Statia Govt to meet with
potential major developer
ST. EUSTATIUS--Later this month, there will be a private meeting of the Island Government with a developer interested in constructing a “top-of-the-line” resort and golf course at the Venus Bay and Zeelandia valleys on the island.
Because of confidentiality guarantees, St. Eustatius Business Association (STEBA) Executive Director Koos Sneek would not reveal the name of the developer. However, he did say that this person’s (or group’s) development plan is in accordance with the view that the impact on the environment in the area should be minimised.
If the talks go as hoped, government and the developer will be negotiating a Letter of Intent (LOI) toward the construction of a 150-unit to 250-unit five-star resort, together with an 18-hole golf course and associated amenities, such as restaurants, conference rooms, tennis courts, health spa, and beach.
According to Sneek, the golf course resort project is one that has been in the works for a number of years. STEBA has been promoting the idea through trade missions and networking since 2004.
In 2005, a feasibility study was conducted by two students of the University of Twente in the Netherlands, which determined that the project could become profitable by the third year of operation.
A further “Strategic Impact Assessment” was conducted in 2006. It was determined that, although there would certainly be impacts on the social, cultural, and environmental aspects of life on the island, the positive factors, including such things as employment, infrastructure, and economic improvements for the people, would outweigh any negative factors.
Sneek considers it very important that consideration is given to the impact of development. “A number of people are opposed to development because they enjoy the laid-back, slow pace of life on Statia. However, the down side is there is almost no employment for locals, especially those who have obtained advanced educations in Holland or the United States. This results in a ‘brain drain’ of capable people and in an island that cannot support itself and cannot develop its infrastructure because the population base is too small,” he said.
However, the Government wants to ensure that Statia’s natural treasures will be preserved. These include flora and fauna, such as the Statia Morning Glory and the native Iguana, and archaeological ruins from the colonial era.
For this reason, representatives from St. Eustatius National Parks (STENAPA) and St. Eustatius Center for Archaeological Research (SECAR) are being included in the development team.
Sneek believes that the resort can be designed so that archaeological ruins are incorporated as an attraction. He also will insist on zero-impact landscaping, so that no foreign plant species are introduced. “If the developer is not in tune with this approach, we will look for another developer,” he said.
There are many problems that must be solved before a project such as this can be successful. Systems for the production of water, electricity, and disposal of garbage must be put in place. In addition, many aspects of the infrastructure need improvement. Sneek mentioned the airport, the harbour, roads, taxis, rental cars, and air service, among other things. He believes that, once construction starts on the resort, the needed amenities will follow.
He cited similar projects in Nevis and Canouan in the Grenadines that are successful. However, the resort must be managed by a known, name-brand luxury organisation, if it is to draw the desired clientele.
STEBA’s profile of the successful developer is someone with an international track record of successful projects of US $100 million or more, who understands the Caribbean development situation. This person must be financially solid, must know what is needed for an upscale resort, and also appreciate the value of culture and environment on a small island.
A brochure for potential developers, available on the internet, outlines the responsibilities of the Island Government and the developer in this project. The developer is to establish a company under the laws of the Netherlands Antilles to accomplish the project. He should deposit an amount to be negotiated in an escrow account as a security guarantee, and is to carry out all phases of the development in accordance with the development plan, which is to be submitted for Government approval. A comprehensive business plan and investment plan are also to be submitted.
The developer must finance a substantial portion of the needed funds from his own capital and is responsible for raising from other investors the capital to complete the project.
In addition, the obtaining of private property needed in the Zeelandia area is the responsibility of the developer, and he must also attract a major golf-course designer for the 18-hole golf course and a five-star hotel operating company. He also must agree to use local labour and sub-contractors, to the fullest extent possible, during the development phase.
For its part, the Government of St. Eustatius will agree to a long lease (60 years) of up to 400 acres of the Venus Bay area. It will grant all necessary permits and licenses for the development and operation of the resort. It will cooperate in the granting of work and residence permits for necessary foreign labour and will grant licenses for overseas contractors and subcontractors as needed.
Also, government will grant a tax holiday for 10 years and may waive land rent on the Venus Bay property for an unspecified number of years. Finally, government will work with existing environmental laws to accommodate sustainable development and will make infrastructure improvements according to a phased plan.
STEBA and the Island Government feel that a resort project such as this would benefit all parties. It meets the Government’s goal of making Statia’s economy more self-sustaining. It helps to expand the tourism sector and tourism-related employment, and it continues to safeguard the unique character of Statia. For the developer, it can mean a profitable venture in an exotic location.
