You probably know all about the delay to Mike Feinstein's multimillion-dollar port development. He has all the necessary government approval to build his Stakebank cruise port and docking facility after the house and senate passed the Stake Banks Cruise Docking Facility Development Bill.
But government hasn't brought that piece of legislation into effect. And government says that if it goes ahead, it will be sued by the Fort Street Tourism Village, which is owned by Royal Caribbean and Diamonds International. The last government gave them exclusive rights to operate a cruise port in Belize City right through to 2027, and if the Feinstein project goes through, it would be directly competing against FSTV.
That's something which the original purchase agreement protects the FSTV shareholders from, and it's also a deal that Mike Feinstein himself entered into when he sold FSTV to those investors.
So, to push through the logjam, Feinstein has sued the Government of Belize, BTB and the current owners of FSTV. His investment group's contention is that in the 2004 agreements, the "head tax" collected by Government is not properly budgeted for in the Consolidated Revenue Fund. If that is true, then that would mean that the contract is null and void - because only government can collect tax. In response, the owners of FSTV have fired back with their own lawsuit claiming that since both Government and Feinstein crafted these agreements when Feinstein was selling the tourism village, Royal Caribbean and Diamonds International are entitled to damages.
The case was to have begun today, but due to the complications of the second lawsuit, the trial date was pushed back. Still, we spoke with the attorneys from both sides about what this means for the resolution of this dispute:
Andrew Marshalleck - Attorney for Mike Feinstein
"It's just procedural, they just gave directions as to how we are go moved forward with trial."
Geovannie Brackett
"Sir, I know that your client were hoping to get these matters fast forward, due to that fact that building a port takes about two years. Are you somewhat disappointed about the time frame?"
Andrew Marshalleck - Attorney for Mike Feinstein
"What has happened is that his original claim is now complicated by an ancillary claim which has been joined in, so that now both sets of claims have to be disposed of and that necessitated further instructions and that what's the delay is about. The case is getting bigger."
Rowland Parks, reporter
"Can you tell us about the new addition to the case?"
Andrew Marshalleck - Attorney for Mike Feinstein
"It's an ancillary claim, whereby the Fort Street Tourism Village is saying if it is that Mr. Feinstein's claim is correct and government knock the authority to execute that agreement in those terms with them, then government is in breach of a warranted that they gave in the contract with them, that they were authorized to do it and is liable to them for damages."
Rodwell Williams - Attorney for FSTV
"There is the claim brought by Feinstein against GOB and against BTB and against FSTV, alleging that those historical agreements, provisions are void and that the thing "head tax" and therefore it is inappropriate for it to be administered outside the consolidating fund section 114 of the constitution and there is a defense by the defendants GOB, FSTV, BTB to the effect that it might be called a tax, for convenience, but it doesn't have the characteristics of a tax and therefore it does not fall to be treated under the consolidate fund. In any event, there is what is called an ancillary claim, brought by FSTV to say look guys, if it turns out that it is a tax and therefore not in compliance with the requirements prescribed by law, then both Feinstein, the claimant, who sold to FSTV and gave it certain warranties and reps. Remember they were the one under asset purchase agreement. They were the ones who operated the Belize Tourism Village historically, but they sold out to FSTV, then you guys are in breach of your reps and warranties. GOB, who gave FSTV the 2004-2007 agreements, you guys are in breach of your warranties. You said you were competent to do what you did and now if the court says you weren't competent, then the ancillary claim is directed to recover damages."
The case goes back to court in June, and we'll keep following it. Of important note is that the cruise companies intend to phase out the cruise ship tendering procedure that the Fort Point Tourism Village currently uses to get cruise tourists from the ship to dry land in Belize City. That's expected to happen in 2016, and according to the cruise companies, it is because they intend to shift to Oasis Class ships which are massive, and not built for tendering. This means that some sort of docking facility, with a causeway, something like what Feinstein proposes, would have to be built to sustain cruise tourism in the country after the transition.
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