It is a great pity that in these times of extreme economic difficulty that Cap Juluca, the flagship of the tourism industry inAnguilla, and winner of numerous prestigious awards, should now find itself not only in a continuing ownership battle, but in what appears to be a worsening conflict. The question everybody is asking is: how well the resort will survive the present wrangle, and the apparent intransigence of the parties at the bargaining table if there is a bargaining table at all. The situation appears to be both endless, and unyielding, and the Government is timid even to talk about it let alone do something if it can.
There are four sad factors that make the story so regrettable. One is that the resort, said to be crying out for re-investment, substantial refurbishing and expansion, sits on a very large acreage ofCrownLandwith the Government seemingly powerless to stem the battle, due mainly to deep ownership problems and debt. The second agonising factor is that, with the threat of closure, the livelihood and future of 400 employees, many of them with 10, 15 and 20-plus years of service, hang in the balance. The third factor is that Cap Julucais perched on one of the world’s best beaches and is therefore a much-sought-after resort, but the ownership squabble appears to be an overriding concernanddistraction. The fourth factor is the bad publicity the upmarket property is experiencing on the international market, much to its own detriment and that ofAnguilla.
There has been a continuing 20-year legal ownership battle for Cap Juluca between Charles Hickox and Dion Friedland and even before that could be resolved, entered Adam Aron and his silent partners – and the battle has since started afresh among them and Hickox. Now a Brilla Group has appeared on the scene with a brand new and, perhaps, attractive restructuring plan and, in the process, has also unfortunately become embroiled in the situation.
Because of the recent fracas that has blown up among the severalparties, there has been a flurry of Executive Council meetings, with at least one up to Monday this week, but with little or no success to quell the disputes and to move the Cap Juluca issue forward. The Government has remained publicly silent on what it says has become a very sensitive issue and, for the public, it is one of which few details are known. One of two exceptions is the current announcement by Mr. Hickox that he will be putting“the greater part of the real estate comprising Cap Juluca” on auction sale on May 2. The second is a letter to employees from a Brilla Group about its interest and big plans for the resort.
There is every reason to believe that the current situation is a dilemma for the Government. On one hand there are lease agreements and charges on the property to respect and protect. On the other hand, there is obviously the temptation to reach out, even cautiously, to other investors with the money and ability to redeem Cap Juluca. But there are the inherent risks of being taken to court with millions of dollars to pay if the Government finds itself on the wrong side of the law.
However difficult the problem is, the Government cannot sit back and allow an untenable situation to persist in whichAnguilla, its people and the vital tourism industry will likely be the losers. It is here where the Government needs tack and skill, and perhaps expert advice, to deal one way or another with a very complicated situation. We can only hope that good sense and a spirit of cooperation in this battle for Cap Juluca will prevail, and that, whatever is the ultimate outcome,Anguillawill be the winner.
