oil nut bay, virgin gorda, may 2009

Letter to the Editor in response to Oil Nut Bay: Received by us May 31st

WHAT WAS NOT SAID ABOUT OIL NUT BAY

After studying the Beef Island Case and its ecological ramifications, I am dismayed that an Environmental Impact Assessment (EIA) was not required for Oil Nut Bay. While it is true a resort this size will contribute somewhat to the economy, developer David Johnson of Victor International has presented an idealized, if not one-sided view of what is happening in one of the most remote areas of the territory. This situation should be a wake-up call to Town and Country, the Planning Authority, Government and the National Park Trust, all of whom are complicit in the destruction of Oil Nut Bay. Coordination, acting swiftly and enforcement of laws would have protected key pristine areas of Virgin Gorda while moving towards sustainable development.

Town and Country’s explanation for not having an EIA was that approval for development was given in the early 2000s to the Hendersons, the original developers, before EIAs were required under the 2004 Physical Planning Act. The original plan called for a “simple low density, residential subdivision consisting of 10 boathouses, 16 residential units supported by a clubhouse, docks, service area, limited roads and infrastructure and the possibility of a small medical or research centre”. At the time, a coastal study by a noted biologist described the shoreline as impressively healthy, diverse and intact recommending it as a marine-protected area. In the 1980’s, ONB was also nominated as a potential national park. Even “co-management” with the National Park Trust was explored. An environmental management plan, in any case was clearly requested according to Mr. Potter.

Enter Victor International in 2006 , coincidently, the year it purchased Biras Creek in North Sound, site of its new marina with access to the peninsula- (and at a time when the previous chief minister was signing away the territory to 5-star hotels). Victor International’s 2007 Planning agreement, purportedly in partnership with the Hendersons, acknowledged a possible need for an EIA, but evidently was never required because development permission had previously been granted for the old plan.

Two Points:
1) A serious environmentalist would have commissioned an EIA anyway REGARDLESS of previously cut roads and docks empty for 6-8 years. There was still enough original ecosystem left to monitor. (So happens that the Environmental Team Leader for Oil Nut Bay is an ex- CEO of Chrysler Global Electric Cars, a far cry from a biologist with 20 years of Caribbean field experience).
2) What Victor International is building- (27 homes, 9 beach villas with 9 pools, 7 huge ridge villas, tennis courts, boutique, restaurants, groceries, shopping, mega-yacht marina for 88 boats, helipad, ocean villas in the water)- it is no longer the same project agreed to! As a new LARGER Resort, the government should have insisted on a NEW survey of the area which is now under siege, regardless of the sophisticated prose on Oil Nut Bay’s website.

Terms like “re-engineered” means changes, clearing, excavation and filling or altering as in the case of the salt pond. Coral rubble has been removed in violation of the Beach Protection Ordinance. Permission was given naively for the “beach enhancement project” knowing there was no EIA. The catchy term, “enhanced” often means introduction of exotic materials to create an idealized environment. In this case, palm trees where there were none, and 5000 tons of sand from Barbuda were imported. Unfortunately, heavy machinery crushed two endangered hawksbill sea turtle two hatchlings in violation of the VI Fisheries Regulations Act 2004. This could have been avoided with knowledge of the beach. And also misleading in the developer’s presentation is the 150 acres being set aside as conservation area which is rock and un-buildable anyway.

There are so many disturbing nuances about how this project is progressing so quickly, it is mind-boggling. Why are the Government’s environmental and planning agencies silent as another potential marine protected area vanishes. Why are foreign investors for this particular development privileged with a 90-day automatic approval for a landholder’s license? I implore the National Park Trust to officially preserve the last proposed Marine-protected areas, some designated for over 25 years, before they are lost to development. Protection HAS to be done district by district to speed the process. And let’s hope Town and Country finds a competent and strong director soon to combat violations and to assure sustainable development as a matter of law, not politics. Seems with distant Oil Nut Bay, it’s out of sight, out of mind.

