Mac disputes Ritz value
(CNS): Full story — The premier has said he does not believe the Ritz Carlton has decreased in value as much as the recent sale suggests and that he will not let the new owners have any new licences or work-permits until government has examined the sale. In a speech transmitted on the government’s new TV channel on Thursday night, McKeeva Bush said that the hotel could not have depreciated by more than half. He said it may have fallen by 20% or even 25% but he did not believe it was down by more than 50% of the $460 million valuation made in 2007. Bush said he would ensure that government got the correct stamp duty on the sale, and that he would collect on the $6 million duty debt that he claimed the new owners were now liable for. (Photo Dennie Warren Jr)
Responding to comments by the new owners that they had reached out to government in an effort to negotiate concessions over the planned investment in the hotel and offered to pay the outstanding duty debt but had heard nothing from the premier ahead of the auction, Bush claimed he did write to them.
“Government responded to the request letter of June 14th from … Mr Jim Glasgow of Five Mile Capital in Connecticut, on October 5th,” Bush stated, adding that claims by the new owners' legal representative, Richard Finlay, of Conyers Dill & Pearman, that he had not were “ludicrous.”
“For him to say such a thing about the government in an attempt to pressure us to agree to things we should never do is an insult, not just to me but the entire duly elected and empowered government,” Bush added.
Linking the entire issue of the Ritz to what he said were Opposition Leader Alden McLaughlin’s attempts to be the next premier at all costs, Bush accused thim of being willing to let the country suffer “as a result of his shenanigans” to be in the premier’s chair. He denied that he had missed the chance to recoup the duty debt waiver given to the former owner, Michael Ryan, and his various companies but continued to blame McLaughlin.
“There is no level of hypocrisy and lies that the leader of the opposition will not stoop to in an attempt to blacken my name and the name of the Cayman Islands," Bush said in his live broadcast to the country. "Do they really expect people to take them seriously when for years they haveaccused me over and over again of getting involved with investors and making deals."
Referring to the fact that Finley is a former colleague of the opposition leader, although it is more than twelve years since they worked together, the premier added, "And to now stand in the House and accuse me of acting improperly, claiming I did not get involved and make a deal that would benefit a client of a law firm that the leader of the opposition has, or has had, a close relationship with and is his old colleague, being in the same firm.”
In a surprising comment the premier said the people should know better than to think he would “give away things rightly due to the people of these Islands”, regarding the concessions. He added that he would never do anything except what is in the best interests of the people of these islands, and especially not to help any group to the detriment of the people.
“There is a proper process to be followed and the government has the right to be paid what it is properly due and I will see that this is done,” he said in relation to the $6 million which is theoretically owed by one of the insolvent companies seized by the new owners, all of which were formerly owned by the developer Michael Ryan.
Bush said the new owners could not expect him to give up the kind of revenue involved in the concessions they wanted. He listed what he said were the “massive concessions” they had “demanded” or they would not meet any of their obligations to pay government the deferred duty that the hotel owes. (See the statement below)
“This is not how things are done in the Cayman Islands, despite them getting the support of the leader of the opposition by his criticism of me, this government does not give in to threats and ultimatums and they were told so in my letter to them on October 5th, a fact conveniently omitted by both the leader of the opposition and his lawyer friend, Mr Finley,” Bush added.
In a press briefing Wednesday, the new owners said they had put forward a list of possible concessions based on the planned long-term investment into the property but none of it was set in stone. Glasgow told the press, “We are logical people,” as he explained that Five Mile had always been willing to negotiate.
However, Bush, who, under the ForCayman Investment Alliance, signed a deal to give 50% of the tax take to the Dart Group (among many other benefits) for all of the hotel properties that company builds or buys, said the concessions that Five Mile wanted were “unacceptable”, beginning with the valuation level of the hotel.
“We know, and they know, that the real value of the Ritz-Carlton is far more than …$177 million. I know that as recently as 2007 the hotel and land was valued by a third party quantity surveyor at over $468 million,” he said, referring to a valuation conducted to assist the former owner raise financing .
Bush said that, using the legal stamp duty rate of 7.5%, government should have received over $37.5 million if the hotel was sold for what he believed it was worth.
However, the new owners said they had marketed the hotel to more than a 1,000 investors, and on the day of the auction only one other bidder turned up. That bidder is believed to be Dart, who refused to even bid the reserve price, saying it was far too high. Nevertheless, Bush insisted that the Ritz value could not have fallen so much, claiming that real estate values have held up fairly well in Cayman.
“No one can tell me that the Ritz hotel and all that property only values $177 million today when just a few years ago it was over $400 million … It could not have deteriorated more than 50%. No!" he declared.
