‘Seek Financing Options For Continuing Work’
George’s Bay — the developer of Caroline Bay at Morgan’s Point — has confirmed they are “temporarily reducing” construction due to “costs outpacing the existing financing of the project,” while the Government confirms they are “in discussions with the Board of George’s Bay Ltd. as they seek financing options for continuing work on the development.”
Artist rendering of Caroline Bay
Premier David Burt’s Comments
Premier and Minister of Finance David Burt today “confirmed that the Government is in discussions with the Board of George’s Bay Ltd. as they seek financing options for continuing work on the development. ”
The Premier said, “This project is an important one for Bermuda and the Government’s principal objective is to protect the taxpayers of this country in light of the existing Government Loan Guarantee of $165m.
“We now understand that George’s Bay Ltd. have experienced difficulties with certain requirements of the Loan Guarantee Agreement since June 2017 and so some restructuring of the Board and the approach to this project was suggested and changes have been made to the Board of George’s Bay Ltd.
“The addition to the Board of George’s Bay Ltd. of Mr. Andy Burrows, Chief Investment Officer of the Bermuda Tourism Authority will ensure the Government’s interests are safeguarded during this critical phase.”
“There is a significant human element to our discussions also and that surrounds the hardworking men and women whose hours may have been cut or employment jeopardized by this reduced work stream.
“As a Government, we will keep their livelihoods at the forefront of our discussions and we will do all that we can to minimize the impact of this necessary action on them and by extension their families.
“With a restructured Board and more direct Government coordination we will maintain strict oversight of the management of this project as the new leadership team strengthens and extends the project’s financing.”
Minister Jamahl Simmons’ Comments
Minister of Economic Development and Tourism Jamahl Simmons emphasized that the Government was “working hard to ensure that work continued on the site and that investor confidence was maintained in the project and Bermuda.”
He said, “This is a location of great promise and we believe that a formula can be identified quickly to resume the pace of work on the development.
“I wish to thank Marriott who remain committed to the Ritz brand as a partner for this project. Ultimately, Bermuda’s product offering will be enhanced by this development’s completion and our discussions with the company are targeted on achieving that result.”
George’s Bay Confirm They Are “Temporarily Reducing” Construction
Following multiple requests for comment, George’s Bay confirmed they are “temporarily reducing and refocusing some of its construction activities while working with a number of parties to strengthen and extend the project’s financing.”
The statement from the company said, “George’s Bay Limited, the first-phase resort and residential project owner at Caroline Bay, today announced that it is temporarily reducing and refocusing some of its construction activities while working with a number of parties to strengthen and extend the project’s financing.
“Construction Costs Outpacing The Existing Financing”
“First-phase construction activity at Caroline Bay has been reduced as of March 26, 2018, due to construction costs outpacing the existing financing of the project.
“George’s Bay Limited is working to strengthen and extend the project financing so that construction can resume to prior levels as soon as feasible, and is committed to resuming the prior pace of first-phase construction once the necessary financing is in place.
“The resort and residential project owner looks forward to the successful completion of this unique Bermudian destination resort and residential project at Caroline Bay. George’s Bay Limited appreciates the engagement and ongoing support of the Government of Bermuda in this process.
Two Directors Resign, Two Appointed
“George’s Bay Limited has also restructured its board of directors. Two directors, Craig Christensen and Nelson Hunt, have resigned. Two new directors, Nancy Duperreault and Roland Andy Burrows, have been appointed to the board. Brian Duperreault remains chairman of the board.
“George’s Bay Limited has received assurance from Marriott International, parent of Ritz-Carlton Hotel Company, that it remains committed to the Caroline Bay project.
“The first-phase construction of the project, which includes 35 branded Ritz-Carlton Reserve residential units and a 79-room Ritz-Carlton Reserve Hotel, has progressed since March 2016.
“The hotel remains an important priority and will receive on-going work within current financial resources. Most construction will now focus primarily on completion of the first residential building.
“Construction will include that building plus the utility infrastructure for it, the road access from Middle Road down to the residential site area, landscaping, parking, and beach. “
Shocker! Should have allowed the Great Bob Richards to manage the project. The St. George project will be the next one to run out of money.
At least de condos on South Shore were finished being built.
You forgot to mention the rich white mans sailboat race.
THE GREAT BOB AND HIS UBP/oba crew are the same very ones that signed a existing Government Loan Guarantee of $165m of the PEOPLES MONEY!!!!!!!!!!!
