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Views on Development

Its 4 yrs since I and most of us committed to this project. We have experienced hurricances, government corruption and airport/hotel construction delays but hopefully now post our recent communication the resort will start moving forward again

Comments and thoughts welcome
brianc

thanks for taking the initiative and setting this forum up. there has been a total lack of information over the past 4 years, so at last we have a voice!
does anyone know when the resort is expected to open? Question
medico

Steve - thanks for setting this up, much needed. Is there a projected opening date for the beach club yet?
admin

You're welcome. As far as completion is concerned Im in the dark as much as the next person.

May update from Caicos Beach club for those that havent seen it. There is a more recent one which I'll post later (when I can find it..)

Greetings from the Turks and Caicos Islands.

    Despite the decline in real estate prices worldwide, the Turks and Caicos Islands have remained virtually unaffected by the global real estate market. Single-family homes and condominium prices have risen steadily over the last 10 years. The only effect we can see is flatline growth over the past 12 months. The current average price for an Ocean Front One Bedroom Unit in the Turks and Caicos Islands is approximately $650,000US.  More surprising however is the fact that the annualized rental rate per night for 2008/2009 for the same Ocean Front One Bedroom Unit is $614 per night.  The season nightly rate (with limited availability) is much higher. Please refer to the website for the annualized net rental rate in the proforma.

    As you may know, September 2008 was a bad year for hurricanes in the Caribbean. South Caicos and Grand Turk were hit with two hurricanes, Hannah and Ike (Category 4 with Category 5 gusts), within seven days of each other. Constructed with pre-stress, pre-cast panels manufactured on-site, the Caicos Beach Club Resort and Marina Hotel buildings (490 Resort Residence Units, superstructure and roof completed) suffered no damage; I cannot say the same for the construction site or for the Island itself. The construction camp (plywood buildings) sustained substantial damage as did heavy equipment and vehicles, resulting in a five-month hurricane rebuild construction camp/ site cleanup delay.   Eighty Five (85%) Percent of the buildings on South Caicos lost their roofs or the entire structure itself, including a Resort under construction on the other side of South Caicos. Naturally, in the event of roof loss, interior dry wall requires replacement.  The Government suspended construction on the South Caicos Airport and sent all the airport construction workers to town to build temporary housing for the people.  

    Work is currently being done (with materials already on-site) to complete the interior of these Resort Residences. The following interior work has been completed or is in the process of being completed:

• Exterior Patching: Wall grinding, joint filling and patching and fine finish patching with wonderfix/ardex material on walls and at arch guardrail panels, arched openings on the walkways, 40% complete

• Priming Concrete Surface: Concrete primer on interior and exterior surfaces, 40% complete

• Plumbing and Piping: All systems, hot and cold potable water supply, AC chilled water supply, drain waste vent piping, fire sprinkler piping, testing and insulation

• Electrical wiring: All conduit and wiring, communication cabling, etc.

• AC Installation: Fan unit, flex ductwork, condensate drain line

• Floor Topping Pours: 3.8 cubic yards of concrete topping pumped into each unit.  This topping hides all the plumbing and electric and the floor surface is ready for the tile

• Interior wood framing: This includes the bathroom wall, the drop ceiling and the bedroom closet

• Window and door openings: All window and door openings were lined with composite nailer board with tapcon concrete anchors

• Roof membrane work: Concrete roof joints were filled, the roofs were sealed and painted

• Maintenance/Housekeeping Building: One freezer room and one refrigeration room were constructed and insulated.  Each room will hold ten 20 foot containers

• Maintenance/Housekeeping Building: The second floor was finished and ready to house 120 employees

Green Energy Systems:
• Three wind generators were purchased and shipped to the site to supply electrical power

• Water Storage: 3 pre-stress water tanks capable of holding 1,000,000 gallons of potable water were reinforced and the interior sealed

    The other impact from the hurricane is that after the first hurricane and prior to the second, part of the Island was flooded as a result of three days of heavy rain.  The government contracted to dig three (3), twenty foot deep trenches approximately six feet wide to drain water from this part of the Island.   This section of the road provides access to the Resort property.  The road has been backfilled however it is not capable of supporting heavy weights such as the flat bed trucks that transport construction materials from the sea port.  The Developer has submitted engineering plans to repair the road at the Developers cost (approximately $395,000.00US); although Government Approval for the road repair was granted on March 19, 2009, required bureaucratic follow-up vis-à-vis the Planning Department (Building Permit required) has been slow given the intervention of  The Crown as further discussed herein.