The premier also claimed that had he given in to the new owners' requests for concessions, it would have resulted in millions more losses for government. “The offer to pay the $6million “came with many strings attached, strings that could add up to over $70 million dollars and set dangerous precedents for future governments when dealing with investors,” Bush claimed in his address.
“I have asked the land registry to check into the sale and do all things properly and by the book. They chose to buy the loan of the hotel with full knowledge of the obligations of the hotel and requirements under the law for stamp duty and other fees. They now choose to try and threaten the government to dissuade it, with the help of their friends in the opposition, solicited or not, from doing what it properly needs to do,” the premier added.
Despite numerous criticisms from many quarters about the current administration not always following due process, Bush stated his government would follow all proper processes and the proper regulations, assess the proper value and demand that the appropriate stamp duty be paid before any transfer is made.
“Government will continue to demand its due payment of the deferred stamp duty and will expect it to be paid before any consideration is given to any request for new licenses, work permits or any other of the things that government does on a day-to-day basis in relation to the operation of the hotel,” he said. “I believe that the leader of the opposition took the opportunity to castigate me and it came as a good defence of the people his lawyer friend represents, who don’t want to pay the government the $6 million.
Bush added that the opposition leader “and his friends who wrote in the press should, rather than mocking and insulting me, explain why they think government should give away such a badly needed windfall to people who have not shown any care or concern at all for the Cayman Islands or its people.”
He reiterated that the owners chose to buy the hotel knowing the laws of the Cayman Islands.
“They know they have to pay after the government assessment is done, and pay they will. These are the kind of things that I have always fought against, with those who think they can trample on the Cayman Islands while conveniently making me look bad as I battle for the rights of the people of these islands, and I’m not about to give up on anything because I am right,” Bush insisted.
See statement below on which Thursday night’s broadcast was based.
Category: Politics
Another crackin' shot of our illustrious premier. Whoever's taking these photos deserves a commendation, or maybe even a knighthood. CNS, please pass on my gratitude.
If you look at the bottom of the photo the photographer is identified.
I dreamt I had died and gone to heaven and off in the distance I saw a pasture with an amazing number of Jackasses grazing. In the middle was one with a full suit on and he was clearly bigger than the rest. I ask, "Lord, what is that?" He said, "That is a pasture for politicians to graze until their hearts are pure and their hands are clean!"
The truth of the matter in my opinion is that he is very upset because he could not get what he wanted, & always demands, from the new owners (& I don't mean for the government). He was hoping for another Stan Thomas situation but he met his match in the new owners. Their recent press conference was very informative but I pray they will reveal more, we need to know EVERYTHING!
I think Anon 10:47 got that dream a little mixed up. The jackasses that you refer to, especially the “one with a full suit on & clearly bigger than the rest” will never see the glory of Heaven if they continue down the road that they are presently on. You sure it wasn’t hell, & they were in blazing fires?
Very funny!
In times like these we need a little humor to brighten our day…
Sure must be a large pasture.
Supposedly this government answered the letter of June the 14th on October 5th. If this is true then the reply was 113 days after the original posting of the June letter. Does anyone think that is answering a letter promptly?? 113 days!!! If we ran a business like these people run a government, there would not be a single business left here.
And no, the Premier cannot tell the Immigration Department who to approve on not approve, at least not legally. But there are so many shenanigans going on around here anything is possible. But I think both the Immigration Board and civil service employees of the department would ignore the edict to not grant any more work permits to the Ritz.
We have already pretty much devolved into a mini-dictatorship ship when someone starts spouting off that they will get this and get that, when in fact there is no basis in law to do this. Just like cutting off the work permits or collecting money due from the previous owner of the property. Find a basis in law and stick to your guns, or shut up and quit making the business community here also look like buffoons.
Enough said.
The Premier could not keep the much needed 10% Community Enhancement Fee how in the wold can he expect to go up against such a powerful and honest organisation. If the new owners of the Ritz does not get one permit they should take it to the HRC and the world court and then the court of public opinion CNN (ha ha) and see what would happen then.
"It's not personal, it's business." — The Godfather.
"It's not business, it's personal." — McKeeva Bush
Macs in over his head, on this one! Why doesn’t he show us these valuations!
The politics will sort themselves out, but the lacadasical hih-pain civil servants are a real shame!
On another strand, the real "6-Million Questions" are:
Which civil servant forgot to register a lien in the first place; then forgot to accept the check that was offered (the amount could have been negotiated higher afterwards if necessary); and what will the reprecussions be (or will it be none – as usual??)
If they don't tell you the truth, they don't respect you. If they lie to you, they will steal from you.
