Much is unknown about the physical, environmental, and economic status of the Caneel Bay Resort/Carolyn Sugg via flickr
Nearly two years since a one-two hurricane punch pounded Virgin Islands National Park and ravaged the high-end Caneel Bay Resort, secrecy shrouds not just the future of the resort but the extent of environmental contamination of its grounds.
National Park Service authorities acknowledge there is some environmental contamination at the resort that requires following the guidelines of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. But they have been silent as to what, if any, progress has been made in determining the extent of the contamination and whether any cleanup has occurred.
For its part, CBI Acquisitions, LLC, the subsidiary of Stoneleigh Capital that operates the resort, not only wants to wash its hands of the storm-battered resort, but wants $70 million in compensation and indemification from any environmental problems there.
The late Laurance S. Rockefeller, who donated the land for the national park and in 1956 built the 170-acre resort within the park's boundaries, intended for the resort to revert to full National Park Service ownership in 2023. In 1983, the Jackson Hole Preserve, which Rockefeller had established, donated the land to the park; but it came with a Retained Use Estate agreement that gave the Preserve free use of the property and its facilities for 40 years. At the end of that four-decade period, September 2023, the RUE document dictated that the buildings and their improvements be donated to the Park Service.
In 2010, Congress passed a law directing the Interior Department to weigh whether it was better to keep the facilities under the RUE or create a concessions agreement for the resort, which CBI Aquisitions assumed from the Preserve in 2004. Three years later the Park Service, after studying which management approach made the most sense for the agency via an environmental assessment, recommended that the operating agreement be redefined as a long-term lease more in line with typical concessions agreements.
The resort occupies a relatively small footprint on a peninsula on the island's northwestern shore, an area rich in cultural and archaeological resources.
"Culturally, Caneel Bay contains historic resources, and it reflects Rockefeller’s vision of a close community of man and nature," the Park Service said in the EA. "It also contains numerous archaeological resources and is under consideration by NPS for listing in the National Register of Historic Places as an historic district."
Among the archaeological resources is a site "noted for being one of the largest villages on the island," and there are historic remains associated with the Caneel Bay Plantation complex that dates to the early 1700s and which, during the Slave Rebellion in 1733, "served as a refuge for the plantation owners during four to six months" of the revolt, according to the Park Service.
The EA said there could be impacts to land use, archaeology, cultural and historic resources, and species such as sea turtles and corals if the RUE remains in place. However, it also said there could be negative socio-economic impacts if the property was managed as a concession and a new concessionaire reduced employment levels.
Until recently, CBI has fought to see the RUE extended by six decades, and has worked with U.S. Rep. Stacy Plaskett, D-Virgin Islands, to land that extension. Gary Engle, the CEO of Stoneleigh Capital, has said a 60-year term is the minimal amount of time needed to "redesign and rebuild, and ... reestablish a resort in a highly competitive marketplace."
Those extension efforts, unsuccessful so far and possibly facing greater headwinds now that Democrats control the House of Representatives, have overshadowed what, if any, efforts the National Park Service has made to see the property revert to its oversight as Rockefeller intended.
Also out of the public's eye is the environmental condition of the property. When Rockefeller structured the RUE that allowed the Caneel Bay Resort to be operated for private profit, among the provisions he saw inserted was the requirement that the operator use and maintain the grounds in a way that is "consistent with the preservation of such outstanding scenic and other features of national significance, and preseve the Premises to the extent feasible in their natural condition for the public benefit, enjoyment, and inspiration..."
Whether that has been done is questionable.
Initial documents Traveler obtained through a Freedom of Information Act request included a 2014 environmental assessment of the Caneel Bay Resort property that raised questions of contamination from SVOCs -- semivolatile organic compounds -- often related to pesticides, and arsenic. "In addition, there are concerns for leachability of SVOCs, arsenic and mercury to groundwater," the report noted.
The surveys also found concentrations of total petroleum hydrocarbons and diesel range organics above acceptable levels set by the Virgin Islands Department of Planning and Natural Resources.
While the assessment called for more extensive testing to determine the extent of these contaminants -- both across the ground surface and to determine depth of contamination -- records Traveler obtained said CBI had refused to allow a contractor for the Park Service to access the grounds to perform further testing.
Those May 2017 briefing notes made by Gordy Kito, the Park Service's leasing program manager, pointed out that "(T)he Department of Interior Solicitors Office believes that the NPS has the right to access the property to drill test wells." But at the time, no follow-up request for access had been made.
While Traveler's FOIA request has not been answered completely by the Park Service -- it was delayed by the partial government shutdown earlier this year and, more recently, by litigation involving a different orgnization's FOIA request -- agency Service personnel in Washington, D.C., and the Park Service's Southeast Regional Office have been unable to say whether additional testing has been done.
But the specter of serious environmental contamination of some extent to the resort property that fronts its namesake bay with its sugar-sand beaches and turquoise waters was raised by Rep. Plaskett late last month when she announced in a press release that CBI has asked to be paid $70 million to be released from the RUE and wants to be indemnified "from any environmental claims ... " (emphasis added.)
