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Stake Bank Cruise Project Finally Gets The Executive Green Light

Belize City's Cruise Tourism future - so long in doubt - is on stronger footing tonight after the Government of Belize and the Feinstein Group signed an investment agreement to proceed with the development of a Cruise Ship Docking Facility at Stake Bank Caye, which is four miles southeast of Belize City.

The announcement came as a surprise - after all, Parliament approved the project in 2014, but the Barrow administration and the Developer could never agree on the finer details - until recently when Cabinet's Investment Committee decided to give it another look. They isolated the problem which was an exclusivity clause - and agreed to compromise.

And that led to today at ITVET when both sides signed what is being called a definitive agreement. The Attorney General - who is on the investment committee explained:...

Hon. Mike Peyrefitte, UDP Senator
"This is a definitive agreement we call it and what it does is, it outlines the agreement between the government and the developer and within that agreement for example, you would find that there is the act as amended, because remember when the original act was passed it was pass giving Stakebank exclusivity and so I think this definitive agreement has ask Stakebank to agree that in the future the act will be amended to take out that exclusivity."

"So what this is, is a governing document that was set out the basic parameters within which Stakebank will be operating and it's called a definitive agreement."

Hon. Tracy Taeger-Panton
"The definitive agreement is expected to flesh out a little bit more the obligations of the government as it relates to the concession and fiscal arrangements that are put in place to allow this development to happen. It also fleshes out in greater detail the obligations of the developer and the timeframe in which this development will be incentivized."

Hon. Patrick Faber "The Feinsten Group and Mr. Feinstein has assured us that they are able to work with the existing players and that was of concern for us what is going to happen with the FSTV folks, but that is now clear, so we are happy that we are able to make this development. We believe that cruise tourism of course will continue to play a major role in Belize's development."

Mike Feinstein
"The Investment is 50 million US dollars and its two docks to accommodate 4 ships. A big development approximately 17 acres of development and there a few stations marina, different companies to the project. But the total cost we estimate at 50 million US dollars. First of all we are hoping to start right after the hurricane season ends. We start mobilizing very shortly, but actually start construction towards the end of the year and it takes 18 months to build these docks and during that 18 months we will finish the upland development. So several cruise working out there at the same time. There are people working on the dock, people working on the marina, people working on the upland development, so it's like a thousand people at any given time."

"I can guarantee you that in 18 months ships will be docking at Stakebank and that is the objective to keep this industry secure. Many of you don't know, but larger ships are already bypassing Belize, so that is how important this docking facility is. So we are securing this industry once and for all. Just the mention that this is happening actually secures the industry. So as of Monday we are in a much better position."

A press release describes it as a, quote, "world class Cruise Ship Docking Facility, equipped with a resort and a theme park." As Feinstein noted, it will be able to accommodate four Voyager class vessels, and he added that it will feature and 80 room resort and a marina with 60 slips.

A government release adds that it will feature, quote, "a theme park with water rides, roller coaster and aquaria." Feinstein estimated the project at 50 Million US dollars, but the government release puts it at $62.5 million US dollars with employment for, quote, "at least 500 Belizeans."

And while there may be some variance in the figures, it's a minor miracle that they even got to this point. We asked what accounts for the turnaround, after all, in January of 2016, Feinstein said he was throwing in the towel because he could not reach an agreement with the government. Peyrefitte says it was the exclusivity clause that was in the way:...

Hon. Mike Peyrefitte, UDP Senator
"Now I think what was the turning point was that Mr. Feinstein was able to accept and he stated very clearly that he doesn't need an exclusivity. It is his belief that Stakebank will be so fabulous that nobody would dare compete with him in the future, but the overall tenure is that if you have a project that can compete and it isn't a blockage, but if a project is solid, if you can prove that you have funding, but then that project will be entertained by the government, but to this point Mr. Feinstein, as I said earlier is the only one who is able to demonstrate he has the will and the ability to fulfil a project like this and I think that was the key thing."

Hon. Patrick Faber
"I think it is evident to all who is saying that in fact our position initially and the position we are at now, you saw compromising definitely. You saw that in fact there was an initial proposal for a causeway. That is not being included. You heard the talk about exclusivity and you see that the legislation will now be amended to reflect that that exclusivity will not be there, so we spoke about the length of time it took. We are now at a common place where we think we can work with each other."

Mike Feinstein
"It's been a long time, but I'm very satisfied the way it's handled. I think we are good. I have no problem working with the government absolutely and let's do it. That's the whole idea."

But to "get out of here" - as he puts it - Feinstein will need tens of millions of dollars in financing. We asked him how he plans to source it - and what he'll have to give up to get it:...

Jules Vasquez, reporter
"Where are you going to source you're financing from and will you be seeking a strategic investor? For example Royal to perhaps invest in this project."

Mike Feinstein
"We have engaged with at least 3 different cruise lines all of which showed an interest. The local banks are definitely interested. They have all said yes they would want to be a part of it. They would form as a syndicate of 3-4 banks to take care of that. So I don't see financing as an issue. We have any options including foreign investment."

