St. Maarten Private Eye

Shangri La Resorts and Hotels is looking for a location on St. Maarten,

it might either be somewhere in the Lowlands or in that area or the other side of the island, this would something for the wealthy people,

This is a rumour what I heard via Bruno Sarm, the manager of Cupecoy Yacht Club,
are they taking over The Cove or Cupecoy Yacht Club?
I don;t know if anyone can confirm this,

Eric
Fl

I bought some property on Statia recently, a piece of land,

With the new status it will have, don't know the exact term, but they will work closely with the Dutch, The bank director there told me that taxes will go up on Statia, but at the same time infrastructure will be upgraded tremendously,

That is possibly an investment
I don't see anything happen on SXM,at least for five years to come,

Eric

Wont stop a new buidling project in Orient Bay.
Already the land behind the 'lolos' and Pedros has been turned into an unofficial rubbish tip, charming for the most popular tourist spot on the island, but done in readiness to make a landfil for yet another pointless development.

The existing 'Village', charming though it is, has dozens of unrentable properties due their proximity to the dust and noise of the beach road that runs in front, so what possible need for another one?

There is also the small matter of just how far back this will go from the beach - there are mangroves with nesting egrets, herons, ducks etc. just behind. Isnt this supposed to be Reserve Naturelle?
Is it all being made ready for the backhoes ?

Maybe the Minister of Tourism, Romeo Fleming, will step in, or the new President of the Commune, LC Fleming?

But as the land (read rubbish dump) to be sold and developed is 'Fleming land', maybe they wont.

Le grenouille

The Sxm market is far better placed than most other caribbean Islands. We have very close ties with Holland and France. The market has softened , nothing more.
Have confidence.

There remain significant sales on both sides of the island, for the right property. Of course jerking around with wealthy clients isn't recommended ie the Arabs. Sheik, whoever he was would not have been robbing me in my house, that I can assure you !!

Also moving the goal posts on small investors shows a ridiculous lack of planning / foresight. That is just dumb

Please clarify.
One sale of "the right property" could be significant in dollars
but
One sale taken by it self is still only one sale.
Are you talking dollars or the number of sales?

Hello,
Significant at this time would in general refer to the higher valued properties. Of which there are still good sales occurring in number and value.
The slow down is in overpriced units buoyed by the sharp increase in the past few years of a booming market.
That coupled with mass construction of units in the 350 to 1 M range has exceeded demand anyway. Prices will adjust , settle and then continue. I doubt there will be many people who actually lose money.

You are wrong my fellow writer. Peyton Cromwell is losing money with his poorly built condos at the Oyster Bay part of Dawn Beach.
The same condos he threw Joan Verwoord off the beach for. As for the downward spiral with the condo market, while you have some good points, slow US market, mass construction of condos in a certain price range. The reality is that the island is over developed. We are losing every day more and more long term visitors that do not enjoy the island anymore due to the over development of concrete, long traffic lines, crime, access to beaches being closed off and the natural nature/environment of the island being sacrificed.
As I write, the dump is burning again, very black smoke and a burning smell is polluting the entire island.
We are living in a hell hole!! And those of you that do not see this, are in serious trouble.
The government needs a serious overhaul, we need people/practical thinking politicians who will place a moratorium on large scale development for at least 15 years. Around every corner on SXM is a Chinese supermarket, each one looking nastier than the next. Philipsburg is full of Hindu Jewelers, Back street full of Muslims selling clothing.
The entire Dutch side is in a perpetual state of mess and construction around every corner. See National Geographic article on this and they are so correct.
But back to Cromwell....... talk has it that he is losing money with his ugly condos. Cromwell and others should have listened to the good people preaching environmental awareness. He and the others will continue to lose out as their downfall is not keeping up with what visitors look for on an island in the Caribbean. He and the other developers continue to destroy the environment. So much so that the foreign investors are also more aware of environmental issues and building the condos that Cromwell did so close to the sea will not fly anymore with serious buyers and hurricane insurers.

You too have valid points.
I have no knowledge on how Mr Cromwell is doing financially, thats his buisness .
I am sure it is difficult trying to make sales at this time.
Do I detect a note of racist leanings in your post.
Thank God the Chinese , muslims and others had the foresight to open . Without them do you think the local population would have filled the gap ?
I totally agree they do have some eyesores , whos fault is that ?
I dont think Ace is an eyesore it is a much needed well built operation.etc etc etc

The island being a dump with lack of building controls falls back to Government, planning.

