US$25M investment stalled…City businessman appeals for Govt intervention

Nov 05, 2016 News

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A city businessman is appealing to Government for help over a running battle with a seven-

storey construction on Camp and Robb Street.
The property being developed by RNK Investment Limited is owned by businessman, Rizwan Khan. It has been stalled for several months now with the Central Housing and Planning Authority (CH&PA) halting works on the grounds that it is not convinced that the foundation is safe and could take the weight.
However, the businessman has been given the clear by independent engineer, Caribbean Engineering and Management Consultants Inc (CEMCO). Approval has also been granted by the City Engineer and the Mayor and City Councillors of Guyana.
CH&PA has been granted an injunction blocking further construction with the businessman. Yesterday, Khan said that he is mystified by the stance of the entity and that his lawyers are moving to discharge the injunction.
According to Khan, with a foreign investor willing to take up the place, the entire project is now in jeopardy.
“We have over US$25M stalled because of the hold-up. CH&PA is delaying with this project. We have been cleared by an independent, respectable engineer who does Government work, and by the Town Clerk himself.” Yesterday, he said that he and the Council have no problems with the construction. According to the businessman, the property is supposed to provide employment for over 7,000 workers, on a shift basis, and bring in over US$60M annually from revenues to pay the employments and other benefits.
“We owe the bank. We have to pay interests. There are no revenues coming in. There is over $80M in materials lying in the premises that are exposed to the elements. We have scaffolds erected on the building that the longer it stays, the more danger it poses to citizens. I have been investing for years in Guyana. I am not sure what else to do now.”

Khan and his company had been granted temporary permission in the initial stages.
Khan had told Kaieteur News that over three years ago, RNK had applied for the building plan for six storeys and when a fire struck the building last year July, the plan was at CH&PA awaiting approval.
”We went to CH&PA and said that we wanted the plan changed from six to seven storeys and the CH&PA told us that we cannot take the plan out of the system and that we have to do an amendment for the additional floor. This we did in September last year.
“The plan has been there over ten months, so it’s not like we wake up the next morning and said that we wanted an additional floor.”
Prior to the injunction, CH&PA sent a “Letter of Refusal” dated July 19, 2016 to RNK Investments outlining several reasons for refusal. One of these is that the additional floor will lead to deformation of the existing building skyline, thus rendering the development incompatible.
Khan said that he submitted a letter to CH&PA making references to several buildings in Georgetown that are as high as, or higher than the buildings located around them. He listed the Marriott Hotel, Pegasus Hotel, Bank of Guyana, St. George’s Cathedral, City Hall and Gravity Lounge, amongst others.
Another reason for not granting approval was due to the absence of verifiable construction details and that the structural integrity of the building would be compromised beyond six storeys, the report stated.
Khan had explained that though the initial plan catered for six storeys, the foundation was done to cater to accommodate the seventh floor because of the request he had submitted three years ago.
He further stated that a structural analysis of the building was done by Pitt Incorporated and a Structural and Geo-technical Assessment, by the Caribbean Engineering and Management Consultants (CEMCO). Both reports showed that the building can accommodate the additional floor.
After CH&PA issued the refusal letter, one in response to the refusal points was sent to the CH&PA and Town Clerk, Mayor of Georgetown and the City Engineer for a review of the disapproved plan for the seventh floor, at the end of July 2016, Khan stated. This was accompanied by copies of the structural analysis of the building,
CH&PA never responded to the request for review despite the fact that several attempts were made to have dialogue with the authority, Khan said.
On August 24, 2016, Khan received a letter from the Town Clerk, Royston King, which stated that the M&CC during a Statutory Meeting which was held on August 22, 2016, considered the works that were ongoing at the structure – located at Robb and Camp Streets – and gave its no objection to the addition of that extra storey.
Khan had said that the M&CC gave its no objection and claims to be the entity with the power to grant the approval.
The CH&PA, on the other hand, moved and filed an injunction barring the construction of the additional floor declaring it illegal; citing that the defendant is in contravention of the Town and Country Planning Act, Chapter 20:01 of the Laws of Guyana.
Because of this predicament, Khan said he has found himself between a rock and a hard place, since commitments have been made to a foreign investor who has already expressed interest to rent the third, fourth, fifth, six and seventh floor (for the lunchroom) for the purpose of establishing a call centre.
Khan said that he has made appeals to several Government officials, but in vain.
CH&PA has refused to budge.
Contacted Thursday, CH&PA’s Chairman, Hamilton Green, said he is aware of the matter but that the clearance by the independent engineer, CEMCO, is inconsistent with the report submitted to CH&PA on the capacity of the foundation to take seven storeys.
However, CEMCO’s letter, dated October 31st, to CH&PA made it clear that the foundation system, columns and slabs and beams were adequate to support the seven floors.

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