As a result, title to the land automatically reverted to EHI Acquisitions, LLC (“EHI Acquisitions”). The United States declined to accept that offer. Plaintiff EHI Acquisitions, LLC and its affiliate CBI Acquisitions, LLC (collectively “Caneel Bay”) made an offer to the United States in 2019 to transfer its title to the buildings and other improvements in the Caneel Bay Resort (“Resort”) to the United States. Here is EHI’s argument per the court documents: The attorneys representing the United States disagree. They believed this is outlined in the 1983 Indenture. They notified the United States and said they would walk away for $70 million, and the release and indemnification of EHI “from all environmental liabilities related to the RUE and related to the Caneel Bay land and Improvements.” (Hazardous waste has been found on the property.) EHI believes, according to court filings, that if the United States said no to their $70 million offer that Caneel Bay, the land and the buildings, would automatically be given to EHI, a private, commercial entity, and the Virgin Islands National Park would no longer have any involvement, ever. ( Click here to read the 1983 Indenture in its entirety.)ĮHI presented an offer to terminate the RUE in 2019. There is a section of the 1983 Indenture that allows the RUE holder to terminate the RUE provided they give the United States one year’s notice, and the property is mortgage and lien-free, among other parameters. Making matters more complicated is something called a reverter clause. Keep in mind, the majority of these buildings remain damaged from the hurricanes. EHI, however, believes the buildings, docks, facilities, and improvements belong to them. It believes that Rockefeller’s wishes were clear in that he intended to donate not only the land but the buildings as well, to the National Park. The United States thinks, according to its federal filings, that the issue is pretty cut and dry. There is a document called the 1983 Indenture that lays out the terms of the RUE, including what is expected to happen upon its expiration on September 30th. (A quiet title action is a special legal proceeding to determine ownership of real property.) In the lawsuit, EHI requested that the court issue a “quiet title in the Property and issue an order declaring the United States has no legal interest in the Property and that Plaintiff EHI Acquisitions, LLC owns all right, title, and interest to the Property.” The United States said absolutely not, and wrote in its opposition that this request “defies logic and common sense.” The white-shaded areas are outside of the Park.ĮHI Acquisitions filed a federal lawsuit against the United States of America in June 2022. The green-shaded areas are part of the Virgin Islands National Park. This is where the current federal lawsuit comes into play. At that time, the land is supposed to become part of the Virgin Islands National Park, and CBI/EHI’s affiliation with the property is supposed to end. Rockefeller, himself, oversaw the establishment of the RUE, which expires on September 30th. The RUE allows a private business, currently CBI/EHI Acquisitions, to operate a hotel on the property. That, however, is supposed to change in September when the property’s current Retained Use Estate (RUE) agreement expires. The land that Caneel Bay sits on today is not National Park land. The Virgin Islands National Park opened the same day, thanks to Rockefeller’s generous donation of land. Laurance Rockefeller opened the Caneel Bay Resort on Dec. Donkeys and deer roamed freely among its perfectly manicured lawns. The resort was luxurious, yet understated. The 166-room resort boasted seven pristine beaches enhanced by the island’s dazzling turquoise waters. Two weeks later, Hurricane Maria, another Category 5 storm, hit us.Ĭaneel Bay was a jewel of the Caribbean. The island was decimated, Caneel Bay included. 6, 2017, with sustained winds of 185 miles per hour. And if nothing changes this summer, the future of Caneel Bay will be determined at a federal trial this fall. But that’s precisely where we stand today. 7, 2017 – the day I learned Hurricane Irma destroyed Caneel Bay – that its future would remain in limbo nearly six years later, I wouldn’t have believed you. The former Caneel Bay resort remains in shambles nearly six years after Hurricane Irma.
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