NASSAU, BAHAMAS — Minister of Transport and Housing JoBeth Coleby-Davis revealed yesterday that the government would have to pay for Town Centre Mall to return to its original state when the General Post Office lease ends.
Upon coming to office, the Davis administration pledged to review the lease, which became a contentious issue under the Minnis administration due to allegations of a conflict of interest involving former Cabinet Minister Brent Symonette.
Coleby-Davis tabled the much-anticipated lease agreement during her contribution to debate in Parliament.
“Even if the government were to find a more suitable and cost-effective location, due to concerns about duplicated costs and the amounts already expended, we would not be able to move forward at this time,” she said.
“Those are the facts. I will allow those within earshot to form their own conclusions regarding whether they believe the government received value for money or not.”
The lease is binding for five years – until February 28, 2024.
The government pays out an estimated $820,083.60 each year to use Town Centre Mall, including up the annual rent, value-added tax (VAT) and additional annual rents due.
The lease outlines that the government pays rent at $632,952 per annum and VAT at $75,954.24 per annum.
Additional rent is also to be paid for improvement of the premises at the rate of $500,000 plus interest over 60 months or five years, which equals $111,177.36 per annum.
Despite the upgrade rent being charged, the lease agreement stipulates that the government may also have to pay for the premises to be returned to its original state when the lease ends.
The government is also responsible for utility bills, including all connection fees and deposits, as well as property and personal injury insurance.
Additionally, the lease indicates that the government would also have to pay any associated legal fees if litigation arises.
The General Post Office was relocated to the Town Centre Mall in May 2019, however, the move was not without controversy.
Conflict of interest claims were leveled against then St Anne’s MP Brent Symonette when the government announced plans to move the General Post Office from East Hill Street to Town Centre Mall, which is partly owned by the former St Anne’s MP and former Cabinet minister Brent Symonette.
The government entered into a five-year leasehold agreement with the landlord of Town Centre Mall at a concessionary rate of $12 per square foot.
The lease also formed the basis of the opposition’s no-confidence motion against former Prime Minister Dr Hubert Minnis in December 2019.
Though a vote of confidence in Minnis was supported by the majority of MPs, the opposition maintained that Minnis mislead the House in the resolution’s declaration that Symonette had no involvement in the discussions on the lease agreement given that soon after his resignation, Symonette revealed on a local talk show that he and the prime minister discussed the matter over a phone call.
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