Comments on Beach Bay Development

By Premier Hon. Alden McLaughlin, MBE, JP, MLA
11:30 a.m., Thursday, 25 September, 2015

Good morning,
Today is a momentous day for Bodden Town and the Eastern Districts. We are here for the signing of an agreement between the Government of the Cayman Islands and Beach Bay Land Limited to begin the construction of an internationally branded hotel and condominium development.
It’s been a long road to travel, but we have been in intense negotiations for the past two years and today we see the fruition of those efforts.
I want to congratulate Minister for Planning, Lands, Agriculture, Housing and Infrastructure Hon. Kurt Tibbetts and his team for shepherding this project through, as well as Deputy Premier and Minister for District Administration, Tourism and Transport Hon. Moses Kirkconnell and his crew.
I also appreciate the involvement of the Progressives Bodden Town Members of the Legislative Assembly who helped move this project along. Thank you Deputy Speaker Hon. Anthony Eden; Financial Services, Commerce and Environment Minister Hon. Wayne Panton; Community Affairs, Youth and Sports Minister Hon. Osbourne Bodden; and Councillor Alva Suckoo for your work and support on this all-too important project for Bodden Town.
I staunchly believe that the improvement of Cayman’s economy and the rebuilt confidence in Government and country under the watch of the Progressives-led Government has been the impetus for JD Layton and his team to invest in the Cayman Islands.
The Progressives-led Government is devoted to the development of our country’s high-end tourism product. This project is just another way that we are able to promote and encourage the growth and tourism in this paradise we call home.
We recognize – no, we know – that all of our districts have to be a part of the sustainable development that epitomizes the economic future of the Cayman Islands. This development is going to be one of the largest of its kind east of Seven Mile Beach for which the Cayman Islands is so popular. With this development our tourists will be able to experience a new and vibrant part of Grand Cayman.
But more importantly this project is going to mean jobs; not just for the initial construction of this five-star hotel at St. James Point in the District of Bodden Town, but for the positions that will be needed to staff the hotel.
This is the first major hotel and condo development for Bodden Town, helping us fill out needed hotel room stock giving our visitors a tranquil experience away from the hustle and bustle of George Town and Seven Mile Beach.
Employment in Bodden Town has been bolstered recently by the opening of Cox Lumber Store and other boutique shops and entrepreneurial ventures. This new hotel is further evidence that this Progressives-led Government is working diligently to bring jobs to the Cayman Islands and to the people who live in and around the District of Bodden Town. We are happy that we have found willing private sector groups to work with us.
To help this project, zoning changes have been made from low-density residential to hotel/tourism to help move along the hotel development.
The concessions Government has made include duty waivers on construction material and on furniture and fixtures for the construction of the development, stamp duty for land purchased for the construction of the development and on non-consumable material for start-up of the facility. There will be no concessions on consumables or materials after the facility is in operation as we want to encourage these to be purchased locally.
Concessions are capped at 12.5 per cent of the $200 million dollar expected cost to build the development. Government will be giving up potential income of about a $25 million to help ensure that the hotel and condo project gets built; however, Government will receive income for decades into the future from hotel room tax, visitor spend, duty from the sale of the condos and more. Equally important is the added economic benefit from the jobs that will be created directly and indirectly by this project. It is estimated to increase the Islands Gross Domestic Product by nearly 2 per cent.
The agreement calls for plans to be submitted within a year, but it is anticipated that work will commence in 2016.
As part of our agreement with Beach Bay Land, it will train and employ as many Caymanians as possible as part of the development’s workforce. This is going to happen during the construction and operation of the development. We also have the company’s word that it will use local contractors and local service providers.
Again, this Government has made a commitment to the country – and is living up to that vow – to bring development and jobs to all parts of the Cayman Islands to further bolster the economy and help our people.
We started out with a plan to grow the economy, to restore confidence and to attract new investment and development. Today’s signing is a testament to our ability to uphold our promises.
Thank you.