Stake Bank Island Dispute: Feinstein Group Challenges Government’s Compulsory Acquisition
Background
The Feinstein Group has challenged the Belize government’s decision to compulsorily acquire the disputed 24-acre extension of Stake Bank Island, which is currently the subject of ownership dispute proceedings in the High Court and is also delaying a multi-million dollar cruise ship project.
Government’s Decision
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.
Feinstein Group’s Objections
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.
Project Background
The project, which has been halted since the company entered receivership in March of this year, aims to provide a cruise berthing facility for the first time, allowing cruise ship passengers to disembark directly onto the island. 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 would provide cruise ship passengers with dock disembarkation.
Government’s Response
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." He added 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.
Conclusion
The Feinstein Group remains unwavering in its commitment to defend Michael Feinstein’s property rights against this acquisition. The group has called 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.
FAQs
Q: What is the purpose of the Stake Bank Cruise Docking Facility Development Act of 2014?
A: The Act provided various investment incentives and committed the government to support Stake Bank’s Completion in the context of a much-needed cruise berthing facility.
Q: Why is the Feinstein Group objecting to the compulsory acquisition?
A: The group argues that the existence of alternative docking facilities negates any urgency or necessity for the government to seize the Stake Bank lands.
Q: What is the current status of the project?
A: The project has been halted since the company entered receivership in March of this year due to the land dispute regarding ownership of the island extension.
Q: What is the value of the project?
A: The project expenditures amounted to BDZ$170 million and BDZ$70 million, with an additional BDZ$40 million in interest.
Q: What is the next step in resolving this matter?
A: The Feinstein Group has called on the government to engage in fair and transparent dialogue to resolve this matter.
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