2022 – 2024 – Project Modifications / Army Corps Reviews / CZM Permit Expires

Once they had secured a “Consolidated and Modified CZM Permit” (created by SEG with the assistance of the Governor, and ratified by the Legislature) Summers End apparently felt that all of thei CZM issues were behind them. Nothing could have been further from the truth.

The permit, which had never been reviewed in its final form by CZM, had multiple mandatory conditions, most of which were stipulated by law or regulations.  For example, the permit, signed by Chaliese Summers, included:

  1. Reliance on Information and Data: “The Permittee affirms that the information and data which it provided in connection with its permit application are true and accurate, and acknowledges that if subsequent to the effective date of this permit such information and data prove to be false or inaccurate, the permit may be modified, suspended or revoked in whole or in part, and that the Commissioner or the Committee may, in addition, institute appropriate legal action.”

    In retrospect we know that SEG provided false information in connection with its permit application, specifically the statement that they had “irrevocable permission from all property owners” to complete the development described in the application.
  2. Development to be Commenced: “Any and all development approved by this Coastal Zone Permit shall begin within twelve (12) months from the date this permit becomes effective and shall be continuous until completion. Failure to perform at least fifty (50%) percent of the work within such period and continuously construct thereafter until the completion of construction shall cause the permit to terminate automatically and render it null and void, unless the Permittee requests an extension in writing and demonstrates to the satisfaction of the Committee that good cause exists for granting such extension.”

    The permit became effective on December 15, 2020, when it was ratified by the Legislature.  When no development had taken place by December 15, 2021, and no request for extension had been made, the permit automatically expired and became null and void.
  3. Conditions of Premises: “The Development authorized by this permit shall be maintained in a safe condition and in accordance with the description, plans, or drawings approved by the Commissioner or by the Committee, and all applicable Virgin Islands Laws.”

    SEG failed for seven years following Hurricane Irma to remove dangerous debris from the wreckage of Island Blues.  The derelict structures were a public nuisance, a public health and safety hazard, and entirely the responsibility of SEG.
  4. Trust Land Fees: “A rental fee of One Hundred Ninety-Four Thousand, Twenty Six Dollars
    and Forty Six Cents ($194,026.46), per year shall be charged for the use and occupancy of the submerged land area occupied under this permit. Prior to the completion of construction of the permitted marina described in Section “2” of this permit, the Permittee shall pay an annual rental fee of Sixty Four Thousand Twenty Seven Dollars and Eight Cents ($64,027.08), per year for the use and occupancy of the submerged lands as described in Section “2” of this permit. The fees are assessed pursuant to 12 VIC §911 (f) and have been negotiated with the Permittee pursuant to 12 VIRR §910-S(e). The initial payment under this permit is due upon receipt of the effective permit, and subsequent payments are due on the anniversary of the effective date.”

    SEG never made the initial payment of $64,027 due in Dec 2020, and never made a payment in any subsequent year.  As of 2025, SEG was 5 years in arrears for non-payment of permit fees.

So, as time went by during 2022, 2023 and 2024, as Summers End continued to modify their proposal before the Army Corps of Engineers, they did nothing to maintain the status of their Virgin Islands Coastal Zone Management permit.  They failed to:

  • Request a permit extension from the St John CZM Committee prior to December 2021, for “good cause” – which might have been the fact that they were still waiting on an Army Corps permit.
  • Make any payments required under the 2020 Consolidated Permit
  • Maintain safety, insurance, and site conditions.
  • Submit ANY of the many modifications being made to the project to the St John CZM Committee for review and approval.
  • Request CZM approval for demolition of a structure (Island Blues) which was not covered in their 2014 or 2020 permits.

In December 2024 I wrote to the St John CZM Committee, the DPNR Commissioner and the CZM Director and identified a long list of permit violations that had been taken by the Summers End Group.  I requested that action be taken.  That letter is shown below:

But before we move into 2025, an important detour into the 2024 sale of Coccoloba Plaza is in order, as it will provide insights into the efforts by Summers End to pressure the Army Corps and NOAA agencies into approving a permit – efforts which ultimately failed.