Investors in the troubled Cotton Bay Estates project have invested "eight figures", according to its chairman.
Franklyn Wilson said despite the project's recent legal woes and hard economic times, the $200 million development in Eleuthera is still moving forward with support from "some very deep pockets".
Wilson, who is also the chairman of Arawak Homes, said Cotton Bay remains undeterred.
"The reason I have been reluctant to give any specific timelines, is because who knows when the economic conditions make sense," he told Guardian Business. "We are being deliberate and cautious. Development has never stopped. We have simply been pacing ourselves."
The comments come shortly after a ruling in the Supreme Court that denied Cotton Bay's claim to $11 million in performance bonds.
Judge Stephen G. Isaacs sided with CIBC FirstCaribbean International Bank (Bahamas), claiming "the bonds are not valid and enforceable against the bank."
The former project manager of Cotton Bay, Penn's Renovation & Construction Company, requested the bonds in preparation for phases one and two of the project. After the work contracts were
terminated, Cotton Bay investors still called in the bond, which was subsequently denied by the bank.
Wilson told Guardian Business that he was disappointed by the verdict, commenting that "it was not a frivolous matter".
"My position is this, nobody sues a bank, a major one like FirstCaribbean, and you do that lightly. We had four different senior attorneys from in and outside The Bahamas take a look at this case, and we were not represented by lightweight council. The judge did not rule in our favor, and that's life."
The Cotton Bay chairman explained that attorneys had sought confirmation through the bank that the bonds were valid. Wilson claimed he received what was interpreted as confirmation, although the document was ultimately deemed improper.
The plaintiffs also asserted the bank's actions through the process validated that the bonds were accepted.
While the court claimed the bonds would have only covered 35 percent of the contractor's cost, Wilson insisted the $8 million bond, earmarked for the clubhouse, represented nearly the entire expenditure. The second bond, coming in at $3 million, was meant for villas valued at around $6 million.
In all, he said the $11 million worth of bonds were for approximately $15 million in contracts.
Wilson admitted to Guardian Business that the ruling serves as another blow to the project.
He said the legal affair "was huge" and "something not taken lightly".
But overall Wilson remained upbeat on the property's future. He insisted that once complete, Cotton Bay will feature "one of the greatest golf courses in the Caribbean".
Work is ongoing on the course and hotel, he explained. The giant clubhouse, which is now the largest building on Eleuthera, is essentially complete, along with villas totaling 54 rooms.
On a personal note, Wilson told Guardian Business he took comfort in the fact that Judge Isaacs defended him amid allegations from the defense that his testimony was "not credible".
Located five miles south of Rock Sound, Starwood Hotels & Resorts first signed an agreement with Eleuthera Properties Ltd. in 2005 to develop the massive project. Comprising more than 100 estate lots, a clubhouse, a private marina and an 18-hole golf course, it was heralded as one of the largest projects ever undertaken by a group of Bahamian investors.

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