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For months now, developer Mike Feinstein has been in court against the owners of the Fort Street Tourism Village. He's being trying to broach a resolution with village owners Royal Caribbean Cruise Line and Diamonds International which would see his Stakebank Cruise port move forward without any lawsuits. All attempts have failed, and so now, both sides have commenced litigation before Justice Courtney Abel.

As viewers may know already, Feinstein is challenging the legality of the head tax that is collected from each cruise tourist, which is then shared between the owners of FSTV, and BTB on behalf of the Government of Belize. His issue is that all tax revenues must be paid into the Government's Consolidated Revenue Fund, but in this case, most of it goes to the Tourism Village. FSTV has countersued saying that if this head tax is indeed illegal, then both the Government and Mike Feinstein, who originally helped to craft this agreement, should pay them an award of damages.

The Government's position is that this "head tax" is not really a tax; it's more of a fee that is charged to each cruise passenger entering Belize.

They also point out that before Feinstein sold the Tourism Village to the 2 current owners, he was also benefiting from this revenue collection which he shared in.

And while all that is the foreground issue, in the background is the larger issue: the Barrow Government has already passed the Stake Banks Cruise Docking Facility Development Bill, but it cannot bring it into effect as a law because FSTV owners would sue them for breach of contract. That's because after Feinstein sold the tourism village to Royal Caribbean and Diamonds International in the mid 2000's, the Musa Administration extended the contract long beyond the original term.

In that contract, and its renewal, the FSTV was given exclusive rights to be the sole port of entry for the Belize District. That ensured that the Tourism Village would remain financially viable, so that the investors could recoup, and probably triple their investment. But, it also had the effect of keeping direct competition from another cruise port from taking root.

In an affidavit, Feinstein asserted that he found out later that the Musa Government signed an amendment to the extended contract. In that amendment, the Government guaranteed if and when Stakebank comes online, FSTV will be able to get a portion of the head-tax for all passengers who passes through that new facility, even though it is an official port of entry. Also, according to Feinstein, this amendment sought to restrict the amount of merchandise stall space to only 10,000 square feet. Additionally, the FSTV was given permission to build 2 berthing facilities as part of the Stakebank project.

Feinstein says that he could not agree to these terms because they would cripple the financial viability of the project, and that's the reason he has turned to the courts.

His attorney, Andrew Marshalleck finally got a chance to present their case to Justice Courtney Abel, and after 5 hours of legal back and forth, the case was adjourned for the day. We spoke with Mike Feinstein, who was present for the hearing, and here's what he told us:

Daniel Ortiz

"What's your impression of day 1 of this case?"

Mike Feinstein – Developer, Stakebank Project

"I think it went very well for us. Our arguments were very positive. On the government's side, they are kind of baffling around. My agreement ends next year, 2016. All the extensions really, I was not a part of them. Just recently I found out about the 2028 deal which is to accommodate Carnival, who never showed up basically. We're saying that head tax is not legal. We're saying that these agreements are not legal and it all falls in place. The head tax is not legal in any agreement. I think the arguments will run well, we will find out maybe on the 24th."

Daniel Ortiz

"But sir, the judge made a very important point which was brought up by the government's attorney that you benefited from this same arrangement, now complaining against."

Mike Feinstein

"As the judge said, it's not legal now, it's not legal then."

Daniel Ortiz

"So you accept that it wasn't proper then either?"

Mike Feinstein

"I'm saying that head tax wasn't legal now, it wasn't legal then."

Reporter

"If it is found to be illegal that you could also been on the hook for paying back some of these funds, it that a concern to you?"

Mike Feinstein

"Absolutely not. I'm telling you that - I'm not saying collecting that head tax is illegal, it's illegal for them to be distributing it; for them to be collecting and distributing it."

Daniel Ortiz

"Sir, isn't the distribution done similarly as it was done when you were there as the owner of the tourism village?"

Mike Feinstein

"That's right, but at that time I wasn't legally advised or any illegality at the time anyways."

Andrew Marshalleck, SC – Attorney for Mike Feinstein

"It is primarily the restriction we are concern with has primarily to do with the new facility being designated at port of entry and following on that how head taxes are to be distributed for people passing through that facility. What they sought to do was to say that every manifested passenger passing through the new facility would still have to pass through the village so that they still get the head tax."

The case continues tomorrow where Deputy Solicitor General Nigel Hawke will get to finish up the Government's defence, and then Rodwell Williams will get an opportunity to state FSTV's case.