Citizens in Defence of Grenada’s Lands and Heritage has been keeping an eye on developments regarding the proposed Cinnamon 88 Four Seasons development involving the Hog Island and Mt. Hartman properties. The group is particularly concerned that Hog Island, the property of the Theodore family has been occupied and to date the family is yet to be compensated for their island, property that has been in the family for four generations. It all began with James Theodore, original owner and title deed holder of the Hog Island property. The following is the information that the CDGLH has been able to put together in respect of the ownership of Hog Island and the various transactions/actions of the Government of Grenada re the Mt-Hartman/Hog Island properties. 1. Hog Island: 1.1. Title Deed: This island was named for the wild pigs that abounded on the island. Title deed resided in James Theodore who farmed extensively on the island. This continued with his children and grandchildren through four generations. 1.2. Declaration of Acquisition of Land: In 1979, acting on the advice of Cabinet ( of Sir Eric Gairy), the Governor-General made a declaration of acquisition of Hog Island for the purpose of national security, customs and tourist development. Notice of the acquisition was given in two consecutive publications of the Government Gazette as is required by law. The first publication was in the Government Gazette of March 2nd, 1979, No.11. The second publication was in the Government Gazette of March 9th, 1979, No.13. Both publications acknowledged that Hog Island was owned by or under the control of Neville Theodore, Wilfred Theodore and others. The persons named were the children of the original owner, James Theodore. The government never assumed occupation of the island nor was the family compensated. Since the 1979 acquisition, they have continued to have unencumbered use and occupation of the land. 1.3. Hog Island Designated a National Landmark, National Parks and Protected Areas System: In 1988, the OAS Plan and Policy for a System of National Parks and Protected Areas identified Hog Island, as part of the National Parks and Protected Areas systems - a national landmark whose features were to be preserved and held in trust for the enjoyment and use of future generations. Land use was identified as grazing and recreation and the Theodore family was named as the owner(s) of the Hog Island property. 1.4. Injunction brought by Lewis Theodore: During the period 1999-2001, the government of the day announced a Ritz-Carlton project involving the Mt.-Hartman-Hog Island properties. Lewis Theodore (now deceased) successfully brought an injunction against the government. (The CDGLH is trying to get the details of this injunction.) 1.5. Letter of June 23rd, 2004 from Permanent Secretary, Ministry of Finance re Lewis Theodore et al – Hog Island: In a letter addressed to Ms. Celia Edwards, attorney-at-law re the matter Lewis Theodore et al – Hog Island, Permanent Secretary, Timothy Antoine confirmed that “Government is prepared to settle this matter for the sum of $5 million and costs of $75,000”. The letter also advised that “arrangements are being made for the requisite funding”. This letter suggests an acknowledgement by the Government of Grenada of the Theodore family’s claim to the island. 1.6. Land Acquisition Ordinance: According to the Grenada’s Land Acquisition Ordinance, government can only acquire private land for a PUBLIC PURPOSE and must pay adequate compensation, within a reasonable period, to the owner. This compensation must be based on the market value of the property. If government does not use the land for the purpose for which it was acquired, the property must revert back to the owners. If the land is not used within a specified period, it must revert back to the owners. Government cannot sell land it has been acquired for a public purpose to private interest. 