Susan O Smith, West End, Tortola

Update May 28th, Oil Nut Bay, Virgin Gorda

Pictures taken May 27th, 2009

• Environment questions linger
By Mason Marcus- BVI Beacon, May 28th issue, 2009
David Johnson’s vision of Oil Nut Bay began to take focus last month, as a handful of workers slowly raked glistening white Barbuda sand over the beach, trimmed with Florida palm and local sea grape.
Nearby, the first shoots of transplanted mangroves had sprung up on the fringes of an “enhanced” salt pond, and windswept surf crashed against a rocky crag that Mr. Johnson has named “Nature’s Gifts.”
The 400-acre property tucked away at the edge of Virgin Gorda is slated to become one of the premier residential resorts on the North Sound, but as the project moves forward, a fresh wave of environmental criticism has raised doubts over the development’s track record.
Too much work, environmentalists say, was done before proper studies and mitigation plans were put into place, while too little was done to hold Mr. Johnson’s company, Victor International, accountable to the territory’s environmental and planning laws.
Mr. Johnson disputes this. When Victor International took over the project from the Spanish Town Development Company in late 2007, preliminary environmental and socio-economic impact studies had already been conducted and construction already begun, he said.
“Once development commences, it is simply not possible to restore what was there. Development changes the environment. Our role is to develop the site in an environmentally sound manner,” Mr. Johnson said.
Environmental plan
Since, developers have signed onto a number of “eco-progressive” initiatives, including using recycled grey water for irrigation and relying on solar and wind energy to power lights and water heaters. A St. Croix-based environmental monitor sends regular reports to government and developers, and an Environmental Management Plan is due next month.
The chorus of criticism from government agencies charter crewmembers and residents has been met by the praise of VI contractors, engineers and architects.
Echoing worldwide trends, the territory’s tourism and construction sectors have seen a downturn. Oil Nut Bay, they say, has become even more vital to providing jobs for the VI work force today and into the future.
“A project like this filters money through the economy and [creates] work for several different outfits — not only contractors, but ferries, barges an d hardware,” said Percy Rhoden, whose company, Meridian Construction, recently finished the arrival dock and was contracted to install foundations and tiling for several other buildings on site.
“The project is extremely positive for the whole VI, not only Virgin Gorda, in a time like this, when we have a downward spiral in the economy,” he said.
Ongoing work
Since ground was broken in January, work has progressed on the remote development mostly out of sight and out of mind.
A welcome dock on the western tip of the bay was completed; a large boulder mound was partially demolished, making room for a beach club; and one of 10 unique 2000 square foot beach villas, which Mr. Johnson calls the “Jewel Box,” has taken shape.
But a recent Wall Street Journal article highlighting government incentives to nonresident landholders sparked furor amongst environmentalist here, who felt the article ignored how development was affecting the area’s ecosystem.
Andrew Woodruff, a local charter boat captain was one of many concerned residents who wrote to the WSJ to express his concern about environmental impacts of the project. “This was an area that I would take my guests to so that I could show them sharks that would patrol the shoreline and to enjoy what was an incredible natural and beautiful beach, which it will be no longer,” Mr. Woodruff wrote.
The Oil Nut Bay area has long been held as an ecological jewel of the regio n. In the 1980s, the site was nominated as a potential national park site, a designation that was endorsed but never enacted by government in 1987. In the early 2000s, when Norman and Charlene Henderson first started to develop the property, ONB was considered a possible candidate for a pilot “co-management” effort involving the National Parks Trust.
One year later, a “shoreline resource description” prepared by biologist Clive Petrovic for Smiths Gore, recommended that the area be established as a marine protected area.
“In more than 20 years of diving and snorkeling in the [VI], this investigator has not seen a healthier, more intact, shallow water ecosystem,” Mr. Petrovic wrote.
The biologist also warned that without “due care and diligence,” the project could obliterate the coastal mangroves with “catastrophic consequences” to marine life.
“Care exercised at the beginning and throughout construction may at times be inconvenient or costly. However, the future rewards for an upscale development cannot be overemphasised,” he wrote.
EIA not a precondition
According to the developer, proper care has always been taken to protect the environmental integrity of the area, although an Environmental Impact Assessment was never completed.
The reason, explained former Chief Planning Officer Louis Potter, was because approval was granted well before EIAs were required, under the 2004 Physical Planning Act.
In the early 2000s, the planning department first requested that the Spanish Town Development Company, owned by the Hendersons, produce a social impact assessment because “that was considered to be the greater source of stressors,” according to Mr. Potter.
Original plans for the development called for a simple, low density, residential subdivision consisting of 10 boathouses and 16 residential units, supported by a clubhouse, docks, a service area, supporting roads, limited infrastructure and the possibility of a small medical or research centre.
As plans expanded onto the beach area, the TCP Department requested a coastal study, which was subsequently produced by Mr. Petrovic. “While we never went back to them and said you have to do a full fledged EIA, we clearly said you have to do an environmental management plan,” which would contain the same baseline information as an EIA, Mr. Potter explained.
’07 planning agreement
According to Mr. Johnson, when Victor International entered into the joint venture in 2006, the company verified that the ongoing development was in full compliance and good standing with the government.
Although Victor International’s 2007 planning agreement “recognises that there may be a need for an environmental impact assessment,” an EIA was never required as a precondition for development.
“Once [the previous owners] cut in roads, cleared areas ... it was impossible to do an EIA on land as if it were undisturbed,” Mr. Johnson said. “Miles of roads had already been cleared and cut. Docks had been built, and all of this existed and was verified to be approved by government.”
