Duty waivers extended for wealthy developer
(CNS): The wealthy developer behind the Watermark Cayman Residences, one of a series of luxury Seven Mile Beach condos, has been given an extension on the generous duty concession package for the project. Finance ministry officials told CNS that not all of the 100% waiver on over $8.2 million worth of materials had been used up, so the developer now has until March 2024 to continue benefiting from duty-free imports.
The concessions package is worth around $2.9 million on all construction materials and equipment that will directly benefit the developer, Fraser Wellon, who is now on the third tower in the series of luxury projects on Grand Cayman’s famous beach aimed at the world’s billionaires.
A protracted freedom of information request by CNS in 2020 about concessions such as duty and fee waivers given to developers during the last administration revealed that the Watermark was one of the projects that received a particularly generous waiver, even though the condos sell for many millions of dollars.
The project started late and was impacted by the COVID pandemic. But the concessions were due to end in February of this year after a previous extension to accommodate the late start. But the ten-storey luxury condo is still under construction and the ministry told CNS this week that the developer has almost CI$3 million worth of imports from the original concessions package that have not yet been imported or claimed.
As a result, Cabinet approved an extension to allow the developers to gain the full tax break for an additional year.
“The recent concession approval of CI$2.9 million was approved by Cabinet on 7 June,” the finance ministry stated in its response to our follow-up FOI request. “Cabinet granted a 100% waiver of import duties to Watermark Limited for up to CI$8.2 million on the importation of all construction materials and equipment for the development of The Watermark Limited project,” the officials added referring to the original deal.
The ministry said that the Department of Customs and Border Control had confirmed that as of 30 March this year, “of the CI$8.2 million concession, approximately CI$5.2 million in import duty was waived, with a balance of CI$2.9 million not utilized”. Cabinet then granted the approval for the balance of that concession to be extended.
The condos are currently selling for as much as US$25 million and it’s unclear how the local community will directly benefit from the project. It’s likely that most of the condos will be retained for the use of the wealthy non-residents who purchase them or be part of property portfolios for the rich and famous rather than become tourism accommodation.
It is also not clear what percentage of the workforce employed on the site during its development was Caymanian or if WORC checked to see if the developers were making an effort to source local staff or were using imported labour.
CNS also asked about the justification for the extension, given that the government’s current need for taxes and fees is greater than the need for jobs, but that part of our request was not addressed. However, the ministry did confirm that developers have the ability to request an extension on any existing concession deal.
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Category: development, Local News
This right here is what will bring on the ‘bloody revolution’. How can this possibly be right or fair, or morally just? People can’t feed their families or pay utility bills but the wealthiest are given 100% duty waivers? On a development that will not bring employment to Caymanians. People beware. The writing is on the wall. Soon the writing will be in blood. History keeps repeating itself because no one learns from it. How sad is that?
It’s time now to introduce a per sq. ft annual infrastructure fee on all properties on the the beach side of the Seven Mile corridor.
Many of these are in short term rental and have work arounds to avoid paying government tourism tax and no one put a dime ion to fix the roads, clean beaches etc..it’s time to start charging instead of giving out freebies.
I have never heard of one of these Developers ever offering to fix a pothole or paint a line on the road. Instead they expect Government to do everything.
You are so silly friend. Every time a new development goes up in the area more money goes into the pot (a.k.a the infrastructure fund) for roads and affordable houses. So technically, the more development each year in an area, the more money the fund gets. So with that being said……the developer already pay and the government decides where on island to use it.
Are you absolutely certain of this? What is the value of the infrastructure fund at this time? What percentage of the development does it represent?
The infrastructure fee amount is a one time contribution and a pittance compared to what the developer would pay in income tax and property tax over the lifetime of the property. So they get to use all the infrastructure for next to nothing for the next 40 or 50 years.
Now let me get this straight:
The Panton-PACTless Clown Car is–out of one side of their face–raising an alarm in regard to unsustainable development, the environment… yada-yada, puff, puff, yammer, yammer, blabber, blabber.
Now, out of the other side of their many faces, the Clown Car just gave a $3,000,000 kickback to a rich developer as his reward for contributing to the over-development mess.
What in the hell is wrong with these people? Breathtaking hypocrisy and doing mindlessly stupid and irresponsible clown moves seems ingrained in their clown DNA.
@10:52am…I think you are not getting this right..This was an agreement put in place by the PPM Government with the Developer for $8.2M. The remaining amount was $2.9M which this Government most likely had no choice but to agree to..This is what happens when one Government puts these long types of agreement in place thinking that they are going to get re-elected and can continue on the gravy train..
What has happened now is that PPM is gone and PACT has to now honor these agreements. I’m 100% sure Alden and gang made sure this was an airtight agreement that would saddle every government in the future..of course they thought they would be the next government..Lord forbid.
In my opinion, when the PPM was handing out this one and the one to FIN it was completely unnecessary. According to the PPM, the Government was thriving and doing well so there was no need for these concessions. In fact, both developers would have built these with or without Government kickbacks. Does anyone think that Fraser Wellon needs any money from Government to build anything? He was just coming off a high where he got Government to increase the height of building to ten stories and built the Watercolors Condos, before that he built Watersedge and before that Pinnacle and Regal Beach..It wasn’t necessary..he had already made millions of dollars off these projects and to add cream on the top, Alden threw in a Cabinet Status grant to him and his Turkish friend with the ugliest house on Seven Mile Beach.
