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BLDC tenant withheld rent after Hurricane Fabian damage

Liz Mayne of Big Savings Zone.

A Bermuda Land Development Company tenant deliberately withheld its rent because the company delayed repairs to buildings damaged by Hurricane Fabian and then dragged its feet over compensating the business for its losses.Furniture store Big Savings Zone became BLDC’s second tenant at Southside when it moved into the area in 2001. Two years later, Hurricane Fabian hit, causing extensive roof damage to a number of buildings.But BLDC took at least another two years to repair the buildings, and another five years before the company negotiated a settlement with their tenant to compensate them for their losses.“The buildings just weren’t being fixed,” said Liz Mayne, who owns the business with her husband Alan.“Our only leverage, as with a lot of the other guys, was to withhold the rent until they fixed the buildings.”Said Mr Mayne: “We had complained and complained. We would come in in the mornings and the computers were shorted out because of water in the building. Merchandise was just soaked up with water which we had to discard.”Big Savings Zone lost $120,000 worth of merchandise, primarily to water damage, until the buildings were finally repaired, according to the owners.“And after complaining and complaining we said they’re not doing to do anything about it, so we’re just going to withhold the rent and if we withhold it long enough, sooner or later somebody’s going to do something about it,” Mr Mayne continued.The couple explained that they wrote numerous letters, got a lawyer involved and had numerous meetings with the management seeking a settlement which led nowhere.“This wasn’t a matter of we owe the money and refused to pay them,” said Mrs Mayne.“It was never a situation like that. By August of 2010 what we owed them, we paid.”The couple decided to speak out after reading this newspaper’s report of former BLDC chairman Ed Saunders’ submission to the Public Accounts Committee.Mr Saunders and his former deputy chairman, Leroy Bean, are under fire for a consultancy arrangement with BLDC while they were still its directors.Auditor General Heather Jacobs Matthews called it a “fundamental conflict of interest” and the PAC has already grilled the pair on the matter.Mr Saunders’ submission says that he and Mr Bean were particularly concerned about the size of the receivables and that some debts had been allowed to accumulate for a number of years.It lists groups of companies and their collective debt an unfortunate choice of word which this newspaper quoted as written by Mr Saunders, had some readers thinking that Big Savings Zone owed more than $1 million to BLDC.In fact, the Maynes showed us documentary evidence that the actual debt was far less than $1 million.When BLDC finally agreed to a settlement amount, the Maynes paid the difference within four months, she said.“We do not owe BLDC anything at this point,” said Mrs Mayne, except the current month’s rent which they pay in arrears.“It’s just unfair how all the businesses down here have been attacked by this man to try and deflect from himself.”And she criticised Mr Saunders for listing the names of the company’s debtors in his submission.“If you’re going to speak, then speak all of the facts. Not what you’re trying to say to make yourself look good because one has nothing to do with the other. Whatever any tenant down here owed or still owes, BLDC is nothing to do with the current issues of what Mr Saunders and Mr Bean are being interrogated about.“So why he wants to muddy everybody else’s name is beyond me. A blind man can see what he’s trying to do.”She added: “What he has done by raising everybody’s name is unscrupulous as far as I am concerned.”Mr Saunders was off the Island and could not be contacted for comment.