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Coco Reefs' Jefferis denies College paying utility bill

A resort boss has hit back angrily at claims taxpayers are shelling out thousands of dollars to pay utility bills at a privately-run hotel.

John Jefferis, chairman of Coco Reef Resorts, denied that publicly funded Bermuda College had been forced to foot the bills for the Paget resort.

The Mid-Ocean News reported last week that, in an apparent oversight by the College, which owns the resort, the lease that allowed Mr. Jefferis to take over Coco Reef made the campus responsible for any utility bills.

This deal was criticised by Opposition Leader Grant Gibbons.

But businessman Mr. Jefferis today struck back, and said the lease clearly stated that Coco Reef was responsible for all the utilities.

He added that Dr. Gibbons? ?ridiculous? comment that College board chairman and Government Senator Raymond Tannock had left Bermuda taxpayers to fork out for the hotel?s monthly utility charges when signing the deal was ?blatantly untrue? and a ?cheap political shot?.

Mr. Jefferis said: ?In fact, Coco Reef has paid over $281,000 in electricity charges since taking over. The lease clearly states that Coco Reef is responsible for all the utilities.?

The resort chairman said the comments from the United Bermuda Party politicians showed no regard for the ?adverse repercussions? that may result for local businesses.

And the hotelier called on them not to use the hotel as a ?political football?.

Mr. Jefferis claimed some members of the UBP top brass, with financial interests in the Bermuda hotel market, were concerned by Coco Reef?s ?continually increasing market share and growing reputation in the market place?.

He continued: ?Coco Reef Resorts has invested millions of dollars to upgrade a hotel that was in a decrepit state with serious plumbing, electrical and other infrastructure problems.

?Furthermore, it was losing considerable amounts of taxpayers? money each year. The scale of investment required has never been addressed by the Opposition in terms of potential return, which is further proof they have no understanding whatsoever of the hotel business in Bermuda.

?It is unfortunate that many of the critics of the project have never visited the hotel, or indeed asked for more information. The hotel business is difficult enough ? we do not need the Opposition using Coco Reef as a political football.?

Mr. Jefferis also attacked Shadow Education Minister Neville Darrell, who was reported as saying the lease contained no guarantee for training.

But the resort chairman said the lease contained a specific five-point ?irrevocable addendum? regarding Coco Reef?s obligation to provide the College training facilities.

?This was a specific provision demanded by both the Minister of Education and Sen. Tannock before finalising the lease,? added Mr. Jefferis. He added: ?Mr. Darrell ? who works in a neighbouring hotel ? needs to go back to school and do his homework.?

Mr. Darrell, responding in a written statement, said he did not say there were no training obligations in the current lease.

He added: ?I remarked whether Coco Reef had fulfilled its obligations under the contract to train Bermudians in the hospitality industry, and if so, in what areas had the training occurred and over what period of time. Reliable sources have informed me that no such training has occurred at anytime.?

Dr. Gibbons responded by saying that he was pleased to hear about the $281,000 payment but concerned that it was not clear when this money was paid or whether it fully covered the amount the College had picked up on the resort?s behalf.

He said the lease between the College and the resort had been ?rushed through in the early summer of 2003, and there was only one meter for the utilities plant at Bermuda College which supplied power to the entire College and Coco Reef complex.

?As of the middle of July 2005, the utilities charge dispute between the College and Coco Reef , had still not been resolved, nor had any provision been made for separate metering two years after the lease was signed.

At this point, it?s not clear whether the College can accurately determine the current or previous cost of the utilities consumed by Coco Reef and therefore the taxpayer may never know the true cost of the subsidy to the Hotel,? he commented.

?In addition, we have to ask if the responsibilities are that clear, why have the utilities charges have been in dispute for over two years and why has the Hotel has taken so long to pay its share? ?It?s now time for both Mr. Jefferis and Senator Tannock to come clean and provide the taxpayer and the public with the full details rather than hiding behind incomplete information and inflammatory rhetoric.?