By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Optimism is rising that Great Harbour Cay's 50-year economic stagnation is on the brink of an "awesome" reversal with the Fender family agreeing to sell all their land and other assets to a new developer.

Leonardo Lightbourne, MP for North Andros and the Berry Islands, confirmed to Tribune Business that Matt O'Hayer, a US investor who already owns all or part of three cays close to Great Harbour Cay, has agreed what "seems like a done deal" to acquire hundreds of unsold lots, plus the 80-slip marina, long-shuttered golf course, water utility and monopoly fuel concession at the latter destination.

While warning that a revival "will not be overnight", Mr Lightbourne said Mr O'Hayer has already impressed him as someone who "has the community at heart" having acquired a fire truck and delivered two fire trailers to the island to help combat the blazes that frequently erupt during dry season.

The US investor, who some Berry Island residents referred to as "Mr Eggs" because of his role in founding Vital Farms, described by its own website as the "leading US brand of pasture-raised eggs", has already acquired Great Harbour Cay's dilapidated beach club from the Fenders and is understood to be transforming it into a boutique hotel with 12 first-phase rooms via a $15m investment.

Mr O'Hayer declined to comment when contacted by Tribune Business yesterday, saying only that it was "a little early for that discussion" when asked about his plans for Great Harbour Cay. Marc Fender, the Fender family's principal, did not respond to this newspaper's phone calls or messages.

Tribune Business understands that, while the Fender family and Mr O'Hayer have agreed the sale, the deal has yet to close and will also require the necessary Government and Investment Board approvals. Obtaining the required permits is unlikely to prove an obstacle given that Mr O'Hayer is already an approved investor in The Bahamas.

"From what I understand, it's pretty much a done deal," Mr Lightbourne said of Mr O'Hayer's acquisition of the Fenders' Great Harbour Cay assets. "I spoke to him a few days ago, and we are supposed to meet in New Providence although I am presently in Grand Bahama.

"Speaking to him, it seems like a done deal. He's purchasing all of what the Fenders own down there. The beach club is where he's now in construction. He's going to put a hotel there along with villas. I'm happy something is happening for Great Harbour Cay."

The Berry Islands destination has been in the economic doldrums for at least 50 years following the 1973 economic recession sparked by the global oil embargo imposed by Arab producers in the wake of their latest clash with Israel. This was then followed in 1975 by the exit of Great Harbour Cay's original investor/developer, Louis Chesler, who abandoned his tourist development on the island.

Tirrel Fender, a Florida realtor, acquired the bankrupt resort’s assets in the early 1990s, and signed a Heads of Agreement with the then-Ingraham administration that provided tax concessions as well as a Crown grant for several uninhabited cays and hundreds of acres of mangroves. 

However, the promised development never happened. Deciding that Mr Fender had failed to live up to his obligations, the Government revoked the Heads of Agreement in the late 1990s after Great Harbour Cay's airport was declared unsafe and complaints about impassable roads soared. Tribune Business understands that the uninhabited cays may be included among the assets being acquired by Mr O'Hayer.

Despite the Heads of Agreement revocation, the Fender family has retained ownership of the assets they acquired 30 years ago while - in the eyes of most Great Harbour Cay residents - doing very little to develop or expand them, resulting in minimal job or economic benefits

"Government has been more than merciful in regards to what was given to them during the Ingraham administration," Mr Lightbourne said of the Fenders. "I think they had a contract with the Government to acquire and develop at the same time. They did some stuff. Now they are selling. It's an historical thing for the Fender family.

"I think for Great Harbour Cay economically this will be good. It's not an overnight thing; it will take some time to develop. He [Mr O'Hayer] has the community at heart. He has bought a fire truck and delivered two fire trailers, and is getting ready to bring them in."

The Berry Islands MP said Mr O'Hayer plans to help train local Bahamians in how to operate the fire-fighting equipment he is acquiring. "He's not just talking but putting his money into action," Mr Lightbourne told Tribune Business. "He's making things happen.

"He seems to be getting a good welcome from the community. He has a lot of persons employed on the various infrastructure and things he has going on. He's also just looking at a few things happening with the Government."

Mr Lightbourne added that extending Great Harbour Cay's runway by 500 feet, so that it can accommodate international flights by commercial jets, was "a conversation that has been going on for quite some time". 

The island is already located in close proximity to Coco Cay and Great Stirrup Cay, the private island destinations operated by Royal Caribbean and Norwegian Cruise Line, and the MP added of the long-discussed airport improvements: "It opens the gateway for people not only coming from Royal Caribbean's island but gives access to the stopover tourist component.

"I'm optimistic and feel good about what's happening on Great Harbour Cay. Economically, I can say that Great Harbour Cay is on the move. I can say that, long-term, it's only for the best economically. The island is thriving right now because of Coco Cay and Norwegian Cruise Line's stop, but with this infrastructure and financial impact his [Mr O'Hayer's] investment is making it can only get better...

"It's going to be awesome. The residents of Great Harbour Cay will no longer have to leave or look to government for most stuff. The island will have its own investments to make life easier." Other Berry Island sources also confirmed that a deal has been struck between Mr O'Hayer and the Fenders, although it has yet to close.

"My understanding is there's a sales agreement signed," one contact, speaking on condition of anonymity, said. "I would think he's [Mr O'Hayer] going to take over the whole thing. I can't imagine it being worth anyone's while taking a few pieces.

"Mr O'Hayer has already bought Lignum Vitae Cay, more than half of Cistern Cay and Bullocks Harbour Cay. He's been coming down for about five to six years on his boat." While positive about the potential ownership change, the source voiced concern over Mr Fender' ability to deliver marketable title to some of the property being sold;

They explained that this stemmed from the Government's compulsory acquisition of land owned by the Fenders for the development of Great Harbour Cay's airport. "They took over the airport and didn't charge any compensation," the source said. "I think Matt would be good for the island. I just hope Marc can deliver to title. Matt's a good guy."

Suggesting that Mr Fender had managed to maintain the assets with the financial resources at his disposal, albeit without injecting any fresh investment, the contact added: "Every time something goes down, Marc buys the part, such as a water pump, to keep the water running on the island. This wasn't Marc's investment; it was his father's."

The source also suggested fresh investment and economic activity on Great Harbour Cay may cause a split between existing second homeowners, happy with the island's current state of affairs, and Bahamian residents seeking greater income and job opportunities. They also warned that outside labour would have to be hired as there are simply not enough existing workers on Great Harbour Cay.

"Most of the homeowners have been here for 20-25 years. Most of the second homeowners don't want it to change at all," the source said. "The locals think they want money to grow, but you'll have to bring in more from outside to make anything grow. There's barely two electricians, two plumbers here. It's just not enough for what they're doing now."

Another contact, also confirming Mr O'Hayer's deal with the Fenders, added: "Everybody's ready for change. They just feel nothing really good has come out of it for many years. No one knows what the plans are, and everything is a big secret, but everybody is ready for change."