1.7. Hog Island and the Cinnamon 88 Four Seasons Development: It is instructive to note the compensation offered to the Theodore family by letter of June 23rd, 2004 – EC$5million and $75,000 for cost. In 2008, Government conveyed Hog Island to the Mt. Hartman & Hog Island Estate Ltd. for USD6 million who has since conveyed the property to Cinnamon 88. The website www.mounthartmangrenada.com provides information on the proposed development. Private residences are being offered for sale on Hog Island – villas with gardens of ¾ acres to 1.2 acres. Lots are being offered at USD2 million and villas offered at USD4.5 million. Where is the justice for the Theodore family?!?! The website also provides information on the tqxes and concessions offered to purchases of property. The website, www.cinnamon88.com advises that 12 lots have already been sold, including 3 lots to Goldman Sachs executives – that is USD24 million to Cinnamon 88 (Grenada) Developments Limited. 1.7.1 Tax Revenue Foregone by Government: The following table summarizes the tax revenue to be foregone by the Government of Grenada based on the tax concession given to this “development” Type of Tax Tax Exemption Period Tax Income Foregone per lot/per 12 lots Stamp Duty(1%) Exempt USD25,000/USD$300,000 Alien Holding Licence (10%) To 2020 USD0.25m/USD3.0m Property Transfer Tax(15%)/first $EC$20,000 exempt Prior to 01/01/2020 Resale of 100 units exempt Estimated USD 0.375m/USD4.5m Property Tax Exempt to 2013 01/01/2013 -10/01/2018 – EC $12,000 per unit 01/01/2018-31/12/2022 – EC$16,000 per unit 01/01/2023 -31/12/2027 - EC$25,000 per unit 01/01/28-31/12/32 – EC$35,000 01/01/33 – Full tax applicable Where are the tax revenues for the country, particularly when a significant area of the country will be alienated and sustainable livelihoods and lives disrupted? 2. Hog Island – Mt. Hartman Estate: It is instructive to recall that prior to the current Cinnamon 88 Four Seasons Development under consideration, the same properties also featured in the aborted Ritz-Carlton initiative. The following chronicles the transactions/actions in respect of these two properties by the Government of Grenada and others. 2.1. Deed of Conveyance, 4994/1999 of December 21st, 1999 – Government of Grenada to Intercontinenetal Grenada Ltd.: • Deed of Conveyance, 4994/1999 was made on December 21st, 1999 between the Government of Grenada and Intercontinenetal Grenada Ltd. • This conveyance: (i) conveyed Hog Island (81 ac.11 pls) and Mt. Hartman, 240 acres to Intercontinental Grenada for the consideration of USD 7 million. (ii) gave rights of way and other rights through the areas known as the “Dove Sanctuary” to Intercontinental Grenada (iii) Agreed that Intercontinental Grenada would have first right to buy the property known as the Dove Sanctuary, should the Government of Grenada decide to alienate its interest in this property. • The property was conveyed for the purpose of the development and operation of the Project: (i) a luxury hotel containing at least two hundred guest rooms (ii) a golf course containing at least 18 holes (iii) a marina containing at least 10 slips (iv) so many residential units and amenities as decided by Intercontinental. • Parties to the agreement were: (i) Governor-General. Sir Daniel Williams on behalf of the Government of Grenada (ii) Ekram K. Miller on behalf of Intercontinental Grnada Limited. It was witnessed by Wynette Baker on behalf of Intercontinental Grenada. • The conveyance was prepared by Danny Williams Co. and perused by Keith Friday on behalf of the Government of Grenada. • It was registered in the Deeds & lands Registry on December 30th, 1999 – Liber 29-99 pg.975 2.2. Deed of Mortgage, 4995/1999 of December 21st, 1999 – Intercontinental Grenada Ltd to Government of Grenada : • Deed of Mortgage, 4995/1999 was made on December 21st, 1999 between Intercontinenetal Grenada Ltd. and the Government of Grenada. • According to this deed, the mortgagee, the Government of Grenada agreed to sell property to ICG for the price of USD 7 million and also agreed that payment of USD 3 million should be deferred. • Intercontinental Grenada conveyed Hog Island and Mt. Hartman (240 acres) to the Government of Grenada as security for the interest-free repayment of the USD 3 million. • Parties to the agreement were: (i) Governor-General, Sir Daniel Williams for the Government of Grenada (ii) Ekram J. Miller on behalf of Intercontinental Grenada Limited. • It was witnessed by Wynette Baker on behalf of Intercontinental. • The Deed of Mortgage was prepared by Danny Williams & Co. and perused by Keith Friday on behalf of the Government of Grenada. • It was registered in Deeds & Lands Registry on December 30th, 1999, Liber-29-99, pg. 984. 