The long-running ownership legal battle for Cap Juluca, Anguilla’s premier resort, between Charles Hickcox and Dion Freidland, has taken a new twist. The Government, which has been sitting on the fence as the wrangling continued about the luxury property, built on Crown Lands, and as its lapses into disrepair, has thrown its support behind an opposition motion calling for its acquisition.

Honourable Victor Banks addressing House of the Government side of the assembly

The motion was introduced in the Anguilla House of Assembly on Tuesday, August 22, by Opposition Member for Road South, Hubert Hughes. The move follows a meeting of both sides of the House called by Chief Minister Osbourne Fleming on July 3 during which the present ownership impasse and other matters, including the future of the resort, were discussed.

The text of Mr. Hughes’ motion is as follows:

“WHEREAS the Cap Juluca Hotel is Anguilla’s prime tourism property;

AND WHEREAS several hundred Anguillians are employed in this hotel;

AND WHEREAS the hotel has been the subject of serious litigation between two American citizens for several years;

AND WHEREAS the hotel is in serious need of repair;

BE IT RESOLVED that the Government of Anguilla urgently explore all legal measures to have the property acquisitioned in order to facilitate a meaningful ownership of this hotel project.”

Speaking on the motion, Acting Chief Minister and Minister of Economic Development and Tourism, Victor Banks, said in the House: “This movement to do whatever is necessary to ensure that Cap Juluca is in good hands, was an initiative by the Government of Anguilla. This initiative about the acquisition of lands at Cap Juluca was expressed in a meeting called by the Chief Minister where both Members of the Opposition were present [and were told] about our intention to begin a process leading up to, if necessary, the acquisition of Cap Juluca’s lands.

“We had used not only the advice of the Attorney General, but also sought the advice of an independent law firm or lawyer to do an opinion on the process going forward. Those opinions were then up for consideration in Executive Council and within Government’s Cabinet to really fine-tune that way forward. Mr. Speaker, I believe that the Member for Road South did his duty in presenting this motion to the House of Assembly. It gives a clear indication…that on both sides of this Honourable House there are persons who are concerned about the future of Cap Juluca and are willing to explore all options to ensure that takes place.”

The lone dissenter on the motion was Opposition Member for Road North, Edison Baird, who was criticised for his position by Mr. Banks who said: “I was very happy that the Member for Road South had put forward the process of debate in this Honourable House on the issue of acquisition. I repeated the motion before the Member for Road North when he arrived back in the House, to clarify the fact that we are talking here about acquisition. It can include compulsory acquisition, a normal purchase done by negotiation among the parties involved and it could also include forfeiture which is provided for in the lease…I was very disappointed with the un-enlightened, and I would term it the unpatriotic, approach by the Member for Road North in his presentation.”

L-R: Honourable Hubert Hughes and Edison Baird (file photo)

Mr. Baird, who objected to Mr. Banks’ remarks, had earlier opposed Government’s acquiring “people’s private property.” His position included that the Government did not have the money to pay for the property which, three months ago, according to Banks, was valued between 120 and 160 million US dollars. Baird did not believe that the British Government would support the Anguilla Government in borrowing that amount of money. He argued among other things that potential investors would be scared to come to Anguilla. He stated that most likely the American Government might become involved because the owners of the property could see the move as an act of confiscation rather than acquisition.

Responding to Mr. Baird’s question about where the money would come from to pay for the acquisition, Mr. Banks had this to say: “The Government of Anguilla has demonstrated over the years its creativity and innovation in addressing all issues of this nature. We have the means, we have the capacity and we have the expertise to deal with the issue as it presents itself…We will not be limited by the issue of finances. We would strive to find the appropriate mechanisms to achieve the objective of putting Cap Juluca back in an environment where the product can be developed and enhanced…He [Baird] mentioned that Her Majesty’s Government would not be prepared to assist us in this exercise. The real reason we have Cap Juluca today, Mr. Speaker,…is that the British Government were the first ones who gave us the resources to purchase the land associated with Cap Juluca in the past. I know that they have a keen interest in the future outcome of this property and they are themselves involved in the discussions…”

Special Adviser in the Ministry of Tourism, Donna Banks, was a strong speaker calling for Government’s intervention in Cap Juluca. She expressed the hope that the motion would bring about “a speedy and optimal resolution of this Cap Juluca impasse.” She continued: “Mr. Speaker, the call in the motion is not one to take Cap Juluca out of the hands of one group of people and hand it on a platter to others of a selected group. The call, really, is to try and save what I call ‘an endangered species’ for, indeed, as the turtle dove is our national bird, and is protected, so is Cap Juluca, a tourism phenomenon of national interest and its existence must be protected and preserved.