This real estate thing would never be a problem if the other party had made a law against politicians and family being involved with real estate but they failed. When they fail you fail. We have to move in another direction and the parties had thier chance.
This is the flip side of “contributing” real estate fees to a certain local agency. If you don’t do it, all hell will break loose and you will be made out to be anti-Cayman and a villain. This is a clear indication that the new buyers of the Ritz are upright and honest businessmen. Hang in there guys, Cayman was not built on corruption and this ignoramus will be removed from power. Have faith in the common sense of the Caymanian electorate and hold your course.
I just hope the Premier and his trusted advisors are aware of who they are trying to intimidate "Five Mile Capital Partners Group" are no push over. The Premier and his advisor will soon learn that you cannot bring a big stick to a sword fight. Please read this article, also there are many other articles available on this group (http://www.washingtonpost.com/business/capitalbusiness/five-mile-capital-partners-buys-lakeforest-mall-in-gaithersburg-plans-20-million-in-improvements/2012/08/31/565c428e-f215-11e1-adc6-87dfa8eff430_story.html). Be very aware that "Five Mile Capital Partners" can call your bluff and will pull a Hostess Twinkie move on you; and then what? Just imagine what would happen to Cayman if they decided to close the hotel for even two months. Ever since the current UDP administration was voted into office they have left mostly negative images of our islands to the world, thus the down turn in our economy. Please Mr. Premier for the love of your country, family, friends and foes do the right thing come to your senses and stop this foolishness.
When third world talks….only third world still listens.
Let me get this straight. Please someone clarify this. The sale went to the highest bidder for 177$ million. Another investor that could have been "Dart" (or for all you know Mckeva with a fake company name), so the other investor did not want to bid on the asking price or somthing like that, so lets say the other investor had decided the sale was a done deal, since they could have inside information, they might have said , 150$ million as it suggest it did not want to pay the price what ever was the bid price. If this hotel was purchased by Dart would stamp duties even be involved at all, knowing the negotiation team that we have, They might have told Dart just need to pay the 6$ Million, because Im sure as "west bay hell" that he would not go after Dart in such a petty way. (pathetic is better word).
So im confused to the Mac. So this has gone personal now, and was it not Mac so called company that was touted to be the real estate company to sell or somthing to that extent?. So help me out here, Mak is either an idiot or somthing has really gone wrong here because it just dont add up. Mike Ryan came in and they were best buddies, guy never paid any fees probaly never paid anything to goverment above table at all, Dart has said he will invest and build only if he gets what he wants, ie the best part of west bay road and the dump site, and lets not forget hotel fees and the concessions promised with out even a care for the people, and while we at it, lets not forget the CHINS or CHEC or what ever the name, they were promised to take over the port and keep all the funds, while a deal was made with Dart to run the retail side of things on the new Island they intended to build on the harbour front. What I also dont understand is does Dart need McKeeva? or McKeeva need dart, who is it that owe XXXX the other? If dart is doing good for this country he can do it without going through the backdoor?
And finaly where the "west bay hell" is the Governor? Is he that busy taking a sun tan or has he been ordered not to enter the "Dart owned" property that he would hit if he left his gate? And is the British Team from turks wrapped up as yet? Can we at least have them here in the intrum to the next elections, nothing is getting done but freebees so its not enough time to start any major projects. And while we at it, barefoot and Andy here is some lirics for your new song. That road you driving ppm build it, that nice Goverment building you work in, PPM built it, that nice fancy school your child attend and proud, PPM built it. Did I miss anything? (can try the archie bunk it up tune). And Mac remember like the old people say, "God dont like ugly yu know". Dont forget to wear sunscreen. its the best advise.
Mr. Duncan Taylor. please we are begging you to stand up for the people of the Cayman Islands. We are all afraid of the blackmail and as you know this is a very small Island so have to be careful about who say what to who. But you can do it.
Could you please request and call for ballot voting to the people of the Cayman Islands. Simple question. "Should McKeva Bush continue as premier of the Cayman Islands". This is the extreme lowest that should be taken. This is such dictatorship style. How in the world can he continue to get away with this behavior? He has gone mad. Ezzard please help. We know who you are, we know what to expect. As can be noted you may come off as an extremist, but in the end, its not that you have anything against Expats, just simply that you ask for "Cayman First". So how long is it going to take before this idiot damage teh country. Mac has gone Mad, this is the "Animal Farm" all over again. And he does kinda look the part as well. Is it not the people that elect him? , so it should be the people that can remove him. Mr. Governor please get off your butt and start to Govern. No need Gangnam style, just do it the British style, its the same thing but British style is nicer way and the accent makes it smoothe. get this idiot away from any sort of power before he force everyone to drink the koolaid.
