Herbert V Kohler Jr, the president of the Kohler company, told the press in Milwaukee that, while it is true his company has been exploring the possibility of purchasing a golf resort in the Dominican Republic, the probability of this going through is only 5 to 10%. Kohler called the newspaper from the Dominican Republic, to where he traveled last week, to clarify the advance information given by the Dominican government source.
Deputy Minister of the Central Bank Felix Calvo had announced that Kohler Co would purchase the resort for an estimated US$43 million, including US$24 million in cash upfront. Kohler said these numbers came from a letter of interest the company presented to participate in the auction of the property. “They’re preliminary numbers,” said Kohler. “They’re put in there as a benchmark, and then you negotiate.”
In the interview with the Milwaukee Journal Sentinel newspaper, Kohler said that while the layout of Playa Grande is spectacular, the course has fallen into disrepair. He also mentioned the many rainstorms that affect the North Coast, the roads he says would have to be built, and what he called the ?obsolete hotel? that must be removed.
Furthermore, he said the government would like to move fast on the deal to gain points for the election. ?They?re trying to get this done before the election,? he told the newspaper. ?They?re doing every conceivable thing to convince the people of the Dominican Republic that they?re fiscally responsible,? he is quoted by the newspaper as saying, while simultaneously noting that the country?s economy is in poor shape.
In a related story in El Caribe today, former Central Bank director of tourism infrastructure in the north coast (INFRATUR), Fernando Rainieri says that the US$43 million price tag is an advantageous deal for the investors because in 1993 the property was independently appraised at US$35-US$42 million and that was before the Central Bank poured another US$25 million to build infrastructure and the Robert Trent Jones golf course. Rainieri stated that the Kohler involvement would be a plus for the country if the investors go ahead and develop the full potential of the Playa Grande area that has been dormant for over 15 years.