TERRY GAPE TORPEDOES THE PORT AUTHORITY’S CASE
Attorney At Law Terrence Gape
10th September, 2023
THE CONTINUING SAGA OF FREEPORT
I am bemused by the fact that it appears there is a Licensee Group being formed with the idea that the Government (and the Port Authority?) should now negotiate with the Licensees before the Government takes the necessary action to remove the Families from their governmental functions of the Port Area to which they have shown themselves at the very least “ill-suited” especially after this last more than twenty (20) years when Freeport has been in the “wilderness” or in the “ashes” as one of the Licensee leaders have described.
I have long been of the view that the Families should sell up and go and that the Government should “take over” the Port Authority’s governmental functions so that Freeport will be and considered to be a part of The Bahamas, and no longer under the cloud of being a separate fiefdom. I am happy Magnus Alnebeck of the Pelican Bay Hotel shares this view.
Indeed in the 2016 Memorandum of Understanding signed by the Port Group and GB Devco et al and the Government, the Families agreed, inter alia, to the following (none of which have been done). This is in consideration of, inter alia, the Government agreeing
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to an extension of the Real Property Tax Exemption enjoyed by the Families (and Hutchison) for the past seventy (70) years:-
1) On behalf of GBPA:
Use its best endeavours to continue to attract investment
to Grand Bahama, which may, subject to relevant board
approvals and consents being obtained, include the
introduction of, new equity investor(s) including but not
limited to a sale for fair market value of the whole or part,
of the GBPA and its affiliate companies beneficially owned
by The Estate of the late Sir Jack Hayward and the late Mr.
Edward St. George.
2) On behalf of GBPA:
Maintain sufficient working capital to deliver on its mandate
under the HCA
3) On behalf of GB Devco:
In consideration of fulfillment of the undertakings by the
Government to grant further concessions and to grant the
releases, implement policies and provide the support as
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more particularly set forth in Clause 5 of the
Memorandum of Understanding, GBDevco agrees to use
its best endeavours to:-
3.1 provide the Government with a twenty (20) year
masterplan in respect of the landholdings of the
GBDevCo within up to twelve (12) months of the
date of the Memorandum of Understanding,
with reviews by the Government and GBDevco, taking
into account market conditions.
The rest of the Country is booming, and we have been experiencing a slow death these last twenty (20) years. So, for the Licensees, I would expect they would be interested to know that the benefits of the Hawksbill Creek Agreement would remain, and that major Investors would be welcomed by the Government just as they are in the rest of the Commonwealth. I am bemused because the Licensees would know they have never been formally included in any negotiations held between the Port Authority and the Government especially since 1992 (I believe there have been four (4) or five (5) we know about) and certainly never been consulted or invited to such by the Port Authority.
Are the Families now seeking the help of the Licensees?
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This is certainly a new and novel twist!!
The Families, who have proven themselves to be good City Managers at best, are obviously seeking to delay any progress on their divestiture by at least two (2) years, which delays have served them well in the past.
Are the Licensees now awakened from their slumber because they finally have a Government that wants to do something “decisive”. I submit this is a ploy by the Families to cause delay upon delay.
I implore the Government not to fall for this: how can we be worse off by having our own duly elected Government in charge of governmental affairs in Freeport??!!
As I have said before, the Families have failed in their duties to promote and cause Freeport to prosper and we are now at an economic “double bottom.” The young Bahamian entrepreneurs have all left or never returned: we have lost City status and are more of a Settlement: all of our craftsman, technicians and engineers have all since gone to Abaco, Bimini and Nassau, some to Exuma and looking expectantly to Eleuthera. I venture to say, the Power Company is wondering how long they can provide power to a Town with no major hotel, no restaurants, no shops, and no tourism, a Town which has lost a third of its inhabitants.
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I venture to say that with the rest of the Bahamas booming, a good City Manager is not what we need.
The Families showed what they were made of and their lack of belief in the future of Freeport when after the Airport was destroyed in the Hurricane, they joined with Hutchison and sold the Airport to the Government for One Dollar ($1.00). As a progressive Port Authority, they should have grasped at the opportunity to show their expertise, and energy, and connections, and belief in the future of Freeport and should have purchased the other half of the Airport from Hutchison for Fifty Cents (.50¢). But, no, they showed their lack of confidence and their continuing incompetence by handing this vital ingredient over to Government which everyone wonders now how we can pick up the pieces in our fair City.
This Town can thrive under a Bahamas Government, which is Investor-friendly and which every day is attracting Investors to Freeport in the last two (2) years, to enjoy the benefits of the Hawksbill Creek Agreement. The Families need to collect their money and leave (as they did particularly after the death of Edward) so we can reach our rightful place as a
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vibrant part of The Bahamas and not as this tormented failure where there is no value and no future.
The Prime Minister is continuously talking about Freeport’s Promise and we want this to be achieved.
I pray the Government will move quickly to bring Freeport to fruition.
The future of Freeport as a failed Company Town is no more. If as a Bahamian Town we fail, it will be on us!!
p.s. I remain hopeful that Rupert Hayward as a proud Bahamian will stay on as a valued Investor in the Port Area where he has an important investment and social role to play. Certainly, no sahib need apply.
TERENCE R. H. GAPE MBE
FREEPORT, GRAND BAHAMA
BAHAMAS