July 12, 2020

Dart has concerns with Independent Review

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DARTLate on Friday (10) and within minutes of iNews Cayman receiving the documents relating to the Independent Review from Government Dart Cayman Islands sent us a Press Release (PR).

They said they supported the simultaneous release of two versions of the Independent Review of the NRA Agreement.

Commenting on the version of the Third Amendment also included that had been assessed by PricewaterhouseCoopers (PwC), Jackie Doak, Dart Realty Chief Operating Officer, said this “is one that was actually agreed in April 2013 by Dart Realty and Government after several months of negotiations, but was then taken off the table by the current Cabinet seeking yet more last minute changes, at which point negotiations broke down.”

They pointed out “the economic benefits to the country from the first SMB hotel alone were calculated at $755 million over 20 years, and PwC estimated value to the country of more than $2.4 billion if Dart proceeds with planned additional developments.”

Dart also said “PwC’s assessment of the agreed development concessions and incentives resulted in some recommendations for Government”, but Doak said they had concerns relating to the methodology used in the Independent Review, and Dart’s full comments that had been provided to PwC “have not been included as part of the documents being released.”

The PR concluded with DART confirming its commitment to fulfill its obligations under the NRA Agreement and they were looking forward “to Government also fulfilling its obligations under the executed NRA Agreement.”

The full transcript of the Dart Cayman Islands PR follows:

For Immediate Release

DRCL Statement on Independent Review

10 May 2013, Grand Cayman, Cayman Islands.

Dart Realty confirmed today it supported the simultaneous release of two versions of the Independent Review of the NRA Agreement. The first report, dated October 2012, considers the value for money impact of the NRA Agreement and two subsequent amendments. The second report, dated May 2013, is issued in draft only and considers the potential value for money impact of the NRA Agreement as amended including a draft Third Amendment that was agreed in principle by the parties but not executed.

“The version of the Third Amendment that has been assessed by PwC is one that was actually agreed in April 2013 by Dart Realty and Government after several months of negotiations, but was then taken off the table by the current Cabinet seeking yet more last minute changes, at which point negotiations broke down,” explained Dart Realty Chief Operating Officer, Jackie Doak.

Both versions of the report present the same overall assessment of NRA Agreement Value for Money in Section 9.5. That assessment is that the infrastructure and SMB Hotel development component, including the closure of a portion of West Bay Road and the extension of the Esterley Tibbetts Highway, provides value for money to the Cayman Islands Government. The economic benefits to the country from the first SMB hotel alone were calculated at $755 million over 20 years, and PwC estimated value to the country of more than $2.4 billion if Dart proceeds with planned additional developments. PwC’s assessment of the agreed development concessions and incentives resulted in some recommendations for Government.

“While we welcome the release of the documents to the public, we have a number of concerns relating to the methodology used in the Independent Review,” explained Mrs Doak. She said Dart’s full comments have been provided to PwC but have not been included as part of the documents being released.

Meanwhile, Dart Realty confirms it is committed to continuing to fulfill its obligations under the NRA Agreement, which includes work on the Public Beach Park, completion of the ETH Extension to Batabano and continued design, demolition and construction work on the hotel which began in September 2011. Dart Realty looks forward to Government also fulfilling its obligations under the executed NRA Agreement.

Ends

 

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