CIG gave up CI$2.85M duty on FIN project
(CNS): Developers behind a controversial luxury condominium project on South Church Street in George Town were given a 100% waiver of import duties up to a value of CI$2.85 million on all items relating to its construction and operation, according to documents released by the finance ministry. The period for the concession agreement with FIN Company Limited has been extended several times and is currently valid until the end of this year.
A request for duty waivers on two boats and a trailer valued at around US$750,000 and for further cuts on furniture were declined, though some planning fees have also been waived, according to the records released to CNS following an FOI request.
The residential project is being promoted to high net worth individuals and as an investment or a means to secure residency and not part of the tourism product, so it is less likely than a hotel or holiday condo project to have significant long term benefits to the wider public.
FIN Grand Cayman has already stirred up public concerns over the environmental impact of the oceanfront development on the marine environment as well as the plans for a lagoon-style pool, which will require the removal of the ironshore. Work to prepare the area began on that recently, even though the Department of Environment said this week that the developers still need to submit some reports to them related to the conditions of the project’s planning approval process before the ironshore work can commence.
The correspondence that was released to CNS shows that the generous duty concessions are based on the condition that the developers employ at least 60% Caymanian workers on the site, either directly or indirectly through sub-contractors.
CNS has contacted WORC and we are awaiting a response from the team there regarding the compliance with that condition.
Meanwhile, CNS is also waiting on further documentation from the finance ministry relating to other development projects that have received concessions, as the FOI request we made for details on the concessions government has given away since 2017 has been outstanding for over two months.
We have also requested an internal review of a refusal to release a single word of records kept in relation to concessions given to four other developers during this current administration. The ministry said that all four of those projects were subject to confidentiality clauses and have refused to release any documents relating to them based on advice from the legal department.
However, given that any concession handed out to developers is a loss to the public purse, CNS believes that the people should be able to see what those concessions are and for which development, and whether or not the project offers potential benefit to the community. We believe that this would enable the public to judge whether government has made the right decision regarding the public’s money.
See the FIN documents in the CNS Library
Category: development, Local News
Total Transparency is the only solution.
Government MUST provide transparency in all dealings except sensitive and I mean sensitive personnel matters (employment contract and salaries does not qualify).
All other contracts between CIG and other parties of all types must be totally available to the public as soon as they are signed.
Check you facts people. The FINN Concessions were granted in 2014 when everyone was hungry for development and many people needed work. The Finance Minister who brought it to Cabinet was Minister Marco Archer. The sale of these multi million dollar condos will bring millions in stamp duty. The problem is that government should put some time limits in place so that if a concession is not used in 1-2 years it expires.
Starting with ‘check your facts’ is a wonderful way to introduce specious arguments. Perhaps you can tell us some facts as to how it is decided who gets concessions and who doesn’t? The article also refers to the contractor also attempting to get a duty waiver on a boat. The thought that enters my mind is; Why would this be attempted?
Back in 2014 when you paid stamp on the minimal value of the air parcel, you mean.
Fin*
If you really knew the facts you would know that if the caucus agree to a request, then the minister responsible for that area brings the matter to cabinet. It does not mean that minister is a proponent of the request. So if a discussion was held between ppm leaders and their developer friends and the request was sent to a particular minister, the ppm leaders at their caucus would have already decided to grant the waiver. Only the civil servants under the process and we all remember Minister Archer as the one who pushed for transparency and limits on concessions. Get your facts straight.
Are any of the politians waiting for Michael Ryan to finish their condo?
Joey Hew wants to be our premier he will be worse than Mckeeva and Alden, everything will be for his cronies while he sells the country down the river. The only thing they have done in the last four years is fight their own people against a cruise dock, which is definitely not needed now given the global situation at the moment. We must not forget the dastardly acts of the PPM we cannot award them a third term in office.
They are definitely not the government you can trust and we definitely are not CaymanStrong with them at the helm.
This UDP + PPM marriage has only served to double the skulduggery.
The passive + respectful posture of Caymanians has been exploited by the self-interested elected, to do as they please and never account. Caymanians will never revolt, that is what they are banking on.
Are we not better than this? We have the same right to the wealth and worth of the Cayman Islands as the self-interested whose cut from the deals will never be exposed. Those cuts belong to us and our children. We permit the secrecy, we permit the exploitation of our children’s worth by remaining silent.
