At its own cost, the developer will design, construct, maintain, and operate, in accordance with the requirements and to the specifications of the Water & Sewerage Corporation and the agreement of the Ministry of Works and Utilities a reverse osmosis, or RO plant, as a suitable and acceptable water supply system for irrigation of the common areas, Signature Golf Course, and as a backup supply for the Project.
13. As with waste water treatment, any revenue making activity in relation to the said reverse osmosis plant particularly as it relates to the supply of water to third parties would also be subject to a revenue sharing arrangement to be mutually agreed between the Park Ridge and the Water and Sewerage Corporation.
14. Under this Heads of Agreement, Park Ridge will restore and re-nourish the Caves Beach;
15. Under this Heads of Agreement, Park Ridge will restore and re-nourish the public beach at Adelaide Village;
16. Also, being fully cognizant of the desire of the Government to restore and preserve the historic village of Adelaide; and of the importance of beaches to the Bahamian way of life,  the developer is committed upon the start of this Project to establish four Community Foundations for the purposes of:
(i) Administering a public beach endowment fund and fostering the development of the Clifton Heritage park project;
(ii) Administering an Adelaide Village public beach and community enhancement fund;
(iii) Administering an Adelaide Village community safety fund; and
(iv) Administering a Replenishment Foundation fund.

The Replenishment Foundation Fund is to be used for the purposes of replenishing nearby beaches as a consequence of any natural erosion of beaches in the vicinity of the Project as well as mitigating any erosion to the nearby beaches potentially caused by Park Ridge.

Park Ridge has been working diligently to address a comprehensive plan of action in order to put into effect the proposed Adelaide Village Enhancements.  They will:
a) Cause the clearing, landscaping, and transfer to the Government of a 2 acre parcel of land situate within Adelaide Village for the establishment of a recreational park, a communal area, or green space;

b) Cause the construction of a 50 foot X 100 foot boat basin in the vicinity of the boat ramp within Adelaide Village with a depth of 5 feet at mean low tide to allow fishermen and residents to moor their vessels who are currently unable to do so due to the shallow draft;
c) Cause, together with The Bahamas National Trust, the creation of a sanctuary and conservation area for wild ducks and other wildlife to be situated on 5 acres of land currently owned by the Government;

d) This wildlife sanctuary is to be available to the public during daylight hours along designated trails and boardwalks.  This sub-project will be a milestone in New Providence Conservation;
e) Construct parking areas for the sanctuary and conservation area;
f) Open the entrance to Adelaide Creek to increase the flow of water and to encourage the restoration of the natural habitat.

The effective date of commencement and of funding for the Adelaide Village Enhancements shall be no later than 30 days after the commencement of construction in the first quarter of 2007.

Park Ridge has already expended – I says invested – a considerable amount of money with The Golf Channel and The CNBC Network promoting and showcasing The Bahamas during the Tavistock Cup in 2005 and 2006.

In addition to this, the Heads of Agreement outlines that Park Ridge shall, during phase 1, expend the sum of $5 million marketing this Project and The Bahamas as a premier resort destination.

During the subsequent phases, the developer shall expend the sum of approximately $22.5 million in marketing and selling the Project and The Bahamas as a premier resort destination.

The New Providence Development Company will be providing 320 acres of its landholdings to the Government for the provision of affordable housing for Bahamians at a reduced purchase price.

This 320 acres will translate into more than 1500 homes for Bahamian families.

Further, New Providence Development Company will assist the Government in bringing to fruition the re-location of the Container Port from downtown Nassau to the Southwestern District of New Providence.

This assistance will include the provision for sale to the Government of necessary property owned by New Providence Development Company at a price to be mutually agreed by the Government.

New Providence Development Company will also make any sale of its land to the Stillman Group for the redevelopment of the South Ocean Hotel property, conditional upon the Stillman Group making permanently available from its landholdings a right of way of a width acceptable to the Government for the purpose of facilitating beach access to the public.

New Providence Development Company will also provide an additional 50 acres of its landholdings to the Government at a reduced price.
This land will be used for the provision of a school, medical clinic, post office, police station, public park, town centre and/or other public facilities.

It should also be noted that as a result of Park Ridge’s arrangement with the Maillis family who own adjacent property accessing the Park Ridge marina channel entrance, the Maillises have agreed to secure for the Government a 100 foot wide parcel of land for new public access to Adelaide Beach.

Ladies and gentlemen, our plan for the transformation of Southwestern New Providence is passing another major milestone.

I am confident we shall all reap rich dividends starting almost immediately and well into the future.

I have every expectation and every confidence that the Heads of Agreement that we sign today will soon be translated into a physical reality that will add great lustre to our Commonwealth.

I thank the developers for this magnificent gesture of confidence in The Bahamas, its people and its future.