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1/12/2017 
GRENADA GOVERNMENT TRIES AGAIN TO SEIZE LOCAL HOTEL  
The government of Grenada has gone back to court in a second attempt to seize The Grenadian by Rex Resorts—a fully operational hotel currently complying with all the terms of its 99-year lease with the government. A legal challenge to the government’s first attempt was upheld by the court last year, with an oral decision handed down just before Christmas that essentially said the government erred in the compulsory acquisition process, but was given leave to start the procedure over again, which it has done. However, the judge in the matter has not yet handed down her written decision that outlines her reasoning. Therefore, Rex Resorts is unable to appeal the decision allowing the government to restart the process until the written order is made available. In March 2016, the Eastern Caribbean Supreme Court heard an application by MRI Ltd, the management company of The Grenadian by Rex Resorts, for judicial review and an interim injunction preventing the Grenada government from unilaterally revoking the company’s 99-year lease and taking control of the property in question. It is understood that the government is attempting to use its powers under the Land Acquisition Act, which authorises the acquisition of land for public purposes. Specifically, the law provides that “If the Governor General considers that any land should be acquired for a public purpose he or she may cause a declaration to that effect to be made in the manner provided by this section and the declaration shall be conclusive evidence that the land to which it relates is required for a public purpose.” However, according to local sources, a private Canadian company, Sunwing Travel Group, the largest integrated travel company in North America, which is partially owned by a publically traded German company (TUI Group) is working with the government of Grenada to seize the fully operating hotel. This has raised a number of questions locally. First, the cash-strapped government, as the acquirer of land, would be responsible for fair compensation if it is successful in its expropriation but where is the money coming from? Second, there is presumably an agreement in place with Sunwing, but what does that agreement contain and what financial incentives, if any, have been offered by Sunwing or any other interested party to prompt Grenada government ministers to embark on such attempted seizure? Furthermore, if the property is in fact intended for commercial redevelopment by a private party, there must be some doubt, notwithstanding the governor general’s “conclusive” declaration, as to whether it is genuinely required “for a public purpose”, a term that is not defined in the Act but which is generally held to mean something that purports to benefit the populace as a whole and not narrow private or other interests. The Grenada government has so far declined to address these issues. Following the latest attempt at seizure of the property by the government, Richard Bryson, chief executive officer of Rex Resorts, said: “The actions taken by the government to seize The Grenadian lack transparency, are ill-conceived, ill-executed, and likely illegal. As the first international hotel operator to invest in Grenada a quarter century ago, we have brought thousands of visitors to the island, provided good-paying jobs to many, and hosted countless events for our neighbours and international guests. In the process, we have made good on every aspect of the 99-year lease we signed with the government 25 years ago. “Rex Resorts has laid out detailed development plans for the government that will further enhance and elevate The Grenadian to a four-star resort standard. This investment of US$12 million that we have proposed for this year alone, which is in addition to the millions we have invested over the past few years, further demonstrates our commitment to Grenada and this property. In addition to this investment, we have commitments from Air Canada Vacations to increase the airlift to Grenada and a commitment from other airlift partners and travel agencies in the United States and United Kingdom to bring additional guests to Grenada. Rex Resorts remains as committed to Grenada today as we were more than 25 years ago when we were the first international hotel operator to invest here. “While this action by the government is unfortunate, Rex Resorts is eager to put this matter behind us and move forward with executing the property enhancement plans we’ve outlined for the government in the very near future.” Rex Resorts operates eight beach resorts in the Caribbean and East Africa. The Grenadian by Rex Resorts currently employs over 100 people and has paid every lease payment due to the government. The hotel is also current on all taxes and has contributed millions to the local economy. Former attorney general, James Bristol, pointed out last year that the Rex Resorts property is held under a lease, with the government as landlord. “If the government had a difficulty with the standard of the hotel under the terms of the lease the correct place to look to remedy that is within the terms of the lease, exercising your right as a landlord vis à vis the Rex as a tenant,” Bristol said. Bristol said there is more to the attempted acquisition than meets the eye. “They may have other reasons for pushing the acquisition as speedily as they did and it’s going to backfire and has backfired,” he said at the time. Source: Caribbean News Now
 

 


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GRENADA GOVERNMENT TRIES AGAIN TO SEIZE LOCAL HOTEL  
Does this seizure of the Ritz a representation of what occurred when the Grenada Government turned its back on Taiwan for China? Is the government once again turning it's back on the Ritz in order to make space for the Russians? Did the Russians request the Ritz property as it headquarters? Why are we so quick to forget the bridge we once used in dire times?
80By: The Observer
1/17/2017 7:58:31 PM