BELMOPAN, Belize, CMC – The Feinstein Group says it is challenging the Belize government’s decision to compulsorily acquire the disputed 24-acre extension of Stake Bank Island that is currently the subject of ownership dispute proceedings in the High Court and is also delaying a multi-million dollar cruise ship project.
Last month, the government issued a statement saying that Cabinet had approved the decision and had mandated the Minister of Natural Resources, Cordel Hyde, to sign a notice of intention to acquire the land compulsorily.
The statement said that the land identified as Fiat Grant 881 of 2021 and given to Michael Feinstein, the former chairman and shareholder of Stake Bank Enterprises Ltd., is currently the subject of an ownership dispute in the High Court. It added, “Unfortunately, that dispute is detrimental to the completion of a project that is in the public interest.
“Once the acquisition and assignment to Stake Bank Enterprises is finalized, the cruise berthing facility, which has been halted since the company entered receivership in March of this year, can proceed to completion,” the statement said.
It noted that the company’s receivership and the subsequent land dispute regarding ownership of the island extension have frozen works on the project, resulting in significant delays to construction and, crucially, delays to completing a facility that, for the first time, would provide cruise ship passengers with dock disembarkation.
“Cruise tourism arrivals have continued to fall due to the lack of proper berthing facilities in the Belize District. Stake Bank’s Receiver and Creditors petitioned Cabinet consideration for the acquisition to rescue the project and its BZ$270 million (One BZ$= 0.49 cents) investment to date.”
However, the Feinstein Group has issued a statement outlining its reasons for objecting to the compulsory acquisition, arguing that it lacks legitimate public interest.
The group contends that the existence of alternative docking facilities, such as the Port of Belize and the Port of Magical Belize, negates any urgency or necessity for the government to seize the Stake Bank lands.
The Feinstein Group further argues that Michael Feinstein holds 100 percent of Stake Bank Enterprises Limited’s shares and legally acquired the additional 23.4 acres surrounding Stake Bank Island using his funds, with complete transparency and approval from relevant authorities.
The Feinstein Group asserts Michael Feinstein entirely financed the dredging equipment essential for the project’s development and that the project expenditures amounted to BDZ$170 million and BDZ$70 million, with an additional BDZ$40 million in interest.
The Feinstein Group further alleges that the government’s decision is shrouded in malice and corruption intended to punish Michael Feinstein for his “outspoken stance against the government of Belize’s various egregious actions aimed at diminishing the project.
“Evidence exists that senior government ministers have been actively involved in efforts to coerce cruise lines away from SBEL’s cruise port, favoring competing projects instead,” the group said, adding that it remains unwavering in its commitment to defend Michael Feinstein’s property rights against this acquisition.
The statement notes that an independent international appraisal of the property is underway to ascertain its value. It calls on the government to respect the rule of law, honor its commitments to local investors, and engage in fair and transparent dialogue to resolve this matter.
Ten years ago, the then government enacted the Stake Bank Cruise Docking Facility Development Act of 2014, which provided various investment incentives and committed the government to support Stake Bank’s Completion in the context of a much-needed cruise berthing facility.
“This berthing is even more urgent today as cruise ships have become larger. Having a dock for cruise ships, extending the tour times for visitors, and salvaging a major investment project underline the rationale for Cabinet’s decision,” the statement said.
Over the last weekend, Prime Minister John Briceño said that in 2014 and 2018, Parliament approved legislation deeming that Stake banks are in the national interest of the country, and “we gave them extensive exemptions so that they can get this work done.
“ What is most important is that that the government got from the leading investors a deposit in the bank in the name of the government of Belize and also an indemnity bond so that whatever happens in the next two, three years, is going quite likely to go to the Caribbean Court of Justice.
“The government of Belize and the Belizean people would not have to pay a single penny in the settlement of this project,” Briceño added.
and then 