"At this time we are looking at probably offering 40-45% shares to cruise lines, local investors whatever. But will maintain 51%."

Jules Vasquez, reporter
"Are you confident you will be able to work out something to convince these multinationals that you are a good majority partner?"

Mike Feinstein
"The option has always been there to just get rid of the project. We could have sold the project from 2012. But we hang on to it so we could finish what I started really and, maintain majority shares."

And while he wants to maintain majority shareholdings - Feinstein says he also wants Belizean involvements in the businesses and service providers within Stake Bank - which he says is a difference from the model currently used at the Fort Street Tourism Village.

Mike Feinstein
"When we built the existing village FSTV, we have 95% local business people in there. It is now 180 degree to 95% foreigners. Stakebank should be back to 95% Belizeans."

Reporter
"That is a guarantee on your behalf?"

Mike Feinstein
"Well I've never seen a problem with giving Belizeans the opportunity. It worked with FSTV, by then it was called BTV (Belize Tourism Village) and I don't see why it wouldn't continue working."

Feinstein says he plans to start construction after the hurricane season in October.

Channel 7

Aye, the manatees! Done, I guess

Stake Bank Cruise Port funding is secured; construction to commence this year

The 50 million US dollar project that was rejected by environmentalists for potential impact on manatees and welcomed by tourism stakeholders in the Belize District is finally getting positive feedback. Funding has been secured for the construction of the Stake Bank Cruise Port. The announcement was made today by developers, Stake Bank Enterprise Limited, a member of the Feinstein Groups of Companies, some ten years after the project was first proposed.

The deal was sealed on Monday July 16th with the government, as the company secured and signed off on the funding with the Atlantic Bank. The project was expected to have started last December. That was announced back in August of last year, when the Government of Belize and Stake Bank Enterprise Limited signed what they described then as a "definitive" investment agreement. Michael Feinstein who signed on behalf of the company indicated that he would keep 51 percent of the shares in the company.

It's a project that has come a long way. In 2014, the Feinstein project had gotten rare bipartisan support when a bill to grant exemptions on the payment of taxes and duties was taken to Parliament. But in 2016 those plans fell through when talks rose of government entertaining other potential cruise port investors. Before the signing of the agreement with government, Feinstein had asked government to guarantee his loan for it and sought an exclusivity arrangement before proceeding to secure returns to make the project viable. But at the signing of the agreement, government indicated that no exclusivity would be granted.

The port will be constructed four miles off the coast of Belize City. The company is expecting to break ground in a few weeks and construction is expected to commence immediately after. The port is expected to be completed within 18 to 24 months after construction commences and the company states it is expecting to provide jobs at that time. It will house two docks to accommodate 4 voyager class cruise vessels, including a 60-slip marina. The project should also include an upland development of about seventy thousand square feet of shopping centers, restaurants, Water Park, and beach and leisure areas. The project is estimated to cost fifty million US dollars.

LOVEFM

Big Money Green Light For Stake Bank Cruise Project

News is the The Stake Bank Cruise Docking facility had gone silent for a while - but tonight we can report that it's now going full speed ahead.

First, a little bit of background: Developer Mike Feinstein signed a so-called "definitive agreement" with government 11 months ago to develop the Stake Bank Cruise Docking facility. Construction was supposed to start by the end of 2017 - and it was promised to open by January of 2019. But, it seems putting the financing for the mega-project together took a little more time.

But, that period is over now: today developer Mike Feinstein told 7News that his group has secured financing of 82 million US dollars for the first phase of development. He says that the financing was arranged by Atlantic Bank and comes from a consortium of international investors which do not include any of the major cruise lines. Feinstein added that he retains controlling interests.

He says they will break ground out at Stake Bank Caye in a few weeks and work will commence after that.

At the signing of the Definitive Agreement In August of 2017, he outlined the key points of the project:

FILE: August 25, 2017
Mike Feinstein "The Investment is 50 million US dollars and its two docks to accommodate 4 ships. A big development approximately 17 acres of development and there a few stations marina, different companies to the project. But the total cost we estimate at 50 million US dollars. First of all we are hoping to start right after the hurricane season ends. We start mobilizing very shortly, but actually start construction towards the end of the year and it takes 18 months to build these docks and during that 18 months we will finish the upland development. So several crews working out there at the same time. There are people working on the dock, people working on the marina, people working on the upland development, so it's like a thousand people at any given time."

"I can guarantee you that in 18 months ships will be docking at Stakebank and that is the objective to keep this industry secure. Many of you don't know, but larger ships are already bypassing Belize, so that is how important this docking facility is. So we are securing this industry once and for all."

That was from August of 2017, so to update it to now, where construction will take 18 to 24 months, we'd say that the project should be ready for the Cruise season of 2020.

Feinstein told us today that Phase 2 will extend the project to Drowned Caye.