This island is not over developed it is badly managed. That can change. There are far smaller islands which are far more developed . They are clean, safe and enviornmentally sound

Please name the islands that are smaller than SXM that are more developed. it is very true that the island is very badly managed by Government.
However, FYI, Philipsburg was bustling before the massive trek of Indians, Chinese and Muslims. Back then the stores were owned by locals and a few Hindus who were in the Caribbean for decades. What happened is that the price of real estate hit the roof and locals prefer to rent/lease/sell their properties to foreigners.
Banks also played a role in that they prefer to give loans to foreigners than the local business owners.
If you listened to Tuesday Fernando Clark talk show you would have heard the majority of call ins from locals expressing the same.
Locals are backing the Lt. Governor 200% with the changing of legislation regarding the Directors license. Foreigners are abusing the Directors license to apply for all their employees. Indian stores have up to 6 Directors why??? because instead of apllying for a regular work permit and resident permit for their employees, the companies are applying for Directors licenses so that their people can automatcailly get residence and work permits.
Now they are upset with the new changes the Lt. Governor wants to bring, but the reality is that they have been abusing the system for too long.
And when you hear people like Elco Rosario open his mouth with all his emotional nonsense, it is not because he is an expert as a former notary, no way Jose... it is because Elco Rosario makes big time money helping Chinese and Indians set up their companies on SXM using the Directors license to his advantage as well.
If you don't believe this.... please ask New York Nails, who set up the company for them.

St Maarten is not unique. It can and should be a great island despite development. A clear plan for the islands future needs to be developed. Quite a number of the islands below have in their history an individual who stood firm and set ground rules and policy to govern and control development. Establish green zones etc etc.

It takes a local hero to do this , not a politician craving re election

Java, singapore, Hong Kong, Cayman, Bemuda, Guernsey, jersey, Ireland, Bahrain,
These are the relativley small isands ( except Java / Ireland ) which function well despite dense populations.

I am the writer that asked my fellow writer on this forum to please name the islands smaller than SXM that are more over developed than SXM.
I did not see this list. the list mentioned of Ireland, Java, Hong Kong (?????) Bahrain (for christ sake) Cayman and Bermuda, these islands are not smaller than SXM. I agree that they are islands but not small or smaller than SXM.
So I stand by my opinion that while yes SXM has a very poor political management handling its environment, and basing the size of the island and its density, and the current rate of the over development in a low and poor quality, the island is definatly over developed and reeks of ghetto land around every corner.
Rupert Murdoch says he is a frequent visitor, now I wonder if he visits our PJIA on his way to St.Barths or on his way to his waiting multi million yacht at Ilse de Sol.

A few comparisons.
SXM population about 35000 area 34 sq miles
Guernsey pop 70 000 area 24 sq miles
Jersey pop 90 000 45 sq miles
Hong Kong 7000 000 31 sq miles

The other island by density of population are noteworthy , hope this helps

Uh....just in Cay Hill??

I really don't think anyone actually living on SXM thinks that our island French and Dutch population is 35.000.
One has to take the amount of illegal immmigrants into consideration on both sides of the island as well.
Then, take also the daily visitors from cruise ships into consideration as they also add to the desnity, even if it is for a day. Island tours by taxi, large tour busses, jeep and humvie convoy, motor bike convoy.
I cannot remember when the last census was, but I do think it might be time for another one soon.
Also, I remember reading a very interesting piece coming out of Marigot recently, President Fleming said that youth issues have to be discussed and in the same breath he mentioned that the French side hospital had something like 145 births in the month of January.
Does anyone know how many births we had at the Medical Center in the month of January?

I'll be posting a blog, the newspaper clippings and Roy's letter tomorrow. Personally I consider Fox News to be a steaming pile, and Murdoch, well, I don't think much of him either. Hold on till tomorrow on this subject.