2.3. Judgment of October 22nd, 2004, Queen’s Bench Division Commercial Court, Royals Courts of Justice – Fortis Bank vs. Intercontinental Grenada and the Government of Grenada- delivered by Justice Creswell ( as reported in Grenada Today, issue of January 15th, 2005, Grenada in Trouble Again!!!), : • Fortis Bank, a Belgian bank, made application for summary judgment in relation to a credit facility. • The first and second defendants were the borrower, Intercontinental Grenada and the guarantor, Government of Grenada. Grenada was not represented at the hearing. • The Credit agreement of December 19th, 2000 was a financing arrangement for preliminary investigations into the building of a luxury Ritz-Carlton Hotel Complex on Mt. Hartman-Hog Island. It was to fund various studies by a Belgian company N.V. Besix S.A. • ICG claimed that its non-payment to the bank was caused by Grenada’s refusal to continue the project with ICG. • The Government of Grenada, through its Minister of Finance was described as the guarantor. • The guarantee was signed by Minister of Finance, Anthony Boatswain, on behalf of the Government of Grenada. • Grenada guaranteed to the bank all payments by the ICG under the Credit Agreement. • The judge acknowledged that a dispute between Grenada and ICG was the subject of London arbitration but ruled in favour of Fortis Bank’s application against ICG and the government of Grenada. • Judgment in the sum of USD 6 ,348,598 was ordered against the Government of Grenada and Intercontinental Grenada on October 22nd, 2004. 2.4. Letter of March 28th, 2005 from Miles & Stockbridge P.C.( reported in Grenada Today, issue of April 2nd, 2005, Who Really Owns Mt. Hartman): This letter made the following claims: • The letter claimed to be from legal counsel providing services for Intercontinental and Ekram Miller. • That project experienced problems because Grenada’s credit rating had deteriorated during the course of the project and Grenada became unable to provide a government guarantee that met the requirements of Fortis Bank. As a result the bank ceased funding the loan. • Legal title to the land for the project is still owned by ICG. 2.5. Deed of Conveyance 2094/2008 of 28th, Jan. 2008 – Government of Grenada to Mount Hartman & Hog island Estate Limited: • Deed of Conveyance, 2094/2008 was made on the 28th, January 2008 between the Government of Grenada, the Vendor, and between the Mt. Hartman & Hog Island Estate Ltd., the Purchaser. • It conveyed Hog Island to the Mount Hartman & Hog Island Estate Limited for the consideration of payment of USD 6 million. • Parties to the agreement were: (i) Governor-General, Sir Daniel Williams, on behalf of the Government of Grenada (ii) Mike Pemberton and Robin Paterson on behalf of the Mt. Hartman & Hog Island Estate Ltd • This conveyance also makes reference to the execution of a contract dated June 1st, 2007 between representatives of the Vendor and the Purchaser, for the sale of lots of land comprising: (i) Hog Island, containing 81 acres, 11 poles (ii) a major part of Mt. Hartman Esate (iii) the Quarry • The second schedule made provisions for specific zonification to govern the terms and conditions of use (including the beaches, shores, surrounding waters) of Hog Island. • The conveyance was prepared by Danny Williams and Co. It is unclear who perused the document on behalf of the Government of Grenada. • The conveyance was registered in the Deeds & Lands Registry on April 30th, 2008. Liber 15-2008, pg.905. 