Tax-relief incentive floated to woo St Thomas investments

As development discussions ripen in St Thomas with the buildout of the Southern Coastal Highway Improvement Project (SCHIP) and the construction of a state-of-the-art town centre, at least one investor believes the introduction of a special incentive plan would spark greater investment among Jamaican expatriates.

Over the past few months, the parish has been gaining the attention of local and international financial backers, including that of son of the soil, Austin Russell, one of few sponsors who took the decision to tap the parish’s potential early, with his biggest undertaking so far – Russell’s Paradise Beach Resort, a small, modern hotel and restaurant located in Yallahs.

The businessman, who now resides in Canada where he co-owns a popular patty company, admitted that though his interest in the parish predates the recent expansion talks, a tax-incentive programme would really sweeten the pot.

“The development taking place in St Thomas now is only the tip of the iceberg. A lot more can be achieved in a shorter time if there is deliberate effort by policymakers to ensure the parish achieve its full potential,” Russell said.

He continued: “To attract more investors, the Government have to make it easier for those importing materials for their businesses. Give them a tax break … .”

Russell cautioned that he was not proposing a wholescale write-off, but a reduction in duties.

Sharing that he is now adding 24 rooms to his establishment, the businessman confirmed that his ‘paradise’ will be fully available to the public this summer.

While agreeing that a cost cut for interested returnees is an attractive idea, Newton Johnson, director of the Realtors Association of Jamaica, dismissed the thought as impractical and unfair.

“Locals are going to feel slighted. If you’re going to give foreigners, then the locals would need it, too, because building material is going up every day and the inflation rate is up every quarter,” he said.

Johnson, who also serves as a broker at real-estate developers, RE/MAX Elite, contended that adding incentives to attract international interest is pointless, as there is adequate demand for St Thomas lands among local investors.

“People consider the time it will take from St Thomas to go into Kingston, especially when the road network is completed, and how more affordable lands in the east are; there isn’t a saleability issue,” Johnson said.

The realtor, who said there was a notable spike in house hunters looking to relocate to the once-forgotten parish, is among several other stakeholders who are predicting that easy access to Kingston and the affordability of lands positioned St Thomas as the next frontier for diaspora retirement and investment.

Waves of multimillion-dollar initiatives have washed on to the parish’s shores since the announcement of the SCHIP, which seeks to improve the alignment and capacity of the existing roadway carpeting Harbour View, St Andrew, through St Thomas to Port Antonio, Portland.

Soon, the parish will also be home to several luxury oceanfront villas valuing in excess of $1 billion, courtesy of a joint venture between real estate investment and development firm FirstRock Capital and a corporation, which remains unnamed at this time.

Also on the cards is the development of 396 residential units, including town houses, duplexes, luxury apartments, and bungalows– an ultra-modern community, according to Kevin Frith, CEO of Sun Coast Beach Club Development in Bull Bay.

The 91-acre property will also feature some 15,000 square feet of commercial space to include restaurants, bars, and doctor’s office, among other amenities.

Chief executive officer of the St Thomas Municipal Corporation, Claudia Carter, told The Gleaner that the council continues to receive several construction proposals for developments, and that they have been doing their part to encourage continued investment in the parish.

shanna.monteith@gleanerjm.com