LPP’s last-minute revisions are still missing key details on financing, fail toexplain disproportionate increases in economic impact and provide no plan for
generating consistent business.
Despite claiming that it is presenting, “A Shared Vision for South Eleuthera,” the newest plan submitted to the Prime Minister and the Cabinet of the Government of The Bahamas by the “Lighthouse Point Partners” (LPP) has not been seen by the very community it is expected to affect. The new, “For Bahamians, By Bahamians: Sustainable Development Plan for Lighthouse Point,” has finally reached Eleutherans, but at the 11th hour.
Throughout the debate about the Lighthouse Point property, our Eleuthera Community Support Group has been on the ground working closely with Eleutherans to better understand their needs. Similarly, executives from Disney Cruise Line have, over the last six months, worked closely with our community to alter their plans in response to these very same needs.
We were only able to see what is in the revised proposal by the LPP on Friday, after LPP’s last minute pitch to the government. Even with such short notice, we have grave concerns about their development plan. Primary among these concerns is the Lighthouse Point Partner’s financial capabilities.
The LPP has listed its partners as funders of their initiative while providing only “letters of interest” from other possible partners, including all-too-familiar names like “Holowesko”. They then promised to “seek” global eco-tourism hotel brands to build out the hospitality-focused parts of the development.
Through an unclear mixture of existing funding and grants, along with the vague mention of “developer partners,” the LPP claim that they can come up the $23 million necessary to fund their development. However, this still does not include the cost of land acquisition—private land that is already under contract for sale to Disney Cruise Lines.
This is the same private land on which the One Eleuthera Foundation claimed they made an offer. Upon further investigation by the media it was revealed that beyond a verbal discussion, no such offer was made.
Just last week, The Bahamas National Trust, a key member of the LPP, claimed that the $10 million in annual operating costs for the nation’s national parks and the $25 million needed for infrastructure upgrades meant it had no choice but to partner with the ultra-exclusive community of Albany to develop a beach club and restaurant in the middle of the Exuma Cays Land and Sea Park. The Leon Levy Foundation, in its support letter, did not indicate the amount it was willing to donate to the project. The OEF itself has only raised $6.4 million—not half of its projected costs, which does not include the cost of land acquisition.
Other development partners have been tepid, only supplying expressions of interest and noting that they have failed to complete the necessary due diligence.
The Lighthouse Point property has been on the market for eight years. After nearly a decade, the funds for the LPP development have not yet been secured.
Are Eleutherans supposed to continue waiting while they continue to search for funding?
Interestingly, despite all the noise in the market about stopping foreign interests, the LPP’s plan is still reliant on “global eco-tourism brands” to make their project a success, which they have promised to see but have also not yet secured.
We are also concerned by the many the economic impact claims being made by the OEF in the revised plan.
For example, the original proposal, dated March 2018, claimed that 200 permanent jobs would be created with one-time economic contributions including $2.1 million in earnings and $9.5 million in economic output annually. Without explanation, the revised plan, dated September 2018, suggests that there will now be 350 jobs created with one-time economic contributions including $11.25 million in earnings and $16.9 million in economic output annually. These new numbers represent a 75% increase in the estimated job creation, a 436% increase in earnings and 78% increase in economic output annually—without explanation.
In the same vein, in the LPP’s March proposal, the average salary for workers hovered around $18,300 annually. In the September proposal, that number has increased to about $39,900 annually—again, with no explanation. Despite the increase, there is no mention of the possibility of overtime or health benefits.
Are the increases in these figures real, or simply an attempt to beef up the numbers in a last-minute public relation move?
Lastly, in our brief review of the revised plan, we became very worried about the promises made regarding jobs and ownership opportunities.
Not only has there been an unexplained 75% increase in the estimated job creation, but also no plan for maintaining these jobs through consistent business has been laid out in the proposal. Similarly, the March 2018 proposal claimed that “increased visitation can create ownership and entrepreneurship opportunities” for Eleutherans but provided no details on how they would achieve increased visitation. Despite this being an entirely new development, marketing is mentioned only once in the entire September proposal, and there does not seem to be a budget or plan for marketing internationally to ensure a steady flow of visitors.
“If we build it they will come,” is not enough for Eleutherans who are energized by the prospect of new ownership and employment opportunities.
Both the new and original proposals are full of this kind of vagueness where, for example, the section on “amplifying local culture and heritage” says nothing of engaging the cultural and creative economies which, according to the Director of The National Art Gallery of The Bahamas, may be valued in the billions of dollars.
Here is the difference.
1. Disney Cruise Line has already secured up to $400 million in financing, almost half of which they have said will go to building an open-trestle pier. This kind of pier would impact natural ocean currents less than a traditional pier design and would require little, if any, dredging.
2. According to information provided by Disney Cruise Line, the company has had a $40 million a year impact on the Bahamian economy and will be nearly doubling their business over the next few years with the addition of the sustainable development at Lighthouse Point.
3. Disney Cruise Line has consistently claimed that it will create 100+ jobs through the construction phase and they have estimated conservatively that the development itself will create 120-150 permanent, year-round jobs. These jobs will also come with health benefits and opportunities for overtime. These figures do not include all the indirect jobs created by increased economic activity. Disney Cruise Line already employs 150 Bahamians at Castaway Cay, including in management positions, where the average weekly pay is $600-700, or approximately $32,500 a year.
4. In their proposal, Disney Cruise Line has laid out ownership opportunities for Eleutherans through the creation of port adventures that will showcase our unique sites, with the sale of our goods incorporated into the development, along with ongoing relationships with Bahamian vendors and other partners. They have also made it clear to our community that they are excited to provide training and aid in the creation of new businesses in Eleuthera through existing corporate programs.
5. Visitors to Lighthouse Point are all but guaranteed because of Disney Cruise Line’s existing business in the Bahamas. According to public data provided by Disney Cruise Line, 79% of these visitors are traveling with children and have a median household income of $136,000. And, 72% of their passengers leave the ship to engage in the 47 Bahamian owned port tours that Disney Cruise Line provides. These are premium guests looking to explore The Bahamas, not stay on the ship.
6. Like at its Aulani Resort in Hawaii, Disney Cruise Line has pledged to enlist creative industry partners and to immerse cultural elements into the very design of the Lighthouse Point development. In keeping with it’s already $3 million in donations to conservation in The Bahamas, they have also said they are willing to work with our community partners to maintain and, if we desire, restore significant cultural sites. Furthermore, Lighthouse Point will remain open for Bahamians to access every day, year round.
The Eleuthera Community Support Group seeks to empower the residents of Eleuthera by promoting job creation, conservation, and an overall better way of life for the poeple that live here. We represent Eleutherans who support the sustainable development of Lighthouse Point by Disney Cruise Line (DCL). We have worked with DCL to ensure that the environmental and economic concerns of the people of Eleuthera are incorporated in the development plan and will work to hold DCL accountable during the construction and operation of the development.
Eleuthera Community Support Group
Denny Rankine