Joey Hew has always suffered from the burden of hubris but this most recent example of his arrogance and disregard for the electorate has gone off the charts. People of Cayman, wake up.
Our children want fancy cars and nice places to live one day too. They want trees for shade and to seed the clouds for rain. Heat & drought are killing us now from lack of sustainable development planning. Everything is permissible if you can pay.
We are better than this. Insist on it. Get some fire in your belly to insist there is something left for our children. Insist the self-interested account to us for their gains at our expense.
When it’s gone, it’s never coming back. Never.Coming.Back.
Very upsetting to read and absolutely nothing can or will be done to prevent more of same in future!
Where is Marco Archer when we need him most? He was the only ppm that stood up to Kurt Tiibbetts and Alden so they stabbed in the back. He did not allow them to continue their charade. We miss his honesty, transparency and straightforward approach as an MLA and Finance Minister. Joey and Roy are weak puppets of Kurt and Alden.
Money talks and bullshit walks. This is the best way I can describe this situation.
Long has gone the days when the people of the country, the environment and the best interest of the country was firstly and foremost put before that of the mega rich who do not have these islands at heart to begin with.
Who was trying to bring boats in duty free? That should be fraud to put that on as part of the deal!
All of us trying to make ends meat and we can’t get a break on duty for Christmas but these clowns ripping up the environment for a condo that will sit mostly empty….
Pirate developers and contractors supporting pirate governments in stripping the other citizens of their public monies and their futures. And yet many of you still ingratiate yourselves with and defend these pigs in hopes of getting in on the pillage and plunder. Is it any wonder the world sees us as global criminal jurisdiction?
The public will be blown away and disgusted when the facts about all the concessions, development agreements and other CIG subsidies have been exposed which have been granted since 2017 by Minister Hew, Planning, Infrastructure and Commerce and approved by the current members of the Government of National UNITY.
CIG are fighting to keep all the details secret claiming confidentiality or all information is “commercially sensitive” as they continue to hand out lucrative deals to their friends, financiers and political donors in the form of concessions. The entire process and all decisions and deals should be investigated immediately by the Auditor Generals office.
We must have accountability and transparency now as hundreds of millions in current and future revenues for CIG is being given and has already been given away in these secret deals. The country cannot afford these clandestine deals that are not subject to any form of value for money examination or scrutiny which have been negotiated by Minister Hew and the Cabinet. Especially, at a time when Cayman should be seeking to retain all current and future revenues as it suffers from loss of revenue due to the impact of COVID 19 on the Cayman economy. The continued giveaways, bad deals, lack of transparency, malfeasance by public officers, and existing operational costs will lead to the implementation of a form of direct taxation as the government is short on ideas and any sustainable plans to pay for all of its services and personnel due to the significant shortfall in earnings.
https://caymannewsservice.com/2020/06/development-deals-to-remain-secret/
The CIG grant of concessions process is largely politicized and based on “a who you know and what you can do for the politicians and party” principle. There is zero transparency and it is an ad hoc process that does not define a clear value for money proposition for the Cayman Islands Government and the people of this country.
These concessions are clear examples of the continuation of Government sponsored corporate welfare for certain special interests groups and wealthy benefactors that own and control the policy makers.
Follow the money…
Best regards
Johann Moxam
Thank you Mr. Moxam for clearly painting the picture of how and why these sweet deals for developers continue to get done. It will costs us all in the long run.
Johan your consistency and leadership on important national issues is greatly appreciated in the current darkness of local politics.
Johann Moxam for GTN in 2021
Thank you Johann . Please move. to West Bay. We need you here!
The scale of corruption in Cayman continues to build.
It is frightening when you get a glimpse behind the curtain.
Can’t wait to see how they spend all the money they have borrowed to support the economy through Covid-19.
Johann, are you running in May 2021 or, are you content with sitting on the sidelines and barking but don’t want to get unto the field because you are afraid of the prospect of defeat? Which one is it?
I think you have a decent chance of being elected but, if you are, i can guarantee you that 4 years later the Parliament will humble you and you’ll find that it is more difficult to effect change in Government than you think.
Just compare Austin Harris’ talk as a radioshow host with what he’s actually achieved 4 years after elected, not a lot.
