Thursday, November 19, 2009

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Wrinkle: BEC holds solutionin subdivision bill controversy By INDERIA SAUNDERS ~ Guardian Business Reporter ~ inderia@nasguard.com: The head of the Bahamian Contractors Association (BCA) is suggesting the Bahamas Electricity Corporation (BEC) holds the solution to tempering the costs of a pending Planning and Subdivision Bill — one that many developers argue will drive the cost of land sky-high. "What normally happens in North America is the utility company absorbs the cost of putting in the infrastructure," BCA President Stephen Wrinkle told Guardian Business. "It would distribute the cost of capital development more evenly." As it is now, the majority of developers sell land to the buyers without a home on it. It's a situation that should change with time, Wrinkle noted, given market forces are driving more developers to offer a parcel of land and a home together. He argues the Bahamas Electricity Corporation would be in a better position to recoup some of the infrastructure investment because they hold the power to increase rates, whereas developers could only hope to see returns on the sale of the land alone. His statements come as the merits of the bill are debated in Parliament. The act seeks to improve the structure and administration of the Town Planning Committee and the Department of Physical Planning. Among other things, it would create more stringent guidelines for road creation and town planning and would require developers to have an environmental impact assessment (EIA) done before a development is brought before a special committee for approval. It's an added requirement that many developers argue will only drive the costs of land up even further. "The fact that it's going to have consumers spend more time with government approvals is a sure indicator of increases in costs," Wrinkle said yesterday. "Anytime you impede the process of development you automatically increase the costs. "The longer you borrow money the longer you're paying on that money." Though he hastens to add that the bill is something greatly needed in the country, Wrinkle said a happy medium needs to be found so that the added steps don't impede development and by extension, the economy. He noted that there needs to be greater consideration for the degrees of developments and where the requirements are not needed. "It's important we have this bill, but somehow find a way to temper the environmental concerns with industry necessities that would alleviate the fear and controversy that is manifesting," Wrinkle said. "We have a unique situation that needs to be considered... one has to look at the small developments being proposed in the Family Islands. "So it's hard to put a blanket process in place." Minister for the Environment Earl Deveaux said in an earlier interview that all things were being considered. "The government genuinely appreciates the thoughtful and considered responses we've received to this very important piece of legislation, which is dealing with the planning of subdivisions and development of our land," said Deveaux. "As I indicated during the committee stages, we will share all of the responses we have gotten with the opposition and the government and we will take into account and weigh these responses in shaping the bill based on the input we have received." Wednesday November 4, 2009