~ Says Govt will 'tackle bull by the horns' ~
PHILIPSBURG--A solution is in the pipeline to resolve pending issues regarding letters of comfort given to The Westin St. Maarten Dawn Beach Resort and Spa (in 2005) and Sonesta Maho Beach Resort (in 2003), Leader of Government William Marlin confirmed Thursday.
Marlin told The Daily Herald that the Executive Council had agreed at its meeting on Tuesday to send a proposal to its "advisors" and "technical people" to work out the details.
He said he had tabled the proposal to the council with a view to bringing an end to the long-standing issues that had dragged on for years. Marlin said he had always favoured an early solution, and had tabled the proposal in that context.
He explained that this issue had been going "back and forth" over the past seven years without being addressed, and "this Executive Council, which took office just over eight months ago, has decided to tackle the bull by the horns and look for a solution to this long, drawn-out saga."
"A definite solution is needed because the manner the former DP-led government dealt with both the Sonesta Maho and Westin, is no good example of how a government should deal with investors," he noted.
The relevant departments are expected to give an answer on the matter in about two weeks, Marlin said, just before boarding a flight to Tallahassee, Florida, where he is expected to officially open the St. Maarten-Tallahassee Foundation office.
The former Democratic Party (DP) government had issued letters of comfort to the Westin and to Sonesta Maho signalling its intention to amend the Room Tax Island Ordinance to offer both resorts a waiver of their room taxes.
In the letters the former government had said if the ordinance was not amended by a certain date, it would partially waive certain fees payable by the resort for a period of time. However, the ordinance was never amended.
"The matter was again brought up in Tuesday's Executive Council meeting and the Executive Council agreed to a proposed solution which is now being worked out by the departments and in two weeks we should have a final proposal for a solution to this long dragged out saga," Marlin said.
"It is clear that there was no willingness on the part of the previous Executive Council to honour the draft agreement it sent to Maho seven years ago, and the letter of comfort issued to Westin almost five years ago. If there was any intention ... to honour them, they had ample time to do so," he said.
"To now try to create the impression that it is the present Executive Council that doesn't want to solve the problem is nothing more than old, cheap politics that doesn't work anymore.
"This has been hanging around for the last seven years, and the government that signed it indicated that it was willing honour it. It created the impression, both to Westin and Maho, that it was going to honour its side of the draft agreement and the letter of comfort, and it did not.
"Members of the former government are now creating the impression that this government is unwilling to carry it out," Marlin said stressing that this is not the case.
The Island Receiver is currently attempting to recoup years of unpaid room taxes from Westin and Maho. As the ordinance was never amended, the hotel properties are obliged by law to pay the outstanding taxes. Maho has reportedly paid a part of the outstanding tax, but is seeking an audience with Government to discuss the issue.
Westin and Government are in a legal fight over the resort's outstanding taxes. That case is expected to be heard in a month.
The comfort letters recognised that substantial investments would be necessary in order to acquire an international hotel chain franchise.