Will the resort be LGBT friendly?
Bermuda is a LGBT friendly Island.
*sigh*…I’ll bite. No it isn’t. It’s not friendly at all. Never has been.
OJ Have you seen some of the comments you have posted about the LGBT issue?
Or did you just fire them off without thinking about the consequences and have now changed your tune because of the damage done to tourism.
Flip Flop
LMFAO
O J haven’t seen many postings by you lately thought you might crawled back under your rock, but I guess no such luck. I am sure you will have a financial solution to the problem though LOL
HAHAAAAAAAAA!
The minister of economic development and tourism,should stay out of any negotiations with the development at Morgans point, he is know for his flip flop decisions.
AC Micky Mouse smoke screen.
This is a prime example of investors! Pump millions into Bermudas future.
Then, Snap!!
New Government.
The hypocrisy is… I need a moment. History?
If this project fails,the PLP might have to come up with some investment solutions which I doubt Jamahl hasn’t any clue about organizing.
Like they have to fork out $30 Million a year for 30 years for de Airport.
Same thing for d hospital but you don’t say nothing bout that inna….. Stfu
People , there was never going to be a hotel .
This right here. Still waiting for the new Palmetto Bay Hotel, anyone remembers that?
So you’d have professional QS’s estimating the cost/ materials and a 10% udget for over run/ contingencies, failing which it falls to the contractor. Sort a like the airport deal. What’s the problem. $169M loan guaranty?! And looks like you’ll get a few condos but no hotel?!
The hotel is needed not the condos. Those who can afford the condos do not want them.
http://www.businessinsider.com/heres-where-the-ultra-rich-are-buying-homes-2017-7
And that’s the problem. Bermuda isn’t as popular and exclusive as it likes to think it is. Too much hatred, too much in-fighting, far too expensive.
What is the project spend so far? Answers on a postcard please.
We the Bermudian tax payers need to know exactly what is happening here. Until we are told otherwise we have every right to simply assume that we are being held to ransom for ourr USD165m. Shut the project down and force our naive government into another expensive position on behalf of taxpayers.
Just like Tucker’s Point it’s a developer’s dream that was allowed to become a reality until financial reality set in. The government should have known better than to make any guarantee that Bermudian’s would have to cover for the next century. Change in directors won’t change fact there will not be any buyers for the residences. Another pipe dream up in smoke!
That’s what happens when money is miss managed
mismanaged… but point taken. It all comes down to not enough people, both residents and visitors.
Regards,
Ms. Managed
So they spent more than they have and can’t make payments…sounds like taxpayer on hook now if they can’t secure more financing. And Craig christinson is OUT.
What a mess…but not sure whoever thought it was a good idea to build on an ugly strip of land, with no beach or infrastructure and to top it off they knew Bermuda prices to build and the history of far smaller resorts going under. This will never be built.
Oh how you like to bemoan every potential beneficial project. Has anyone actually bothered looking at this development from the water?? 5 residential buildings built, 4 out of 8 hotel buildings built with the precast slabs to build 2 more waiting to be erected. And the foundations for all the other buildings poured!
Why, oh, why do people who have no clue have to make comments about a project they know nothing about. Before you jump to conclusions get your facts straight.
And also think about the fact that your negetive comments don’t really paint the island in the best light. Especially with all the other issues it has.
“costs outpacing the existing financing of the project” is what they have openly stated… you don’t need to be a rocket scientist to comment on a project that you claim people know nothing about – Expenses have exceeded the budget to date.
I wonder how many $4mm condo’s they have sold to date up there… The “dream” is not realistic it would seem and heaven help the two newly appointed Directors to the Board… would love to know what their expertise is in managing construction financing… and while we are at it, exactly what investment portfolio is Mr. Burrows overseeing for the BTA?
5 residential buildings built does not guarantee JACK without the funds to complete the project. No one in their right mind would invest in such an overvalued project. There’s empty condos all over Bermuda in better locations.
Investors don’t have to look at the comments here to know a bad deal when they see one.
Deep down you sound a bit pessimistic yourself. That said, your point is taken even if a poured concrete slab is just that until something more happens to it. The slabs could sit there for years. I’ve seen it hundreds of times in hundreds of places and Bermuda is no different.
how many sold? what good is unfinished hotel?
So the govt trades useless Southlands for Beautiful Morgans Point. The lucky owners get double the acreage, and now this? Where is Donald when you need him?
You might mention to him that it comes with a nuclear shelter, might pique his interest.
