This means that the government will not be able to take ownership until the legal dispute between the owners and Rain Forest has been resolved.

 

Rain Forest claims between $12 and $15.5 million in damages because the deal threatens to fall through.

Rain Forest Tram Ltd, a company headquartered in Hong Kong with offices in Miami established Rain Forest Adventure St. Maarten as the local entity to develop the attraction park.

 

In 2008 Henri Brookson, a former Minister of Plenipotentiary, took ownership of the estate from the heirs of Emilio Wilson – Edna Diggs and Marni Weinstock. Three others hold a 1/6 ownership: Anne Paas, Anna Margaretha Paas and Hermannus Paas. Each part was sold for $1.25 million on January 25, 2008. Brookson bought the other half of the estate for $1.25 million, putting the total purchase price at $5 million. There is a mortgage of $1.6 million on the estate.

 

According to court documents Brookson and the Paas family (from here on: Brookson) still owe $1.25 million to Diggs and Weinstock.

 

The document, drawn up by the law office of Van Eps Kunneman and Van Doorne reveals that Rain Forest entered into a cooperation agreement with Brookson already in June 2010 for the development of a commercial adventure park.

In October of that year Rain Forest established the local entity RFA. Brookson got a 25 percent stake in this company.

Part of the estate was to be developed as a residential area by Brookson. Parties set the value for the part of the estate that would be brought into the RFA-company at $4 million.

 

In exchange for the land, Brookson would receive $500,000 in an escrow account, 25 percent of the company’s shares valued at $2,587,500 and $912,500 in 17 installments to service the outstanding mortgage.

Diggs and Weinstock agreed – against a hefty payment of $350,000 – to limit the mortgage to 25 percent of the estate to enable delivery of the other three quarters to RFA.

 

When Brookson learned, according to the court documents, that he would not get a permit to develop the residential area, he entered into negotiations with the government about selling this part of the estate to them. The government apparently issued a letter of intent, but the terms were not agreeable to Brookson.

 

Rainforest did several proposals that are not detailed in the court papers to Brookson designed to prevent that the adventure park’s realization would be put in jeopardy. In the meantime, the local company received a building permit in April of this year. Parties then reached an agreement about the non-specified proposals and entered into a new agreement in May.

 

But on May 10, a day after Prime Minister Sarah Wescot-Williams hand delivered the resignation of her cabinet to Governor drs. Eugène Holiday things changed. In a letter dated May 10, Rain Forest outlined concrete proposals to Brookson and to the former owners Diggs and Weinstock for the realization of the adventure park. Brookson agreed with the proposal, the court document states.

 

Attached to the letter was a draft Assignment Agreement – basically an amendment to the original purchase agreement. This agreement was further detailed in a side agreement dated May 31; Attorney Mark Meijer signed it on behalf of Brookson. This document stipulated among others: “The current owners of the Emilio Wilson Estate agree to transfer the portion of the land agreed to by the parties in the cooperation agreement upon first request of RFA St. Maarten and under the conditions outlined in the cooperation agreement and this letter.”

 

It is easy to get lost in the details of the developments, but the bottom line was this, according to the court document: Brookson committed himself to delivering 75 percent of the estate.

 

But Brookson suddenly started dragging his feet. Diggs and Weinstock signed the Assignment Agreement, but Rain Forest’s chief engineer John Dalton had to send a letter to Brookson on July 16 asking when he would sign it.

A day later Brookson replied: “The amendment will be forthcoming once some minor issues are resolved. By tomorrow this should be done. Again my apologies.”

 

On July 18, Dalton fired another couple of lines towards Brookson: “Hello Henri, have been laying out the lift foundations, walkways, etc. on top of the mountain with Kevin this week. It is going to be an amazing experience up there for our guests. Can I pick up the signed amendment today? I will be in Cole Bay around noon so please let me know where to meet you. As a businessman I know you understand how much it hurts every day in lost revenue so let’s get busy.”

 

That meeting with Brookson never took place. Instead, Rain Forest got a nasty surprise five days later. On July 23, attorney Mark Meijer sent an email saying that country St. Maarten had offered to buy a large part of the estate for $17 million, and that Brookson would keep 60,000 square meters “to develop as a residential area.” Previously, residential development was not possible, the court papers note dryly.

 

Meijer invited Rain Forest to match the government’s offer and gave the company a week to react. On July 30, Meijer demanded an answer before 6 p.m. that day; otherwise Rain Forest would lose its right to match the offer.

 

But Rain Forest disagreed and referred to the agreement parties signed on May 31. The company also objected to the one-week term to react, adding that it does not know the terms St. Maarten had set for its offer. “The fear for embezzlement is a fact with the offer of country St. Maarten and the preparedness of the owners to accept it,” the court papers state.

 

Rain Forest maintains that it is entitled to take ownership of the part of the estate as it is described in the cooperation agreement. The company says it is entitled to compensation if Brookson does not abide by the agreement and does not deliver the land.

 

The company puts the value of the portion of land it would get to develop the attraction park at $12 million since the 25 percent stake Brookson would get has been valued at $4 million. But with the bid by the government the value of the land has suddenly gone up to $17 million.

 

Rain Forest will also claim compensation for expenditures it has already made for the project. It will also miss out on revenue – projected at more than $11 million between 2014 and 2020.

 

The Court in First Instance gave its permission for the lien last week Friday on the condition that Rain Forest files a lawsuit within a fortnight.

 

(Source Newspaper Today Sint Maarten)