Mr. Henderson declined to comment on any matters relating to Oil Nut Bay.
Environmentalists argue that without baseline environmental data, it is difficult to highlight which areas need to be preserved and how to mitigate environmental damage.
In several of the reports produced by BioImpact, since it began monitoring the site in 2007, Amy Dempsey recorded that because studies and data were not available for previous years, she was unable to determine whether minor changes to the beach were “man-induced alterations or due to sea and weather conditions.”
Without an EIA in place, Victor International has found itself in a catch-22. Critics of the project continue to argue that it is impossible to create a management plan without existing environmental data, while developers say an EIA on developed land is useless.
“Somebody comes in and says, why don’t you do an EIA. You can’t do an EIA on something that has been under development for six years,” explained Mr. Johnson. “What we did is comply with existing approvals and go seek new approvals.”
Ongoing
Dr. Quincy Lettsome — who heads the Virgin Islands Environmental Council, which recently took the government and Beef Island developers to court over alleged improprieties in the planning process said his groupl has not met with Victor International, but he was glad to hear that Mr. Johnson was “willing to abide by all the processes that would ensure the environment would be kept safe.”
Documents obtained from the developer confirm that ONB received planning approval from government as recently as January for the “beach enhancement project” and a preliminary outline for an environmental management plan, which will include baseline environmental data and mitigation plans.
Although Mr. Johnson admitted that two hawksbill turtle hatchlings, an endangered species, were crushed by machinery last year. Workers assisted the other 89 juvenile turtles to the shore, and the another 14 identified nests were largely undisturbed, according to BioImpact reports.
Under the 1997 fisheries regulations, it is a criminal offence to interfere with a turtle nest or turtle that is nesting. Director of Public Prosecutions Terrence Williams declined to comment on whether charges were pending.
A Conservation and Fisheries Officer familiar with the development said the department had worked through TCP to monitor the site and raised several concerns. Last year, coral rubble was moved from the eastern edge of the beach to the western edge, to form the arrival dock, which may change current patterns or erode into sea grass beds. The salt pond, which was an important habitat for nesting birds and migratory species was also altered. A 2001 social impact report, written by the Island Resource Foun dation, reported that “The salt pond is critical...because it provides buffering to the nearshore reefs on the north and the west side of the ONB peninsula from material flowing from the ONB watershed.”
To resolve these problems, the pond was altered from a “large shallow salt flat” to a “deeper salt pond with an equivalent storage capacity as the original flat,” according to a BioImpact report.
The C&F officer also said the department feared that erosion and run-off, primarily from newly cut roads, could endanger reefs. “I think that these two areas [Oil Nut Bay and Deep Bay] were the last two remaining areas on VG that were still healthy, and the work there that is going on, unless it was done really properly, could result in the death of the whole reef in the next couple of years,” he said.
Yesterday afternoon, Mr. Johnson confirmed that negotiations are being finalised with the BVI Electricity Corporation, and underground utilities will be installed soon with pavement to follow.
Vegetation removed from the valley and beach area for major construction works and heightening parts of the valley to hurricane surge levels will eventually be replaced, said Mr. Johnson, and turtle lighting will be used in sensitive areas along the coast.
Planning
Thor Downing, whose company Roger Downing & Partners designed the beach club and one of the ridge villas, said the 50-page design guidelines required by the developer were 8 0impressive.” “I’ve never seen design guidelines that strict before,” said Mr. Downing, adding that the Mr. Johnson had even given him a book to read on turtle nesting.
“Oil Nut Bay isn’t for ostentation or decedent display of wealth,” Mr. Johnson said in a recent interview. Victor International has maintained the original low-density plans, limiting development to at most one house per acre.
Mr. Johnson said he wants to attract buyers who “respect and want to preserve the land, and have it better than it was.”
About half of the land at ONB estate, 150 acres, will be set aside as conservation space and developers say that 0.4 percent of all sales, in perpetuity, will fund a conservation stewardship organisation to “preserve, protect and conserve environmentally sensitive property.”
After purchasing a lot, buyers apply to Victor International for concept and design approval, submit a detailed materials list and colour scheme, and final construction drawings that must conform to hurricane and turtle lighting codes.
Many of the properties likely will be long-term rentals, or be placed under rental management.
Like earlier developers of North Sound, Victor International has a lot at stake. Victor International is debt free and is betting that in the international marketplace, buyers will be attracted to the low density, high quality development.
“Everybody knows and everyone is aware that we are under severe20stress on a global basis, by current economic situation,” Mr. Johnson said. Last month, developers reported that eight of the roughly 45 lots were in various stages of development. The lots range from $2 to $25 million.
Local labour
Despite allegations that more than 200 foreign workers were onsite, Victor International has relied almost entirely on local labour. “We are committed to the goal of employing VIslanders in the construction service,” Mr. Johnson said.
Deric Maduro, who has provided heavy equipment services through his company D&B Trucking, said the territory needed a project like ONB, to compete with other Caribbean islands. “Everyone will be happy to see a project of that magnitude work in the VI,” he said.
When the project is finished, Mr. Johnson estimated as many as 200 full time service staff would be hired to run the resort. “The current government is committed that the people of the VI, ... belongers, get preferred treatment, for every job, especially the people of Virgin Gorda,” said Mr. Johnson.
Dwight Flax, whose company Ebony and Ivory has been contracted for concrete work and heavy equipment, said construction outfits would benefit by working on “very high end” houses. “The country needs a boost, and if they do it, and do it in the right way, I think it will be good for everybody.”=

