AmbergrisCaye.com Home Forums Belize by District Belize District Stake Bank Project Unveiled

Destructive, crass, stupid and will be our 3rd cruise ship terminal, so if you on the caye think you are immune to cruise ship passengers on your shores and at Hol Chan, its gonna happen. Ask your barefoot minister.

STAKE BANK PROJECT TO GET 20-YEAR TAX CONCESSION

The Feinstein Group of Companies announced last year its intent to invest US$100 million in a cruise port at Stake Bank and a shopping zone at North Drowned Caye off Belize City, and today, the Stake Bank Cruise Docking Facility Development Bill, which would, among other things, provide for the developer to be exempt from Income Tax and General Sales Tax (GST) for 20 years, was introduced at a Special Sitting of the House of Representatives.

"This, of course, is the enabling legislation that will now permit the developer to begin works on Stake Bank," said Prime Minister Dean Barrow, in introducing the bill.

He noted that the 16-acre island known as Stake Bank lies about 4 miles offshore from Belize City, and the idea is to locate the new cruise port there and to build the causeway to Belize City.

He said that all relevant Environmental Impact Assessments were submitted and examined by the Department of the Environment, and it appears that the developer has financing lined up, and so with the passage of bill, construction would be imminent, Barrow said.

He also indicated that the bill makes provision for the cruise facility to be declared a port of entry, and to allow for the Feinstein Group to collect cargo dues from all cruise ships that will call there, just as is permitted at the Big Creek and Belize City port.

It also provides for passengers to pay a port development fee, which would be shared between the Feinstein Group and the Government, Barrow said, adding that the details of the fee would be worked out later.

Amandala understands that the project, while it will not have formal Export Processing Zone (EPZ) status designation, will function similarly, with Government's primary revenues coming from the sharing of the port development fee to be paid by passengers in the form of a departure tax.

He said that a larger commercial agreement would also be signed between Government and the developer.

Amandala

Opposition Supports Stake Bank Project

The Opposition also expressed its support for the Stake Bank Cruise Docking Facility.

HON. FRANCIS FONSECA

"We wish to offer our support for this project and in arriving at that offer of support; we looked at essentially four criteria: (1) is this project good for the economy of Belize? We believe so that it will be good for Belize; we thing that it will be critically important to the future of the cruise tourism industry which is obviously directly related to the economic development of Belize (2) have all the environmental clearances been met? Have all the technical people signed off on the project and given their approval on the environmental side? My understanding is that has been done and finally, the developer, Mr. Feinstein and stake bank team are Belizeans who, I think, have a consistent history of investing in Belize and putting their money back in the country and so, in offering our support, we looked at that criteria and we simply want to place that on the record."

LOVEFM

US$100 MIL STAKE BANK PROJECT GETS BIPARTISAN SUPPORT

At the second reading of a bill to grant exemptions on the payment of taxes and duties by the Feinstein Group of Companies on a US$100 million project for a cruise port and shopping facility offshore Belize City, both the ruling United Democratic Party and the Opposition United Democratic Party (PUP) indicated their firm support for the project.

Opposition Leader Francis Fonseca said that the Opposition is supporting the project on the basis of 4 criteria which they looked at:

"Is it good for the economy of Belize? We believe so!" Fonseca said, adding that the venture is critically important for the future of the cruise tourism industry of Belize.

Fonseca also said that all environmental clearances have been met and the technical experts have signed off on the project.

Also, he noted that the developers, of which Mike Feinstein is the most well-known, are Belizeans who have a consistent history of investing in Belize and putting their money back into the country.

Johnny Brice�o, Opposition member for Orange Walk Central, aligned himself with Fonseca's remarks.

"This is a project that has been in the works for many years," said Brice�o.

He said that the developer had declared at the House Committee meeting which looked at the project on Monday that they would be investing "to the tune of US$100 million" and Feinstein and his group already have the financing.

Brice�o said that the project will create a lot of jobs during and after construction-jobs critical to the survival and growth of the cruise tourism industry.

The Orange Walk Central rep said he was also taking the opportunity to appeal to Prime Minister and Minister of Finance Dean Barrow to look at developing the Commerce Bight Pier in Stann Creek in a manner that would expand tourism in the south.

