Committee of the Whole Reviews and Rejects Permits

Following signature of the 2014 CZM permits by Governor Bryan on April 4, 2019, the documents were forwarded to the Legislature for ratification.  All of this was done without any public consultation or notice.

I was finally able to receive a copy of the newly signed permits from the Legislature on July 8, 2019.

Apart from the lack of transparency, the newly signed permits clearly did not reflect the current status of the project.  In April 2016 two parcels had been removed from the project, and the freshly signed permits still included those permits.  In July 2016 the BLUA ordered that two permits be consolidated into one.  That had not been done.  Nevertheless Bryan printed new permits (with minor changes), asked the St John CZM Committee Chair to sign, then affixed his signature and forwarded the essentially useless permits to the Legislature.

The permits were scheduled for review before the Committee of the Whole of the 33rd Legislature on October 28, 2019.  Invitations to testify were sent to the Summers End Group, DPNR, and individuals in the Coral Bay community directly impacted by the project, including the new owner of the “Voyages Building” (Paul Sabers), the owners of Coccoloba (Phillips family), the Moravian Conference, the Virgin Islands Conservation Society, and the Clendinen family.  I submitted written testimony, however as a member of the CZM committee at the time I declined to provide spoken testimony.

A concise summary of the hearing was reported in the Source excerpts of which are copied below:

“When the Summers End Group LLC applied to the Government of the Virgin Islands for its permits in 2014, it submitted separate applications for a water-use permit and a land-use permit.

A series of court challenges resulted in a ruling by the Board of Land Use Appeals to consolidate the two applications, since the two projects were interdependent. BLUA ruled that the developers should resubmit an application reflecting that change.  However, the permit that came before the Senate on Monday only concerned the development’s submerged land and water portions, and did not include the land-based portion.
“Why is only the water portion before us today?” asked Sen. Janelle Sarauw, after reading out loud the portion of the V.I. code that specified that the land- and water-use permits should be consolidated.

“Because only the water permit has to be ratified by the Legislature,” replied Marlon Hibbert, the recently appointed director of Coastal Zone Management.

Upon further questioning, Sarauw determined that the permit for the land portion “still involved issues.” No modifications had been made, and CZM had not received a request to review a revised permit, according to testimony.  Given that the law has not been followed, “This [meeting] is a waste of taxpayer dollars. It’s unconscionable,” Sarauw said.

As the Senate session continued, details complicating the land-use permit grew. Owners of three separate properties that are listed on the permit plan have withdrawn their commitment or challenged the Summers End Group through legal action. The disputes involve properties known locally as Voyages, Cocoloba and undeveloped land just north of what was Island Blues.

Parcels 13-A and 13-B (known for years as the site of the Voyagers Building and now as the Isola Shoppes) were under foreclosure in 2014 when Summers End Group signed options to purchase them from Merchants Commercial Bank. Subsequently, SEG let those options expire and developer Paul Sabers bought the properties in 2016.

Gaylin Vogel, an attorney for Paul Sabers, testified Monday that the current owner has no agreement with Summers End Group and asked the Senate to reject the proposed permit. She said a marina would “degrade the quality of life” for the present owner if it were built.

Under SEG’s current plan, parcels 13-A and 13-B were intended as sites for the marina’s sewage treatment plant, wastewater treatment facility, cisterns and parking. Without an agreement with Sabers, Summers End Group needs to specify new locations for these critical facilities and present the changes on their modified permit application.

The owners of Parcel 13 Remainder, currently the site of Cocoloba Shopping Center, are also involved in litigation with SEG. James Phillips, the son of owners Jim Phillips and Genoveva Rodriguez, represented them at the Senate hearing but declined to discuss any details.

More poignant testimony was given by members of the Clendenin family, who are disputing their agreement with Summers End Group.

In 2013, two sisters, Eglah Marsh Clendenin and Minerva Marsh – as trustees of the Marsh Sisters Trust – agreed to lease their undeveloped waterfront property to a group developing a marina. One of the principals in the project was Robert O’Connor Jr., a former V.I. senator and chairman of the board of directors for the Virgin Islands Port Authority. O’Connor is now one of the principal owners of Summers End Group, LLC.

The Marsh Sisters Trust agreed to lease parcels 10-17 and 10-18 in Estate Carolina for $65,000 a year. To date, no payment has been made to the trust. In the years since then, the sisters have been in mental decline, according to Shena Esannason, granddaughter of Eglah Marsh Clendenin. “My grandmother and [great] aunt were asked to sign documents waiving payment until the permits were approved,” Esannason testified. Neither sister had legal counsel present at the time they signed these documents, she said.

“They placed their trust in [family friends]” Esannason said tearfully. “Summers End Group took advantage of them. My family’s property is being held hostage. We ask your assistance in helping our family regain control of our property. We want out if through this process we can’t get justice.”

Shortly following the Committee of the Whole the Senate President issued a statement and a letter was sent to the Governor explaining why the permits could not be acted upon.