Mac disputes sun rises in the east. He says he lives in the west and sees it rising there every morning so those foo foo people don't know what they're talking 'bout.
I wonder if this means that Bush will use the same tough tactics to collect all of the outstanding medical loans, hurricane shutter loans, etc. that were given to Caymanians and which are way overdue. Hmmm? Can't threaten them with not providing work permits since they don't need them. More importantly they vote – though not likely for this fool!
This buffoon is nothing more than a loud mouthed bully who cries when he doesn't get his way. In fact, I think the only one who is worse is Ezzard. I wonder if they are keeping track of who threatens to sue more often.
Maybe you can have another empty shell sitting there for years like the Hyatt. That'll be good won't it? This moron has no idea the damage he does to the country's reputation. His comments will surely help attract investors won't it?
This man is no better than any of the other dictators. May 2013 soon come Mac!
One little comment….regardless of what people say about market value and offering to the whole world etc let bring thing back to ground level. Lets say I have a condo in the Miami (splash) and tax time comes around (splash) and the taxman says its worth $600,000 and my relator says it is worth $450,000. Unless my testicles were oversized I would just be forced to pay and close my mouth. The investor took on the risk that the tax might be higher then the purchase price as the reserve was cut…so they should think that perhaps a sensible government (or even one lacking thereof) might "tax that a$$".
So go ahead and tax that A$$ cause government needs the mulla baby and it is about time so of the folkes whom got it pay just like the rest of us. For all we know another $25 million was not pushed under the table or on a private jet
You obviously do not own property in the US.
Most propery taxes can be reduced based on the current market value just as they can be raised when the market value goes up.
What Is at issue is whether the ritz market value was as low as what was paid. I dont own property in the US but I would venture a guess that tax is based on market value and if you say you paid $1 for an acre of prime canal front I would hazard a guess that the US government would tax you on the real market value because what you paid did not reflect the true market value.
You seem to be missing the point which is that by 3 tests $177.5m is the true market value. First, the company got an independent up to date valuation; second we are told that the government valuation office reviewed and agreed that valuation; and third, in an open auction no one was prepared to bid higher than $177.5m. This is not a question of $1 being paid for prime land in a private sale. So far, other than the claims of the premier, we don't have any reason to believe that $177.5m is not the current market value.
As a matter of interest what do you think defines the "real/true market value"?
Didn't he give Dart some major concessions for buying the old Marriott opposite Public Beach, including a portion of the hotel taxes that tourist pay which rightfully belongs to government? And I don't recall him not going after Ryan for the $6 million he owed for the Ritz. But wait, wasn't it his company that had exclusive rights to commission on the sale of Ritz condos? Didn't he also have a unit or two there? And why was the rezoning of Stan Thomas' property held up? CNS, can you collate all those articles with Mac's explanation of each so that Cayman and Mac can really see him for what he is?
Only look and you will see. Listen and then compare that to what you see. Put faith in yourself and take it away from those who have not earned it.
The Premier needs to realize that a lot of things are only worth about 50% of what they used to be worth. Most of this is because the way he has run the country into the ground with all his hair brained schemes.
"the premier said the people should know better than to think he would “give away things rightly due to the people of these Islands”
My comment: Hmmmmmm….. "things" apparently don't include money and property.
“I have asked the land registry to check into the sale and do all things properly and by the book."
My comment: Why start now?
By people he means HIM.
Funny I was at Immigration the other day and there was some putting in work permits for the Ritz Carlton, had a special number which only deals with appointments for corporate…yep they said they had been there for over 4 hours for the permits for the Ritz…so…not sure how that happened…
And he wants us to belive that some one was stupid enough to pay him a consultantcy fee? more than half of the people on Cayman are not that stupid.
SO government gave approval for the reduced 177million reserve price, the valuation Bush keeps quoting includes a whole new dveloment on the land that never was build and was prepared before the recession.
He had over 4 years to collect the 6m off his buddy Ryan, and just kept making excuses to the Cayman people and know his buddy has been forced out he is all over it.
He gives away huge concessions to both his buddies Ryan and Dart to the deteriment of the Cayman people, but if someone is not affliated with him, no chance. Didn't he stated less than a month ago he wanted to attract foreign investors, he is doing a great job of that.
Finally he is willing for the largest and most highly rated hotel on the island to go out of business, when there is a lack of hotels, as Dart hasn't built his yet, irrevocably damaging Cayman's tourism sector for a long time, during a recessionall for 6million he wasn't even bothered about 6 months ago.
He could recoup 6million straight away just by implemement the AG's reccomendations on Gasboy, but he can't even be bothered with that.
