Called Omagine, the would-be development is designed as a collage of cultural, heritage, educational, entertainment and residential components. The centerpiece is a "high culture" theme park containing seven pearl shaped buildings--each approximately 60 feet in diameter--and associated exhibition buildings.

Surrounding components include a five-star resort hotel; a four-star hotel; a boardwalk; an open air amphitheater and stage; a canal and enclosed harbor area; boat slips; commercial office buildings; shopping and retail establishments; restaurants; a 2,000-unit residential component; and open space.

All projects except the theme park would be owned by a company whose majority owner would be Journey of Light and whose minority owner would be the Ministry of Tourism of Oman, which would donate the aforementioned land to the joint venture. The theme park--the more commercially risky piece of the project but one that the government wants to tightly control--would be placed in a separate company where in the majority and minority positions would be reversed.

Alfa International closed on its acquisition of Journey of Light in October 2005. The acquisition was contingent upon the memorandum of understanding with the Omani Government, which was inked in August 2005. The development agreement negotiations follow a formal presentation to the Omani Government of the initial master plan and feasibility report for the project. Publicly held Michael Baker Jr. Inc. of Pittsburgh assisted in the process.

Alfa president Frank Drohan told GlobeSt.com in August that the residential component of the project "is providing the financial viability" and that additional residential land would be provided by the Ministry of Tourism as is necessary to meet the project's minimum required financial returns as specified in the MOU. Drohan could not reveal the minimum required financial return due to a confidentiality agreement, but did say the total return on investment is expected to be in the high teens.

With the assistance of AmeriCapital Renaissance Group LLC , with which JOL has a financial advisory services agreement, JOL is in discussions with several banks, and prospective investors, partners, contractors and hotel operators regarding the structure and placement of the necessary construction financing as well as the ongoing financing arrangements of the Omagine project.

Instant Insights /

UPDATE: Alfa International Negotiating $1B Development With Omani Government

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