2.6. Deed of Mortgage, 5420/2008 of July 7th, 2008 – Cinnamon 88(Grenada) Developments Limited to Government of Grenada: • Deed of Mortgage, 5420/2008 was made on July 7th, 2008 between Cinnamon 88 (Grenada) Developments Limited, the Mortgagor, and H.E. Sir Daniel Williams on behalf of the State of Grenada, the Mortgagee. • This Deed of Mortgage makes reference to a frame contract between the Government of Grenada and the Mortgagor (i.e. Cinnamon 88 Grenada Limited) made on June 1st, 2007 and its subsequent amendments dated 25th January, 2008 and 1st July, 2008. Under the frame contract, the Mortgagee, i.e. Sir Daniel Williams, on behalf of the Government of Grenada, agreed : (i) to sell the Property to the Mortgagor, i.e., Cinnamon 88 (Grenada) Developments Limited at a price of USD20,75 million (ii) with the mortgagor that the sum of USD6 million shall be paid prior to the signature of the conveyance (iii) the unpaid balance of USD14.75 million should be secured by way of mortgage to be paid on or before March 31st, 2010 and accruing interest on the balance due at the rate of 6 percent per annum. • By this Deed of Mortgage, Cinnamon 88 conveyed to the Government of Grenada two lots of land totaling 284 acres 28 poles of the area known as Mt. Hartman Estate to securing the mortgage re the unpaid balance of USD14.75million. • The property under mortgage was made up of two lots: - Lot A measuring 274 acres - Lot B measuring 10 acres 28 poles – land leased to Bernard Osborne Blanco (935/1995). • Parties to the agreement were: (i) Governor-General, Sir Daniel Williams on behalf of the Government of Grenada and (ii) Mike Pemberton and Robin Paterson of Cinnamon 88 Grenada Limited and witnessed by Mark Thornley on behalf of Cinnamon 88. • The Deed of Mortgage was prepared by the Ministry of Legal Affairs and perused by Danny Williams & Co. Ltd. • The conveyance was registered in the Deeds & Lands Registry on Novemebr 4th, 2008- Liber 40-2008, pg. 914. 2.7. Deed of Conveyance, 5421/2008 of 7th July, 2008 – Government of Grenada to Cinnamon 88 (Grenada) Developments Limited: • Deed of Conveyance, 5421/2008 was made on 7th July, 2008 between the Government of Grenada and Cinnamon 88 (Grenada) Developments Limited. • It conveyed that property known as the Quarry, 27.6 acres, to Cinnamon 88 (Grenada) Developments Limited for the consideration of payment, USD2.3million. • This conveyance also makes reference to: (i) the execution of a frame contract dated 1st June, 2007 (ii) a corresponding amendment 01 on 25th, January, 2008 (iii) a corresponding amendment 02 on 1st July, 2008 This contract and amendments relate to the Quarry, Mt. Hartman Estate and Hog Island. • Pursuant to the frame contract, the purchaser and vendor agreed for the sale of the Quarry for a sum of USD 2.3 million. The Quarry was to be subject to a mortgage in favour of the Government of Grenada to secure a portion of the purchase monies. • The second schedule notes the following in respect of Use of the Property: (i) The property shall be used only for the development, operation and exploitation of a tourist, vacation, residential, recreational, cultural and event resort (ii) The use of the Property shall be governed by specific zonification (iii) Provided full payment of the purchase price for the property is give, the purchasr shall be free to divide, sub-divide and re-divide the property……….. (iv) Provided full payment of the purchase price for the property is given, the purchaser shall be free to sell and/or lease the property in total or in part and/or to dispose of it in total or in part at its discretion……. • Parties to the agreement were: (i) H.E. Sir Daniel Williams on behalf of the Government of Grenada (ii) Mike Pemberton and Robin Paterson on behalf of Cinnamon 88 (Grenada) Developments Limited. • It was witnessed by Mark Thornley on behalf on Cinnamon 88. • The conveyance was prepared by Danny Williams & Co. Ltd. and perused by the Ministry of Legal Affairs. • It was registered in the Deeds & Lands Registry on November 5th, 2008, Liber 40-2008, pg. 926. 