Sandals gets multi-year tax breaks on La Source acquisition - Business - Jamaica Gleaner - Wednesday | November 14, 2012: "Grenada has offered a raft of incentives to Sandals Resorts Inter-national (SRI) in exchange for an agreed US$100-million investment in the financially strapped La Source hotel for which closure would have meant the loss of some 200 jobs.
This is Sandals' first investment in the Spice Isle.
Sandals CEO Adam Stewart confirmed to Wednesday Business that the agreement between SRI and the Tillman Thomas-led government was priced at EC$270 million or US$100 million, covering the cost of acquisition, planned expansion and development over 10 years; plus additional lands to be acquired from the Taylor family, former shareholders in the La Source hotel."
Stewart said SRI would add at least 65 rooms in the first year of the agreement; his father and SRI Chairman Gordon 'Butch' Stewart said the first phase may be even bigger at 80 or more rooms.
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This is Sandals' first investment in the Spice Isle.
Sandals CEO Adam Stewart confirmed to Wednesday Business that the agreement between SRI and the Tillman Thomas-led government was priced at EC$270 million or US$100 million, covering the cost of acquisition, planned expansion and development over 10 years; plus additional lands to be acquired from the Taylor family, former shareholders in the La Source hotel."
Stewart said SRI would add at least 65 rooms in the first year of the agreement; his father and SRI Chairman Gordon 'Butch' Stewart said the first phase may be even bigger at 80 or more rooms.
Under the agreement, Sandals gets close to three decades of corporate and other tax breaks, most of which Finance Minister Nazim Burke said are not peculiar to the La Source deal.
Sandals gets a waiver on corporate taxes for 29 years; on property taxes for 25 years; and customs duties on all capital inputs for 25 years — all of which Burke said last Thursday at the announcement of the agreement were "not new".
Sandals also gets an extension on the duty waiver on alcohol from the usual 15 years to 25 years.
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