Come on Johann, don’t be afraid of being defeated, run!!
You clearly do not know Johann or his motivations and capabilities if that is your idea of baiting him into running for office. The sarcasm in the name Fair and Balanced is cute
Jokey Who knows all about this. Wonder why he kept it secret?
The Minister Joey Hew is a disgrace. He and the PPM ran on transparency and integrity. He is proving to have none. I will not waste my vote on him again!
Putting up 3 illegal apartments in my backyard. Lol.
Planning can’t tell me nothing!
This story exposes once again the very, very cozy relationship between government and certain insiders like these developers. As usual, government claims EVERYTHING must be kept secret, despite it being the public’s money that is being given away. What a country…
TCI have spent over a decade, over $100mln they didn’t have, and inflicted a few brazen coincident murders, investigating Michael Misick’s library of misdeeds. It makes you wonder how, when, and how much it will eventually cost the Cayman Islands to clear our slate and install a responsible governance apparatus. Chilling and somewhat interrelated OT thoughts.
We have our own Missik to deal with.
He was good mate of Missick’s, back in the day. Used to meet up often.
Joey Who?
What did CIG get back out of this? Stamp duty up until last December for pre-construction was on land value only. I think those fees were miniscule..
So how does me or the average resident benefit from giving the ultra-rich $2.85M to build fancy condo and destroy the shoreline and ironshore?
The only thing we get is the shaft. Haven’t you noticed?
Be interesting to see the immigration/employment records as every-time I’ve passed, it’s got Jamaicans working on the site and what look like Phillipino security guards.
Happy to see the Government supporting Caymanian developers.
I know that the private sector designed a ugly building. Please don’t ask CIG to fix it.
O shut up……..Jamaicans and Phillipinos do not grant their own work permit. Go pick that bone with your government and stop name dropping nationalities as if they played a part in securing the permits.
You can’t comprehend the posters point…
So they used the best workers available and are building something great. On time and under budget. Unlike many projects here. I don’t think their target customer will complain like the wannabe’s here do.
On time and under budget??? how many years did it take them to build it?? under budget only because it was supplemented by almost $3M from us taxpayers..
Stop talking crap!
Mr Ryan & Mr Crighton are national heroes for the great developments they have done for this country. Leave them alone. At least we have a great government that knows how to treat business!
Not that it matters as either way it’s a joke, but have they given up $2.85m, or duty that would be payable on $2.85m worth of goods (ie roughly $840k with the average 29.5% import duty)?
The developers usually get a duty concession on imported equipment and materials. They usually ship/bring in their own materials which meand none of the hardware stores on island including ALTs are profitting. Hows that for your conflict of interest with CPA Board members?
Its an incredibly ugly building. I was under the impression that any development should be in keeping with the surrounding area but this thing is like that horrible looking prison block at rum point.
Good thing you don’t have to live there then. Or listen to anyone else tell you what they think about your home. I think they are all very nice.
The Commoners pay and the and the rich get richer.
Yep
LOL. Thats always how it works! It always looks like the rich pay higher taxes but when the working class are paying say 20% on 60K a year and the rich are paying 50% on ONLY what their clever accountants declare, you will see whos actually mooching off who!
Hard workers make and spend money. And the lazy complain.
No, I am not okay with my money going into this development that will not benefit me or my children or the community now, or in the future. I say knock the building down…
You can never beat a generational well connected wealthy Caymanian, and a recently arrived wealthy ‘developer’ with low friends in high places.
Hate to tell you this, but “recently arrived” got here in the ‘90s. Under the classic definition of “generation,” he too is generational!
Wasn’t born here, so no, not generational.
And has a reputation gained from the Ritz..not a good one, by the way…
Michael Ryan has a reputation due to losing all of a Christian charity’s $250 million investment in the Ritz. Does anyone know how he left the project rich? Does anyone remember his super yacht?
May 2021 can’t come soon enough. We need a government that is not going to hide things from the people that are supposed to be their bosses.
I don’t think any such party exists anywhere on the planet
Don’t worry the money will still be green after the next election as well.
CNS – what are de other developers getting in concessions? Davenpourt? Dart Corporationn?
CNS: We’ll post the details on the concessions as soon as we have them.
