Arnell tells beach tenants ‘profiting from government property is over’

MARIGOT--Vice-President Guillaume Arnell said Friday St. Martiners had only themselves to blame for the current stand-off with the Collectivité over the new restaurants because of past practices on Orient Beach of sub-letting their establishments, even charging key money, adding that this abuse of government property is no longer tolerated.
 
Arnell was addressing the contentious ongoing issue of the three local restaurant tenants, who refuse to sign contracts and pay the already-reduced rent of 2,200 euros from 2,500. The tenants also insist the new restaurants have not been constructed to French code.
 
Five out of the eight restaurants in the project already signed contracts and are open for business.
 
Arnell acknowledged the project had not been delivered on time, and had gone over budget to 3.3 million euros, but that was not the tenants’ fault. Because of this, payment of the rent had been postponed by two months.
 
He questioned how the disgruntled tenants purport to know more about the French code and regulations than the various government controllers and inspectors, who have passed the project as being in conformity with required norms.
 
“These are not three- or five-star restaurants, these are technically beach bars and restaurants that are held to different standards and obligations,” he explained. “In this context, all the norms in the French system have been respected, whether it’s about hygiene or building codes. What competences do these tenants have to tell us that they are not within the norms?”
 
Director of the Collectivité’s Sustainable Development Department Romain Perreau, confirmed at the press conference that the norms have been respected, but various minor irregularities found with the restaurants at a site inspection on Monday, would be corrected or replaced by the companies concerned.
 
Arnell said Orient Beach is not only high-value real estate, but one of the most desirable beaches in the Caribbean with high-income potential for businesses from tourism.
 
“I ask myself why someone is so insistent on keeping the business on the beach if they cannot pay 2,200 euros per month for a potentially booming business. These tenants do not realise how fortunate they are. They were all retained after Hurricane Gonzalo, but there are so many people who are dying to have what they have, and are willing to pay even more rent that 2,500. They should be thankful for this opportunity. We have delivered new structures that are clean and came at a cost to the Collectivité, but we cannot give them away for free.”
 
Responding on an earlier occasion to a water sports operator, who complained the 600 euros per month rent, was too much, Arnell said he had quickly determined at 50 euros per half hour for a Jet Ski, with repeated renting, this operator could easily pay his rent within a week.
 
Regarding the temporary occupation permit (AOT) reduced from five years to three, he explained this is “to stop people from thinking erroneously that the establishment can become their property.” Three months prior to its expiry, the AOT can be renewed however.
 
“There’s no reason to suggest the AOT will not be renewed if you have always paid your rent on time and have been occupying the property according to the rules. But it has been tightened up because there have been too many instances in the market place and Grand Case of people occupying government property for years without paying a dime.”
 
Comparing rent of the new Orient Beach restaurants to the rent for the lolos of Grand Case or Marigot is not a valid argument, Arnell continued. “Those rents in Grand Case are abnormally low and at some point will be adjusted,” he indicated. “But we can’t fight all these battles at the same time.”
 
Last week Saturday, the aggrieved tenants held a press conference in the company of Wake-Up St. Martin- members, who were behind the zoning plan protest that paralysed the French side in October 2015.
 
The tenants indicated they were on the verge of a public protest. Asked how concerned he is about this threat that appears to be politically driven, Arnell replied: “We don’t want social unrest again, but the people need to know that some of our people have been misusing the system for a long time and it’s time they give back a bit of what they received.
 
“Let’s try to build this country together, and not just think about destroying it. I want to give an example from the Dutch side. Nobody discussed the prices on the Boardwalk. The government set the prices and it was take it, or leave it.
 
“The government has an obligation to give the people all the information, so they can judge a situation. We believe in this case the people are being misled. I am therefore asking the people to not get involved in what is a private conflict. The conflict, if there is one, is between the Collectivité and, as it turns out, is basically with one individual.”
 
The Daily Herald

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