The proposed project had been the subject of ongoing protests from environmentalists and other community members.

 On Monday Harold Lynn, the project developer, said the deal was close to being signed during the former administration but that developers decided to withdraw after waiting for several months for a response from the Virgin Islands Party government.  

“I had no choice but to not go through with the purchase. … The government changed and didn’t seem to be interested with us going with the project,” Mr. Lynn said in an interview from his New York office. “We had signed an agreement with the previous administration and we spent almost two years and spent an enormous amount of money meeting the environmental requirements.”

Last year, Mr. Lynn met with Premier Ralph O’Neal to discuss the project, and sent him three letters. “He was non-committal,” Mr. Lynn said about the premier. “He sat there and listened and told me he would get back to me, but he never did.”

Rosalie Adams, the premier’s permanent secretary, acknowledged that the premier had received at least one of the letters. “I had seen one and a response was drafted. But in that letter, the developer had given an ultimatum to the premier saying that if he had not received a response by the end of January he would withdraw. I don’t think that the premier would respond to an ultimatum,” Ms. Adams said, adding that when she joined the premier’s office in October 2007 all matters had been settled with the developer except for the water supply. However, there were other issues being discussed. “I think they were also asking for additional land and permission to put in a dock, but that particular issue didn’t have a favourable review on the stakeholders residence views because they thought it would deter them from getting to the beach,” Ms. Adams said.

The most substantial issue being discussed was the provision of water to Villa Paradiso, Ms. Adams said, adding that government would have continued to work with the developer, but that the timing was not right.

In a letter to the government, Mr. Lynn said he would withdraw from the project if he didn’t receive a response by January’s end. But the budget was passed four months later. “It was out of the budget cycle,” Ms. Adams said. “We were hoping to get funds in the 2008 cycle. So [with] the ultimatum given by the developer to give an answer by the end of January, we were not able to respond because we were not able to have any money budgeted. That’s were it ended. … We would not have had a problem to continue to work with Mr. Lynn, but the timing was the problem,” she said.

According to Ms. Adams, the premier’s office is committed to work with the ministry of communications and works to provide the western side of Tortola, including Smugglers, with water lines.  "We see it as one of the prime areas where we have homes, the Long Bay Hotel and other areas, and we recognize that they need a steady water supply.”

Asked if the government planned to develop Smugglers, Ms. Adams said “the government would normally purchase the land and then develop a plan of action for the area. Whether that will be done is up in the air.”  

Read the full story in the May 8, 2008 issue of The BVI Beacon.