“The hotel remains an important priority and will receive on-going work within current financial resources. Most construction will now focus primarily on completion of the first residential building.
Translation… The developers will build and sell the condos. The hotel will be in the ‘never to complete future’. Same story as many other hotel developments in Bermuda.
Note that the OBA and MP Richards took credit for such great tourism development, without the emphasis that the project only started because of the OBA government guarantee. Was the public ever told the details of the financial structure for the project?
Double the debt Bob at his best yet again. Did anyone ever note who he did raise taxes. I did and it was the working poor and struggling but nonetheless viable businesses. The arrogance, conceit and incompetence of the man is mind boggling.
Every time I hear of a resort being built I think of Cypher from the matrix……
“You know, I know this steak doesn’t exist. I know that when I put it in my mouth, the Matrix is telling my brain that it is juicy and delicious.”
It’s all lip service smokescreen bull$#!t we are being fed by outside developers and their local contacts.
OBA & PLP are all the same. Both have these half baked friends and family deals. You all should have seen this coming after Nalton Brangman got his hookup out of it.
PLP and OBA zealots need to wake up and smell the poop these politicians are pushing.
Really. Changes in board equals no financial future. Government to rescue.. How much Burt ?
Something for Burt’s “infrastructure fund”.
Another OBA screw up that puts us on the hook for $169M! Why on earth are we giving a Government loan guarantee for a property that is being built for a ginormous mega hotel chain like the Marriott??? Why? Why can’t they build their own hotel?
So, this local company set out to sell the condos which will then pay for the construction of the hotel which will then be moved into and run as a Ritz brand…but if we can’t sell the condos because of the location and the astronomical prices of the units? Then what? We the taxpayer get to foot the bill and the company and the Board get to go home with their tails between their legs and a slap on the wrist?
I am sick of subsidising, Bermuda. WE ARE BROKE!!!
Bahamar, Cable Bay, Nassau sat empty for a couple years after the original investors ran out of money and fell out with their Chinese partners. This 5000 room Las Vegas on the sea plus villas only managed to partially open last Fall. Does anybody seriously think somebody will rescue a pipsqueak project like Caroline Bay? It’s almost designed to fail so that the vulture bankers and big three liquidators can make money selling it off on the cheap – at the expense of several honourable but naive Bermudians.
And indeed, the comments about Condos Only, hotel never to be built, are almost certainly spot on. Indeed, take a close look at the former Pink Beach (whatever it’s called now) – I’d wager one more season before they switch to Plan B (which might have been Plan A all along) and convert to condos… Rosewood Tucker’s Point – the real estate owners (HSBC) are still losing their shirt. And as for Elbow, the Prince has basically given up and told Emilio and the boys to do what they like with it.
Well the truth of the matter is and I wish that people would tell De Truth. The investors of this project and others Island wide have no confidence in this Government.
Billionaires seek financing for their housing project… Maybe the workers should volunteer their time for this great cause…
Workers plus everyone else has already volunteered their time and MONEY with payroll taxes while these guys got tax concessions. Just like many other projects OBA gave concessions and loans to they have failed. Tax payers will have to pay for these failures.
Let’s all hope things get better. This project was designed to help many people.
Prior to the election investors and speculators prob assumed that keeping an OBA government would mean more projects like the AC, post election those same investors have little interest in the group that brought us faith based tourism…….
PLP will prob be great for Bermudians short term and disastrous for us long term – simple reality unfortunately is that the PLP supporter lives in the now (prob from necessity actually).
There is a property slump hitting the Island. Not a good time to be knocking up 4 million dollar condos.
Most of the comments are not getting to the root of this debacle, the “developers”! Last January they were reporting phase one would be completed on schedule which we now know was another of their dreams. How much of the hotel funding went toward the marina? Mrs. Christensen is controlling the residence sales should she be replaced too? Have the developers been keeping up their tax payments or is that a concession too? Have the developers invested any dollars in their own dream?
For what it’s worth, perhaps what’s missing is a celebrity investor. A good model to follow might be the new Albany resort in the Bahamas, lead investors for this very successful project include Tiger Woods and Ernie Els.
They get tax and duty concessions for residential units with the promise of building a hotel. No hotel, make them pay all the savings they received in duty and tax concessions. This madness of we taxpayers subsidising and perhaps bailing out these Ill thought out private business ventures should stop.
Is it a coincidence that funding dried up when Michael Dunkley was forced into a general election?