Yes, this is just the tip of the iceberg. They all get duty concessions.
to make money you got to give a little. bottom line here is that the constrcution of this development and its ongoing life-cycle costing will benefit cayman many times more than the few million it ‘lost’ in duty.
How?
go study economics…
I think everyone understands more than you…
Care to explain? How many Caymanians were on this site other than Dale Crighton and Micheal Ryan? This benefited them and their families and as always a few politicians and theirs but as far as Cayman overall…not much!
This Michael Ryan grafted us before and he is still making millions off us?@#$%?
Just Another Day in Absurdistan
Why does the government ever agree to keep any of these concessions secret? I mean so long as the developer gets his big freebie, why would he care if it was public? Oh wait, it’s the government that wants to keep the giveaway secret. Question: can the government avoid the freedom of information rules by unilaterally putting a confidentiality clause in a concession? Seems like they could do that with anything.
1:41 Why? Try kickbacks, backdoor business deals for friends and family, free apartments, do you want me to go on?
Like they do with settlements with civil servants who become politically unpopular and get removed from office, you mean?
The part they REALLY try to keep secret is their cut! It would be interesting to know where they keep all that extra cash.
Yet, the poor man has to pay these duties – if he would like to build a roof over his head.
This Government is just ridiculous!
Ignorant much?
Sadly, Cayman’s fair weather environmentalists value “cordial working relationships” over their own gut convictions, and these crooks bet on that and win. National Trust, DOE, and any of our resident Billionaire philanthropists could easily file the injunction to stop work, or even trigger a formal inquest into years of suspect decision making at the wholly-unaccountable PLA. No body is being hauled in front of any committee to explain their behavior, let alone defend themselves against the prospect of institutionalized conspiracy, and criminal jail time. Locking up whistleblowers like Sandra Hill seems to be the priority!
On what basis could the National Trust file an injunction?
We had no right to be heard on the original planning application because we are not a neighbouring landowner. We have no standing to police or enforce the terms of the planning conditions. We have no right to interfere in a private development.
Speaking as the legal advisor to the Trust, I’d be delighted if you could let me know what right the Trust had or has to prevent this development.
Thank Speaker Bush for those changes. Third parties can no longer object and the radius for planning objections was reduced I believe from 1000 to 500 feet.
Poorly written legislation with too many loopholes.
Since anyone with the right connections can get amendments to Cayman law, consider the following:
Amend the National Trust Law to appoint either: an unbiased well-versed commission or well-read individuals mandated by law (independent from Planning Board) to throughly and environmentally vet all development and construction, private and public, based on bedrock ecological science and principles; list a sentencing schedule for any blatant criminal behavior.
For any endangered, culturally significant or publicly-classified protected flora, fauna, wildlife or natural resources, both marine and domestic within the Cayman Islands jurisdiction and surrounding territorial waters.
Currently, the slick and well connected just need their political friends and Planning buddies to force re-zoning any land they can’t get with money, winks, nudges, or any other corruption tactics.
Free ball for any good-hearted lawmakers that don’t look at the Cayman Islands with dollar signs in their pupils.
Wrong. Well written legislation to accomplish exactly what we are getting. Looks good ’till they want to accomplish their corrupt aims, then it works great for them and graft us.
That building is an ugly monstrocity, and barely even fits on the plot of land, and is on one the most narrow, busy road in Cayman. you have to wonder about how it passed through the CPA, except we all know.
It was so dangerous for pedestrians, runners and cyclists.
1.18pm They put in the cheapest narrowest sidewalk they could get away with and still have not repaired a large section of the public road alongside it which they destroyed. On top of this the construction started years ago using South Church St as part of their construction site constantly interrupting traffic flow, and there is still no sign of when this horrendous Dump Tower will be finished.To hear they have recd CI$2.85 million of taxpayers money makes my blood boil.
When you see a fin, there is usually a shark just beneath the surface.
Wonder if any of our politicians have been given perks by FIN? Remember Mac received a unit in the Ritz after they were allowed to build 10 storeys high.
That is an outrageous suggestion! Were that true our robust law enforcers would have undertaken a detailed investigation! What kind of third world shithole do you think we are? We have standards!
3.02 that is indeed an outrageous suggestion… it was 2 units.