Hady

Java doesn't proper at all! On the contrary, at the moment it's facing huge issues and Ireland has a dense population? Obviously you have never been there, otherwise you wouldn't say such a senseless thing. And the Irish received great benefit of their European membership: Ireland started as one of the poorest countries of the EU, and now it's one of the wealthiest, if not the wealthiest. Seulement grâce à l'Union de l'Europe!
Furthermore, SXM is unique! Just take a look at the harbor or what about the amount of planes that touch sxmsoil every day?
And there is a plan... within a few years you'll be able to pollute even more! Pond Fill -> race track?! Outrageous idea for an era in which 'going green' is totally IT.

Viva la pollution!

If you read other comments properly and responded sensibly then I might understand your point of view.
Read up the published facts on the islands, thats all.
I see the harbour and the airport ? There is nothing at all unique about them ???
EU and Ireland, yes, your point ??? Industry, IT, favourable buisness climate.

Please explain, I don't think I fully get your point.
Oh and the last piece of my reply was cynical...
The whole point behind the EU and Ireland thing was just to illustrate how much financial support can do for the economy. Link to: NL - SXM... get it?
Well, yeah I suppose you can't wholly compare them with each other, but there are some similarities.

Please be aware that there is a blog post and thread ongoing about the Governor and Directors licenses. I can see how this discussion has crossed over into this one, but if you can, please use that one for this issue. I'm sure understand that cross overs make it difficult for others to follow or return to read these comments at a later date and often can end up with two discussions on the same subjectvgoing on at the same time in separate threads - CHeers

Flipper

You refer to Cay Bay as Babbit Bay: please know that Babit Bay (Beach Development Corp.) is the business name of the Westin Resort at Dawn Beach.

I think you're referring to the Indigo Bay development at Cay Bay. Word on the street is that the project developers are close to or have just signed an agreement with the hotel franchise: Hilton hotel for the development of a 200 room 5-star hotel on the Indigo Bay property for opening somewhere in 2011.

Word on the street is also that the sales of the Indigo Bay properties (which should surround the future Hilton hotel) is going very slowly indeed. Maybe sales will go faster once investors see that Hilton has signed on?

Aside from the fact Roy considers permits to be frivolous details, anyone with half a brain and some knowledge of the World economic situation, in particular in the US, would have seen this coming.

US home foreclosures soar 57% in January - 26th February 2008

I'm happy to report that I have more than half a brain :)

Dream Dream Dream - 8th November 2007

St. Maarten Real Estate and Condo Sales - 4th July 2007

LH

The sub prime crisis is hurting the SXM market as well, but it is not the same as in the US.
The wealthy are not losing money on this. It is the latino's, blacks and poor whites that are facing en masse foreclosures.
It is true that SXM is a buyer's market right now.
At Caravanserai you can get discounts of up to 50% right now,
at Cupecoy Yacht Club up to 20%

that is sheer panic,

the problems all these developers are facing is financing:
two fold : 1 mortgage financing and 2. Resort financing both are not in place, the 'local' developers lack the skills, the momentum, the knowledge or proper credentials (no criminal record) to obtain these financing packages.
You cannot have a Peyton Cromwell or a Johnny Erato b sitting at a table with major US or European financiers.
The Indigo Bay becoming part of Hilton story is bogus, with no financing there is no resort, that is it. All of these developers based their business plan on buyers paying for the construction
So now it is a waiting game
who will collapse first?

It is not just "subprime problem" in the USA , it's a full-blown real estate recession/depression. "Subprime" talk was a cover up, cheer leading, farce put up by the banks, the treasury and the government.

But how will it affect SXM? In my opinion there are 3 major effects:
1. no more cheap and easy financing - fewer people can afford to buy.
2. even those who have money, are no longer "speculating" on real estate price doubling every 12-24 months. again, less demand.
3. (most relevant in my opinion) In places like south florida real estate prices are down by over 30% in some locales. Certain new condos sell for under $200 per sq. ft., some go for under $160 per sq. ft, down 60-70% from initial "list prices" of $500-600 per sq. ft.
A lot of people who have considered SXM as vacation retreat or retirement place can now buy significantly cheaper in South Florida, where they have stable gov't, stable communities, low (at least for now) crime rate, where they are "at home" and don't have to deal with foreign gov't regulations. where there's no hassle transporting furniture, or a car, paying all those import taxes, doing residency paperwork, etc etc. don't forget that the basic cost of living in SXM is a lot higher than in the mainland USA.
in the last decade the real estate prices in SXM (and other places south-of-the border) were playing catch-up to the real estate prices in the USA, and in particular to the prices in South Florida. As the real estate prices in the USA (and to a lesser extent in Western Europe) are falling hard and fast, I believe SXM prices will have to follow the trend again... until it will be advantageos financially to buy in SXM vs. other locations.
My comments apply to the "middle" of the market. It has no relevancy for a very high-end, multi-million dollar villas, liked so much by Wall St execs, mafia/shadow business/drug dealers, and certain SXM "civil servants." Those 3 groups of people seem to be doing just fine no matter what it's like for the rest of us. The demand for high-end is still quite high.

