On Wednesday September 12, 2012, The Civil Society Group released the following letter to the media in Anguilla to Chief Minister Hughes from Mr. and Mrs. Charles Hickox;
September 11, 2012
The Honorable Chief Minister,
Mr. Hubert Hughes
Dear Chief Minister,
We were very grateful for the opportunity to meet with you last week in informal mediation sessions. We appreciate the hard work of the Mediators, Messrs. Right Reverend Bishop Errol Brooks, Mr. Sutcliffe Hodge and the Reverend Dr. Clifton Niles, in their efforts to drill down to the problems and to forge a resolution that would see Cap Juluca open by November 30, 2012.
We had the opportunity of listening on the radio stations yesterday to the Mediator’s Report to Executive Council on their Findings, Concerns and Recommendations. At the risk of being overly repetitive, we would like to summarize our position as committed owners today and for the future of Cap Juluca,Anguillaand the Anguillians.
We have always had a long term view; we are not opportunists seeking distressed assets for immediate profiteering or investors exploiting at usurious interest rates using “other people’s money”.
Our greatest and most sacred asset is the reputation we have spent our lives earning and protecting.
With respect to the future of Cap Juluca, there is much to be done. There are several phases of renovation and refurbishment, which will be completed over the next 15 months. When we began discussions with theGOAin July, we explained that there was a 120 day lead time necessary to order all furniture, fixtures and equipment. Because of the delays in reaching an agreement, we now have only 45 days to accomplish the most urgent repairs and necessary maintenance.
Phase One
We are prepared to begin work immediately to make a November opening possible, upon receiving assurance from your Government that we are operating legally, with grandfathered rights under Clause 5 of the August 2010 MOU, also having legitimately purchased the Operating Rights for Cap Juluca under the Joint Liquidators Private Treaty Sale.
In addition, confirmation that your Government is aware that Cap Juluca L & C Properties Ltd., as the new Lessee has the unrestricted right without the Crown’s consent or approval to grant one or more charges to any financial institution or individual for the renovation, development and operation of Cap Juluca (as provided for in Clause 2 of an agreement dated August 11, 2010 between the Crown and LIR).
We again reconfirm that we have allocated, from our own personal resources, the initial amount of US$ 6,500,000 to have all rooms operating by late November 2012, to be secured against the existing land with improvements (villas, main house, restaurants etc., excepting the undeveloped lands).
It is essential for all concerned to recognize that there has not been even minimal maintenance and certainly, no preventive maintenance over the last three years. Thus, we must urgently address the essential issues of plumbing, air-conditioning, sanitizing, disinfestation and extermination, roof leaks etc. to ensure that all rooms can be sold and will be habitable for the 2012-2013 Season. We are certain to complete this phase by late November 2012.
Phase Two
After accomplishing the necessary repairs for re-opening in 2012, we will begin the renovation and refurbishment process of the entire hotel, on a rolling basis. This will include not only the villa suites, but also the restaurants and public areas so that by opening season 2013, the resort will be brought up to the internationally recognized luxury standard, by an independent review and appraisal.
There will be an audit by a professional outside hotel rating organization, such as Leading Hotels of the World or Preferred Hotels, which would assert that Cap Juluca was luxury standard as far as rooms and other physical amenities of the property. In the event that we did not get such a rating, we would have six months to cure, or face a penalty.
The renovation commitment is not contingent on the Brilla or other privately owned Villas being in our rental pool, but is contingent upon the GOA standing firm against allowing the Brilla Group or any outside group to sell or operate the Brilla Group’s villas in a separate management arrangement within the confines of the current Cap Juluca Resort and Lease.
Phase Three
It is the current plan that, starting in the 2013-14 season, after luxury standard renovations have been completed, sales and marketing of villas will begin in earnest. We will have a super luxurious model villa completed, which will have nothing comparable for sale on Anguilla or in theCaribbean.
Any beachfront villa sales contract would require that the villa be in the hotel rental pool with usage by villa owners, subject to the same restrictions that currently apply. Within 12 months of the closing of any such sales, the owners will commence the construction of at least 6 rooms.
As far as further development is concerned, subject to market conditions, we commit that starting in the summer of 2015, we will construct 24 new rooms on the Maundays Bay Beachfront.
To undertake this future plan, we must have an MOU similar to that received by the Aron group with the following changes, which are more beneficial to the GOA and the people ofAnguillathan those in the current MOU:
1. The number of hotel owned or rental pool rooms shall be the greater of 93 or 25% of all rooms on the resort property. A minimum of 93 of these rooms shall be beachfront onMaundaysBay. The current requirement is only 15 rooms.
2. This concession means that there will always be a substantial hotel operation to provide jobs for the Julucans and the other Anguillian providers of services to the resort and our guests. The prior 15 room requirement would have reduced Cap Juluca to a bed and breakfast hotel with outside concessions providing restaurants etc.
In order to ensure an adequate comfort level about our financial capacity to commit to this plan, we are willing, without a confidentiality agreement, to have you, the Chief Minister and Minister of Finance, Bishop Brooks, Mr. Hodge, Dr. Niles and Mr. Perin Bradley, member of TIC who has done the financial due diligence, review our tax return and net worth statement, along with us in the presence of our lawyer.
We point to the track record in 1986-1997, which is the only period in Cap Juluca history when the owners have lived up to their commitment to theGOA.
We point to the proven expertise of
A. Mr. Hickox as the original designer, financier and developer of the resort.
B. Mrs. Hickox as the original interior designer of the resort and other challenging properties.
C. Unique Hotels and Resorts as a proven professional hotel management company with more experience inAnguillathan any outside Management Company, as well as a proven audited track record at Cap Juluca.
With respect to our outside financial partners, we continue to update them on the situation surrounding Cap Juluca. We need to assure these financial partners that we are working in a stable environment and that the Government of Anguilla is working toward a constructive and legal conclusion. They know us; they have faith in us and our capabilities and are anxious to move ahead.
We believe that the right track is to go forward. Despite earlier stances, we have provided all of the tools for the Government to make the right decision, so that Cap Juluca will re-open in November for the 2012-2013 Season and will again become the Jewel in the Crown of Anguilla. There is not time to lose.
We will not renege on our commitments to Cap Juluca the Resort, to the Workers of Cap Juluca and to the people ofAnguilla.
We are also sending copy of this letter to the members of EXCO and to the Mediators.
Faithfully submitted,
Charles and Linda Hickox
