It is with continued dismay that the Villa Owners viewed the statement, from the public relations company for Mr. and Mrs. Hickox, printed in The Anguillian of 9th May 2014. The latest offensive is replete with misleading and argumentative comments against the Government of Anguilla and, once again, the Villa Owners’ villas. It is unfortunate that the Hickoxes feel it necessary to issue public deprecations, but having done so it is incumbent upon the Villa Owners to, once again, bring to bear the reality of the situation.
The Hickoxes occupation of Cap Juluca has now lasted over two (2) years. During this period there have been massive staff cuts, deterioration of the Resort, loss of revenue and continued uncertainty over the future of the Resort. As stakeholders in the Resort, the Villa Owners have also been severely impacted by the situation – both generally and specifically. The current impasse was and is avoidable.
The Aliens Landholding Regulation Act (“Act”) was specifically enacted in Anguilla to avoid the situation where an unsuitable investor could unilaterally decide to own and control land in Anguilla (especially resort property) by simply entering into a sale and purchase agreement for such land. The Act was intended to ensure that only the highest caliber of foreign investors would be permitted to own and operate Anguilla’s resorts. Every foreign investor is fully aware of the Act and is fully cognizant of the fact that they have no ‘right’ to own resort land in Anguilla, unless and until they are able to fully satisfy the Government’s criteria in relation to the particular resort property. The Government of Anguilla has, by law, an absolute discretion to determine whether or not a particular investor should be permitted to own an Anguillian resort. The Hickoxes appear incapable and unwilling to accept this fundamental fact. Accordingly, the current situation is not a question of the Hickoxes’ “ownership rights” since, without a Licence, they simply have no legal right to own any land in Anguilla. It is uncontestable that the current owner of the Resort remains Leeward Isles Resorts Ltd (“LIR”).
As far back as February 2012, the Government of Anguilla made its position abundantly clear, that any person interested in acquiring any part of the Cap Juluca Resort would have to satisfy stringent criteria before being granted a Licence. The Government of Anguilla reiterated its position at several meetings with the stakeholders of Cap Juluca (including Mr. and Mrs. Hickox and the Villa Owners) so that all relevant persons would be fully aware of what was required of them before taking any steps to acquire the Resort. One of the principal concerns for the Government was that any interested person should have the requisite credibility, financial resources and expertise to successfully operate and develop this flagship Resort.
Notwithstanding this clear admonition, the Hickoxes elected to push forward with a plan to acquire Resort lands, without first ensuring with the Government that they were capable of satisfying the relevant criteria. Instead, the Hickoxes appear to have decided to take the unprecedented gamble that once they had entered a sale and purchase agreement, the Government of Anguilla would somehow be ‘forced’ to grant them a Licence. It was this reckless approach that has resulted in the Resort, its employees, the island and the Villa Owners being exposed to the tribulations of the last two (2) years.
Being no closer to satisfying the Licence criteria than they were two (2) years ago, the Hickox’s now appear determined to distract attention away from their own shortcomings by launching renewed attacks. These most recent attacks at the Government and Villa Owners are as sketchy and implausible now as they have been over the last two (2) years, to wit, –
(a) Cap Juluca requires an initial infusion of at least US$ 25, 000, 000 to restore and expand the Resort. This capital infusion must be by way of equity and not debts charged against the Resorts land. The insolvency of the current owner of Cap Juluca (LIR) was precipitated by the massive debts that were charged against the Resort lands by Mr. Hickox. To permit more debt, would run the real risk of another collapse of the Resort. The reality of the situation is that there are several other investors (including the Villa Owners themselves) with sufficient financial resources to restore and expand the Resort, without resorting to the charging the Resort lands. The Hickoxes, for all their protestations, have clearly been unable to satisfy the Government of Anguilla that they are such investors.
(b) Anomalously, in their latest press release, the Hickoxes appear to suggest that the Government of Anguilla somehow “insisted” that they find an investment partner. This is at odds with the Hickoxes’ earlier press release in the Anguillian (21st Sep 2012) where they openly referred to their own need to bring in “outsider financiers” and to charge the Resort lands for debt.
(c) The Hickoxes, once again, appear at pains to blame all their failures on the Villa Owners. This issue has been thoroughly canvassed, and utterly discredited, in the past (see for example the Anguillian (24th May 2013)). To reiterate – (i) the Villa Owners have always wished to continue their rental of their Villas, but have been prevented from doing so unless the Hickoxes were made their exclusive rental agents, (ii) regardless of whether these villas were rented independently or through the Hickoxes, the same number of staff would have been required to service these villas, (iii) the rental income from the villas would be the property of the Villa Owners and would not the Hickoxes (iv) since May 2012, the Villa Owners have made numerous efforts to rent their villas, with each attempt being rebuffed and (v) the Villa Owners themselves have lost in excess of US$ 2, 000, 000 of rental income over the last two (2) years.
The Villa Owners have endured over two (2) years of disparagement from the Hickoxes and have been unable to receive any benefit from their villas during this period. The fact of the matter is that over the last thirty (30) years, the Hickoxes have been engaged in disputes and/or litigation with almost every other participant in the Cap Juluca Resort, from their own partners to Friedland, Aron, general managers, government officials and even their own professional advisors. The result has been an almost continuous litany of insolvencies, court cases and threats of closures, which have damaged and continue to imperil the Resort. Against this background, the Hickoxes’ recent attack on the Government of Anguilla, while lamentable, is wholly unsurprising. It would be equally unsurprising if the Hickoxes later threaten the closure of the Resort, unless the Government of Anguilla gives in to their demands.
In the final analysis, the Hickoxes, quite simply, do not own Cap Juluca, and cannot do so unless they first satisfy the Government of Anguilla that they have the necessary creditability, financial resources and expertise to take that relevant property forward. They have been allowed more than two (2) years to satisfy these criteria, but have simply been unable to do so. It cannot be the case that the Hickoxes can force the Government of Anguilla to grant them a Licence, whether or not they are able to satisfy the criteria the Government has set forth for the ownership of Cap Juluca. It cannot be the case that the Hickoxes’ personal ambitions on the Cap Juluca Resort should be permitted to override the Government’s attempts to ensure the best interests of the Resort, its employees, the Villa Owners and the tourist industry of the island as a whole.
Under the ownership of a credible, financially sound and experienced investor there is great scope for the development of Cap Juluca, increased employment for Anguillians and the substantial growth of the Anguilla economy. There are any number of talented Anguillians who are fully capable of operating the Resort on an interim basis until such new investor is properly approved by the Government of Anguilla, to own, stabilize and realize the full potential of Cap Juluca. The Aliens Land Holding Regulation Act lawfully and morally provides all the necessary rights and power for the people of Anguilla to determine the appropriate owner for Cap Juluca and ensure the future development of the island.
Respectfully
Brilla Group
Anguilla Hotel Investors LLC
Anguilla Hotel Investors II, LLC
