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CPL Arrears to be WRITTEN OFF as the program is PHASED OUT

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Deandrea Hamilton and Dana Malcolm

Editorial Staff

 

#TurksandCaicos, December 14, 2022 – The Crown Land review, jointly conducted by the TCIG and the UK Government has exposed that over 1,100 parcels of Crown Land are subject to long standing disputes about ownership and titles in the Conditional Purchase Lease program.  Now, the expensive and contentious CPL pathway to land ownership is heading to the scrap pile, with some last ditch measures agreed in order to give people in this precarious position a chance to finally secure properties in question.

The Review proposes to write-off arrears on Conditional Purchase Lease agreements to give land owners a fresh start and final opportunity to honour their commitments.

“If this policy is to be pursued, it will be necessary to have a finite period of time within which applicants must come forward to apply for the freehold and gain the benefit of the write-off,” explains the review, adding, “A finite time period, such as three years, would ensure that titles are quickly regularised and would also save the applicant from further delays requiring a fresh revaluation which would cause the freehold price to go even higher.”

The Turks and Caicos Islands Government is likely now to agree not to reintroduce Conditional Purchase Leases in the country as per recommendations included in the newly published crown land review. For those who currently have a CPL the recommendations set out specific guidelines on how to proceed.

CPLs in the Turks and Caicos provide residents with a three year lease on residential land after which they can either extend or terminate the lease. The review, in the fact-finding process, found that six CPLs were surrendered or terminated; that 383 were cancelled for non-payment of rent and 301 bought the free hold title.  It left hundreds of CPLs incomplete and unresolved.

The report, released on December 8, 2022 said: “But it was made clear that a large number of people still claim land under expired CPLs and have not done anything about selecting their terminal option. There are 1,101 parcels of Crown land in this position.  This is despite the fact that the Crown Land Ordinance envisaged that all CPLs, and all their two-year extensions, should have disappeared by 2017 at the absolute latest.”

A plan to bring some finality to those with unsettled CPLs has been laid out extensively in the review which also reveals that the CPL program is a monster-sized mess with both government and leaseholders at fault.

“It is clear that leaseholders have not complied with their obligations or sought renewal of their lease, and it is also clear that Government has allowed people to assume that this is acceptable by not taking active enforcement steps in the past. Together, these factors have contributed to a culture in which CPLs have not been adhered to for decades and this explains how there comes to be such a disparity between the original CPL freehold prices and the revaluations.”

The joint Crown Land Review has anticipated that a significant problem will emerge when the parcels of land in question are valuated.  Land prices in the Turks and Caicos Islands have risen sharply in the 10, 20 or 30 years since the CPLs were agreed and the appraisals to determine fair market value today will dramatically alter the costs in the original agreements.

The review offered a striking example:  “To take one documented example, the freeholds in a pair of undeveloped residential plots in Providenciales were offered in the original CPL at $6,750 and $8,900 in 1999, and upon revaluation were priced at $30,800 and $73,500 respectively in 2007; they have undoubtedly gone up much more since then. Other unconfirmed examples were given to us by members of the public who spoke of more recent valuations, such as from $20,000 to $200,000, showing a tenfold increase in the freehold price upon revaluation. The effect of such re-valuations is that any person who has budgeted in reliance on the original CPL freehold price, despite the CPL having expired, will not be able to afford the increase.”

It could mean, homes and other constructions on parcels in an incomplete CPL, where no freehold title is obtained by the leaseholder, would be lost.  The Review frankly points out that Government is not obligated to stick to the original price and that Government has been less than proficient in managing the CPL program, but if the CPL holder is able to pay off its rent arrears, then a new agreement could be drawn up with the help of a lending institution.

“Our conclusion is therefore that all arrears should be written off for anyone who buys the freehold. This will reduce the financial burden for people who choose that option, and it will also increase the likelihood of mortgage finance being available for the freehold purchase.”

A public awareness campaign is recommended to ensure no one in this category “misses out”.

The review also outlines who qualifies for the write-off; how and whom CPL parcels can be passed on to; recommends actions to distinct categories of CPLs; addresses government mismanagement and leaseholders who have lost documentation and after attempts to regularize CPLs the review suggests it is best to phase out the process entirely.

Recommendation 17: that CPLs should not be reintroduced. Turnkey housing (starter homes and rentals) should be the priority for those people still unable to afford undeveloped land even with the benefit of the Islander discount.

Government

TCI Cabinet Approves Committee for formation of Mortgage Corporation – Wednesday August 7, 2024

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Turks and Caicos Islands – All members of Cabinet were present with the exception of the Minister for Tourism, Hon. Josephine Connolly and the Attorney General, Hon. Rhondalee Brathwaite-Knowles. Khalila Astwood sat as Acting Attorney General.