Governor, Commissioner, Attorney General…. could you please explain?
Well, there was this donkey, you see, and Mary rode upon it and the weather was nice and there was rejoicing. Would you like to hear some steel pan music?
And a lifetime of commissions on every unit sale for his wife’s “real estate business”. Oh and they forgot to take proper security for the $10m the Ritz failed to pay to CIG….whoops, just an oversight.
3:02 ROTFLMAO! Nice bit of sarcasm 🙂
Yeh, you were itching to say “World Class” weren’t you?
Right. Who needs to steal when we can write the standards to suit ourselves? Lawful, I am sure.
Yes………. “We” have $tandard$!
It’s cute that you all think these concessions are limited to developers.
Sick and tired of this “buy up land and property for points” to get PR. All that does is drive up prices for locals by artificially increasing demand. Might as well charge a flat fee for points instead to reduce demand for land.
What about the generational Caymanians leaving school who can’t afford land anywhere West of East End?
Hopefully Anon 1:48 reads this and gets some kind of clue sometime soon…
Check the owners’ register, lol.
Yes 12:20, and a lot of companies own the properties. Good luck finding out where the money to buy the properties came from.
Hush, hush. We don’t want to talk about where money comes from for real estate development here.
So if CIG gives up $2.8m up front but gets stamp duty of 7.5% of the sales price of $3m per unit ($225k) in the long run the government gets their incentives repaid and the economy gets lots of construction activity. It is how a lot of business is conducted worldwide. There maybe reasons why the project should not have been approved but in the long run the incentives provided by the government is an investment that will pay off. Those people who criticize this decision should examine their own sucess and evaluate their own business strategy more often.
Youre quite clueless if you dont know that buyers are NOT paying stamp duty on the unit prices/values and havent been for years.
Read the archives on how Mr Roy McTaggart tried to close the stamp duty loophole a year ago and was beaten down to extend it another year by certain developers who are still fighting to keep the loophole open even now and evade even more millions in stamp duty revenue to help market/sell their developments and line their own pockets. They are helping no one but themselves and the real estate agents who get their cartel commission no matter what.
Nice bit of creative accounting there but what about all the hidden costs. If we had property taxes here you might make a long-term case on those grounds but simply claiming the stamp duty will cover the offsets is nonsense and I suspect you already know that.
As for creating employment? Name me the last major project that used large numbers of local workers. It never happens, they bring in outsiders to do the work.
It’s not really that much of a stretch. Stamp duty is not that different from property taxes depending on how often the units are sold. 7.5% plus whatever on the mortgage is pretty good if the units turn over every 5-10 years. You could do the math backwards and see how many times each unit has to sell to recoup the concession amount. I don’t know the number or their value or I’d do it now but frankly it might be a perfectly fine outcome in the end.
Except that the buyers aren’t paying the stamp duty? Property taxes as they’re applied in the UK are an annual payment based on the value of the property – in simple terms they’re steady income rather than one-off windfalls. There’s no comparison and your reasoning doesn’t make any sense.
Thats great…so youre saying the island can afford to wait 20 and 30 years to recoup lost revenue for much needed infrastructure and other public interests while real estate agents have made 3X more over the same sales. If thats the case maybe the government needs to start charging a portion of CIREBA commissions to supplement the bottom line a bit sooner.
CIG need to cap the real estate brokerage fees to 0.75% (Zero Point Five Per Cent) MAXIMUM….That is better than a lot of the rest of the world…..
Why do you think certain agents here are in the top tier of there peers worldwide, but yet on a tiny island – ‘cos of the magnitude of their fees………
Not only that but the Government actually promises them a certain number pf guaranteed work permits based on there not being any company or labour contractor here that can provide enough skilled labourers for projects these size. All of terms of these
development approvals are a huge contradiction to each other!
Except that the buyers only paid stamp duty on the land value not on the $3M you think they sold for..
Since the project is not yet finished the individuals or firms that have units there under contract is not public knowledge. It would not surprise me if government official,elected officials or CPA Board members have contracts to invest in units there. Just speculation but I would guess it is likely.
How much is the development going to inject into this economy?
Stamp duty every time a unit is sold but that’s about it.
Only when theyre sold the second time. Youre right up there with the guy who thinks CUC just keeps a giant D cell battery fully charged and we only pay for what we use. SMH.