"He could recoup $6 million straight away just by implemement the AG's reccomendations on Gasboy, but he can't even be bothered with that." – seemed worth repeating.
Do you both mean 'implementing'??
Do you mean "?"
Only one question mark is needed mate.
Busha – where is the ratttid letta yu seh yu write? I don’t believe a ting yu seh!
Yu give yu buddy Ryan a Bly an now yu want dese people dem fi pay him debts? Kiah go so!
An den yu want to treaten de people dem wid extortion fi dem license dem? Kiah go so!
Gwan go cock up you foot somewhere ya becah we done wid yu dutty self!
Could it be that Mac has a Ritz Carlton unit himself that has been devalued? I see no real reason why he is pressing the issue so hard.
A certain real estate company probabily did not receive the correct consulting fee on the transaction
Its been sold.
If MacCondo has been sold, maybe he sold it at an inflated price, so now someone had to pay some serious duties or somthing. maybe they asking for a refund or somthing. All can be imagined is that something has gone wrong. This is no way no matter how you look at it a simple "you owe us money" deal, this has gone personal. If I was Dart I would get my fly swapper out and start swaping the flies around me. This new owners just need to stick to there guns. Alden should know the legalities of The Goverment one moment saying they have no control over the civil service and the next in public media saying that he would not allow permits to be granted. So lets see how this goes, I guess Ritz will be very successfull if they can find all the real caymanians willing and able to work to cover all the positions. Ritz can solve the unemployment problems of the Cayman Islands. Who would want to pay for so much permits? Here is a chalenge to the new Ritz to make the facts reality. Dont budge on your principals, dont be dictated to by this McIdiot, create a fund and offer to the UCCI to have a course based on your requirements and positions, for caymanians, set the standards. Pass is a Pass,, fail is fail, after that apply for what ever positions that you want and have a straight talk with the head of the Civil Service, the Governor, and go from there. If Mac interferes, then reality he would be found to be trying to run dictator style. Ritz wins, cayman wins and maybe Mac wins since his hands is pure and his heart is clean. (yes its deliberate.)
His condo was sold a couple of years ago for $3m? The one next door same size went for $2.6m. Investigations of the new owner of Bush’s condo show a nominee shareholder supplied by local law firm and a corporate director of same law firm. It don’t pass the sniff test. By the way he got it for $2.3m. All details at the Land Registry for all to see.
Mmmmm. The unit has been sold. Maybe it will be harder to claim thatthe sale price for the unit did not greatly exceed the market price as it seems.
Can the media please come to an agreement not to publish anything this hot air balloon (Baffoon!) has to say! He makes the rest of us Caymanians sound like we are a country full of morons.
truth hurts???
You elected him.
"Referring to the fact that Finley is a former colleague of the opposition leader.."….Where are you former colleagues (TCI??)? Or did the high school people not make it that high? 🙂
So he goes on all these expensive overseas trips to encourage overseas investors to come to Cayman but when they they are here he treats them this way! Astonishing!
I Guess another one of his brown nose people will have to say YES I DID SEND THE LETTER i wonder which one will be this time HMMMMMMMM .
Had the Ritz been bought with Dart,the Mac would be defending the sale price.
It was Mac that said "We don't need education to run this country". The chickens have come home to roost with Mac being the top chicken.
Keke sorry to say but you are a push over!!!
Caymanian
I wonder why he couldn't throw his weight around like this to get the money out of Michael Ryan. This is a disgrace and very offputting for anyone thinking of investing in Cayman – a public fight over something like this. So unprofessional of our dear Premier.
There is a reason why he is throwing his weight around now, but didn't with Mike Ryan, but CNS probably would publish the comment for fear of libel.
Mac has no choice but to fight this to the very end. His Buddy Ryan might be down but he is not out yet. Mac will revenge this no matter what as long as Ryan is pulling the strings.
He must have lost his exclusive rights as the real estate company huh…
Since the UDP came to power all property values on the island has decreased by approximately 50%. Just imagine what properties will be worth if they are returned come May 2012, NOTHING.
Not unless you have a Ritz condo and a willing buyer who pay ya top dolla!!!!!
You are not telling the truth, and I don’t care if ya old and went to sea ya na tell d truth
May, 2013.
If bush had written to his bank manager on 14 June, and had not had a response by 4 October – would he have thought this was normal, acceptable, business practice – or, after two weeks, would he have been screaming down the phone demanding an explanation.
And only an idiot would use a statement to refute claims he never replied to the 14 June letter that revealed publicly that he sat on it for over three months, before he got around to providing a response.
