ARRANGEMENT OF SECTIONS

SECTION

SCHEDULE.

CHAPTER 262

HAWKSBILL CREEK, GRAND BAHAMA (DEEP WATER HARBOUR AND INDUSTRIAL AREA) (AMENDMENT OF AGREEMENT)

[Commencement 9th June, 1960]

BAHAMAS ISLANDS

THIS AGREEMENT made the ...................................... day of ....................................., A.D., 1960 BETWEEN His Excellency Sir Oswald Raynor Arthur, K.C.M.G., C.V.O., Governor and Commander-in-Chief in and over the Bahama Islands acting for and on behalf of the Government of the Bahama Islands (who and whose successors in office for the time being are hereinafter included in the term "the Government" of the one part AND The Grand Bahama Port Authority, Limited a company incorporated under the laws of the said Bahama Islands and carrying on business within the Colony (hereinafter called "the Port Authority" which expression where the context so admits shall include their assigns) of the other part WHEREAS:

NOW THIS AGREEMENT made in consideration of the premises WITNESSETH as follows:

1. (1) The Port Authority hereby covenant with the Government that unless prevented from so doing by Act of God, insurrection, riots, civil commotion, war or warlike operations, strikes, lockouts, force majeure, or any unforeseen or extraordinary circumstances which may be reasonably considered to be beyond the control of the Port Authority (including the inability of the Port Authority to obtain or employ the necessary labour or to obtain or secure the necessary materials) they will on or before the Thirty-first day of December, A.D., 1963 complete the construction of or procure the completion of the construction of first-class de luxe resort hotel accommodation containing in the aggregate not less than Two hundred (200) bedrooms with all reasonable amenities within the Port Area and upon completion of the said hotel accommodation furnish or cause the same to be furnished as first class de luxe resort hotel accommodation and thereafter operate the same or cause the same to be operated in accordance with the highest standards reasonably obtainable and applicable and set for the operation of like de luxe hotels in the United States of America.

2. The Principal Agreement is hereby varied and amended and shall henceforth operate and have effect as follows:

"(a)   Provide or procure the provision of primary instruction and school accommaodation free of charge for all children living within the Port Area between the ages of six years and fourteen years and upwards of standards equal to those from time to time provided by the Board of Education of the Colony in the Out Islands of the Colony or such higher standard as in accordance with circumstances from time to time the Board of Education of the Colony with the approval of the Governor in Council may reasonably require and from time to time add to and extend the same so as to serve adequately all children of school age living within the Port Area and during the continuance of this Agreement operate and maintain such school rooms and educational facilities to a standard at least equal to that provided from time to time by the said Board of Education in the Out Islands or to such higher standard as in accordance with circumstances from time to time the Board of Education of the Colony with the approval of the Governor in Council may reasonably require; but so that subject to such primary obligation as aforesaid the Port Authority and any corporation institution or body for the time being authorised by them for such purposes shall be entitled to provide additional educational instruction and facilities (primary or otherwise) and to charge and collect from individuals who or whose children receive any such additional education instruction or facilities within the Port area reasonable fees in respect thereof".

"Provided nevertheless that subject to providing free medical services for the Officers and Members of The Bahamas Police Force stationed within the Port Area from time to time and subject to providing indigent persons resident within the Port Area with medical services on the same terms as District Medical Officers of the Government of the said Bahama islands shall from time to time provide like services to indigent persons in other parts of the said Island of Grand Bahama then notwithstanding anything else in this clause hereinbefore contained the Port Authority shall be entitled to charge and collect from individuals who or whose children receive any such medical services and facilities as aforesaid reasonable fees in respect of such services and facilities".

"(all of which works hereinbefore referred to are sometimes hereinafter collectively referred to as "the Port Area Development" or "the Port Development Area".

"Provided nevertheless that in the case of any cottages, bungalows, houses or other private residences constructed and erected as aforesaid which are at any time sold or leased by the Port Authority or by any Licensee otherwise than to any person then bona fide in the service or employment of the Port Authority or of any Licensee and bona fide for the purposes of or in connection with the future service or employment of such persons, the Customs Duties in respect of the Supplies or the Manufacturing Supplies used directly in the construction, erection, air-conditioning, equipping, fitting out, furnishing and landscaping thereof which but for the foregoing provisions of this clause would have been payable shall forthwith thereupon become payable."

"referred to in the proviso to paragraph (c) of subclause (5) of this clause".

"Provided further than upon the Port Authority from time to time submitting to the Colonial Secretary proper survey plans of any such additional land as aforesaid adjoining any part of the Port Area and lying-

North or South of that part of the existing Port Area bounded Westwardly by a line drawn across the said Island on a bearing North 21 degrees 49 minutes East at a point Three and a Half (3½)miles Westward of the West Bank of Hawksbill Creek aforesaid and Eastwardly by a line drawn across the said Island North and South at a point Five Hundred (500) feet Eastward of the East Bank of Gold Rock Creek where it joins the Sea on the South side of the said Island the Government shall forthwith declare such additional land to be a part of the Port Area within the meaning of this Agreement by Order-in-Council published in the Official Gazette."

