Coccoloba Resort, at Barnes Bay in the western area of Anguilla, which changed ownership at various times since its inception in the mid-1980s, is to be demolished following its purchase from the Montreaux Group. In its place, and on additional land to the west and east of the existing property, will be erected a new project whose developers are the KOR Hotel Group of Los Angeles, California. The project is estimated at a minimum cost of 120 million US dollars including the price of the extra land.

View of the main building of Coccoloba Resort at Barnes Bay

“The benefits from it are colossal and we hope that the developers would recognise that we are partners in this project together,” Chief Minister and Minister of Tourism, Osbourne Fleming, said in announcing the new tourism development on October 21.

Chief Operating Officer with the KOR Reality Group, Jeffrey Smith, said the developers were very excited to bring their brand of hotel development to Anguilla. He stated that from their first visit, four years ago, they had recognised the natural beauty of the island, its beaches, waters and the friendliness of the people. “KOR looks forward to working hand in hand with the Government to create a first class destination resort,” he told the gathering, which included Ministers and other officials of Government, John Benjamin and Dennis Sheehan from Caribbean Juris Chambers and the media.

The announcement of the project L-R: front row - KOR’s Chief Operating Officer, Jeffrey Smith and CM Osbourne Fleming. Back row - L-R: Mr. Benjamin, Mr. Sheehan. Hon. Victor Banks,Mr. Marcel Fahie, Hon. Kenneth Harrigan and Mr. Samuel Connor

The KOR Group has holdings of about 3,000 residential units, eight hotels and six other residential properties in the United States currently in various phases of development. The Group is working on two prospective resort projects in Mexico and has been in real estate development business for over fifteen years. Mr. Smith said his Group had a successful track record of delivering hotels and residential resort projects.

The project in Anguilla will comprise some 112 units with a minimum of 160 rooms. It will include a hotel to be situated towards the sea point at the site, three condominium buildings along the Meads Bay frontage and a number of private villas at the west end of the site in the Barnes Bay area. It was negotiated with the Government that the majority of the units for sale should still form part of the hotel thereafter. There is to be a 6500-square-foot spa, a restaurant and bar to be incorporated in the hotel area on the point.

Mr. Smith said the first phase of the project would be the hotel and spa which should take about two and a half years to construct and that some activity would be seen on the site between March/April next year.

According to him, the project is intended to be a four-and-a-half to a five-star resort and work is in progress on the design plans.

Part of the 110 room Coccoloba Resort to be demolished

Chief Minister Fleming explained that the new project is to be located on the land where the existing Coccoloba resort is situated; on an additional five acres at the perimeter of the western bound of that land and on the land to the east which includes Meads Bay Hideway, a hotel block in the name of Coccoloba (Caribbean) Limited at the foot of Meads Bay. The total amount of land involved in the project is 27 acres. “It is envisioned that all of the existing properties at Coccoloba including Meads Bay Hideaway will be demolished and from the ground up we will start a brand new project,” the Chief Minister commented.

Speaking about the benefits of the projects, Mr. Fleming said that an estimated 250 workers would be employed during the high phase of construction. Minister of Finance Victor Banks stated that over the building period customs duty levied on the properties could amount to 35 million EC dollars. In addition, the newly-created Resort Resident Asset Levy (like that of the golf course project) could fetch about 3.1 million EC dollars per annum in revenue; and Accommodation Tax could reach a conservative estimate five million EC dollars annually. When the entire project is completed, it is expected to employ some 520 workers at all levels.

Mr. Banks said the project, a major undertaking, could generate from sales of residential villas an income of 24 million dollars to the Anguilla Government as well as other revenue from Stamp Duty and Alien Landholding Licences.

Both Mr. Fleming and Mr. Banks acknowledged the hard work, during the negotiations, of Senior Managers in the Ministry of Economic Development including Marcel Fahie and Dr. Aiden Harrigan, Special Assistant David Carty, the legal team including John Benjamin, the principals of the KOR Group and the Attorney General Chambers. “All and all it is a win-win situation for the investors, the Anguilla Government and the people of Anguilla.”

Meads Bay Hideaway

Speaking on concessions to the investors, Mr. Fahie said the Government gave a reduction on the Alien Landholding Licence fee from twelve and a half percent to five percent.

The cheques for the land deals and other payments were expected to be issued shortly. According to the Chief Minister, the KOR Group has undertaken to pay all debts owned by the previous owners of Coccoloba Resort.

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