Introduction

St. Eustatius, commonly called Statia, is situated in the Eastern Caribbean and forms together with St. Maarten and Saba the Dutch Windward Islands. The island is located 30 miles south of the island of St. Maarten. The surface of St. Eustatius is 11 square miles and the population, at present, counts little over 3100 inhabitants. The currency is the Antillean Guilder less then half of a Euro; the American Dollar is also widely accepted. The Guilder is tied with the US Dollars and US $1 is always Nafl 1.80. Oranjestad is the capital of St. Eustatius.
The island has a rich history which still can be recognized by its forts, many historical houses, ruins and its world class museum. In 1776 Statia was the first nation that recognized the United States. This event is still celebrated on Statia – America Day, November 16th.
Tourists are mainly coming to the island for its tranquillity, pristine diving, hiking and history. One of the main trademarks of Statia is the fact that it is virtually crime free.

St. Eustatius is acquiring a new constitutional status within the Kingdom of the Netherlands which should go into effect December 15th 2008. At this date the island will become a governing authority within the Netherlands. This new status will continue to guarantee stable and proper government and will increase economic potential for the island

In the economical development program of the St. Eustatius Government the tourism sector is mentioned as the main focus for development. The tourism market is seen as the best opportunity to increase the economical activity on the entire island.

Although at present the island can only be reached through St. Maarten, other hubs in the area are Puerto Rico and Antigua, both approx. 45 minutes flight, and St. Kitts, approx. 10 minutes flight. Windward Island Airways has 5 daily scheduled flights out of St. Maarten. Other carriers have shown interest to fly to the island in the past and naturally will respond with more service as Statia adds hotel rooms and other accommodations.

 The project

The project the Island Government of St. Eustatius is seeking to attract is a 5-star plus luxurious resort and ideally it will have an 18 holes world class golf course. The resort should consist of 150 – 250 units. These units may be hotel rooms, condominiums under management of the resort and luxury villas. Besides the golf course the resort should include facilities such as up scale restaurant(s), conference facilities, tennis courts, fitness center and spa.
The operations of the resort should be managed by a world renowned brand name hotel, specialized in the up-scale segment of the tourism industry.

Profile prospective developer

The developer the Island Government of St. Eustatius is seeking to attract should have the following qualities:

1. An international track record of project development in projects with a budget of more than 100 million US dollars.
2. Preferably affinity with the market in the Caribbean region.
3. Able to fund a substantial portion of the project with own capital.
4. Acquainted with renowned 5-star plus brand name resort operators.
5. Open to involving local businesses in spin-off activities of the resort.

Aerial view of St. Eustatius 

Sites

A feasibility study carried out by the University of Twente, The Netherlands, has concluded that the most preferred sites for the development of a golf resort are Venus Bay and the Zeelandia area, adjacent to each other and located in the North – North Eastern part of the island.
                       
           

Aerial view Venus Bay
                                                                               

Venus Bay

The site of Venus Bay is owned by the Island Government and has an area of up to 400 acres. The site consists of a valley surrounded by hills. At the ocean front is a partly protected bay. There is no sandy beach, but it is expected that with little effort a private beach can be created. There is a spectacular view over the French island of St. Barth.

Venus Bay is accessible presently through a dirt road coming from the Zeelandia area. The valley can be used for part of the resort development as well as the first holes of an 18 holes golf course. The remainder of the resort can be constructed in the hill sides. The hills also look like a good location for the construction of villas, allowing great views over the Atlantic Ocean and St. Barths.

Venus Bay

For the development of the golf resort the St. Eustatius Island Government will make available up to 400 acres of Venus Bay. The Government intents to make available this land under a 60 year long renewable lease to the selected developer under the following conditions:

1. The lease holder pays an annual ground rent.
2. The land in long lease may solely be used for the development of a resort and golf course.
3. The developer will be entitled to sell and transfer the right of long lease to the land, or portion thereof, to any third part so long as the Government gives prior approval.
4. The developer provides a public access road to the area of “Boven” North of Venus Bay, which is environmentally protected.