"any business or undertaking of owning, constructing, operating and. maintaining utilities (as hereinbefore referred to), any bona fide banking, trust, corporate management, investment, stock-broking, insurance, finance (including hire-purchase), mortgage and loan business or undertaking, any business or undertaking of owning, constructing, operating and maintaining hospitals, medical and health clinics, and schools, any business or undertaking of owning, constructing, maintaining, selling and leasing houses and places of residential or business occupation, and of real estate ownership, development, maintenance and sale generally, any business or undertaking or owning, operating and servicing ships and servicing aircraft, any business or undertaking incidental or relating to any such business or undertaking as aforesaid or usually carried on in connection with the same or ancillary thereto, and (subject to complying with the provisions of any present or future laws of the Colony relating to the necessary professional qualifications), any profession or professional activity, and (ii) any business or undertaking (excluding the sale of alcoholic liquor or goods or merchandise of any description) of incidental ancillary or relating to or usually carried on in connection with owning, constructing, operating, and maintaining hotels, boarding houses, clubs (resident or otherwise), apartment houses, restaurants, marinas, yacht basins, and places of entertainment other than cinemas), sports, amusement or cultural activity".

and immediately after the word "Agreement" there shall be inserted a comma.

3. (1) For the purposes of this present Clause the expression "the said Act" means The Hotels Encouragement Act as amended and in force at the date of these presents the expressions "Customs Duties" "New Hotel" "Promoter" and "Real Property Taxes" have the same meanings as are assigned to them in the said Act and the expression "the Expiry Date" means the twentieth anniversary of the date on which the said Act or any re-enactment or extension (with or without amendment) thereof or any Act substantially replacing the same shall expire.

(2) Notwithstanding anything in the Principal Agreement (amended as aforesaid) contained no Licensee undertaking the construction of or operating a New Hotel within the Port Area shall be entitled by virtue of the Principal Agreement (amended as aforesaid) to any benefits in the way of the refund of or freedom or exemption from Customs Duties Real Property Taxes or any other taxes or direct taxation in respect of the construction or operation of such New Hotel Provided nevertheless that in the case of any New Hotel within the Port Area the construction of which is commenced within the period of twenty years from the date of these presents (and of which commencement written notice is given by the Port Authority to the Colonial Secretary within Thirty (30) days after the date of such commencement) any Licensee undertaking the construction thereof or operating the same shall be entitled to the same benefits in the way of the refund of and freedom and exemption from Customs Duties Real Property Taxes and any other taxes and direct taxation as if the said Act had remained in force at the date of the commencement of such construction and the Licensee had been the Promoter in respect thereof and the Governor-in-Council had on such date entered into an agreement with such Licensee providing for the matters referred to in paragraphs (a), (b), (c), (d) and (e) of subsection (1) of section 4 of the said Act and in the case of the said paragraphs (a) and (b) for periods ending on whichever shall be the earlier of (i) the expiration of five years from the said date of the commencement of such construction, and (ii) the Expiry Date and in the case of the said paragraphs (c), (d) and (e) for periods ending respectively on whichever is the earlier of (i) the expiration of the periods respectively specified in the said paragraphs (c), (d) and (e), and (ii) the Expiry Date and as if for the purposes of the said paragraph (b) the date therein referred to were the fifth anniversary of the said date of commencement of the construction of such New Hotel.

4. (1) In this clause the expression "Local Authority" means any body or corporation created or established under or by virtue of any statute of the Colony for the purpose of exercising in respect of the Port Area or any part thereof powers of local government or administration and the expression "the Administration Area" means the Port Area or the part thereof (as the case may be) for the purposes of the local government or administration of which a particular Local Authority has been so created or established as aforesaid.

(2) Notwithstanding the provisions of subclause (7) of Clause 3 of the Principal Agreement (amended as aforesaid) the Port Authority may at any time or times during the continuance thereof with the consent in writing of not less than four-fifths in number of the persons and companies to whom subsisting licences shall have been granted by the Port Authority under the provisions thereof by an agreement in writing (hereinafter referred to as "the Transfer Agreement" made with a Local Authority under their respective Common Seals transfer to and vest in the Local Authority (either alone or in common with the Port Authority or any Licensee) upon such terms and conditions in all respects as may (with such consent as aforesaid) be therein agreed all or any of the rights powers and obligations of the Port Authority then subsisting under or by virtue of the Principal Agreement (amended as aforesaid) in relation to the Administration Area and so that (subject as aforesaid) (a) the Local Authority shall thereupon assume (in lieu of and exoneration of the Port Authority) such of the then subsisting rights powers and obligations of the Port Authority (so far as the same relate to the Administration Area) under or by virtue of the provisions of each such licence as aforesaid as are specified in such Transfer Agreement (hereinafter referred to as "the specified rights powers and obligations" and (b) all the then subsisting rights powers and obligations of every such Licensee as aforesaid under or by virtue of his or its licence shall remain in full force and effect but as regards the specified rights powers and obligations as if the relevant licence had been validly made and executed by and between the Local Authority (instead of the Port Authority) and such Licensee.