PHILIPSBURG:--- Alegria Real Estate N.V. (“Alegria”), owner of the 5-star Morgan Resort at Beacon Hill, St. Maarten, reacts as follows to statements in the media attributed to VROMI minister Doran regarding water rights to a parcel at Burgeaux Bay, adjacent to the Morgan Resort (the “water rights”).
Country St. Maarten was ordered to issue the water rights to Alegria by summary judgment on September 4, 20201. Country Sint Maarten appealed. An appeal decision is expected on September 2, 2022. The case is therefore still ongoing, making it common practice for parties to limit statements in the media to avoid influencing the Court.
Unfortunately, several actions of minister Doran have occurred possibly leading to such undue influence of the Court.
After he lost the case in the first instance, minister Doran published an administrative denial of the water rights on fictitious grounds 2 It follows from a ruling of May 11, 2022, of the Court of Appeals in Administrative Cases that this was wrongful, issuance of water rights being a civil and not an administrative matter 3.
Last Tuesday, minister Doran went on the air and wrongfully tried to link a motion of no confidence against him to the neglect by VROMI under three different ministers (M. Gitterson, C. Weaver, and E. Doran) to finalize the water rights for Alegria. In the process, false allegations are raised of subornation.
Alegria emphatically rejects any connection between the political struggles of minister Doran and the water rights of Alegria. The letter of Alegria of June 22, 2020, to minister Doran, read by him on the air, predates the summary judgment of September 4, 2020, and forms part of the court file. Minister Doran chose not to react to that letter for over two years. Other meeting requests of Alegria – a large investor whose principal is also chairman of a publicly traded company in the US - have also been ignored by minister Doran.
The real question is how this refusal to resolve this important matter amicably serves the social-economic interests of St. Maarten.
The letter of June 22, 2020, indeed states that Mr. R. Peterson of VROMI agreed to the ground rent for the water rights and that he promised on many occasions to get the matter resolved.
1 See: https://uitspraken.rechtspraak.nl/inziendocument?id=ECLI:NL:OGEAM:2020:66.
2 See: http://www.sintmaartengov.org/PressReleases/Pages/Minister-Doran-denies-Alegrias-water-rights.aspx.
3 See: https://uitspraken.rechtspraak.nl/inziendocument?id=ECLI:NL:OGHACMB:2022:41.
That however took place in a meeting on March 20, 2019, of two representatives and the architect of Alegria with three (civil) servants of VROMI, including the policy advisor of the minister, as well as in other meetings involving lawyers. Such meetings are customary in St. Maarten as in any other developed country. The minutes of the meeting of March 20, 2019, which also form part of the court file, attest to the fact that Mr. Peterson said that the draft advice and decree for the water rights were ready and would be submitted to the secretary general of VROMI the next week and that he agreed with the ground rent according to a sliding scale, as is also usual in St. Maarten for new developments.
Mr. Peterson did not follow through. Instead, after Mr. Peterson left VROMI to become an MP, he started questioning the water rights of Alegria. That sudden change in position is what the letter of June 22, 2020, addresses. It is incomprehensible how anyone can link that letter to a motion of no confidence two years later.
Moreover, Alegria in the strongest possible terms rejects the allegations of subornation. Alegria is considering legal action, including filing a criminal complaint for false accusations.
Finally, Alegria disputes the allegation that Alegria’s water rights would affect any taxi drivers or tour bus drivers (let alone 1300 persons). On the contrary, the water rights will contribute to the construction of the 2nd phase of The Morgan Resort, creating 150 additional luxury rooms, on top of the existing 124 rooms and suites. This will not only increase the workforce at The Morgan Resort from 120 to 450 persons. More luxury rooms mean more high-end tourists, needing more - not less – taxi services. Additionally, as per the settlement agreement of May 5, 2020, the water rights will be used only for a breakwater and pier, enabling new water-based activities for St. Maarten businesses. Specifically, the water taxis are planned to be run by the existing (land-based) taxi drivers, so they will actually profit from the water rights, not be affected by it. Furthermore, this will alleviate heavy traffic congestion and make homeporting more feasible, e.g. for transportation of luggage from the pier. It will also offer the possibility of ferry services for local persons living or working in the Maho area that need to commute to Philipsburg.
In addition, Alegria will be paying at least 6 million guilders in ground rent to the government over the life of the water rights.
Common sense, therefore, dictates that the issuance of the water rights to Alegria is the right thing to do. It creates a “win-win-win-win” for citizens, taxi drivers, the government, and Alegria. For reasons unspoken minister Doran however remains steadfast in his refusal, denying only The Morgan Resort water rights which government has a long-standing policy of issuing to all other major resorts and water-based facilities in St. Maarten. That is not only bad for business but also simply discriminatory and wrong.