2.8. Deed of Conveyance,4407 /2008 of 8th July, 2008 – Mt. Harman & Hog Island Estate Ltd. to Cinnamon 88 (Grenada) Developments Limited: • Deed of Conveyance, 4407/2008 was made on 8th July, 2008 between the Mt. Harman & Hog Island Estate Ltd. and Cinnamon 88 (Grenada) Developments Limited. • It conveyed Hog Island (81 ac. 11 pls,) to Cinnamon 88 (Grenada) Developments Limited for the price of USD 8.3 million. • This conveyance also released the vendor, Mt. Hartman & Hog Island Estate Ltd. from the restriction in Clause 4 , Schedule 2,( which stated that the property could not be sold in total but in part), permitting sale to Cinnamon 88 • Clause 4, Schedule 2 of the Deed of Conveyance 2094/2008 of 28th, Jan. 2008 – ( Government of Grenada to Mount Hartman & Hog island Estate Limited) stated as follows: ”The Purchaser shall be free to sell and or lease the Property in part and/or dispose of it in part at its discretion subject to the aforesaid zonification and use of the Property subject to the rights of the vendor and/or third parties indicated herein and subject to the terms and conditions of the present indenture and the said agreement” • Parties to the agreement were: (i) Mike Pemberton and Robin Paterson of Mr. Hartman & Hog Island Estate ltd. (ii) Mike Pemberton and Robin Paterson of Cinnamon 88 ( Grenada) Developments Ltd. • It was witnessed by Mark Thornley. • The conveyance was prepared by Grant Joseph & Co. and perused by the Attorney-General’s Chambers. • The conveyance was registered in the Deeds & Lands Registry on September 4th, 2008- Liber 33-2008, pg.490 3. Answers Required: To a simple mind, these transactions are all mind-boggling. The people of Grenada are awaiting clarification and responses from those charged with minding the people’s business on the following: • If property was conveyed to Intercontinental Grenada for a consideration of USD7 million and the property was mortgaged back to the Government of Grenada for USD 3 million, how is the USD4 million accounted for? • What was the judge’s decision in respect of the arbitration between the Government of Grenada and Intercontinental? • What was the basis for the dispute between Intercontinental and the Government of Grenada which resulted in the matter being taken to arbitration in London? • How much did this matter cost the government in legal fees? Who represented Grenada at the hearing? Who paid the legal fees? • What is the status in regards of the judgment against the Government of Grenada in favour of Fortis Bank? • What is this Frame Contract of June 1st, 2007 between the Government of Grenada and Cinnamon 88 (Grenada) Developments Ltd. to sell Mt. Hartman Estate, Hog Island and the Quarry for consideration of USD20.75 m? • What were the two subsequent amendments of January 25th, 2008 and July 1st, 2008 respectively? • For how much have the properties actually been sold ? • How much money has been accounted for in respect of the sale of those properties – Hog Island, the Quarry and the Mt. Hartman Estate? • What is the role of the Mt. Hartman – Hog Island Estate Ltd. which is one and the same as Cinnamon 88 (Grenada) Developments Ltd.? • Has the sale by Mt. Hartman – Hog Island Estate Ltd. to Cinnamon 88 (Grenada) Ltd. released Cinnamon 88 from any covenants and restrictions as it relates to zonification? • What are the implications of any release from convenants and restrictions for areas such as the Dove Sanctuary and the Marine Park Area? • If the Government of Grenada holds the Deed of Mortgage on the properties known as Mt. Hartman and the Quarry, does this mean that in fact, these properties belong to the government? • Has Cinnamon 88 made any payments in respect of clearing these mortgage amounts? • When will the Theodore family be paid for Hog Island and how much? • Why was the law firm of Danny Williams & co. preparing conveyances on behalf of the Government of Grenada? Isn’t this the responsibility of the Ministry of Legal Affairs? • Who paid Danny Williams & Co. for this work and how much was paid? THE GRENDIAN PEOPLE WANT ANSWERS! THE GRENADIAN PEOPLE DESERVE ANSWERS!! By Sandra C.A. Ferguson for Citizens in Defence of Grenada's Lands and Heritage.