By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Grand Lucayan workers will not automatically be terminated when the resort closes to bookings next month and, instead, will be given the option to remain on staff via an employee retention initiative.

Obie Ferguson KC, the Trades Union Congress (TUC) president who acts as legal adviser to the union representing the Freeport resort’s roughly 90 middle managers, told Tribune Business he understood that staff will not simply receive their severance and other due payments when the property closes to new business on August 13.

The Grand Lucayan’s website shows that to be the existing resort’s last date of operations, with the property closed to reservations, bookings and new guests from and including August 14. “That is consistent with my understanding,” Mr Ferguson replied in response to this newspaper’s inquiries about the hotel’s staff not being automatically terminated upon closure.

The TUC chief added that, once he has obtained the correct information about the new owner, Concord Wilshire’s, plans he will then meet with the Bahamas Hotel Managerial Association’s (BHTA) members at the Grand Lucayan to discuss the available options and potential impact for them when the property enters its demolition phase.

“I understand that around August 15 certain things will happen,” Mr Ferguson said. “What I intend to do is once I could collect all the correct information I will return to have a meeting with my members, all 90-92 of them. I do not want to say anything that’s inaccurate or misleading.

“I want to make sure I get the correct information and, once I get that, that is when I will go to Grand Bahama and deal with it - as soon as I get all the specifics. I want to make certain that the information I disseminate turns out to be accurate because they will rely on what I say to them.”

The Grand Lucayan, where only one of its three properties - Lighthouse Pointe - is currently open, is understood to employ around 200-300 staff. Well-placed Tribune Business sources, speaking on condition of anonymity, revealed the new owner is working on an initiative that will give employees the option of receiving their salary while the property is demolished and then redeveloped.

“It’s not going to be your typical termination or severance pay,” one contact confirmed. “There’s going to be a [staff] retention programme. They’ll have the option to stay on staff, on board. It will not apply across the board and there will be various tiers” or categories of employees. It is thought that this retention plan will also be presented to the Government.

Concord Wilshire, which is purchasing the Grand Lucayan for $120m via its Ancient Waters Bahamas Ltd subsidiary, is understood to be working through the regulatory process with both the Government and Grand Bahama Port Authority (GBPA) to obtain the necessary permits for the demolition. That work is due to start this year, but the timeline is presently uncertain.

Tribune Business understands that the Government, in the Grand Lucayan Heads of Agreement with Concord Wilshire, has committed that Grand Bahama International Airport will be redeveloped in time for the opening of the resort complex’s new casino - an asset that will take around 18 months to construct once demolition is completed.

The Government will likely use a portion of the net $300m raised from The Bahamas’ recent sovereign bond issue to finance Grand Bahama International Airport’s redevelopment, at least the initial stages. Meanwhile, Concord Wilshire is thought to be negotiating completion of agreements with its various partners and operators for components such as the casino, golf course, marina and resorts.

The Grand Lucayan sale includes the 56-acre beachfront resort along with the adjacent 160-acre Reef Golf Course. Concord Wilshire, with $10 billion in developed and acquired assets, has hired RSP Architecture to spearhead the redevelopment of the beachfront property.

The developers say the revived property will feature seven major resort components, including three new hotel buildings and branded timeshare units. Other features include a 35-acre cruise destination open to all cruise lines and guests, a 25,000 square foot indoor/outdoor casino, the conversion of the Reef Golf course to a 160-acre Greg Norman signature golf course, and a 16-slip mega-yacht marina.

Construction is expected to begin within 90 days of obtaining the necessary permits and approvals. The project will be rolled out in phases, creating 1,320 construction jobs and 1,750 permanent positions once the resort is fully operational.

“We are committed to being here to bring back tourism jobs and a strong economy to Freeport, and most importantly to bring a lot of Grand Bahamians back home,” said Nate Sirang, president of Concord Wilshire. He described the future Grand Lucayan as a “powerful economic resort engine,” featuring seven major resort components. 

“The Grand Lucayan redevelopment is very ambitious,” Prime Minister Philip Davis KC said at the Heads of Agreement signing, with 80 percent of all jobs allocated to locals. “We have said clearly Bahamians must be at the centre of this. It is not just a condition; it is a conviction because we know the talent is here, the work ethic is here. What has been missing is opportunity.”