food for thought...definitely, Additionally the BVIHCG received this letter to the editor, MAY 31st, 2009

WHAT WAS NOT SAID ABOUT OIL NUT BAY

Susan O Smith, West End, Tortola

The Wall Street Journal had a recent article titled "Some Nations make it easier for non residents to buy property" and then went on to discuss how this is happening in the British Virgin Islands. A totally one sided story full of half truths. One of the local charter yachts here in the BVI, felt compelled to write the following in response to reading this article, and his sentiments are shared by many here in the British Virgin Islands. We have many pictures and obsevations throughout the site on Oil Nut Bay, and we thought it was important to share all views.

oil nut bay

This picture from the Wall Street Journal article.

The article uses the Oil Nut Bay development in Virgin Gorda as an example throughout the article with much bias. If you are aware of the development you may agree that this is yet another travesty in the BVI. I felt compelled to write to the writer of the article and the Editor of the WSJ with my thoughts about their article and their bias towards this development.

My hope is that they will counter their story with a 'price of progress' story, highlighting the negative effects of the changing philosophy.

I do not know if they will feel there is a story to be told, or how they or yourselves will view my correspondence but public opinion can carry weight and only that weight can put an end to developments such as this and many others that are well known currently. Such as the VIEC lead case against the Beef Island Development. This case is being heard this week.

Maybe if others were to write in, if you feel compelled to do so, to help highlight the case, then Wall Street Journal may publish an article highlighting the negatives of such a development and discourage their readers to buy into such places. Or you may feel I have over reacted to the article, that is fair enough too.

I am neither a tree huger, Eco worrier or any other 'over the top environmentalist' but someone who feels there is a line that should not be crossed, but it appears those with lack of morals and no lack of finance cross happily... I'd like to see them jump through more hurdles first before they can do as they please.