Foreign investors, welcome to our land, pay market value for an asset critical to the economy and then be prepared to be blacklisted because we are governed by a deluded dictator. Maybe RC Cayman did understand the value of what we call in these parts "consultancy fees" for politicians.
Boy, a perfect Mac blamestorm.
This is what he does when he's vulnerable and threatened. He's terrified that all his skeletons of the past few years are gonna bus out. Especially the Ryan ones.
Let's hope these investors take it all the way and solve this country's biggest problem once and for all.
I hope they recorded every conversation they had with him.
This should be an eye opener for you Keke! Anywhere else in the world people don’t have all of these free bees giving out to them, when your in a man country you have follow his laws & regulations!
Open your & stop being s push over for the rich! !!
Caymanian
Get our $$$$$$$ & stop letting these people take you for fool!!!! Caymanian
You are so funny!!! Just shot my Pepsi out my nose!
There taking youfor a fool bobo! It’s like April fools day, ( send the fool a little bit further) lol
Bracer
What the hell is a “Bracer”? Are you trying to sign it “Bracker”?
It’s Cayman Brac!!!
Not Cayman Brack
Whose the dumba$$ now? …Dumba$$.
For Anon 11:40's knowledge, it is Bracker, not Bracer! DUH!
Thank you. anon @ 20:09. I was getting worried. I'm from the Brac but was away for a few years and wondered if things had changed that much that we were now Bracers instead of Brackers.
Most Spell it Braca
BTW….it’s “who’s” not “whose”! You know…..who is the dumb$$s now.
You?
I'm glad you corrected him……….. but its "dumba$$" not "dumb$$s
Sorry, couldn't resist
Asked that same question yesterday!!!
He wrote to them as he wrote to Mr. Simmons.
BB
Or maybe it was like the second Stan Thomas letter clarifying what he would say the payment was for…
Since the Primeir is so sure about the the collection on the added stamp duty, let him garantee that he will NOT USE THE PUBLIC PURSE FOR ANY LEGAL FEES. But will foot the bill out of his own pocket.
As he was so sure about digging his heels in with the UK and Mr. Simmons.
BB
Every time Mac speaks I realize that he dont know sh#@ about sh#@…
And I thought he said that he is not in charge of civil servants or board members?
Now he is saying that he will influence them?
What a buffoon.
The Brits must be laughing their heads off at the silly natives.
We do it find it quite jolly.
It is not just the Brits!
Not just the Brits dude! Everyone but the Chinese. They want their "consultant" fee back.
"including all furniture fixtures and fittings", that must make up a substantial part of the 2007 valuation, and would not be subject to Stamp Duty? His statement claims that property values have held up well? In my case I know that the value of my humble property has fallen by 1/3rd compared to what it was valued at in 2007, in fact the rebuild value for insurance is now more than the market value……
FFS will someone please point out to The Premier, before he screws this up totally, at our expense, that the 2007 valuation by BCQS was not an opinion of Market Value, but was based on the assumption that 446 golf course residential units were completed at the time of the valuation, whereas in fact these units do not exist! This can only end badly for the Cayman Islands if The Premier continues blindly on this course of action.
Is this actually true? Can any one confirm this?
That is what the Compass reported after having been provided with a copy of the 2007 BCQS valuation anonymously. What we need is BCQS to make this report public, to end any speculation, or at the very least we need confirmation from them as to what the basis of valuation was for the 2007 report. If indeed, as is being reported, their valuation was based on the assumed completion of the golf course residential units then it can be totally disregarded for these purposes.
Agreed, but at the end of the day, it is only worth what soemone is willing to pay for it. $177m, not $400+, deal with it Mac….
And this what Mac cannot understand because he is clueless!
Mac dropped the ball on the offer to cover the $6 million through his own incompetence, so he reacts by threatening one of the few remaining viable businesses on the Island with government-induced destruction of the business – That'll show the voters of Cayman what they got for their fridges. Who needed that economic activity in Cayman anyway? He's both a moron and a bully. If there were any question as to why the value of the Ritz has fallen, just like the whole of the Island has fallen, He just needs to look in the mirror. West Bay, this is what you get for selling your votes for fridges: a useless twit as a leader and a failed state in the making.
XXXX
Governor: You still asleep?
ZZZZZZZZZZZZZZZZZZZZ!!!!!!!!!!!!!!!!!!!!!!!!!
Why can't he get it through his thick skull that something is only worth what someone is willing to pay for it?!?
Our premier is the biggest buffoon on the planet, I am sure of it!
If I sell you a bar of gold for one cent, that does not mean all bars of gold are worth one cent.
It does if you offered it to the whole world, and the only offer you got was one cent. Market value is what the market is prepared to pay, not what you think it should be worth (particulalry if it doesnt turn out to be gold after all!)