Channel 7

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Stake Bank Cruise Port to Break Ground in August

The Stake Bank Cruise Port is finally getting off almost a decade after it was first conceived and introduced by developer Michael Feinstein.� The proposal to construct a cruise ship terminal off the coast of Belize City that would rival Harvest Caye in southern Belize is set to begin in early August.� That's according to the Feinstein Group which issued a release earlier today informing that Stake Bank Enterprises Limited has finalized all negotiations with government and has also secured funding through the Atlantic Bank.� But as promising and highly touted as the undertaking seems to be, the multimillion dollar tourism project will be scaled down considerably due to environmental concerns over a previously proposed causeway that would have linked the caye to mainland Belize City.� During public consultations held in Belize City in June 2013, environmentalists and tourism stakeholders fought against the causeway. The developers are now able to proceed with the project and have set a timeline of eighteen to twenty-four months to completion.� Project Coordinator Troy Gabb told News Five today that development will also consist of roughly seventy thousand square feet of retail space, beaches and leisure areas.

Troy Gabb, Project Coordinator, Stake Bank Cruise Port

"The project concluded, for all intents and purposes, in terms of the logistics, there was a lengthy period of negotiations dealing with the government dealing with the legislation, dealing with the definitive agreement and then there was also the environmental compliance plan that had to be put in place via the EIA, Environmental Impact Assessment.� So that has been concluded and the government is fully onboard and fully approved of the project completely.� In addition to that, of course funding, as you always know, is a critical part of these projects of this size and that was what was concluded yesterday and that is why the release was sent out now because the project is set to go.� A groundbreaking ceremony is planned for the next two weeks or so where we'll be set with all the pomp and circumstance."

Isani Cayetano

"What is the scale of the Stake Bank project as we're looking at it going into the future?"

Troy Gabb

"Basically the Stake Bank Project or the Stake Bank Cruise Port docking facility is going to be an actual ship dock for cruise ships.� There are going to be two fingers, two piers are going to be built which will accommodate four ships of any class which means that it will include all the mega classes as well.� Right now those are prohibited for the most part from coming to Belize, simply because there are issues with the tenders and so there is always some complication.� This is not going to be the case now and so all those ships that are bypassing us or not have us on their itinerary will be able to come to Belize.� It will also have an upland development which will consist of, as the press release states, about seventy thousand square feet of shopping area inclusive of restaurants and bars and beaches, leisure area as well, as well as a marina especially to house the tenders.� It's going to be very efficient for them because often times when they drop off their passengers to the ship itself they have to come all the way back in.� They won't necessarily have to do that now, it will be cheaper to just leave it at the marina and you shuttle in your captains on a smaller vessel, so again, the project is going to create a lot of savings for the tender community as well."

Stake Bank to Proceed Without Controversial Causeway

The project will see the employment of hundreds of local laborers in erecting the twin piers, as well as the structures on the island.� Once completed, however, Stake Bank will be off-limits to Belizeans wanting to enjoy its myriad amenities, similar to Harvest Caye in the south.� That's because in order for the port to meet ISO standards, security on the island remains paramount.� According to Gabb, Stake Bank will revitalize the cruise tourism industry in Belize City by creating mass employment in various sectors.

Isani Cayetano

"One of the observations when looking at the press release is the fact that this time around there is no mention of a causeway, as initially had been proposed which would have extended from the mainland Belize City on to the island.� Is there a reason for that or is that an omission on your part?"

Troy Gabb, Project Coordinator, Stake Bank Cruise Port

"No, it's not an omission per se.� What has happened is that, as we've said, the project has been morphing over the last ten plus years and one of the morphs have been that the causeway has not been included in the last amendment of the legislation and as a result is not a part of this particular phase of the project at this point in time."

Isani Cayetano

"In terms of job creation and employment in the first phase which would be the construction phase of the development, what can Belizeans look forward to?"

Troy Gabb

"Well that is the part that really excites me.� In the first instance, under the construction period there is going to be a tremendous amount of jobs that are going to be created and that is one of the things that sticks out in the mind of the developer.� He constantly says that this is going to be a game changer for Belize, for Belizeans on a whole.� Mr. Mike Feinstein has been at it for a tremendous amount of time, him and his wife have been dedicated to this project and I think this is a sort of victory lap for them for the most part because now the amount of jobs that are going to be created is going to be significant.� We like to think that it's going to be in the hundreds of jobs that is going to be created, so you'll have quite a number of people having meaningful employment for a period between eighteen to twenty-four months during the construction period and then subsequently afterwards because of course the island will need to be staffed in terms of all the amenities that are going to be there.� Not to mention also that after completion, based on all the projections, that you're going to have a significant increase in ship calls.� Of course, when you have an increase in ship calls it means that there's more passengers, so the cruise tourism pie gets bigger and because it gets more and it means that more tour operators will be able to benefit from it, more tour guides, taxi people, shuttle buses, restaurants, you name it.� Because as well all know, tourism is one of the strongest performers for the economy at this point in time and because of that, if we grow it bigger then it means that it's going to provide even more benefits to the overall economy and the overall society on a whole."

Channel 5