Atlantic Northstar, which has opted against developing 36 condominiums on its three-acre property at Parcel K, Estate Gift and Regenback, does not have to follow through with the $850,000 payment to the V.I. Housing Finance Authority that was required as a condition of the development company’s controversial group dwelling permit.
Parcel K, which has been on offered for sale for nearly 16 months and was originally listed at $9.95 million, is now listed at $4.95 million, according to the St. John Multiple Listing Service.
“Spectacular site with sweeping views over South Shore from Rams Head to St Thomas,” states the current St. John MLS listing. “Accessed from below or off Gift Hill Road, this is a signature site on the South Shore of St. John. Development plans available, could be ideal site for estate size parcel subdivision or one wonderful compound.”
Permit Not Transferable
Parcel K was originally listed for sale with the group dwelling permit without the notification of the Department of Planning and Natural Resources Commissioner, although DPNR approval of any transfer was a condition of the permit.
“This permit may not be transferred or assigned without prior written notification to the commissioner of the Department of Planning and Natural Resources,” according to the permit.
Following the listing of the more than three-acre lot, DPNR officials attempted to determine whether to hold Atlantic Northstar liable for the $850,000 it was to pay to the HFA as a condition of its group dwelling permit.
“(Former) Commissioner (Dean) Plaskett did sign off on a letter asking them to pay up the money, and saying if they don’t, the permit would be suspended,” Director of DPNR’s Comprehen-sive and Coastal Zone Planning Marjorie Emmanuel told St. John Tradewinds late last year. “This is a matter we will have to have legally researched, because Atlantic Northstar partner Charles McCallion was the one that made the commitment on behalf of the company to provide the V.I. government with the money.”
The company was required to follow a payment schedule detailed in the group dwelling permit.
Company Not Liable
The first payment of $350,000 was due on or before June 30, 2006; $250,000 was due on or before December 31, 2006; and the remaining $250,000 is due on or before June 30, 2007.
None of these payments were made.
The permit is no longer listed for sale with the property, and Atlantic Northstar will not be required to pay the $850,000, according to DPNR spokesperson Jamal Nielsen.
“Since the project didn’t go through, they are not going to be held liable,” said Nielsen. “The permit is not transferable in this case. The new owner would have to submit or apply for new permits.”
The group dwelling permit would have allowed Atlantic Northstar to construct 36 luxury condominiums at the site.