Chief Minister says financial situation improving
ANGUILLA--Viceroy Resort has been sold to international hoteliers Starwood Capital, Chief Minister Hubert Hughes announced at his weekly press conference Tuesday.
Hughes described Starwood as true hoteliers who will enhance the project. A memorandum of understanding was reportedly signed on Tuesday, but Hughes said it will have to be taken to the House of Assembly before finalisation.
The US $500 million property was sold by Citibank which had taken it over on its completion because the owners had not completed payments. The new memorandum will include five per cent stamp duty, eight per cent alien land holding licence and a one per cent transfer fee. The transfer fee will amount to some US $40 million for the Anguilla Treasury.
Starwood has also agreed that the villas that are for sale will go into the rental pool and a nine per cent alien land holding licence will be applied to these villas.
Starwood which is planning to put US $16 million into the project this year is also planning to build a conference centre as well as volleyball and a basketball courts on the property.
The Chief Minister said this development should be seen as the first step in the process of recovery for the island's financial position. "This Government will not continue to give away revenue. A meaningful, responsible approach has started," he said.
Parliamentary Secretary Haydn Hughes, who is responsible for tourism was also at the Chief Minister's Press Conference. He said Cap Juluca owes the Government about EC $3 million in accommodation tax and for the land lease. Hughes said this money has to be paid or else action will be taken.
Haydn Hughes said there is a lot of interest in the Temenos project and he was confident it will be taken over soon and the island's financial situation will turn around. It is to be primarily a hotel project as there is no financing available any more for real estate projects, he noted.
This year Anguilla will not be represented at the World Travel Market in the UK "as there is only necessary travel for this administration," Hughes commented.
The Chief Minister spoke about the appointment of new members to boards saying that his Government did not like the way that boards were appointed or operated previously. He said that in their campaign the Anguilla United Movement said they would re-construct the boards and that is what they are doing. In regard to the Board of Anglec he said there is an injunction before the court so he could not speak on that but he said Anguillans pay the highest electricity rates in the Caribbean and he is going to fight to lower the rates.
Speaking on alternative energy, Haydn said the Government is very interested in this and concessions will be available for persons bringing in equipment.
The Chief Minister said the financial situation is improving as the Government is taking all measures to improve the collection of revenue and encouraging new investment. He spoke of a project at Cinnamon Reef that is proposed and an Environmental Impact Assessment is currently being carried out. He said it is an ideal place for a marina and he hopes a meaningful project will evolve from a French developer who also wants to encourage boat building and yacht repairs in that area.
Hughes continued his remarks made at a previous press conference about the civil servants saying that the island has an archaic system as the government pays the civil servants but has no control over them. He said they have no regard for the Ministers of Government and the situation will have to be dealt with.
He plans to meet with the Overseas Territories Minister Henry Bellingham, in London to raise some of the problems he is facing and this is to be arranged in the near future.