    Rather than send all the workers home pending road repair, Caicos Beach Club Resort and Marina accelerated the design and construction/implementation of its Green Energy Infrastructure Center. Toward this end, an entire Wind Field system has been designed and submitted to the Planning Department for approval.  This Wind System will provide virtually all the power required to run the resort. Several Windmills have already been purchased (our right to have the wind system already guaranteed in the Development Agreement). We have also designed, engineered and submitted plans to the Planning Department for the erection of Two (2) 115 foot high Water Towers on the property. These Water Towers will gravity feed the water from the top of the hill to each and every residential building eliminating the need for numerous fossil fuel dependent water pumps. While both the Wind Field and gravity fed Water Towers were planned to be designed and put in place after resort opening, the timing for the design and implementation of these two green systems was accelerated in order to achieve productivity in what would otherwise be down time in the construction of the resort given the current hurricane caused delay time.

    Lastly, and perhaps the item that has received the most publicity of any of the dilatory facts mentioned, the Premier of the Turks and Caicos Islands recently resigned as Premier (he remains the elected Representative from his District).  As a result of allegations of widespread corruption in the Government, the Governor called for a Commission of Inquiry which commenced in December 2008. After Three (3) Months of Hearings investigating the alleged corruption (which included allegations of fraud in the transfer of Crown Land), The Crown by and through Governor Wetherell passed legislation suspending the constitution of the Turks and Caicos Islands effective upon submission of the final Commission of Inquiry Report. This report was due April 30, 2009. On April 22, 2009 Turks and Caicos Islands Governor Gordon Wetherell announced that the final report of the Commission of Inquiry into corruption would be delayed and the takeover date would be postponed up to another Thirty One (31) days, or up to May 31, 2009.  There appears to be two reasons for the delay, the first being “delayed response to the Salmon Letters and the second being The Crown’s need for additional time in which to put Crown personnel in place. Salmon Letters are letters sent to various persons informing them that information to be cited in the final report about that person is derogatory and/or criminal and affording these persons a finite number of days in which to comment on the derogatory and/or criminal information. In addition these letters request the recipients to respond to the notices with additional or clarifying evidence if available.  It is expected that, in some cases, this additional evidence might provide a different perception of the issues the Commission of Inquiry is exploring”. Criminal charges have not been ruled out in some cases. Regarding allegations of fraud in the transfer of Crown Land, please note that Caicos Beach Club Resort and Marina is not involved in any of these allegations, their land and building permits issued well before the Government came into power.

    As a result of the above, it has become extremely difficult to do business in the Turks and Caicos Islands.  Although Caicos Beach Club Resort and Marina has been granted permission on March 19, 2009, to repair the Three (3) trenches to the road (thus allowing Caicos Beach Club to once again deliver weight-bearing materials such as floor tile, etc., to the site), I do not believe that actual Construction Permit (required for all construction) will be granted for the road until sometime after The Crown assumes control of the country. In addition and more importantly there has been no progress made on the South Caicos Airport since the workers were reassigned to construct temporary hurricane housing.  As you already know, both the road and the airport are critical to resort development and paramount to resort opening.

    The Developers are in the process of scheduling a meeting with the new Governor (who is appointed by the Queen) to introduce themselves and discuss the airport and road issues.  The Developer has been impacted by the delays. Like all purchasers, the Developer has no use of the property until the resort is open.  The Developer has numerous funds invested in this project and is going to open as soon as possible.  The Developer is waiting to receive an update from The Crown as to a completion date on the airport.  When the Developer receives the completion date I will forward this information to you.

Sincerely,

CAICOS BEACH CLUB RESORT AND MARINA
May 7, 2009
international lawyer

Caicos Beach

Hello please see my posting on the ADMIN section of this site as it may be of assistance to purchasers on this development

Stefano Lucatello
Senior Partner
The International Property Law Centre LLP.
WWW.INTERNATIONALPROPERTYLAW.COM
Robbert Macare

I deposited money for two units in this development based on my due diligence including several discussions with the developer.

Several weeks ago I contacted Caicos Beach folks and had a conversation with Tom about the expected opening date for the resort. Most of us know from their letters what has happened.

Tom told me that they were given assurances by the British Govt that the airport upgrade will be completed by next year ( no specific month given).

Adding the fact that the season will not start until November/December 2010 and that the developer  most likely will wait till this time period to actually open the resort (wants to make sure money starts coming in to satisfy us), one could conclude that nothing will happen as far as resort opening until late 2010.

I also understand that the force majeure  used by the developer frees both parties from liability or obligation...please correct me if I am wrong in my understanding.

My hope for all of us is that the developer can complete the development
so that none of us will loose our investment.