Plaskett issued the release on May 30 to inform her constituents that she had written Interior Secretary David Bernhardt to formally request that Interior provide her with "full transparency" concerning Caneel Bay Resort, CBI's request that it be allowed to terminate the RUE and walk away, and Interior's response to that request.
The Park Service and CBI Acquisitions supposedly have been trying for years to reach a lease agreement to succeed the RUE. While Engle told a congressional committee a year ago that the Park Service has never engaged in "substantive discussions" about a successive lease agreement beginning in 2023, Traveler has learned that Jo Pendry, the former chief of the Park Service's concessions program, had made trips to the Virgin Islands as long ago as 2010 to discuss a lease with CBI.
How extensive those talks have been is unclear, as the Park Service has not responded substantively to Traveler requests about them, other than to say "high-level discussions on the matter continue." The agency also so far has not fully responded to Traveler's March 2018 FOIA request for any and all documents and records relating to negotiations and correspondence pertaining to a lease for the Caneel Bay Resort.
Meanwhile, the resort remains closed and no reservations are being accepted through 2020. Engle has said he needs $100 million to rebuild the resort. Exactly how much insurance funds he has received to pay for the hurricane damage itself, as well as business interruption insurance, is unknown.
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Comments
I'm curious, what activities created mercury and arsenic contamination. Those are typically by products of mining.
Having stayed at Caneel Bay Resort numerous times, i can tell you it was truly heaven on earth. I do hope it gets rebuilt in some fashion. There is nothing like it in the Carribean. Seven private beaches, so quiet all you hear it the turtles swimming. Once you have stayed there, nothing compares, with the beauty and the serenity of Caneel Bay. We were lucky to be there seven times (would go in the off-season)... I would go back tomorrow if I could!
DITTO! We honeymooned there in 1994 and came back 5 years ago. Only difference was internet access.
I love Caneel. Going there to celebrate the new year has been a tradition my Grandparents started, and has been passed down for over 20 years. When it was destroyed, we all mourned. We have waited until the last minute to get hotel rooms anywhere else because we want to see if Caneel opens first. We're all so very excited for them to rebuild. I still have a Caneel Bay flashlight, and those things are super bright! I'm saving it until I go back.
Until next time,
Caneel Bay Lover
Mercury could have come from old batteries disposed on site, while arsenic could have come from pesticides....some wood preservatives also contained arsenic.
Return to American people as promised
The American people already on the property. Although I’ve never stayed at the resort, I’ve hiked through its property to and from the beach while enjoying all of the amenities and it’s beauty with nary a bother from the staff there. It’s beautiful and Americans have full access to the property while you know the government would never maintain its beauty.
Kurt, I am curios why you think the efforts to secure a RUE face more headwinds now that democrats control the house? Its seems the local, very democrat, ... has been doing what she can to help facilitate the RUE.
This comment was edited to remove a gratuitous remark. -- Ed.
i can see it now... Trump Resort at Caneel Bay. This better not happen!
Yikes! Don’t give him any ideas!
That will not happen. My family has been going here for generation after generation, over 20 years. (I think 50.) We will do everything we can as valued guests to prevent this.
Sincerley,
Caneel Bay Lover
I was hoping to go back to CBR for a 4th time for my 20th wedding anniversary next year, but looks like that won't be possible. Does anyone know of any place in the Caribbean that is the next best thing to CBR?
After visiting in the 80's as a child, and 20 some years later returning with my wife to be for a vacation - we decided to get married at Caneel Bay, returning again for our 1st anniversary. Since Caneel's closing, we discovered Hotel Esencia (In Mexico, between Tulum and Cancun). While smaller, and different, it's a beautiful spot, with a similar laid-back luxury feel to Caneel. We'll likely continue celebrating our anniversaries there until the (hopeful) return of Caneel Bay.
little dix Bay on virgi Gorda was also a Rockefelle project
Due to the loss of CBR, we have moved our vacationing to Jumby Bay Resort off the coast of Antigua. We loved CBR, but to be honest Jumby is so much better we will not return to CBR even if it does re-open.
look at Curtain Bluff on Antigua
Only other property that I think comes close is Peter Island. But Caneel is indeed beautiful. My partner and I are holding out as we want to get married there but.... not sure I want to wait that long
We've searched for the "next best thing to Caneel' for years without coming close.
Have you tried Little Dix Bay, Caneel's sister resort in the BVI? How about Cap Juluca in Anguilla? We married at Caneel and love it! But these other two resorts are also five star!!
It's a shame......it seems that the biggest loser(s) are the locals.....CB is a wonderful place and added great value to the economy. Attended weddings there, charitable events and many great vacations(over twenty). We've been also trying to find another Caneel...no luck yet....
I have visited Caneel Bay several times and stayed there three times. It was heaven on earth-peaceful, sere
and low-keyed but elegant. No tv, phones in rooms or even air conditioning on my first stay. I would go back tomorrow if it were open. The closest place to it might be Little Dix Bay on Virgin Gordo--her sister resort, also a former Rockresort. However, neither the grounds or the beaches hold a candle to the understated elegance of CB.
