Resort Opposed

Monday, March 8, 2004

The proposed $25 million resort at Beach Bay in Lower Valley has met with objections from nearby property owners who maintain that the planned development would destroy the peaceful residential atmosphere of the area.

The Planning Department confirmed last Friday that they had received six written objections to the development to be known as The Beach Bay Club from owners or groups of owners who had property within a 300-foot radius of the proposed development. Planning was not at liberty to discuss the nature of the objections.

However, Cayman Net News was able to speak to two of those opposed to the resort, who both only agreed to comment on the condition of anonymity about the nature of their objections.

"Even though that property might be zoned for hotel, the area has become a low density residential home area," said one objector, "Now they want to put a timeshare hotel there with a bar and restaurant, and there will be music and dancing and late nights. That is not a conducive environment for all the people who have to get up and go to work the next morning. It's going to disrupt a nice, quiet and peaceful neighbourhood."

The project, which will include 45 condominiums, a health spa, restaurant and beachside pool area, will not actually be a timeshare property, but a 'fractional' property, according to an informed source. At this particular fractional property, reportedly 10 different owners will each own the condominium and share the time they use their unit proportionately. 

While fractional properties function similarly to timeshares, they are considerably different, according to Billy Culbert, President of the Cayman Islands Real Estate Brokers Association (CIREBA).

"Fractionals are very popular in the United States right now," said Mr Culbert, "They're the next level above timeshares. (Timeshare exchange networks) like Interval International and RCI have their own departments to handle fractionals because they're handled more like an asset. Owners are actually buying the property."

Mr Culbert explained that the typical way of owning a fractional is for the owners all to form a corporation that in turn owns the property, but it is not known whether The Beach Bay Club will handle ownership in that fashion.

There are several key distinctions between fractional and timeshares, according to Mr Culbert. "First of all, they are generally used by the people who own it," he said, "Typically, a fractional owner takes very good care of the unit."

Another difference is that fractional condominiums are generally used less that the timeshare units, where occupancy rates here in Cayman often exceed 90 percent.

Mr Culbert believes that fractionals are a wave of the future here. "They make a lot of sense in Cayman, especially as the price of condominiums continues to rise," he said, "but you still have to provide what people consider desirable, like a convenient area and a good beach. I don't know if Beach Bay would be high up on that list."

With regard to the objections to the proposed hotel, Mr Culbert can see both sides of the issue. "The area is mostly residential, so I can see why the people in the area are concerned, but it's been zoned for a hotel for a long time - for something like ten years - so it's pretty hard for them to complain now."

However, one source explained that in legal action some time ago concerning the zoning, a consent decree was issued in relation to what could be built on the property. "Basically, a judge said to build condos three stories high, which was in keeping with the law. But then as the law changed to allow for four to five stories. Some people bought their properties based on what could be built next to them under the old law, and now that has changed, which isn't reasonable."

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