Your example is a poor one, since there is a ready market for gold, a lot of transactions, and an easily determinable market price. Selling a hotel in the Caribbean in a troubled economy – particulalry one where the local government seems hell bent on deterring investors other than thse it has private arrangments, is a slightly different proposition.
i agree it is worth only what u get for it… most home values in gcm are down daaaaa
and partly due to how the government treats people /…the 7 year rule???
Your customs form on entry states in relation to dutiable items ' Price paid or fair retail value'
The Ritz was purchased for both.. the price paid was the fair market value. The CDP lawyers are going to make a meal out of Mac & Govt' on this
I hope, for their sake, the CDP lawyers aren't on work permits!
Mac may not be familiar with the concept of an auction. Let’s help him out.
auc·tion/ˈôkSHən/
Noun:
A public sale in which goods or property are sold to the highest bidder.
See that. Highest bidder. A neat and efficient way for the property value to be determined by the free market. The property is worth what the highest bidder is willing to pay.
Normally I would agree, but I am not sure that the 'Valuation" produced here would be accurate if there is only one bidder and the reserve price is artificially low.
There were 2 bidders, numb nuts. Read the news reports. Another bidder of high net worth was also present (the identify of this 2nd bidder has not been revealed, my guess is it was Dart). The highest price offered was what the successful bidder paid i.e. $177M. Don't follow Macalooney's rhetorics or believe what he says, you will end up with egg on your face.
If it sold for reserve price – there was only one bid – numb nuts.
It is still the market. Anyone could have shown up at the auction.
.
Mac you are just unbelievable. The premier hotel in Cayman….the best we have, and you are out to destroy it. Just unbelieveable
So now we are telling new investors that government will charge duty based on whatever government thinks the price should be, not what is paid, and by the way a new investor has to pay for any taxes the government failed to collect from others! That will get them lining up.
Duty has always been charged on what the Lands and Survey Valuation Department thinks the price should be. I will grant that the majority of the time the sale price is not questioned. I agree that any debt incurred by the previous owners should be paid by the previous owners.
Right on! This is will be a very scary precedent if he is allowed to go through with this. A very slippery slope.
I don't belive the "honorable for life" Premeir of the Cayman islands knows the worth of a honest days work much less how much anything cost in the real world. Now when he speaks no one listens.
Mac- under our Laws ( you know, those markings by which our society is run ) please show me where it says you have any control over permits.
"please show me where it says you have any control over permits"
You're joking or just haven't been here very long. The threat of No Permits, non-renewed Permits and blatant blackmail has been the cornerstone of Cayman commercial life. It has made millionaires out of couch potato, indolent locals since the 70s and made a mockery of 60% Caymanian regulation. If you don't know someone, pay them in benefits or out of an ATM machine in Vegas you are going to have a very hard time.
The only thing shocking about the public announcement of Blackmail and abuse of power by the Country's leading politican is that it took so long to become public. We all knew it already.
Now it's official.
That's "OnWobble" if you please!
Exactly. And I hope those working in Immigration will continue to process their permits properly the same as they do for other businesses.
They've already stated that if they believe its in their best interests that they will close down the resort. How many jobs would that lose? What did Dart do for Mac to get all those concessions. What did Ryan have on Mac to stop him chasing down 6 million dollas? Why this tough guy persona for the new owners when he constantly stating he will do anything to bring business to the island. These people are business also. although they are perhaps not Macs business types. Maybe their hands are clean?
Too right, they won't do business "Macs Way", thank goodness.
Mr. Bush XXXX I need to ask you now, why did you give up the condo at the Ritz recently? I understand that you moved from the Ritz, when you saw that Michael Ryan was in trouble and then you moved over to the Caribbean Club, I wonder still , what is that deal? Will that cost us too? Is that another concession package? What is Dart offering you for those concessions too, we needs toknow. XXXX 5 Miles Capital or whatever they are named, please do not sleep in the same bed with Mr. McKeeva Bush, you have a right to do business in the Cayman Islands legally, Mr. Bush is giving the Cayman Islands a bad name worldwide. He has been killing small businesses here in Cayman, just to feed his hungry appetite and his worldwide travels. That is NOT the Cayman Islands way of doing business, that is McKeeva's way. He has no idea how strong your company is and who is behind your ownership. XXXX Michaed Ryan is his friend, XXXX, he is the one to pay the $6mio, not the new ownership. Do not be afraid of him, as come May 2013 the people of West Bay will "MAN UP" and vote him out, as the majority of people out of work today are his own people. Hopefully, by now they have seen the light. This man needs to go, he has single handly destroyed what Cayman had financially and will still try more destructive moves, before the house closes.
