The Anguillian has received a press release, dated Tuesday, May 6, 2014, from the public relations company for Cap Juluca’s owners, Charles and Linda Hickox, reporting on the latest issues between them and the Government of Anguilla.
The full text of the release is as follows:
Government of Anguilla Imposes More Roadblocks for Cap Juluca and its Employees.
The future of a tremendous source of island pride and employer of hundreds of Julucans is being threatened, as new and unique financial constraints have been imposed on Cap Juluca owners Charles and Linda Hickox by the current Government of Anguilla (GOA).
According to Charles Hickox, the GOA has unilaterally stated there can be no charges placed on the property, thus making it impossible for anyone to pursue a financial relationship to support new funding and improvements for the property. “This is an unprecedented financial procedure, which is completely arbitrary and inconsistent with traditional, legal business practices,” Charles Hickox said. “The government appears to have its own agenda when it comes to Cap Juluca, and we believe this is their attempt to stonewall ownership and management – and the overall growth of this property,” he added.
Instead of sanctioning borrowing money for development, the GOA has informed the Hickoxes that they must give up management control and may not impose a charge – precluding any debt financing,. “This not only threatens the future of Cap Juluca, it severely compromises our ownership position,” Mr. Hickox said.
This latest development comes after almost three years of discussions between the Hickoxes and GOA. “While initially indicating their desire and inclination to enter into a new Memorandum of Understanding (MoU), the chief minister insisted that the Hickoxes find an investment partner, yet when they did – bringing in Och-Ziff Real Estate – the goalposts moved once again,” said Eric Prevette of Unique Hotels & Resorts, management company for the resort. The Hickoxes have presented five MoU proposals with the government raising new issues with each submission.
Further complicating a deteriorating situation, the government refuses to enforce their policy that all beachfront rooms must be in the hotel rental pool, a move that has so far put more than one hundred Anguillians out of work.
“It is especially disturbing that over one hundred employees have lost their jobs as a direct result of four and a half villas not being included in hotel inventory,” said Linda Hickox. “The GOA has allowed this situation to continue, although the units are legally required to be included in the rental pool under the August 10, 2010 MoU approved and signed by this government.”
In addition to significant job losses, the lack of enforcement of this policy has resulted in substantial lost revenue to Anguilla in occupancy and accommodation tax, as well as the reduction of income to area businesses.
Cap Juluca staff has echoed the frustration and concern of the Hickoxes. “Cap Juluca is a vital source of employment – and pride – for Julucans,” said Cardigan Connor. “We can only hope these issues are quickly resolved so everyone can get back to work – and back to the important business of making this a top Caribbean destination.”
Before the Hickoxes stepped in, the resort was in a very precarious situation. In fact, Cap Juluca was plunged into bankruptcy by the Adam Aron Group and set for closure in 2011 – with the potential loss of 400 jobs – when the Hickoxes came to its rescue by lending more than $3 million to keep the hotel open.
Since May of 2012, the couple has focused on elevating this iconic Caribbean retreat to even higher levels of excellence, personally investing approximately an additional $15 million into the property for new upgrades and amenities.
As a result, guest comments are extremely favorable and the resort has earned a number of prestigious awards over the past two years, including “World’s Best Beach Resort” by the readers of Andrew Harper Hideaway Report and the “Number 1 Resort in Anguilla” by US News and Report.
However, the current actions by the government are seriously jeopardizing the operations of Cap Juluca – impacting the reputations and financial health of both the resort and the island of Anguilla.
“Although we built what is now the pride of Anguilla at a time when no one else would invest here, the GOA is essentially usurping our ownership rights, which is misguided and unscrupulous,” said Mrs. Hickox. “These latest demands by the government only hurt the employees of Cap Juluca and the overall growth of Anguilla’s overall economy and tourism industry.”
“Ultimately, we believe the government owes an explanation to the employees of Cap Juluca and the people of Anguilla about its failure to act quickly and with transparency to approve our ALHL applications and MoU proposals,” said Linda Hickox.
In the meantime, Mr. and Mrs. Hickox are committed to resolving the issues with the Government of Anguilla. Most importantly, they will continue to operate Cap Juluca smoothly and efficiently, and endeavor to make the necessary improvements to ensure the very best possible experience for the guests and employees.
(Published without editing by The Anguillian newspaper.)
Editor’s note: The Government of Anguilla has been given an opportunity to reply to the press release in the next issue of The Anguillian.
