May 25, 2009

The Open Letter to the Government of Anguilla
The Secretariat
The Valley,
Anguilla BWI

Dear Honourable Chief Minister Fleming:

On September 15, 2008 I wrote to you with a grave concern regarding the closure of the Flag Luxury Properties project, also widely known as the Temenos Golf Course. I explained to you that this should be an alarming concern for all of us living in Anguilla and for those of us conducting business here. Our economy depends on operational and fully functioning entities, especially at such a critical time when the global economy is in disarray with little end in sight.

Mr. Chief Minister, I am once more writing to you with a stern reminder that the Anguilla people are a unique group and they have lived and conducted themselves in a most professional manner by disregarding all odds against them, and retaining a firm grip on their land. To date, the alienation of property on Anguilla is still less than 5% and that includes lease-hold land. The acreage of mainland Anguilla is 22,400. The Anguillians are still in control of over 21,400 acres.

In the year 2001, the Government of Anguilla struck a deal with the aforementioned property to develop a world-class golf course and tourism product on the western south shore of the island. I was, and still am, of the opinion that this is the most brilliant achievement ever realized by any emerging Caribbean nation. Because of the foresight of a group of visionaries and because of your government’s action and the overwhelming degree of confidence, it was embedded into the psyche of progressive, entrepreneurial-minded Anguillians to take advantage of what appeared to be sound business opportunities. Business ventures such as small hotels, villas, apartment buildings, car rentals, heavy equipment companies and many, many more were created by the Anguillian people.

Within a short period of time, Anguilla had experienced a booming economy. So booming, that we had to invite many other Caribbean nationals to assist with a labour shortage, which contributed to the overall success of the economy. Mr. Chief Minister, as I am sure you are aware, the global economic crisis has had far-reaching repercussions. This is a man-made tsunami. This is not just a financial dilemma or a hospitality industry nightmare. It is brutally affecting the entire world – regardless of industry or location. Because of this, the Flag Luxury project suffered a major setback so devastating that there is a genuine cry for some degree of governmental intervention.

According to a Government press release and a town hall meeting, which I attended, the principal owner of the property presented a 3-point proposal. The one point that hijacked my attention was that the owner will surrender the golf course lease and transfer the improvements and facilities to the Government of Anguilla for a maximum sum of US$1.00. The golf course and golf facilities are managed by an entity and relieving the Government as owner of liability for any losses on the operation of the golf course by agreeing to underwrite and fund any operating deficit. However, the Government’s contribution would be the concession of the accommodation tax for a period of 30 years.

Mr. Chief Minister, I am positive that you, as a successful business man, would recognize the potential for a lesser negotiated resolution to those 30 years. As I understand, the layout of that property is 24 estate homes to which the government is not entitled to accommodations tax. There are 32 hotel rooms and 105 condo units to which the government would collect a tax when occupied. If this is the only logical way to get this property restarted, and to alleviate the financial burden off the shoulders of the Anguilla people, some careful thought and action should be applied. We do not have the luxury of time on our side. The state of the economy is speeding down a slippery slope and the Government should – in my humble opinion – find the moral and political willpower to implement a prompt settlement to this ongoing disaster.

Mr. Chief Minister, because of the economy, there are many failed projects around the Caribbean. We are very fortunate at this time to have a most recognized and prestigious development company willing to purchase and make sure that this project is completed.

My final thoughts are that the non-resumption of the Flag Luxury project and the fact that we do not have any other prominent industries, would place the mortgage holders and all people of this wonderful community in a very, very dangerous financial position. Again, we are still in control of over 95% of our land and this is factual.

The Flag Luxury project has so far demonstrated good morals by placing our young, brilliant Anguillian nationals in meaningful managerial positions. Today, they are mostly unemployed. Time is of the essence. You must continue to lead your people out of these difficult times. This is a matter of economics and should not be politicized.

Sincerely,

Mr. Sheridan Smith
CEO/OWNER

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