In this 1993 file photo, Senator Barclay Ewart (stooping), one of several officials, plants a tree during the launch of the Jamaica Orange Company Limited in Shettlewood, Hanover, on February 11. Senator Ewart opted for the use of a trowel instead of a fork to carry out the task. The man standing at right is unidentified. - File

The Development Bank of Jamaica (DBJ) has shortlisted two investors who have bid for 3,000 acres of agricultural lands on which the former Jamaica Orange Company once operated a citrus orchard that failed.

The property, which borders Montpelier, St James, and Shettlewood in Hanover, was once the location of the largest single block of orange plantation in Jamaica.

The DBJ says its sale will be finalised by March.

The development bank initially got eight offers to buy the property which was advertised for sale mid-2008.

"DBJ is considering proposals submitted from two parties, as the others were either non-responsive or did not pass the due-diligence process," said the bank.

The lands and farm once belonged originally to Jamaica Orange Company, an operation controlled by National Commercial Bank (NCB).

The Agricultural Development Bank - which in 2000 merged with the National Development of Jamaica to form the DBJ - bought the property in 1999 for $250 million from NCB after the business had failed.

not a good strategic fit

At the time, the lands were one-sixth the value of the commercial bank's agriculture portfolio.

The lands were held by the development bank under a company called Montpelier Citrus Company Limited (MCC)

Shortly after putting the property on the market last year, the DBJ told Sunday Business it was divesting the land because MCC was not a good strategic fit with the bank and that its sale would "realise funds to enable the GOJ to achieve its economic agenda".

A team comprising MCC board members and the DBJ is handling the divestment.

While declining comment on the value of the property, the DBJ said two valuations had been commissioned and would be used as a guide in the negotiations.

The successful buyer will have to adhere to developing the land according to the purpose for which it is zoned, said the DBJ.

"The land is zoned for specific purposes and changes would have to be approved by the GOJ," it said.

That response leaves questions as to whether the investor will be tied to using the land for agricultural purposes only.

The DBJ said further this week that the buyer must prove adequate levels of financing to develop the property commercially for productive purposes and create employment.

The developer has five years to roll out his or her development plan in accordance with environmental standards and planning regulations.

dionne.rose@gleanerjm.com