Tough times, new ventures at the CDA

It’s rents of some $2.3 to $2.4 million are outstripped by millions more in salary payments every month. These were among a litany of woes revealed at two starring appearances before a Joint Select Committee of Parliament earlier this year. Further, job cuts may be inevitable.

However, Deowattee Dilraj Batoosingh, Acting General Manager of the Authority said the prevailing attitude at the CDA is optimism.

The Authority is making a bid to make Chaguaramas a top of mind entertainment and leisure centre and wants to bring people back to the Northwest peninsula. In August, the CDA intends to host a Curry Festival.

““It is a big risk for us to revive the boardwalk again,” said Batoosingh, who revealed that the event is being put on with a limited budget. However, the Authority needs the revenues.

Batoosingh said she told staff, “Let’s give it our best shot. Even if we don’t get as many people as we would have liked, at least it is showing that we can do it.”

“We are hopeful we can turn things around despite the challenges.”

It certainly has the raw materials to do so. The area has a natural beauty rivalled by few places in the country as well as several sites of interest.

But the “challenges” are threatening to overwhelm the CDA.

For one thing, the development of Chaguaramas is predicated on a plan formulated in 1974. It is not the only plan for the area. There have been at least eight plans for land and economic use of the area. However, it is the only one that holds legal sway, a fact that has been the root of the CDA’s most recent controversy.

Several tenants had leases for development approved under the People’s Partnership administration using a draft 2015 development plan. That plan was never brought before Town and Country, the Parliament or Cabinet, making it invalid. Batoosingh said the Deputy PS of their line ministry revealed that they had never even seen it.

With their “approved” leases, investors would have gone ahead and started construction, only to be told to stop by the new PNM government.

“This administration, would have reviewed the plan and realised that the draft 2015 plan was not approved by the Parliament,” said Batoosingh, “The only alternative was to follow what was under the law, which is the 1974 development plan.”

She explained that the CDA was not opposed to development, in fact, it desperately needed it, but said the law must be followed. The law, was guiding what types of developments were being allowed. If a tenant’s development was in contravention, then their terms of occupation would be reviewed.

Batoosingh denied allegations of nepotism or favoritism in the selection of which developments were allowed and said that decisions were apolitical. It has also made use of legal counsel in making these choices.

“No determination has been made except for the waterpark and another development,” she said, “This would have been done by Cabinet. Some concessions were made. It wasn’t that the entire lease was approved.”

Business Day contacted planning minister under the People’s Partnership government, Dr Bhoe Tewarie, for this thoughts on the state of the CDA.

“When we demitted office in September 2015, we left Chaguaramas with a functioning Boardwalk in two phases. We left with the vendors booths completed and occupied by tenants. We had a tradition of activities and programmes that brought visitors and customers to the Boardwalk, which created more commerce in the area and which was supported by some entertainment.”

On the matter of the controversial leases, Tewarie continued, “We had signed a number of leases between 2012 and 2015 and private sector investments were flowing into Chaguaramas for various projects. Every lease that was signed after 2010, was superior in its value to the State, the Chaguaramas Development Authority and the citizens of Trinidad and Tobago than any lease signed prior to 2010 by a significant number of times. I am talking about the value. So the state was in a good position to capitalize on private sector investment, under lease terms that would have only appreciated over time in value and flow of funds to the CDA and we could have, by now, already have had the makings of an incipient, sustainable tourism and entertainment and leisure industry in Chaguaramas. I don’t understand or have a clue about what they are doing or their problem with anything we have done in Chaguaramas.”

Asked about the legality of the draft 2015 plan and the potential issues created by it if the CDA facts are accurate, Tewarie said, “That is what you call a distraction. It is a non-issue. It does not arise. How were all the leases signed prior to 2010 and does that mean that leases signed under 2010 came under a different jurisdiction from those leases that were signed before? It is a red herring. It is pure stupidity parading as rationality.”

Much of the CDA’s own attempts at development meanwhile, lie in limbo.

When questioned about the state of parts the Boardwalk for example, Batoosingh said the Authority simply did not have the funds to do the required repair work.

Vending booths are not operational. The vendors complained that they were unusable. Further examination showed the electrical work was shoddy and needed re-doing.

Floorboards in Phase One need replacement. Batoosingh said it was likely they would have to pull up the whole thing to replace them, a costly undertaking.

“That represents a cost to us and we have explained before the JSC how dire our financial state (is), where we are barely earning revenue to cover salaries or major repair works along the peninsula.”

Despite this, she said the authority has been trying and has met with success in several areas. Repairs have already been completed on Phase Two and their facilities have been prepared for the July/August vacation season.

But how did the Authority find itself in this position?

Batoosingh attributed the Authority’s problems to a lack of “planning”.

She said, “You can’t run an organisation where your revenue is a certain level, you have to know that your expenses cannot be in excess of that.”

The race to shore up the Authority’s revenues is on.

It has been in discussions with the Tourism Ministry to become part of its ‘Staycation’ promotional programme. It has also re-entered a deal with PTSC to once again become part of the ‘Know Your Country’ tours.

The response to the Curry Festival has so far been favourable. Batoosingh said the event was fully booked and at least one well known entertainer has signed on to perform.

“We can’t be operating at a loss indefinitely. The best effort now is to get revenues up, which is what we are doing,” she said.