You forgot two though, add real estate agents and developers to the banks, the treasury and the government. Also, minor point, but no import taxes in SXM. Otherwise you put everything very well. How do you think projects such as Aquarius and Indigo Bay will fare? Westin gave up selling their condo/residences and are now selling them as timeshare/part ownership. Rainbow apparently now want to make several floors of their ugly monstrosity by the road in Cupecoy into timeshares.

I'd be interested to hear more from you.

Flipper

Do you really think highly about my post? I'm honored!

I'm too far from SXM, and spend waaayyyy too little time there to know all the details (like import and tax regs.) But I don't see why the general trend of real estate boom/bust cycle will be any different in the Dutch SXM than in S. Florida. As far as the SXM monstrosities (a.k.a. new luxury condo developments) - if they've "broken ground", then it's too late to go back. They, in all likelihood, will be built. God forbid they stop construction half way - then SXM will also have a high-rise version of the mullet bay resort....

And the talk about converting condos into timeshares? So if I'm a resident, I might have 52 different neighbors in each adjacent unit? That's what they call a "luxury" development? Who'd buy in a place like that?
Timeshares, if you ask me, is not a way out of real estate bust. I guess it's the only way they can generate some cash (as in right now!) to make interest payments to the banks. Timeshares (ie stuff that i don't own) do not appeal to me at all....
BUT if Westin decides to give some of those condos away free of charge, i might consider taking one!

You are right about the Florida market, I have a condo in Ft Lauderdale, and am losing big time!!!! I am hitting the 30% discount shortly,

Regarding SXM: the key is financing people, just take a look at the projects in Anguilla, that are being built with lightning speed: they have financing in place, which is independent from buyer's money
The list:

1) Indigo Bay: Big chance it is going to fail, no financing for buyer's and for building the resort available. Shady background of the developers and the real estate agents:

2) Rainbow Beach Club: Many current owners want to sell their units ASAP, as they seeing the negative spiral this resort is facing, moving into timeshare, the 'family' that owns it is using 'guerilla management', because of their lack of education and allowing self critique or third parties to help improve their business plans. Strapped for cash, in real trouble right now. The move to timeshare is a panic move

3) Cupecoy Yacht Club: The only current development that might see investment on return, because there is a brand behind it. Current management under the auspice of Mr Bernard Sarm is questionable and he reportedly has many island officials and residents in his pocket.

4) Westin Resort: well, it is now just waiting when the brand is going to decide to pull out:

5) Barbaron Project: One of the partners in this project is Gibson Sr.. The other partners in this project are strapped for cash, so is Mr. Gibson Sr, as his 'active' days are over, his extra funds have shrunk significantly, he is unwilling to touch his off-shore retirement millions so this project is just waiting for buyers to bring in money; again a waiting game, in addition, you have the Italian ego maniac Carchidi running the show and doing the designing.

6) The Cove at Cupecoy: The Tendal website shows it is for sale, the land that is, need I say more?

Wait I see a pattern,
Yes the market is to blame, credit lines are tight,
but you have the problem that all these developers have huge ego's, they will never change their approach and do not allow critique,
so they are running to the same canyon to meet their end.

Eric
Ft. Lauderdale

What about Princess Heights? Are units selling any better there?

You're right Eric, 100%

I am not sure how Cupecoy Yacht Club will do, that project at least is moving, the rest is dead quiet,
how is Caravanserai doing?

The new Pelican Hotel recently finished looks ok, and they are moving forward,
because that corporation is huge, the other ones on the island, are all one man shows.
That man Carchidi destroyed Pelican Key, with those awful villas,
ruined, Barbaron has no sales, you don't even have to look in their books, if they would have sales, you would see construction workers moving around there.