“Mr. Speaker, our tourism industry has been founded upon the principle of low volume, high yield, a luxury tourism product; a position that has set us apart from the rest of the tourism crowd and, in recent years, we have definitely been the envy of many tourism destinations. Today our tourism plant stands at approximately 1200 rooms of which Cap Juluca makes up 8.16 percent or some 98 rooms. Today, Anguilla is almost synonymous with Cap Juluca. When you hear Anguilla, you hear Cap Juluca; when you here Cap Juluca, you hear Anguilla and that, to a large extent, is because of the intense media coverage that Cap Juluca has generated in the marketplace. So synonymous has been the name Cap Juluca with Anguilla as a tourism destination, that the Ministry of Tourism, through the Anguilla Tourist Board, over the past three years, has made a concerted effort to educate consumers that Anguilla is more than Cap Juluca and the other five-star properties on the island.”

Ms. Banks went on to speak about the rave reviews Cap Juluca had received from everywhere, including its guests, for the special brand it has established for itself on the market. She said the 450 employees were the ones who provided the warm, welcoming experience that guests looked forward to. She observed, however, that the physical product had not kept pace with other developments in Anguilla and other islands. “The brand image of Cap Juluca is slipping as guests and agents view the property as becoming tired,” she lamented. “There is need for increased amenities at the property. There needs to be an upgrading and enhancement of the property if Cap Juluca is to regain and maintain its status as evidenced by the various accolades mentioned earlier.”

The Tourism Adviser further said: “Mr. Speaker, as the prolonged legal wrangling between Freidland and Hickcox continues, the physical plant is deteriorating, employees are becoming uncertain as to their future; their morale is decreasing and agents in the marketplace are becoming concerned and are losing faith. Because of selfish motivations, Mr. Speaker, if we do not have a resolution to this impasse, the life of Cap Juluca and 450 Julucans (employees) is being threatened. This threat is beyond Cap Juluca and 450 Julucans. This threat is also against Anguilla as a destination in general for indeed, if the foundation is weakened, the entire structure is weakened and subject to collapse.”

The outspoken Donna Banks reiterated that “Cap Juluca is an endangered species that must be protected in the national interest of Anguilla.” She added: “Mr. Speaker, Government’s intervention is urgently needed…You may recall, Mr. Speaker…how the Government and people of Anguilla acquired the additional 39.5 acres of land at Maundays Bay. The expressed intent was that these lands be pooled with existing Crown lands in the Maundays Bay and Cove Bay areas to develop a tourism showplace to the best advantage of Anguilla and Anguillians. Cap Juluca has indeed been a tourism showplace that has benefited Anguilla and Anguillians well. Greed, squabbling and lack of investment are threatening this showplace and the best advantage of Anguilla and Anguillians is not being served.

“Maundays Bay and Cove Bay, though leased to Leeward Islands Resort Limited, to create this tourism showplace, are still the property of the Government and people of Anguillla and the legal wrangling, Mr. Speaker, of Dion Freidland and Charles Hickcox, is making it impossible for Cap Juluca, the Anguillian tourism showplace, to operate to the best advantage of Anguilla and Anguillians. Mr. Speaker, there is undue pressure being placed on those of us in the tourism industry to keep the lid on this simmering pot... Our credibility as a destination is at stake. The credibility of our leaders is stake…The future of Anguilla is at stake. This Cap Juluca issue is of national interest and the Government of Anguilla must make hard decisions that are first and foremost in the interest of the people of Anguilla. Government must exercise its rights and options without fear or favour. Cap Juluca, an endangered tourism species, must be protected and preserved at all costs.”

Other members who spoke in support of the motion were the Minister of Social Development, Evans Rogers, and the Parliamentary Secretary and Member for the West End/Long Bay constituency, Albert Hughes.

The debate on the motion was summed up by the mover, Hubert Hughes, who thanked the other members, except Mr. Baird, for their support, which enabled the measure to be passed in the House of Assembly.

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