CASTRIES, St. Lucia--After admitting in April that a planned 180-room Ritz Carlton resort development in St. Lucia’s Black Bay had been delayed due to “administrative difficulties,” St. Lucia’s Prime Minister Allen Chastanet must now return tens of millions of dollars invested by the developer or face a massive lawsuit.
“It was all our responsibility. I take full responsibility for it, but I believe that we’re well on the way to turning this thing around and being able to recommence this project,” Chastanet said, adding that he hoped to re-engage the developers, Range Developments, in July to “re-start the project.”
According to Chastanet, a discount in the financial contribution required for the St. Lucia citizenship by investment (CBI) programme, as well as inadequate clarity about real estate investment requirements had “left investors on the fence” and caused delays to the development plan.
He also emphasised that the developers were not to blame for the delay.
“I really want to thank Range, in particular, for how they’ve handled the situation,” Chastanet said.
The agreement for the development, which was to consist of a Ritz Carlton-branded hotel and villas set on 180 acres, was signed in St. Lucia on August 3, 2017.
The project was due to be developed in a number of phases under St. Lucia’s CBI programme.
However, it now appears that the prospect of Range Developments reviving the project is unlikely as the company has in the meantime embarked on a new project to bring the Six Senses brand to St. Kitts and Nevis, also financed by that country’s CBI programme.
Chastanet has until mid-July to return the money already invested in purchasing the land, design cost and other development expenses, but has in the meantime commented publicly that he has other developers interested in the property, which may well lead to additional allegations of bad faith and aggravated damages on the part of the St. Lucia government.
Chastanet is also facing questions about the involvement of China-based Caribbean Galaxy Estate Corporation in a recently signed agreement for a resort project at Cannelles, Vieux Fort, amid reports of long-delayed completion of a “five-star” Ramada resort development in St. Kitts.
A Caribbean Galaxy executive recently assured attendees at an investment conference in St. Kitts that the project, which was started in 2014, would be completed by December this year but, according to construction professionals, that will be impossible given the current progress, or lack thereof.
According to Chastanet, he has received a report from St. Kitts that the Ramada project is “far advanced” after four years of construction.
Meanwhile, the former head of St. Lucia’s Citizenship by Investment Unit, now an elected opposition Member of Parliament, Dr. Ernest Hilaire has called on Chastanet to account for how money received from the CIP is being spent.
According to Hilaire, all qualified investments under the CIP are supposed to go into the St. Lucia Economic Fund.
“The prime minister is supposed to come to Parliament indicating how he is going to use those monies and for Parliament to give approval,” Hilaire told reporters on Monday, noting that Parliament has never been informed, either in this year’s budget or last, how those monies were used.
He asked whether the CIP monies are being used to fund recurrent expenditure.
“If so, say so and come to Parliament for approval to do so,” he said. ~ Caribbean News Now! ~