Barrow said that his administration would develop Commerce Bight in consonance with the overall transportation needs of the country, and a study of those needs is being undertaken jointly by the Inter-American Development Bank and the South Koreans. He said that when they see how Commerce Bight will fit in the overall transportation agenda, Government will move ahead with the development.

Mike Espat, Toledo East area rep for the Opposition, said that with Stake Bank, Belize would have four active ports, but the Commerce Bight is very important to the people of the South, and people are demanding that they do something about Commerce Bight.

Espat said that his brother, Luke Espat, had paid the Government (under the People's United Party administration) $64 million for the purchase of Port of Belize facilities in Belize City and part of that agreement covered Commerce Bight for $4.5 million.

"Luke Espat neva sell no passport fi get that money!" the Toledo East rep said.

Barrow said that no development has yet occurred at Commerce Bight because Espat's brother, Luke, "refuses to concede when the jig is up and the game is over" and he continues to challenge the move made by the Barrow administration last year to take back Commerce Bight.

Amandala

Would imagine NCL port in Placencia is one reason. That will divert ships from Belize City to the south and kill the cruise ship tourism industry in Belize City, where there is already dire unemployment, high crime and few alternative prospects. Only a few with govt ties and will play more hanky panky with ncl will get the work from NCL, if that is allowed to move forward.

Barrow's govt gave Norwegian Cruise lines a similar deal in Placencia. The other cruise lines unloaded passengers. This is Carnival's attempt to hold Belize hostage to their needs, after we allowed our economy to become addicted to cruise ship tourism. Stupid and criminal on the part of both PUP and UDP. Or maybe just criminal, as the lead players from both parties were not stupid

The cruise ships are in charge; not Belizeans.

GOB may consider pay-out to settle cruise sector logjam

Under an agreement due to expire in 2028, the Fort Street Tourism Village (FSTV) has been designated as the exclusive port of entry for cruise ship passengers for the Belize District. The contract will thus remain in effect for thirteen more years, and although Prime Minister Dean Barrow says that there are questions as to the legality of the agreement, the Government of Belize is committed to working with the parties to help break the logjam, in the interest of seeing a new state-of-the art docking facility and cruise port, to be owned and operated by Mike Feinstein, a former partner in FSTV, come to fruition.

Barrow said that Feinstein already has financing for the US$100 million port at Stake Bank from a consortium of domestic lenders.

On Tuesday, Barrow met in Miami with Carnival Cruise Lines, which was also granted a subsequent concession for a cruise port at the Port of Belize in Belize City, in breach of the Government's prior exclusive arrangement with FSTV - a breach for which the Government in 2004 entered into an agreement with FSTV to compensate them for lost revenues from head tax earnings.

When Cabinet endorsed the Feinstein project in 2007, the principals of the Carnival port threatened to sue the Government for damages. The matter has been in stalemate, with litigation on multiple fronts. Barrow said that he will fly up to Miami again next week, if necessary, to bring a speedy end to the impasse.

Barrow also mentioned that he had told the FSTV principals last week (before he went to Miami) that their thought that they could build the cruise port at Stake Bank is "not going to fly".

Feinstein has said that he won't sell his island and he would only partner with them if they are minority shareholders.

Barrow noted, though, that the FSTV model would require a government guarantee of US$80-odd million - which the Government is not prepared to give.

Barrow said that so far it has proven impossible to get the parties to come to agreement, but he has not stopped trying yet.

"It may well prove to be a bridge too far or a docking birth too far� As things now stand, it would appear that if we say to FSTV, 'You can't work it out with Mr. Feinstein, we are going to bring into force the law that we had already passed, which greenlights Mr. Feinstein,' and Mr. Tersek and his people say, 'Well, you do that we're going to sue you for damages,' that's a decision the Government will make," Barrow said.

He added that if indeed some form of financial payout could cause the construction of the cruise facility to proceed without litigation, it is something the Government would have to look at, but the decision of the Government will depend on how much money FSTV wants, as well as what Cabinet and other parties have to say about whether it would be worth it for the Government to pay the proposed price of settlement to get the project to proceed.

He promised to report back on the progress of the negotiations.

Amandala

Ah, more legal fees and settlements we foot the bill for.

C'mon everyone knows that every last lawsuit and contingency was set up over beers years ago by all parties involved.