I can imagine the hundreds of real estate agents on SXM should be looking for another job, but what can they do, most of them are in real estate because they don't know anything else, it's the same as in the U.S.
people with no real craftsmanship go into real estate,

This crisis is actually a great correction tool, a vacuum cleaner, it is cleaning out the low lifes, the dummies and the wannebees from the real deal.

Eric, can you please email me at mark at clubna-t dot com - you have a great insight and I could really use your advice.

Please, try not to shed too many tears.

New Jersey gaming authorities took away Columbia Sussex's license, saying the company failed to meet the state's strict licensing requirements. Commissioners said the company showed "a lack of business ability, a lack of financial responsibility and lack of good character, honesty and integrity."

Really? How surprising.

Dr. Voodoo

Here's more on Columbia Sussex latest woes.

http://www.lasvegassun.com/blogs/gaming/2008/feb/29/columbia-sussex-found-default-it-still-breathes-si/

Read also the first comment on the article: it appears as if the employees will pay the price (as usual) of Columbia's ruthless business ways. In that way, there is no difference with the way Columbia Sussex runs the Westin St. Maarten with their fire/hire policy.

So if sales are down and no money coming in, means we will be stuck with a ugly hillside scar. I am under the impression that our civil servants working at the VROM department have no experience in development of this scale.
So if we have no experts in the field, and our Commissioners are mostly people without college degrees and none of them have any degrees as engineers then why are they allowing our nature and environment and by extension our people to suffer by handing us a messed up environment?
I read here that Barbaron has no permits, if this is true, then why did the same VROM and Inspection not do their job and halt the excavation before it got so far? Government departments did not want to release the building and planning permit for Barbaron, with an excuse that developers have their right to privacy too.
I believe that this civil servant that made such a stupid remark should be investigated for denying interest groups to look at simple building and planning permits.
Any wonder that NOVA is here speaking to people? the island is riddled with corruption, inefficiancy, lack of transparent and open governance, hidden agendas etc
I would endorse that the Dutch come in and place the entire Public Works/VROM/ROB under higher supervision, lets see who will speak up and say that we locals are doing the job so well.

I personally think that ROB/VROM/INSPECTION DEPT. should be placed under higher supervision, because within the sector there is NO civil servant that can proof to the people of sxm that they are doing a good job, look what is taking place on sxm, the environment and the infrastructure is in a total mess, this sector needs an environmental expert with years of experience in the field of environmental management and inspection. Further, sector ROB needs people who KNOWS what there doing to help save the environment and protect (safety measures!) the people of sxm. So, I would advise government to recruit an expert with the necessary expertise and know how to help save the environment before IT's to late.

POLITICIANS PLS. STOP PLAYING GAMES WITH THE ENVIRONMENT, SXM IS LOOKING LIKE A DUMP!

It might be that the ROB-department (VROM, Inspection, Nieuwe werken, Domain affairs) is the problem and that incompetent people work there. But I think and hope that some people over there would like to do a good job. The problem is the politicians who do not have a long term, sustainable vision for SXM and their political friends they appoint as management for this department. We call them "hielenlikkers", but it is easy to use less friendly terms. Dollison, Toontje B., Delano Richardson. If they weren't affiliated with DP they wouldn't be there.

DUHHHH, can you read?? we've past that from the 2nd reply i believe....

Yes maybe thats the solution, bring in the Pail Faced Folks from up north, the Cheaper than Cheap, The Higher than High Attitudes to help this lil island prosper..

If anything has this island and the government the way it is IS the Dutch.

Yes, some Dutch TB'ers did misbehave themselves, but certainly not all! By all means, you mustn't generalize it.
And why do you hate the Dutch so much? Clearly you don't know how hard some people try to be of any help.

Excuse me?? I'm a St.Maartener, i'm not "pale faced" and i take total offence to your comments. Are there not higher than high attitudes here amongst the non-dutch people already? "Cheaper than cheap" and so what does that have to do with anything????

Obviously we NEED HELP for this island to prosper, we've totally made a mess of it, ALL of us, by picking the wrong leaders, by turning blind eyes, by being pigs ourselves! I'm here to remind you, when you point the finger, you have 3 pointing back at you!