No matter what the project is in the Caribbean, controversy sometimes surfaces…a summary of their article and a response from South Beach Belize representative - Tom McPeak

San Pedro Sun Article:  South Beach Belize

On May 17th, 2008, an email was sent out to various possible and interested investors around the world. The email carried the headline “Exclusive pre-construction opportunity in beautiful Belize” and was sent by Director for South Beach Belize, Jeff Pierce.

The release states that “This exciting project has earned tremendous response in the very few weeks that the web site has been up. A luxurious gated community featuring a Casino combined with a large hotel, multiple residential properties and Villas plus commercial and recreational venues. We have the support of the Prime Minister, Minister of Tourism, Mayor of San Pedro, the Area Representative and other Ministers and Cabinet Members to insure the success of South Beach Belize. We are located at the southern tip of the island (South Beach) only ten minutes by boat or fifteen minutes by road from downtown or the airport. We are starting construction of the first Villas and Condominiums in the next 30 days. The newly elected government of Belize is very in tuned with growth and expanding the economy. Several of the ministers have visited the site and we have the full support of the government for South Beach.”

Location

South Beach Belize is a proposed development located on the southern end of the Yucatan Peninsula on Ambergris Caye, approximately four miles south of San Pedro Town. According to Manager of the Hol Chan Marine Reserve Miguel Alamilla, South Beach Belize could have detrimental effects on the ecosystems surrounding the proposed site. Any development that proposes to build anything in close proximity to the reserve would need an EIA prior to proceeding. If the development is not properly monitored as per the specified regulation set by the Department of Environment (DoE) all four zones within the Hol Chan Marine Reserve are being placed in danger.

EIA, Clearance and Support

Prior to developing, Director Jeff Pierce was required to submit an Environmental Impact Assessment with the Department of Environment (DoE) which falls within the Ministry of Natural Resources. In an interview with Martin Alegria, Chief Executive Officer for DoE, no EIA had been submitted by Pierce, as of press time. On Thursday, May 15th, 2008, Alegria, along with other government agencies paid a visit to the site and verbally told Pierce to cease any and all work being carried out on the project.

So, with no EIA, no support, what will happen to South Beach Belize? Reliable sources informed this reporter that since the verbal “cease construction” stop order given to Pierce on Thursday was not followed through, a formal stop order will now be issued and Pierce may face a fine, as well. When asked if DoE had indeed issued him a verbal stop order, Pierce commented, “I don’t believe so.” He ended the telephone interview by stating that he was to meet with DoE on Thursday, as well as with Minister Heredia.

Tom McPeak’s Response ( Jim Walberg asked the U.S. representative of the South Beach Belize project for a response to this article.)

 All appropriate submittals for development at South Beach Belize are made as required.  As a developer in the Florida panhandle I can tell you that there is a continual stream of submissions before, during, and after the completion of multiple phases in a project.  The timing of some submissions is based on discussions with regulatory authorities, and may vary depending on those discussions.  If a developer cannot solve inevitable public and private challenges as they occur, he cannot develop.  Jeff Pierce is a successful developer in Belize, as measured by the beautiful and financially successful recent project, Reef Village. 

 In any development of this size, there is normally greater publicity (both positive and negative) in the beginning, with a normal diminishing as the project moves forward.  Generally, by the time there is no publicity at all, the prices have gone up and the best lots are sold. However, since the project has only recently been started, you may want to wait until the current matter is settled. 

I welcome your comments regarding the process of developing real estate in the Caribbean.  There are many complicated factors.  I want to always bring to you all sides of the issues facing Caribbean real estate development.  Until next time.