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Table of Contents CROWN LAND POLICY AND MANAGEMENT FOR THE TURKS AND CAICOS ISLANDS FINAL REPORT Presented by: KEVIN BARTHEL in association with TERRA INSTITUTE LTD. MAY 2005 UNDER CONTRACT TO THE DEPARTMENT FOR INTERNATIONAL DEVELOPMENT CONTRACT #ASU 0406 0275 0939 001 CROWN LAND POLICY AND MANAGEMENT FOR THE TURKS AND CAICOS ISLANDS MAY 2005 CONSULTANT TEAM CONSULTANT AFFILIATION ROLE IN STUDY TEAM Associate Study Coordinator/ Land Kevin Barthel Terra Institute Administration Specialist Mount Horeb, Wisconsin Director Lands and Surveys Tex Turnquest Commonwealth of The Bahamas Crown Land Specialist Nassau, Bahamas Chief Executive Officer Land Policy and Planning Dr. Dax Driver South Trinidad Chamber Commerce Specialist Port of Spain, Trinidad President Dr. Allan Williams ACT Consulting Land Economics Specialist Port of Spain, Trinidad GOVERNMENT APPOINTED CROWN LAND PANEL MEMBER AFFLIATION Mr. Ariel Misick (Chairman) Misick and Stanbrook Mr. Sandy Lightbourne Belize Bank (Turks and Caicos) Limited Mr. Ervin Quelch Morris, Cottingham & Co. Ltd. Mr. Wendell Swan Swan & Swan Mr. Oswald Williams Caribbean Environmental Design Associates NOTES Throughout the consultancy to date the Consultant Team has heard ‘Crown Land’ referred to as the ‘Heritage Asset of the People of the Turks and Caicos Islands’. We believe this terminology quickly and properly captures the importance of the resource. The Consultants have kept the goal of balancing the economic, social and environmental use of this ‘Asset’ as the guiding principle in this study and the presentation of the final recommendations. Any factual errors are the full responsibility of the Consultant Team. Data presented are best estimates based on the data sets provided to the Consultant Team. KEVIN BARTHEL TERRA INSTITUTE LTD. [email protected] www.terrainstituteusa.org 14785 Highway County F 10900 Stanfield Road PO Box #67 Blue Mounds, Wisconsin, USA Lakewood, Wisconsin USA 54138 53517 715-276-3025 608-767-3449 TABLE OF CONTENTS I SUMMARY OF RECOMMENDATIONS FOR CROWN LAND POLICY AND MANAGEMENT 4 A. Policy Recommendations 4 B. Legislative and Documentation Recommendations 9 C. Institutional Recommendations 11 II BASIC INFORMATION ON TURKS AND CAICOS ISLANDS 21 A. Historic and Geographic Overview 21 B. General Economic Information 23 C. Turks and Caicos Government Revenue Structure 25 D. Historic Description of Crown Land in Turks and Caicos Islands 25 III CROWN LAND STATISTICS AND THE ALLOCATION PROCESS 27 A. Crown Land Statistics 27 B. Crown Land Allocation Process 29 IV CURRENT CROWN LAND POLICY 38 A. Lack of understanding of Crown Land policy and process 43 B. Lack of legislation regulating allocation and management of Crown Land 43 C. Inability to monitor the effectiveness of the policy 43 D. Difficulty in implementing and administering the policy by TCIG agencies 44 E. Lack of access to information on Crown Land and its allocation 44 V DISCUSSION OF KEY RECOMMENATIONS TO IMPROVE THE ALLOCATION, PRICING AND 47 MANAGEMENT OF CROWN LAND A. Generating Predictable Revenues From Real Property 47 B. Make Crown Land for Large-Scale Commercial Development Available through Long-Term 48 Lease Agreement C. Ensure Land Use Planning Focus for Crown Land Management and Enforcement of Planning 51 Regulations D. Establish Crown Land Legislation and Regulations 52 E. Include Specific Performance Indicators and Reporting Mechanisms in the Crown Land 53 Legislation F. Establish a Statutory Body for Land Management and Administration 54 G. Put in-place Mechanisms for the Review, Advice and Appeal of Crown Land Allocations 55 H. Provide the Modern Land Information Services Expected by both the Belonger and Foreign 56 Investors I. Protect Significant Ecological or Historical Areas from Future Development 56 INDEX OF FIGURES AND TABLES Implementation of the Crown Land Policy Recommendations in the Short and TABLE 1 16 Medium Term FIGURE ONE Location and Map of Turks and Caicos Islands 22 TABLE 2 Basic Geographic Data of Turks and Caicos Islands 23 TABLE 3 Estimated Surface Area of Individual Islands 23 TABLE 4 Population Distribution by Island 24 FIGURE TWO Population by Island 1970- 2001 24 TABLE 5 Per Capita GDP Comparison of Selected Caribbean Countries 25 TABLE 6 Percentage Contribution to Gross Domestic Product 2002 25 TABLE 7 Top Five Revenue Items in Recurrent Revenues 1999-2001 26 TABLE 8 Registered Crown Land Leases 1999-2004 29 TABLE 9 Registrable Transactions 1999-2004 29 TABLE 10 Registered Crown Land Leases by Island 1999-2004 29 TABLE 11 Total Crown Land Parcels and Acreage by Island 30 TABLE 12 Alienated and Unalienated Crown Land Parcels and Acreage by Island 30 FIGURE THREE Process of Allocating Crown Land for Large-scale Commercial Projects 33 FIGURE FOUR Applcation Process for Lease of Residential Crown Parcel in a Subdivision 34 FIGURE FIVE Application Process for Lease of Residential Crown Parcel not in a Subdivision 35 FIGURE SIX Application Process for Lease of Commercial Crown Parcel in a Subdivision 36 FIGURE SEVEN Application Process for Transfer of Leasehold Crown Parcel to Freehold 37 FIGURE EIGHT Published