At this meeting of Cabinet:

  1. It approved the Crown Land (Amendment) Bill 2024 and the Crown Land Ordinance (Amendment of Schedule) Order 2024 for submission to the House of Assembly.
  2. It noted the First Quarter Financial Report for the Turks and Caicos Islands Government which will be published on the government website.
  3. It approved policy changes to Section 68 of the Customs Ordinance CAP 19.04 to allow auditors to conduct reassessments of goods in the post-clearance Audit function, noting that the required legislative amendments will return to Cabinet for approval.
  4. It approved a proposal for investing the Consolidated Fund free cash reserves into short-term fixed deposits.
  5. It approved recommendations regarding the Sandy Point Investors Limited (SPIL) Development Agreement Dock Facility at Bellefield Landing.
  6. It approved the establishment of a committee to progress the formation of the Mortgage Corporation.
  7. It approved for Parcels 60803/114,115,116 & 117 consisting of a total of 4.5 acres be sent out to tender and advertised in keeping with Section 34 of the Crown Land Ordinance 2012.
  8. It approved the reappointment of Ms. Louise Malcolm as a member of the Health Professions Authority Board for a period of three (3) years.
  9. It granted approval for the issuance of a tender in relation to Parcels 60803/114,115,116 & 117.
  10. It approved the reparcellation of Parcel 61113/57 and Parcel 61113/58 for the purpose of resolving an encroachment issue.
  11. It approved funding assistance for Enhancing Disaster Supplies and Storage Facilities across the Turks and Caicos Islands.
  12. It approved recommendations in respect of the American Airlines Expansion into South Caicos.
  13. It received an information paper relating to the installation of solar panels.
  14. It approved the establishment of a Public Private Partnership Monitoring Unit at the Turks and Caicos Islands Airports Authority.
  15. It approved an application for a licence to operate a Beach Bar on Parcel 60906/172, Providenciales.
  16. It considered proposals from developers regarding the Program Housing Concessions for Residential Developers.

Further information on these matters will be presented by Ministers in due course.

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Government

PNP Ratified General Election Candidate Slate

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PNP Acting National Chair reveals Election Candidates
Turks and Caicos, September 4, 2024 – The Progressive National Party (PNP) met on Friday, August 30, 2024 in Special Congress when the following resolutions were unanimously passed by the delegates:
 1. Nominations of the following candidates to contest the upcoming general elections in the name of the Party in the ten (10) Electoral Districts (EDs) were ratified:
ED 1 Hon. Otis Morris
ED 2 Mr. Walter Gardiner
ED 3 Hon. Rev. John Malcolm
ED 4 Hon. Arlington Musgrove
ED 5 Hon. Akierra Missick
ED 6 Hon. Matthew Stubbs
ED 7 Hon. Samuel Been
ED 8 Hon. Randy Howell
ED 9 Hon. Rachel Taylor
ED 10 Hon. Kyle Knowles
 2. Nominations of the following candidates to contest the upcoming general elections in the name of the Party in the All Islands District (ED 11) were ratified:
Hon. Charles Washington Misick
Hon. Jamell Robinson
Hon. Josephine Connolly
Hon. Erwin Jay Saunders
Hon. Shaun Malcolm
 3. The Special Congress deferred ratification of the additional four Candidates in ED 11 pending formal implementation by His Majesty’s Government of the changes to the Turks and Caicos Islands Constitution that have been negotiated by the Turks and Caicos Islands Government and the consequential changes to the Constitution of the PNP to reflect these alterations.

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Bahamas News

Prime Minister Davis: Cannabis Reform Compendium 2024 ‘a long time coming’

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NASSAU, The Bahamas – Prime Minister and Minister of Finance the Hon. Philip Davis said on July 15, 2024, that he spoke in support of the compendium of Bills to legalise the use of cannabis for medical and religious purposes, to decriminalise the possession of small amounts of cannabis, and to “regulate the cultivation, sale and use of cannabis and related products within our borders and to promote the health and safety of our people.”

“This has been a long time coming,” Prime Minister Davis said, during his Contribution to the Cannabis Reform Compendium 2024 Debate in the House of Assembly.

“For years, Bahamians have called for an administration to have the courage to step up and take this issue on in a decisive and responsible manner,” he added.  “While many other countries, including nations within our region like Jamaica, Trinidad & Tobago, Antigua & Barbuda and Barbados, have taken steps toward decriminalisation and legalisation for medical use, Bahamians were left wondering when it would be our turn to modernise our local approach to cannabis.”

Prime Minister Davis noted that the national dialogue had been ongoing for the better part of a decade.