CIG strikes again.
And such a hideous ghastly building, totally out of place looming over North Church Street! I wish it had been built right opposite Al Thompson’s Addams Family mansion just along the road…oh, but wait, he would never have allowed that to happen.
Why? This isn’t a hotel. It will not generate nightly room tax. That 2.8m would come in real handy right about now. Morons running the country!
It would be good to know where Ezzard stands on uncontrolled development so I will know how to vote next election
I think I’ve said this before, but going to say it again, I am 100% in favour of Government supporting development, a lot of development wouldn’t get off the ground if all the risk is taken by the developer. BUT, when Government gifts duty concessions they are taking some of that risk and should get some of the rewards. If a development is successful then either Government has subsidized the cost of each unit, or given the developer a greater profit. Yes there is stamp duty paid by the next buyers, but that could be years away, and paid by everyone anyway. There is nothing contributed to paying for new roads, or schools or anything, that’s all on Government, or us, whilst the developer gets all the profit. If they take all the risk, no problem, get a duty concession…pay it back + some profit!
The developer could start by fixing the road they have destroyed right at the entrance to this hideous eye-sore.
“the generous duty concessions are based on the condition that the developers employ at least 60% Caymanian workers on the site, either directly or indirectly through sub-contractors.”
And who exactly is checking that this is done which by the way, coming from 30 years in the construction industry, is impossible to find this many Caymanians with training or expertise in this industry (thanks to govt lack of recognizing vocational training) at the rate of development going on here!
60% Jamaicans must be. They had 4 Caymanian Electricians working there but laid them off after a few weeks and retained the cheap labour who had no qualifications & no experience in Sheet Metal electrical work. If the rich buyers only knew the quality of work that goes into these developments they would be shocked.
If the conditions have not been met the fees should be collected immediately, with interest and penalties!
Who is going to check them to ensure they are following their side of the commitment, Joey Who?
Might as well say that Travel Time knew where the Regal Beach breachers were?
Nobodys checking on the conditions being met any more than whoever was checking up on the 14 Cuban migrants who dissapeared…or the whoever’s checking to make sure home quarantiners arent breaching….
More like 95%.
Just another example why the entire government should be voted out!
These are dollars given away to insiders that could have been used for better roads, schools, recreation and greenspace.
Vote the bums out!
Voted out and replaced by whom, Rodney? Name one government of the last 30 years that hasn’t caved in to developers in the same way as this one.
Who is the developer? If you follow the money trail it will lead you to all the answers sought!
The developer of the Ritz, so same again, and a prominent local real estate developer I believe.
SMH nothing changes. So when I want to build my house I should apply for a duty waiver then…..
Wait a minute. Is this the same Ritz developer that still owes the government money after he sold the Ritz?
Make the right political donations and you will get it lol.
It would be great if CNS or Govt through FOI or just transparency would give a list of ALL concessions to developers since 2000.
I believe its the peoples’ right to know just how much has been given away under the “value for money” justifications that has left us defunded on infrastructural and low cost housing needs while “building the economy” aka ridiculously increasing the cost of living here to where we have an environment catering to multi million dollar home/vacation owners while thousands of locals are quickly drifting into needing assistance for basic needs.
CNS: Right now, we’re having a hard enough time getting all the concessions from 2017. But we agree they should be public.
Why is the Ombudsman not all over this? Where are our checks and balances? Just for show?
so how much has it contributed to the local economy??
Wow, just wow! Vote these clowns out people. Also, what’s happening with the developers dolphin prison without the stupid tourists who frequent these types of s***t holes?
How much of this is made back in other ways like stamp duty? Or does the public purse make a loss just to get a building being built and money changing hands around the project and after its completion?
Developments like these got through before Govt closed the loophole on stamp duty for value based on units vs a “share” of the land/property (further defunding government revenue) and even after extending this stamp duty concession another year because the developers cried and whined about losing sales (which only benefit them and the real estate agents), its my understanding that these same developers – NCB, Crighton, Edgewater and sadly even Dart are continuing to push our government to keep these stamp duty loopholes open. Makes you wonder how much they really value Cayman outside of their own personal profits.
It only looks like it smells, right?
Maybe it only smells like it looks…
Can we please have some transparency?