Nygard Cay is not licensed as a commercial property says Environment Minister Earl Deveaux

Earl Deveaux: Nygard Cay is not licensed as commercial property
By NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net:



NYGARD Cay, the private home of Canadian fashion designer Peter Nygard, is advertised as a "private luxury resort" with no hotel licence, according to government officials

Nygard Cay, sometimes referred to as Nygard Cay Resort, "is not licensed as a commercial property," said Environment Minister Earl Deveaux.

"My involvement and knowledge has to do with enforcement with every instance. We have always asked them to abide by the Physical Planning Bill, the Conservation of the Physical Landscape of the Bahamas Act, where they are required to get permits to dredge. Most of the dredging, except on one instance, has been unauthorised," said Mr Deveaux.

"Nygard has relentlessly acquired more land from its original boundaries. Compulsory demolition is an option. I think that process is unfolding. All of the government's options will be reviewed by the Attorney General's office," he said.

Documents obtained by The Tribune indicate Mr Nygard acquired his property in 1984 for about $1.7 million. The 3.25 acres was registered as a single-family residential property, according to Tribune sources.

Eric Gibson, property manager at Nygard Cay, confirmed that Nygard Cay has a "private residence permit and has always and is continuing to operating under residency permit."

He said, Nygard Cay has no hotel licence, because the facility is "not in fact a hotel and (we) have never purported to be one", and that "Nygard Cay is not conducting commercial activities."

Today, the Nygard Cay website advertises the property as a "private luxury resort" and a "unique private residence" with the facilities of a resort, which include: "replicas of Mayan temples, private tennis and volleyball courts, beaches, pool, disco club, state-of-the-art home theatre, and 20+ themed cabanas for (Mr Nygard), his family and many celebrity guests who wish to get away for a serene sabbatical."

A website promoting unusual villa and island rentals states: "For only $42,000 in 2008 your group of celebrities, executives, sports moguls or any person celebrating a birthday, anniversary, seminar, wedding, or vacation can have a trip of a lifetime. Special 4-hour dinners are available for $300 per additional person above 20 people. Special daily rentals in 2008 are $42,000 per day for the first 20 people and each additional person for a full day event will be $500."

Several websites on the Internet contain similar information about rental facilities and rates.

Mr Gibson said these "promotional websites" are not Nygard Cay sanctioned websites.

"In fact we have long time ago demanded for them to take it down, but we believe they have ceased business many years ago," he said.

Vincent Vanderpool Wallace, Minister of Tourism and Aviation (MOT), said the government does not promote Nygard Cay, because "it is not a licensed property." For the same reason he said, Nygard Cay receives none of the benefits of the Hotel Encouragement Act, such as being promoted by the tourism promotions board in the MOT. He also said he would be "surprised" if Nygard Cay had a restaurant licence or a night club licence.

Nygard Cay is known for its "extravagant parties." An exclusive group of Bahamians frequent the property on Sundays for the popular "pamper party," according to a former visitor. For years, Nygard Cay has played host to New Year's Eve parties for "A-List" celebrities.

"Anyone can wake up tomorrow and decide they are going to sell their property to people they wish to have visit and pay.

"People have bed and breakfast homes, villas, houses that they lease every day on the Internet. That is a global phenomena. You won't find it being promoted by or assisted by the Ministry because it is not a licensed property," said Mr Vanderpool Wallace.

Some websites advertise a five per cent Bahamas tax along with the per day rental fee for Nygard Cay. A Nygard Cay spokespersons said this information is contained on websites not sanctioned by Nygard Cay.

A Tribune source in the Ministry of Tourism said Nygard Cay does not pay a hotel room tax to the government.

It could "very well be a loophole" in the system, why Nygard Cay is able to promote itself as a "resort", when in fact it is not licensed as a hotel, said the source.

Since last year, under the amended Hotel Act, owner occupied rental homes are regulated by the government. In order to rent a private home to a "transient guest in the capacity as an operator of a hotel", an application has to be made for status as an "owner occupied rental home," said the Tribune source.

The legislation is up for review by the Bahamas Investment Authority, and not all of the regulations apply to owner occupied rental homes; however, at this time they are required to pay a hotel guest tax, as are all hotels, said the source.

Private homes owned by foreigners are governed by a tax structure determined by the Ministry of Finance and the Investment Authority. The permit issued states whether the property is residential, commercial, owner occupied or regulated by some other category.

"Those zoned commercial are given permits with the right to rent and conduct commercial activity. Those that are zoned residential have to convert to owner occupied to rent their property. Anyone renting their property must pay hotel guest tax," said the source at the MOT.

"If they wish to have owner occupied status then they have to go to the Authority, then the Ministry of Finance to determine their tax status and then to the hotel license department. Only those that have received finance approval based on their tax status can be registered."

Mr Vanderpool Wallace said the Bahamas government has always had a "higher concern," so the "resort" status of Nygard Cay has not been on the front burner. He said the "underlying problem" is the status of the use of the land, where Mr Nygard operates his facility.

The government has accused Mr Nygard of "unauthorised" expansion of his property over the seabed.

There is an investigation under way.

August 16, 2010

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