“Many people thought change was imminent when the Marijuana Commission began its work in October 2018, under the previous administration,” he said.  “These efforts culminated in a preliminary report delivered in January 2020 and a final report delivered in August 2021.”

He added:  “The Commission cited a wide range of in-person discussions and public opinion research, noting that there appeared to be widespread public support for the legalisation of cannabis for medical purposes.  There was also healthy support for decriminalisation and an appetite for a strong regulatory and enforcement framework to ensure high standards for this new industry.”

Prime Minister Davis pointed out that the recommendations of the Commission called for legalisation for medical use, decriminalisation for small amounts, legalisation for use as a religious sacrament for members of the Rastafarian community, as well as strict regulations to ensure the quality and safety of the local cannabis product.

“In the PLP’s Blueprint for Change, we committed to developing a comprehensive regulatory framework for growing, harvesting, and exporting cannabis to create opportunities for Bahamians,” he said.

“The approach we developed to legislating and regulating Cannabis was informed by widespread research and consultation,” Prime Minister Davis added.  “It was partially based on the CARICOM Regional Commission on Marijuana’s research and findings, as well as the approaches of other jurisdictions like Jamaica, Barbados, and Canada, where Cannabis has been legalised and regulated.”

He said that his Government’s goal was to ensure that it developed the most fair, balanced, and effective legislative and regulatory mechanisms, which would allow The Bahamas to reap economic and health benefits while promoting law and order and keeping its people safe through the introduction of stringent standards.

Prime Minister Davis added:  “Once we felt that we had an adequate draft, we released the draft bills publicly, and we held a number of stakeholder consultation sessions, led by the Attorney General’s Office, in which we sat down with major stakeholder groups like healthcare providers, leaders of our church community, advocates for legalisation, leaders of the Rastafarian community – some of whom I see here today, as well as those who had concerns about the impact of legalisation and decriminalisation on the proliferation of usage. These varied opinions were taken into account and adjustments were made to achieve the most practical and effective approach that would work best for the Bahamian people.”

He pointed out that his Government also paid close attention to ongoing research on the issue – the most recent of which, he noted, was a survey conducted nationally by Public Domain in 2023, which indicated that 61% of the population supported the legalisation of cannabis for medical usage.

“It was clear that the times had changed, and it was time for our laws to change as well,” Prime Minister Davis stated.

He continued:  “We’ve been hard at work since 2021. We knew this was not a process we could rush. There was a recognised need for carefulness and due diligence, but there was also a need to ensure that this new legislative and regulatory regime could be introduced and implemented within this term.  We could not simply kick the can down the road for our next term the way other administrations did.  No, we could not delay these changes – not when so many people had waited for years for real action to be taken.

“Today, the wait is over.”

Prime Minister Davis noted that his Government was taking action on behalf of all of the people who simply wanted the ability to legally consume medical cannabis to help them with their medical conditions.

“There are people with children suffering from epilepsy who have been praying for this moment,” he said.  “There are people with glaucoma who want the opportunity to potentially alleviate their condition with a cost-effective and natural treatment.”

Prime Minister Davis added that there were people living with auto-immune conditions, chronic pain, anxiety, depression, and other ailments who were “waiting not-so-patiently for this day.”

“We are taking action for the many men and women living with criminal records for carrying small amounts of cannabis, and the many others who will be spared criminal records as a result of decriminalization,” he said.

Prime Minister Davis stated that, as a society, his Government realised that the old approach taken against Cannabis in the War on Drugs in the 1980s and 90s did not necessarily reflect the current reality.

“Too many livelihoods have been lost because of a joint,” he said.  “Too many lives have been handicapped and potentials lost.”

He added that when he was saying that, it was not his intent to excuse those who choose to break the law.

“After all, the law is the law; it must be respected and upheld,” Prime Minister Davis stated.  “But we also recognise that the law is not static, it is dynamic. And the interpretation of the law and how it serves the greater good of society can change over time.  I am confident that many lives will be changed for the better as a result of the criminal records that will be expunged.”

“Through these reforms, we are upholding the rule of law, making it clear that if you are seeking to supply others with cannabis illegally or engage in other unlicenced and illegal activities, you will be held accountable,” he added.  “Everyone is welcome to participate within the legal and regulatory framework and only within that framework.

“Of course, as a part of this reform process, we are also taking action to recognise the rights and freedoms of Rastafarians to use Cannabis as a sacrament because it should not be against the law for our brothers and sisters of the Rastafarian faith to practice their religion.”

PHOTO CAPTION

Prime Minister and Minister of Finance the Hon. Philip Davis speaks, on July 15, 2024, during his Contribution to the Cannabis Reform Compendium 2024 Debate in the House of Assembly.    (BIS Photos/Ulric Woodside)

 

Release: BIS

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