BAKER'S BAY, Abaco - An elite island community is pursuing $1.4 billion in total development over the coming years, and anticipating more than $200 million in sales for 2012. Baker's Cay Golf & Ocean Club, a playground for multimillionaires in the Abacos, took a hit in 2008 like everyone else. Registering just a handful of sales in the period immediately following this financial crisis, the 600-acre site is now seeing a rebound among its high-net-worth clientele. Baker's Bay logged $90 million in sales during 2011, and this year, the U.S. developer expects to double that figure.
That's music to the ears of Minister of Investment Khaalis Rolle. The senior government official toured the site on Friday to discuss the ongoing construction. In fact, top executives at Baker's Bay are looking to acquire an additional 10 acres of land from the government to make way for expansion. "When you have something like this already up and running, and the potential for nearly 400 multimillionaires in one place at one time, there is tremendous opportunity," Rolle said. Benefits of an elite island like Baker's Cay can be felt throughout the economy, he noted. If executives indeed eclipse $200 million sales this year, that amounts to at least $20 million in stamp tax for the public coffers.
There are currently 200 Bahamians working full time at Baker's Cay, and an additional 200 hired through construction projects. With dozens of homes completed and 150 members, Geoffrey Jones, head of sales for Baker's Cay, reported 19 dwellings under construction and 30 more in the pipeline. Construction is also ongoing on a number of infrastructure and amenity projects, including two clubhouses, an extensive recreational and sports area and the marina village. Utility wise, the development is self-sufficient, featuring three massive generators and its own waste-water treatment plant.
Jones said for every major resort community that succeeds in The Bahamas, 20 others fail to take off for the long term. What makes Baker's Bay unique, however, is Discovery Land Company. Based out of Scottsdale, Arizona, the developer of private clubs in North America, and beyond, has the reputation and network to ensure a following among the rich. "The strength of our management an track record is what sets us apart. Discover Land has 13 finished products worldwide.
We have a following that not many developers have," according to Jones. Sales are primarily driven by word of mouth, he added, with 40 percent of their clients owning additional property through Discovery Land elsewhere in the world. Developers anticipate the population of Baker's Cay will continue to grow as families gain a foothold on the island. That said, for Rolle and the Bahamian government, the involvement of locals is just as significant. Baker's Bay has 38 individuals under work permits, according to Livingston Marshall, vice president of Environment and Community Affairs.
The high-end community has occasionally come under criticism for not including Bahamians enough in the development effort, although Marshall said the numbers speak of themselves. He noted that Baker's Bay has a monthly economic imprint of $3.5 million. Seven ferries transport the hundreds of Bahamian workers to and from the island each day, Marshall added. As the membership rises beyond 200, which is expected to occur this year, Jones felt a number of entrepreneurial opportunities should present themselves for Bahamians.
A number of shops and services will be required to support the captive audience on Baker's Cay. For his part, Rolle said the millionaire island has economic benefits that far out-weigh a handful of work permits. "For something like this, with its quality and magnitude, it's beyond acceptable. I want us to continue to look at opportunities that exist, and we need to be in a position to provide support. We have to show them what other investment opportunities there are in The Bahamas. That is the only way we'll get the economy back on track," he said.
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