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Puerto Azul: Who Owns The Cayes?
Thu, April 16, 2015
Puerto Azul, the name has been in the news for at least 8 months now. That's after it got roundly criticized by the conservation community and the Government for being too "fantastical" to be placed on the Lighthouse Reef Atoll. The first details released on the project last year was that the Italian investors wanted to build a super exclusive eight star mega resort on North 2 and Sandbore Cayes.

It got negative publicity because the conservationists say that environmentally, the size and scope of the project will affect the integrity of the natural elements of this World Heritage Site. Well, it appeared that the developers got the message, and they intended to scale it back.

Fast-forward to this morning; one American businessman, who has financial interests in the island, decided to go public with his opinions of the project and the changes that the investors are now considering.

First, there is a complex backstory to the ownership of the two cayes where the Puerto Azul investors want to put their resort. The cayes are jointly owned by two companies, known as Northern Two Cayes Company Limited, and the Lighthouse Reef Resort Limited. Those two companies are in court. On one side, there is American Jack Black who is being sued by his former business partners, 98 other Americans, who jointly bought the two islands. Then, there is businessman John Mills who bought a mortgage for the complex so that the existing Lighthouse Reef Resort could stay open. It was being foreclosed on by Scotia Bank. He's now a bondholder trying to get paid, and he has an encumbrance on the property in which the owners owe him over 3 million US dollars. So, for Puerto Azul Developers to buy the property from the two companies, he has to be paid first.

Mills has decided that he wants to inform the public about what is the real status of the Puerto Azul Development. He hosted a press conference this morning, and provided certain details:

John Mills, Debt Holder - Northern 2 Cayes
"You can understand that when I read the Belize newspaper and I saw a couple of weeks ago that they had said that the islands had been sold. That was news to me because I have a lean on the property. That is not been the case. Puerto Azul is not closed on the islands. They signed a contract to purchase Northern 2 Cayes in March 2013. The first payment was to be made in March 2014. They did not make that. The second payment was to be made in 2015 and they did not make that. The issue is that they have been 2 years into this and they failed to file an environmental impact assessment. Also, in their press releases they said that the project is in an advanced stage - that they sold 63 time shares and they are going to have 300 sold by the end of the year and that they are going to have an inauguration at Christmas. All is this is interesting since they don't own the islands right now. I think that Puerto Azul has a true belief that they can do a sustainable project out there. I think they have their well-intended, in terms of what they are trying to do. On the other hand, I find alarming because there is a disconnect in terms of what is environmentally feasible and also economically feasible. Northern Caye is an outstanding resort side. It is viable development property that the people of Belize needs to recognize that it should be develop in a very conservation-minded way where it creates jobs, creates activity and actually some development out there will in fact help the environmental situation."

So, is Mills discouraging public support for the Puerto Azul project? That's just what we asked him today, and here's how he responded:

Daniel Ortiz
"Some persons may look at this and say that you are trying to sabotage Puerto Azul by criticizing them in this fashion. How do you allay that fear that you aren't protecting any self-interest here, that is simply for environmental aspects to make sure that development happens responsibly?"

John Mills, Debt Holder - Northern 2 Cayes
"Well it's a combination of the two. Clearly I have a financial interest, but at the same time, I am totally committed to the conservation aspect. Puerto Azul, in terms of criticizing it, as Fabio said yesterday, he really wants to do something that everybody approves of. A viable resort would do well out there and I wish Puerto Azul all the god fortune in the world to be able to conclude their contract and purchase the island and do a sustainable resort that helps everybody."

Reporter
"Why until now? You are saying you are two years into this process. Why not from the onset, from when this was mentioned initially?"

John Mills, Debt Holder - Northern 2 Cayes
"Because I have a contract. They weren't in default of the contract until March 2014."

This morning, the Puerto Azul developers released a statement which says, quote, "Puerto Azul has complied with the terms of reference provided by the Environmental Subcommittee, and environmental studies are being conducted to determine the appropriate development for the Northern Two Cayes. The final project proposal will depend on the outcome of these studies…" End quote.

Trying to swing support in their favor, the Developers say, quote, "Puerto Azul has taken and will continue to take appropriate action through extensive environmental studies and proactive measures to ensure the protection of the atoll and its ecosystems. End Quote.

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