Developer claims US $3 m
from EDC for ‘rejected bid’
~ EDC says there was no bidding ~
POINTE BLANCHE--The vacant land adjoining Dr. A.C. Wathey Cruise and Cargo Facilities is once again embroiled in controversy as a developer claims US $3 million in damages for “a rejected bid” to construct a resort and casino on the property.
SWFLSP Caribbean LLC/St. Germaine Development Company N.V., represented locally by Jerry Sardine, informed the government owned Economic Development Corporation (EDC)/Waterside Development Corporation (WDC) via a lawyer’s letter that the corporations have seven days as of March 29 to accept the responsibility for the damages. The corporations are also requested to deliver copies of two letters it supposedly sent to the developer regarding the project that were never delivered.
In a letter from ZwanikkenSnowEssed Attorneys-at-Law, the developer claimed it submitted a bid to construct a project called Ocean View Resort and Casino (a venture reported in this newspaper on February 9) and adjusted the project, at a considerable cost, when the amount of land available was scaled back.
However, the government owned corporations’ representative Joe Richardson rejected the claim for damages. He told The Daily Herald the corporations never had invited bids but received unsolicited development proposals from 18 companies that were interested in the property amongst which was this company.
All proposals were evaluated and five were chosen to make presentations to the corporations’ board. Four of the selected five made presentations and were graded and awarded points by board members via a secret ballot. Negotiations were started between St. Maarten Ports Authorities (SMPA) and the top ranking company.
SMPA was brought into the picture as EDC/WDC board felt it did not have the expertises for such a large project, Richardson said. As any development on the land would have to benefit and complement the cruise industry. Richardson said after consultations with SMPA it was decided to hand over the project.
However, in the attorney’s letter, the company claims that Richardson started a bidding process and was informed that it was one of two candidates left vying for the project. The other candidate was Royal Caribbean Cruise Lines.
Upon receiving information that RCCL had supposedly withdrawn its offer, SWFLSP Caribbean LLC/St. Germaine Development was under the impression it was the only one left and thus would be granted the job.
The developer learnt from the EDC/WDC March 28 letter that the development was handed over to a party referred to as “cruise” which was not part of the selection process.
“Cruise” refers to SMPA which is now charged with handling negotiations for the development of the land and not a new company offering a proposal, according to Richardson.
This is not the first time the EDC land has been caught up in a muddle. It was at the centre of the heavily protested against and now scrapped dolphinarium project.
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