Description of the Current Crown Land Policy 39 TABLE 13 Summary of Crown Land Policy Modifications of April 2004 40 TABLE 14 Current Rates on Crown Land Leases 46 TABLE 15 Measuring the Effectiveness of Crown Land Policy 54 INDEX OF ANNEXES Consultant Report – Driver; Social, Environmental and Economic Sustainability of the Crown I 58 Land Policy Consultant Report – Williams; A Brief Analysis of the Economic and Financial Aspects of Crown II 76 Land Policy and Management II Consultant Report – Turnquest; Crown Land Management 100 4 I. SUMMARY OF RECOMMENDATIONS FOR CROWN LAND POLICY AND MANAGEMENT IN THE TURKS AND CAICOS ISLANDS 1.1 The Crown is the largest landholder in the Turks and Caicos Islands. This makes Crown Lands the Government’s most valuable tangible asset, and places an obligation on Crown Land Policy and the government agencies responsible for Crown Land management to address both immediate and medium to long term planning prerequisites. The potential value of Crown Land as a whole has risen dramatically over recent years and this increase is likely to continue over the next five to ten years. It is important that the policy, administrative rules and standard practice concerning Crown Land allocation, pricing and management, which have been evolving over the years, be consistent with addressing the investment needs of economic and social development and provide long-term benefit to Belongers, both in terms of increasing their role in commercial land development and helping them gain access to land for residential use. 1.2 The general objective of the Consultancy Team was to examine current Crown land policy and practice, working together with the Government Appointed Panel to gather wide views from government agencies, land professionals and other stakeholders and to produce recommendations for a future comprehensive approach which maximizes sustainable revenues from Crown Land, takes account of competing economic, social and environmental factors, benefits the long term economic and social interests of the Belonger Community and ensures transparency and openness in the administration of Crown land 1.3 As has been repeated numerous times to the Consultant Team, ‘the Government of the Turks and Caicos Islands has a Crown Land Policy’. This has never been in question. The stated goal of using Crown Land to empower Belongers to play an active role in the ongoing economic and social development of the Islands seems quite practical. However, it is felt that the current policy, which has its origin in the mid-1990’s, now requires ‘modernization’ in substance to be fully responsive to the current land-based development pressures on this ‘Heritage Asset’. 1.4 Equally important is ensuring the consistent and measurable implementation of the ‘modernized’ policy. As a result of various Executive Council decisions and altered practices over the years, the written documentation guiding the application of the policy is not cohesive and in many cases is obsolete. Crown Land allocations fall into three main categories, these are; (i) residential; (ii) small-scale commercial; and (iii) large- scale commercial. Oftentimes the rules and procedures for these three categories become muddled in practice which in turn casts uncertainty on the process and opens the way for charges of cronyism, favoritism and corruption. Therefore, formal documentation comprising a full policy statement, supporting legislation, administrative procedures and operational manuals are required to ensure the implementation of an open, transparent and accountable process. 5 1.5 A brief summary of the seventeen main recommendations of the Consultant Team is presented as follows. These recommendations are grouped into three categories: (1) policy; (2) legislative and documentation; and (3) institutional. 1.6 The Crown Land Policy is not readily understood by government agencies, private sector stakeholders or the public at large. Therefore, as a general recommendation, the Government should take the necessary steps to increase public awareness and seek public reaction to Crown Land Policy and issues. This should be done by convening a series of ‘Town Hall Meetings’ in the islands to disseminate information on the existing Crown Land policy, gather stakeholders’ opinions to the policy in general and to present some of the Consultant’s recommendations for improving the management of Crown Land. The opinions gathered during these meetings should then be taken into consideration in the preparation of the ‘modernized’ Crown Land Policy. Given the development pressures on Crown Land in Grand Turk, Providenciales and North Caicos, Public Meetings should be held on these three islands. The Belonger Panel should play the primary role in these meetings supported, as required on a technical and operational basis by the Consultant Team and heads of Government agencies. A. Policy Recommendations 1.7 REVENUE GENERATION THROUGH SALE OF CROWN LAND FOR COMMERICAL PURSPOSES: The outright sale of Crown Land for large-scale commercial developments to finance the capital budget is not a sustainable long-term revenue strategy.
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