Dear Editor,

This morning I replied in email to Christina Lewis concerning an article written by Christina called 'Some Nations Make It Easier for Nonresidents to Buy Property' posted April 29th on the WSJ website. I have decided also to include you on the email in case it does not reach the intended recipient.

Since my reply I have also been able to obtain information on the laws broken by Mr Johnson and his Oil Nut Bay development that was given so much bias and good publicity in the above mentioned article. This is a very contentious issue in the British Virgin Islands and it would be great if you could allow a follow up article on the negative impact of the original article.

I would be more than happy to supply you with the information relating to his illegal activities or to put you or Christina in touch with the relevant people and organizations in the British Virgin Islands.

Thank you for your time in reading this email and for giving this issue some consideration for a follow up.

We live in the British Virgin Islands and we own and run a yacht charter company. As I type this we are anchored in Virgin Gorda over looking the Oil Nut Bay development you mention in your article.

This development is an outrage to almost everyone in the community and should have never been given permission. In fact, it is not understood why and how it had been. The area was unspoiled and supported an abundance of marine Eco-system and land habitats for many of the indigenous animals, birds etc.

Other developments such as Richard Branson’s new Mosquito Island Eco Resort project has taken a very long time to get their permission to develop an Eco Friendly development on his own Island. He and many others are extremely upset at how Mr Johnson has been allowed to destroy the Oil Nut Bay region and the extensive cutting of roads it took to create it.

This was an area that I would take my guests to so that I could show them sharks that would patrol the shoreline and to enjoy what was an incredible natural and beautiful beach, which it will be no longer. Next month a barge carrying 5000 tons of sand will arrive to dump on this environmentally sensitive beach. This will also be unauthorized and therefore illegal. They have already disturbed and destroyed turtle nests and subsequently killed turtle hatchings on a beach that is considered one of the most valuable for hawksbill turtles... an endangered species.

Its just a shame that such a development would be celebrated in an article which gives to much good publicity to Mr Johnson though he has demonstrated a total lack of understanding about the region he has been able to destroy. He also has other projects that make little sense to anyone else that he is said to be embarking on too.

The British Virgin Islands has recently been mobbed by developers such as Mr Johnson. There was another development at Scrub Island that again somehow got permission to build and even remove a reef to put in a marina. This place is a disaster, they have even had to borrow refinance the deal half way through completion thus leaving a stagnated building development for a long period.

There is another case that you may have heard of that is now been brought to the courts to prevent it. This is the Beef Island Development. The case involves judicial review of the former NDP Government’s planning approval for a five-star hotel, marina and golf course that would destroy the scientifically documented biologically important Hans Creek Fisheries Protected Area in Beef Island . The VIEC (Virgin Island Environment Council) has worked as volunteers for a long time to protect this region against the development. VIEC has raised money and hired one of the most respected and experienced environmental lawyers in the world - Mr. Stephen Hockman Q.C - Ex Chairman of the UK Bar Council and previous Chairman of the Environmental Law Foundation, to represent the case at trial.

This case should it be successful will help the BVI and other Caribbean islands in protecting areas like the above mentioned cases against developers such as Mr Johnson and against the corruption that allows them.

So while it may seem that making it easier for foreign owners to buy property is a good thing, it is, in many regions at the expense of their own environment, tourism industry and local communities. The customers that will buy them generally have no idea of the area previous to the development and have no regard for what they have financed to ruin. Just as the developers have had no regard in the first place as they have never lived in the region and came purely to develop and make their money and leave...

You may argue that it is the price of progress... but one has to ask if its progress destroying so much for so many so that a few very wealthy people can have a 2nd or 3rd home that they may use occasionally.

It may be a nice idea to follow up the article with why the emerging markets have made it difficult in the first place for foreign buyers, it was simply to protect their own home prices for their communities to afford and to protect the environment from the Mr Johnson’s of the world.

There are many more points a representative from VIEC or local community members would make, I am merely a concerned individual for the region that we love so much. If you would like to follow up with those who are more connected with the projects I would be more than happy to connect you.

Best Regards,
Andrew Woodruff

For those who feel strongly that the Wall Street Journal article is misleading, and VERY one sided, here are some email addresses to write yourself: christina.lewis@wsj.com, wsjcontact@dowjones.com, newseditors@wsj.com, feedback@wsj.com,

Developers response to Oil Nut on May 15th 2009