Agree that CBR is heaven on earth. I was there in 1970 and from 1994 thru 2017. It is our second home and we want to return. The gorgeous fish, the sea turtles, the deer snd the donkeys are wonderful! Yes, it better not become a Trump resort!
Please spare me with the negative Trump comments. This is a travelling site. Think about it. I'd rather it reopen than go to the US governtment, which will guarantee to ruin this beautiful property.
After graduating from college with degree in hotel management in 1957 I took position as an Assistant Manager. Working at Caneel was a true experience as the work was in a beautiful place ajacent to the ocean. I worked with a great staff and guests all of whom loved just being there. I left to get married and to continue my education. Surely one of the most interesting jobs I ever had.
We spent our honeymoon at Caneel Bay in 1971 and have been back many times since then, our favorite place to stay being on Scott Beach. We've rented a condo in February at Gallows Point. Is there any chance the beautiful beaches at Caneel are open to the public since the resort is no longer open?
The beaches are destroyed, and since it is private property to use their dock, I'm afraid you can't get on. But, if you manage to get a paddle board or something, the beaches are public and Caneel Bay can not prevent you from staying off of them. I would not advise of this though, as the disaster that happened may have caused some dangers to arise.
What dangers are you referring to?
Having spent my honeymoon at Caneel Bay on St John, VI, it breaks my heart to know it suffered such devastation. I hope and pray it will be restored to its beauty And kept to a peaceful, tranquil place.
This article is full of inaccuracies. It is public information that CBI has negotiated a deal with NPS to extend the lease. Construction and clearing has begun. Article also fails to mention that Caneel provides critical desalination services to the western island that it continued to operate at no charge and despite significant negative press from local activist groups who hate the resort and its guests. The continurd opération of these facilities was a key factor in nrgotistions. Finally, the insurance was settled months ago. Who writes this garbage. Some "service".
I too miss Caneel. Curtain Bluff in Antigua is acceptable to us. It will never win our hearts like Caneel Bay but it is very nice.
Bifocal Bloke, if CBI and the NPS have negotiated a settlement, that'd be great to hear. You surely would think one or the other, if not both, would have announced that.
Our latest story, from December 4, 2019, not this one from six months ago that you commented on, was unable to confirm any such thing. Indeed, Park Service officials in Washington told us that, "Negotiations between CBI Acquisitions and DOI remain ongoing. We are hopeful that all parties will come to an agreement on a path forward soon."
https://www.nationalparkstraveler.org/2019/12/updated-paradise-lost-virgin-islands-national-park
And folks on St. John say no construction has begun to rebuild the resort. If you could put us in touch with the CBI officials who could prove otherwise that'd be helpful.
As for the insurance issue, we reached out to attorneys involved early this month and they wouldn't talk about the matter, nor would attorneys for a construction company suing CBI for an unpaid $217,416 bill. It's very possible that the insurance matter was resolved, but exactly how is not publicly known.
What is known is that CBI's offer to walk away from the resort for $70 million, made on April 30, was rejected by the Interior Department in October.
There are so many questions and issues, on public lands and in so many parks, that seem to be on hold pending the resolution of debates over broader governance philosophies and policies. I was confident that many, if not all, of these questions would be resolved as soon as enough facts came out, that factual certainty would eventually bring out buried morality, and that the recalcitrant would be forced to yield to the obvious; but, the process is taking much longer than I thought. It looks like 2020 will be a year in which many of us will be turning blue from holding our breath and hoping for a restoration of rational decency.
This Caneel Bay situation looks, at least to me, to be an effort to extort $70 million in taxpayer funds from the NPS. If my assessment is correct, it should not be allowed to succeed; such an outcome would stretch rational decency ...once more. However, given what Delaware North was able, under the current administration, to bleed off from NPS funds with their Ahwahnee stunt, we must be prepared ...again... for possible disappointment.
Bud Bolsky, I'm a bit confused by your comment. Yes, the American people already own the property, which is why the NPS has a responsibility for seeing it's managed properly on behalf of the American people; but, what exactly do you mean when you claim to "know the government would never maintain its beauty." On what, specifically, is that claim based? Do you know something about the history of that property that should be shared more broadly? I fully agree that many NPS units suffer from overuse by the American public; but, after all, the American people own those properties. Overuse of many NPS properties is a problem; the question of funding for the NPS is the subject of much discussion; and the most obvious and final alternative would be to designate and manage these protected lands as wilderness. Are you suggesting that Caneel Bay not be rebuilt nor ever reopened, but designated as wilderness instead, with CBI, Stoneleigh Capital, and the rest of the hanger-on commercial contractors just told to shove off? Gosh, that's sure an idea worth considering. I might support that.
We celebrated our post wedding vacation there fifty one years ago with multiple other stays there, mostly at Turtle Bay. It was truly an oasis away from the headaches of daily living and we would enjoy another visit now that we are more aged but still interested in snorkeling. Please keep us informed about any plans to re-open.