Wha wha wha wha wha.
Wha!
That is all.
Market value is what someone is willing to pay for the land Period. That’s called reality.
Absurd that Lands can assess their own artificial value! That is called fiction.
Good-bye real estate in Cayman.
Reality here is this what I would consider a "distressed sale" and so would be lower than "market value"
A distress sale woiuyld have had no reserve price and that other bidder who showed up would have paid less.
Can't wait to see the back of Mr.Bush. Not long now, thank goodness.
Mac – you need to get medical treatment for your foot in mouth disease.
What a dope.
you can only point and laugh at the electorate that have voted these fools in……..
Ya mouth need washing
well, apparently a condo wasn't available this time. Why else would he be barking?
Certainly not for the sake of the Cayman Islands.
Cayman is lucky that Bush will be gone before he is able to unlawfully abuse these people and set the country up for a lawsuit.
Yes someone needs to tell him those lawsuits are cutting into his travel budget.
Obviously you don't appreciate Mac's talented capacity for being an ass.
Hello Mr. Chavez.
Dear McKeeva,
The Ritz Carlton is worth what it’s worth on the open market. Not what it cost, or a nebulous theoretical value that it may have had in 2007, which is now ancient history as far as the real world is concerned.
If anyone else was willing to buy it at a value greater than that it was sold for, then they would have put in a bid at the public auction. There can be no harder reality than the auctioneer’s hammer!
Depreciation has nothing to do with it. It is the current market conditions of these Islands that have caused its value to plummet!. Whereas the world economy of the last 4 years is partly to blame, the last two years of this government’s administration is striking fear deep into the heart of those entrepreneurs who could lift our economy into surplus.
It’s too late to try to cover up your government’s mistakes in failing to enforce the duty owed by the former Owners by trying to hold a gun to the head of the new owners.
Please let’s not make it hard for the new Owners to do business in the Cayman Is. We need them more than ever!
The people who sold it were the people who bought it, just under a diffent company, now don't you think the value might have been lowered to save paying stamp duty…..
And you obviously don’t understand the concept of an open auction. If it was worth more, then someone else would have bought it at the higher value
Its as much as somebody is willing to pay, Mac should have done something about the duty when he had a chance get a grip and move on to travelling around the world Phillious Fogg.
Yeah, this coming from the self-proclaimed "real estate consultant". Get real Mac. You should have run down your buddy Ryan to pay the debt. You only have strength for other people who are not in a "buddy system" with you. Market value is whatever the market is willing to pay. It is not like anybody was running down the Ritz to grab it up and there was a bidding war on for it.
Amazing how for 4 years he has refused to chase the debt from his buddy Ryan, but now it's someone else, he is all over it like a parsite.
Wasn't the money owed by the company that built the Ritz, which Ryan still owns.
And the reason why the Ritz valuation has dropped 50% is because of Mr Bush
The huge valuation Bush refers to was allegedly commissioned by Michael Ryan from BCQS for the purposes of obtaining the now infamous astronomical re- financing. I wonder who leaked it…Say no more! Why not ask BCQS to do an updated valuation; I'll offer to pay! Love to know if BCQS agree the auction price is now fair value….. LOL! What's that from BCQS? a deafening silence?
Next point – it is highly suspicious the change in approach to the Ritz debt the Premier has taken as soon as Ryan out the picture. He has been silent on the Ritz debt for the 4 years that he had power to recover it but now Ryan gone and its recovery is a pipedream its suddenly his no 1 priority! Yet the RCIPS are spending hours looking into the leaking of some worthless documents. What are the anti corruption people actually doing all day?!
Uh-oh mac has opened his mouth again……….
and still, all I hear is "HEE HAWWWW"…
I thought Bush was an intrinsic part of a garden, possibly a bank’s interior , but certainly not qualified to comment on anything apart from air miles.
McKeeva simply cannot see the true extent of the damage he has done to the Cayman economy.
How come he gave Dart so many concessions, but is now playing hard ball with the new owners of Ritz? Something mighty strange man, mighty strange.
strange….. welcome to wonderland…caymankind styley
What a wonderful way to conduct business! I am excited now to see the new owners take the government to court in a land mark bill of rights case. Mac is acting irrational and in an arbitrary fashion totally inconsistent with anything I have seen. If the new owners are not permitted to get work permits within the framework of the law just because mac says so, how is this not a dictatorship? How will this help tourism if the hotel cannot hire staff?
Everytime he opens his mouth the tail wags. What a mess we are in with Mr. Prem. When is the next embarrassment????
soon come..
You will know the minute the opportunity arises. Guaranteed.