Grapetree Shores, Inc., the developer of the Divi Carina Bay Resort and Casino, has denied what it called rumors that the project is faltering and bankrupt.
In an Oct. 20 letter to Finance Committee chairwoman Sen. Lorraine Berry, Grapetree Shores lawyer Scott Redman said that comments at a recent committee meeting indicating his client and Treasure Bay V.I. Corp., the casino operator, are bankrupt are not true.
"Let me take this opportunity to categorically state that these rumors are false and clearly the effort of a group of people dedicated (by their own pecuniary motives) to see the viability of the casino project questioned," wrote Redman.
While not identifying who voiced the "rumors" or when they were made, Redman said he found it more than coincidental that they followed an article in a casino law publication criticizing the territory’s casino control commission for its opposition to video lottery terminals. Redman said the article, written by lottery consultant Michael Jones, also attacked the Grapetree Shores project.
"As we all know, but yet was not disclosed in this 'article,' Mr. Jones acted as a consultant to the proponents of the VLT initiative," Redman said.
He said Grapetree Shores has invested almost $20 million in the project and would have not been able to receive bank financing or approval from the CCC if the company was on unstable ground.
"We urge the USVI government to not be influenced by rumor and hyperbole, but to look at the facts," Redman wrote. "My client has met every commitment it made on this project, financial and otherwise."
The remodeled Divi Carina Bay Resort, located on Grapetree Bay on St. Croix’s southeast shore, will feature 126 oceanfront hotel rooms in the main hotel and 20 one-bedroom suites in four hillside villas. An additional four hotel rooms will be added in December.
The 10,000-square-foot casino is planned to have 275 slot machines, 12 gaming tables and employ in excess of 150 people. A buffet, snack bar and gift shop are also planned for the two-story building.
The V.I. Casino and Resort Control Act of 1995 was established to encourage badly needed hotel room construction and renovation on St. Croix, as well as to provide more jobs.
The last major hotel development on the island was the Carambola Beach Resort, completed just before Hurricane Hugo in 1989. Prior to the storm, St. Croix had 26 hotels and 1,074 rooms. Currently, there are 21 hotels with about 895 rooms.