With FIN, we all know that Michael Ryan didn’t have a pot to Pi$$ in when he came here. Sold off the RITZ after making millions of dollars and with concession from Government and to this day still owes the Government stamp duty yet the PPM was there with an outstretched and not only giving him a kick back in stamp duty waivers but also using their “rubber stamp” Planning board to give him permission to destroy the ironshore on South Church street to build a building that is total out of character with the quiet, peaceful community it sits in.
@10:39:
The extension is purely on the current PACT-less government. “The wealthy developer behind the Watermark Cayman Residences, one of a series of luxury Seven Mile Beach condos, has been given an extension on the generous duty concession package for the project.”
You assume that the Clown Car had no choice. It is you who is not getting this quite right: They had a choice. They could have challenged it and said NO to the extension. They did not. For all their flatulent bluster about unsustainable development and the environment and for all the rest of the baxide gas the Clown Car copiously spews, they rolled over and folded without even any semblance of a fight.
The Clown Car demands we the people bend to their unevenly applied dictates regarding environmental issues; they cherry-pick issues for legislation to make it look like they are effective heroes and champions for sustainability and the environment; but they are just an impotent and ineffective poppy show.
What you write aptly conveys that the PPM and the Panton-PACT-less Clown Car are bedfellows in giving needless concessions and favour to wealthy developers. The Clown is worse in that all the while they keep making moronic suggestions and passing token legislation that impose undue burdens on the less wealthy among us.
Thank you for your prompting to get this, now, quite right.
Seems like I ruffled your PPM feathers,and your Clown Car comments are comical and some might say even colorful but let’s say, “stupid” as well and does nothing to make your thought process credible. It’s seems more like you are still very sore from losing the last election..I get it..Sometimes when the truth hits it hurts like a bitch.
Now let’s get to the bottom of this the right way rather than assuming.. I am willing to bet that the PPM when they made this agreement made it air-tight with the Developer. If they didn’t, I will eat my words..How about we FOI the document and put it here on CNS for everyone to view.
For the record, I am not a supporter of either group as the both have their faults but one had 12 years and the other 3 and when I see someone complaining about what the 12 year group did and blame it on the 3 year one, I jump in to try to add some credibility particularly when the objective is to deflect and try to put the blame on the group for doing something the other group was responsible for.. I think these groups or parties develop cult followers like yourself that will go to the ends of the earth believing everything they say and believing that they can do no wrong and the followers will say and do anything to justify their foolishness..much like the USA with the Ultra Maga group, where their cult leader hijacked the formerly Republican Party and who are now ready to kill for their leader, who is nothing more than an orange hair buffoon. He could tell those fools that the sky is green and they would gouge their eyes out because they were seeing blue instead. Absolute lunatics!
It’s crazy but when I see someone like yourself get so animated and start spouting the conspiracy theories and ludicrous assumptions and sometimes outright stupidity, I can’t help but weigh in.. I’ll bet you you were quite popular as a true Anti-Vaxxer during covid too. đŸ™‚
@11:10:
What is your assumption that I am a PPM supporter based on? Is it an assmption based on the voices reverberating in your head? What is your assumption about my vax status based on. You sure make a lot of baseless assumptions for one who deems himself to be marginally bright. You present yourself as the challenger of what you call “ludicrous assumptions”. I shall suggest that you take a long look in the mirror to see the image of one who makes “ludicrous assumptions”. I am vaxed x2, Pfizer; boosted x1 Pfizer; x1 Moderna. You lost that silly bet, Bobo. As far as your cult assumption regarding PPM, I am happy that you placed both poppy-show governments in the same nasty bed. But their cult followers will probably get their knickers in a knot about that.
In regard to your statement, “Now let’s get to the bottom of this the right way rather than assuming” and “How about we FOI the document and put it here on CNS for everyone to view.” No need to do that, here ya go:
https://cnslibrary.com/wp-content/uploads/Concessions-Granted-to-Developers-of-Large-Projects-WaterMark.pdf
Note that apparently this is their second application for an extension. Not exactly as “air-tight” as you assumed, huh, Bobo?
While you are making assumptions, do you assume that the developers fully complied with all the conditions imposed on the concession? Why don’t you FOI that issue since you are the self-declared Champion of Clarity?
On another note you seem to have a problem staying on topic. Most drama-loving screechers do. First you screech about the Covid vax, then you screech about the American political scene. What do either isasueshave to do with Cayman Islands duty concessions? Sheesh!
Since you brought it up, my opinion in regard to the American presidential political dual is this: It is a circus show pitting a doddering foggy bumbling shuffling impaired old zombie versus the well-past-his-prime, egotistical King of Former-President Criminal Indictments. How much more pathetic can it get? Dunno, maybe O.J. will put his hat in the ring.
My take on the American political scene is this: get out the popcorn and sit back for some real and far out entertainment and lots of belly laughs along the way. I thank God every day that I do not live in America.
Can I bring in a new icebox and range duty free?
Nope. Cayman is gone to rod now!!
Cash, gas or dash!!
@7:46:
No you cannot. However, to curry your voting favour they might just give you the appliances. Another article on CNS says: “Caymanian homeowners with a household income of $4,000 or less per month are being offered free energy efficiency upgrades to their properties to help them cut costly power bills”. That package includes replacement of “..inefficient appliances”.