With regards,
Robbert
admin

September update

Click to download file
lcrewer

Also thanks....

for setting this forum up Steve.
There is a LOT to discuss and a lot to try to figure out in regards this investment.
I am sure I shall be a regular contributor as will a few other investors that I have passed the link on to.

Larry
taureanjohn

Hi All,
I note that on the "eye" forum two of Yellowbird's contributions have been deleted. In these he revealed that Alden Durham, now Director of CBC, was formerly Minister of Works. And that he had been implicated in the corruption scandal and censured for his actions. So I am curious as to why somebody wishes to keep this information out of the public domain. Has perhaps Yellowbird come to an agreement with CBC re. the refund of his monies? My contract was executed on 15 Jan 2006 and I have been refused a refund on the spurious  grounds of F.M.- Mr Durham informing me that the Crown appointed a Commission of Inquiry on July 10 2008, and that this brought the Country to a standstill. But FM by its definition relates to unforeseen events; and anyway there is no way completion could have occurred within the 30 month timescale, that is just a few days after July 10. This is palpable nonesense.
I am advised that  Stanfield Grene is not truly impartial, that they helped draw up the contract . This does not surprise me as they are based in South Caicos. Can anyone recommend a litigation lawyer? Thankyou.
John.
dgiachin

Refunds

I am aware that at least one owner has received reimbursement from the developer because the property was not complete before the time force majeure was in effect.  I asked for the same from Patti, legal counsel for Caicos Beach, but was rebuffed.  She told me I needed to request my refund before the force majeure was in effect.  Fact of the matter is that the hurricane occurred AFTER the date the property was supposed to have been completed.  Any lawyers in the group who could help us collectively fight this through a class action suit or something of the effect?
YellowBird

taureanjohn wrote:
Hi All,
I note that on the "eye" forum two of Yellowbird's contributions have been deleted. In these he revealed that Alden Durham, now Director of CBC, was formerly Minister of Works. And that he had been implicated in the corruption scandal and censured for his actions. So I am curious as to why somebody wishes to keep this information out of the public domain. Has perhaps Yellowbird come to an agreement with CBC re. the refund of his monies? My contract was executed on 15 Jan 2006 and I have been refused a refund on the spurious  grounds of F.M.- Mr Durham informing me that the Crown appointed a Commission of Inquiry on July 10 2008, and that this brought the Country to a standstill. But FM by its definition relates to unforeseen events; and anyway there is no way completion could have occurred within the 30 month timescale, that is just a few days after July 10. This is palpable nonesense.
I am advised that  Stanfield Grene is not truly impartial, that they helped draw up the contract . This does not surprise me as they are based in South Caicos. Can anyone recommend a litigation lawyer? Thankyou.
John.


Hi John,

I removed those postings as was threatened with a counter suit of libel if I take the developer to court. (Even though I just reposted a google search result!)

I have not made any deal with the developer but my feeling now is that it is unlikely for anyone now to be able to get a refund under clause 11 due to developer claiming force majeure for corruption and because by refunding they will be setting a precendent for all others and are protecting their investment.

The only other option is to start litigation which will take some time to come to fruition. So am open to the possibility of resale now as a a faster solution to getting money returned. Therefore it is in everyone's best interest not to be too negative in public about the resort at this point especially as work appear to be starting again soon and completion is now possible for end of 2010 but more likely mid to end 2011.

However, I am building up a case against the developer in the meantime should resale not be possible in a reasonable time frame. They are in breach of contract regardless of force majeure and I still believe that the FM claims will not hold up in court and am taking independent legal advice.

Do not use Clayton Greene for litigation as I have been told he is connected with the developer and a personal friend.
YellowBird

Regarding point 11 on the contract which states that in the case of force majeure the seller's time to provide occupancy may be extended by a reasonable period of time. Does anyone know how long this should mean under a court of law for the contact in question? Given that the only possible force majeure event that occurred that is possibly but questionably relevant to most people's claims occurred on July 10 2008 (namely government corruption). It is now 15 months later and hand over is probably 2 years away still.
lcrewer

"A reasonable period of time"

YellowBird wrote:
Regarding point 11 on the contract which states that in the case of force majeure the seller's time to provide occupancy may be extended by a reasonable period of time. Does anyone know how long this should mean under a court of law for the contact in question? Given that the only possible force majeure event that occurred that is possibly but questionably relevant to most people's claims occurred on July 10 2008 (namely government corruption). It is now 15 months later and hand over is probably 2 years away still.


YB,
I have been trying to get someone (my agent and the Rahls) to define this "reasonable period of time" for a while now.
Obviously, they avoid / don't answer me.

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