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| the area for the massive tourism development on the South East Peninusla |
BASSETERRE, ST. KITTS, MAY 31ST 2006 - The St. Kitts and Nevis Federal Assembly has approved the Federal Government's acquisition of 852 acres of land for public purpose - the construction of a five-star tourism development on St. Kitts' virgin and pristine South East Peninsula.
St. Kitts and Nevis' Prime Minister and Minister of Tourism, Hon. Dr. Denzil L. Douglas told Parliament that his Labour Party Administration has been focusing on tourism and in particular "up-market" tourism as the main industry and foreign exchange earner for the island, but that this strategy has been further intensified with the closure of the sugar industry in July last year.
He said St. Kitts and Nevis is now targeting up-market tourism as it provides more potential for the development of spin off businesses on the island.
"It provides more jobs with better wages and salaries without the need for large numbers of hotel rooms and therefore brings a lot
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| the area for the massive tourism development on the South East Peninusla |
more revenue to the island without the huge environmental impact caused by large hotels," said Dr. Douglas.
Government and a United States company, Auberge Firesky Ltd. in April 2005, signed an agreement for the development of nearly 1700 acres on the South East Peninsula into a World Class 5-star Resort destination with hotels, a mega-yacht marina, an 18-hole championship golf course, several spas and residential communities.
"The development has already brought considerable recognition and branding of St. Kitts and has begun to generate huge amounts of economic activity on the island. Approximately 852 acres of land at Major's Bay has been earmarked for the development of one of the 5-star hotels and also for the development of a large part of the golf course, said Prime Minister Douglas.
He said that 852 acres of land is presently the subject of an on-going Court battle with the present owner or owners of the land being sued for damages arising from breach of a previous contract to sell this area of land.
"The plaintiff in the suit is not seeking specific performance of the contract but wishes to be compensated for costs incurred and loss as a result of the breach of the previous contract to sell. This matter has been before the Eastern Caribbean Supreme Court for many, many years and the land has been subject to an injunction pending the outcome of the case in order to ensure that the plaintiff would be able to obtain compensation if he is successful in the matter," said Dr. Douglas.
He said the inordinate delay in resolving the Court case is now at the point of hindering the development of the South East Peninsula and may also cause the withdrawal of the commitment of the 5-star hotel that is slated for construction on the Major's Bay site.
"After discussion with all the parties, the Government is taking the initiative to acquire the said lands from the owner and will pay to the owner or owners of the said land, the compensation that is equivalent to the current market value of the land. However, so as not to interfere with the course of justice in this country, this compensation for the lands will be held in an escrow account pending the final judgment in the matter currently before the Court. At that time, the sum, if any, awarded to the plaintiff will be paid to the plaintiff and the balance of the compensation for the acquisition will be paid to the owner or owners of the lands who are the defendants in the ongoing Court matter," explained Prime Minister Douglas.
"If we did not have this arrangement put before us, Government would not have moved to acquire. And so with all parties in agreement, this necessary action is being taken by the Federal Government," Dr. Douglas told Parliament.
Dr. Douglas said that the land will be transferred to Auberge Firesky Ltd. for the development of the 5-star hotel and golf course forthwith.
He said that to protect the interests of St. Kitts and Nevis and its people, "there will be strict terms and conditions of transfer for the commencement of development of this area of land within a specific period of time to ensure that the people of this country begin to reap the benefits of the development as quickly as possible."
Prime Minister Douglas said it is the firm belief of his Government that this is the most equitable way forward and that the interests of all the parties the plaintiff, the defendants and most of all the people of this country, that their interests are best served by this course of action which is before this Honourable House.
"It is the Government's role and in fact, it is this Government's duty to take the most appropriate form of action for the benefit of the country as a whole and the acquisition of this approximately 852 acres of land at Major's Bay on the South East Peninsula, in the parish of St. George, in the Island of St. Christopher or St. Kitts, is for the benefit of the whole island and indeed the entire Federation," said Prime Minister Douglas.
He said that the "public purpose" for which this land is being acquired cannot be disputed when one examines the huge benefits to the economic growth of the country, the great assistance that would be provided with the transition from sugar to tourism, the branding and recognition that would be brought to the island of St. Kitts and finally the large number of well-paying jobs and salaries and human resource development that would be provided for the people once the hotel, the golf course and other components of the resort have been developed.
Prime Minister Douglas said that the entire development, which is expected to start later this year, is a 20-year project that will provide employment in the construction industry for a long time to come.
