Demolition of 1980s resort Lacovia slated for July

One of the oldest condo complexes on Seven Mile Beach, Lacovia, is likely to be demolished in July, the contractor has said, to make way for a $263 million 10-storey luxury resort.

Plans to replace the quaint 1980s property set on 4.5 acres of beachfront land with three modern buildings, 13 pools and an underground garage have been in place for three years.

But staffing, supply, cost and logistics issues due to the COVID-19 pandemic and the Russia-Ukraine war led to a lengthy delay in progress, developers told the Compass.

Now all of the necessary preconditions are in place to start work on the four-year build, including a conditional commitment for construction financing and a construction contract.

The next step is for the 55 current condo owners to formally authorise the redevelopment under the terms of the new financing – a process expected to take place within a few weeks.

They will then have a “short period” to vacate their units before the property is handed over to the Canadian contractor, JV Driver, which will begin demolition soon afterwards.

Controversy

Bronte Development was granted planning permission to knock down the 55-unit low-rise complex and develop a multi-pool, 96-unit, three building resort in January 2020.

The plans for the new build did not come without contention, however, with irate residents of neighbouring properties submitting objections ahead of the planning meeting.

One homeowner said it would bring a “large influx of people” to the area and expressed concerns about additional rubbish, noise and environmental impact on the ocean.

Another objector said the build is “way out of proportion” with other properties on that stretch of beach and expressed fears that the small coral reef nearby could be destroyed.

In response, the developers denied the project is mismatched and said rather than an overdevelopment, the proposed plans are of an underdevelopment of the site.

They said it “meets or exceeds and certainly complies with” all the applicable requirements and that it is the “least obstructive” development type in the zone.

Also voicing concerns was the Department of Environment which said the site is on a loggerhead and green sea turtle nesting beach, about 260 foot from critical habitat.

As a result, the developers have agreed to install turtle-friendly lighting, allow for checking for turtle nests and not do any construction work on the beach during nesting season.

History

The beachfront site in Grand Cayman, former home to the Beach Club resort, was redeveloped as Lacovia in the early 1980s.

“Like many older properties on Seven Mile Beach, the buildings are now showing their age,” Bronte Development told the Compass.

They are “in need of a significant capital investment to effect repairs to ensure the property is resilient to both the coastal environment and major hurricanes”, the developers added.

The owners considered refurbishing the existing buildings but this presented challenges – not least how to protect lower floors from the threat of hurricane flooding.

“A renovation would have involved closing the complex completely for up to two years, and every owner contributing proportionately to the capital investment,” the developers said.

Instead, the owners decided to redevelop the site with new buildings better designed to withstand a hurricane and to maximise its prime location.

Bronte Development was chosen as the preferred developer in 2019 and architects prepared site plans and submitted the planning application for approval in January 2020.

Delays

When the COVID-19 pandemic hit, Cayman was locked down for many months making it impossible to progress many aspects of the project, the developers told the Compass.

“Post-lockdown the resultant volatile markets triggered severely restricted global supply chains,” they added.

“This led to a surge in prices of construction material, and a shortage in labour.”

As a result, the original financing structure put in place to redevelop Lacovia was no longer commercially viable.

In February 2022, when Russia invaded Ukraine, severe inflation was triggered, “again causing a spike in building materials and shipping”, Bronte Development said.

During these “turbulent times”, Bronte and the Lacovia Executive Committee focused on completing the construction drawings to a very high level of detail.

This allowed the preferred contractor, JV Driver, to price the redevelopment project with certainty. JV Driver, through its local subsidiary IP Driver, will carry out the build.

Sales

The new development has had an “unprecedented level of pre-construction sales”, said Kim Lund of RE/MAX Cayman Islands, with only 18 units remaining.

Stefan Cohen of The Agency added: “With a limited number of units left available, we expect prices to steadily climb after ground-breaking and throughout construction.”

Cohen said that alongside its unbeatable location, the resort showcases remarkable architectural design, refined interior aesthetics, and impeccable high-end finishes.

“Further, Lacovia’s short-term rental programme offers investors an outstanding income producing opportunity,” he said.