The Government is agreeable to the lease being used as collateral for lending.


Zeelandia

The Zeelandia valley is approximately 150 acres and is privately owned. The property is up for sale. It is adjacent to the Venus Bay area and situated to the South of it. Also this area is a valley surrounded by hills with a view on the Atlantic Ocean. The remainder of the golf course can be projected here. The entrance of the property is at a concrete road.

Across from this road is an old deserted 10 room hotel property on 14 acres of land. The present owner has the land on a 60 year long renewable lease from the Island Government. The lease is up for sale. The property borders to the Zeelandia beach.

Aerial view Zeelandia and Zeelandia Beach

The obtainment as well as purchase cost of the site location Zeelandia is the responsibility of the developer.

Zeelandia

Development agreement

For the development of Venus Bay and Zeelandia a development agreement between the Government of St. Eustatius and the Developer will be signed. This agreement shall include the following:

1. Detailed description of the properties to be developed
2. Density, placement, number of storeys, types of buildings, golf course requirements etc.
3. Development schedule; pre-development phase, construction phase, start of operations.
4. Relevant laws in effect at time of the agreement.
5. Infrastructural improvements on as well as outside the development sites.
6. Environmental aspects, including sewer and water.
7. Historical and archeological aspects.
8. Development permits and operation licenses.
9. Default, disputes, notices and severability.
10. Clear description of responsibilities of all parties.
11. Governing law

Developer’s responsibilities
                                                                                                                

1. The Developer establishes a company under the laws of the Netherlands Antilles. The owner of said company may be an off-shore company.
2. As a security guarantee the Developer deposits an to be established amount in an escrow account.
3. The Developer is responsible to carry out all phases of the development in accordance with the time schedule agreed to in the development agreement.
4. The developer submits for Government approval a comprehensive development plan.
5. The developer submits for Government approval a comprehensive business plan for the development phase. This plan includes an investment plan.
6. Developer is required to finance a substantial portion of the total investment sum from own capital.
7. The developer will raise sufficient capital to complete the development.
8. The obtainment of private property is the responsibility of the developer.
9. The developer attracts a major golf course designer to design an 18 holes golf course.
10. The developer attracts a brand name 5-star plus hotel operating company to operate the resort after completion.
11. The developer uses where possible local labor and sub-contractors during the development phase.

St. Eustatius Government responsibilities

1. Government grants the right of long lease for the duration of 60 years of Venus Bay, having an area of up to 400 acres, to the to be established development company.
2. Government will grant all necessary permits and licenses for the development phase as well as the operations of the resort within the time schedule as agreed upon in the development agreement.
3. Government facilitates in a cooperative manner all necessary work permits and residency permits for all required foreign labor for the development phase and the hotel operations after completion of the resort.
4. Government grants all necessary licenses for overseas contractors and sub-contractors.
5. Government will accommodate and support requests for a tax holiday for the duration of 10 years for the development phase and the operations of the resort. The tax holiday will be for profit tax and import duties, as far as applicable.
6. Government may wave the land rent for Venus Bay for a number of years.
7. Government will work with existing environmental laws to accommodate sustainable development. 
8. Government commits to infrastructural improvements such as roads, airport and harbor facilities, according to a phased plan.

Conclusion

A resort project such as this will benefit all parties. It meets a governmental goal of making the Statian economy more self sustaining. It helps to expand the tourism sector and tourism related employment. It continues to safeguard the characteristics of our beautiful island.
For the developer it can mean a profitable venture in an exotic location and in a community that welcomes it with cooperation and a feeling of partnership.

To learn more, contact:     St. Eustatius Business Association
                                     L.E. Saddlerweg z/n, St. Eustatius
                                     Netherlands Antilles
                                     Phone/Fax: 599-318-3232
                                     Email: koossneek@steba.biz

Related documents:      Feasibility study First Salute golf course St. Eustatius
                                    Strategic impact assessment golf resort St. Eustatius

Related websites:

www.statiagovernment.com

www.statiatourism.com

www.statiapark.org

www.steustatiushistory.org

www.secar.org

www.steba.biz