Buyers balk at new Grande Bay deal

Grande_bay_feb2007Developers of Cruz Bay’s Grande Bay Resort have been
sued by two dozen buyers of the project’s condominiums, according to a
copy of a lawsuit filed in the Superior Court of the Virgin Islands and forwarded to News of St. John.

Lawyers argue Bay Isles Associates L.L.L.P. wants to record condominium documents with the VI government and remove a number of features originally offered in sales and marketing materials.  The purchasers claim the developer gave them 15 days to review the new agreement, with the option for a refund of their deposits if they objected.

The plaintiffs sought an injunction against the filing of the new agreements.  They charged Bay Isles has breached the purchase contracts and is "giving them a take it or leave it situation – a classic bait and switch."  The judge issued the order earlier this week.

The changes, according to the lawsuit document:

  • Elimination of a year-round parking space in the garage.  The developers now want to charge unit owners $300 a month and not allow them to store cars there when they are not on island.
  • Removing equity interest in waterfront lots which guarantee beach access. "For many plaintiffs the unique positioning of the land was the primary inducement to execute their Purchase Agreement," the buyers said.
  • Restricting condo owners who agreed to offer their units for rental, no more than 90 days a year of personal use, rather than "unlimited use."
  • Levy annual fees for "Hospitality Services" for owners who choose not to participate in the resort’s rental management agreement.  Under this provision, the owner of a two-bedroom unit would be charged $39,000 a year for digital TV, DSL Internet service, telephone, garbage collection and access to the wine storage area.  These services were promised under the Purchase Agreement, the lawsuit document says.

Grande Bay Resort’s Web site is www.grandebayresort.com

11 thoughts on “Buyers balk at new Grande Bay deal”

  1. I’m not a big lawsuit proponent but this story makes me smile. Just when you think Bay Isles Associate’s reputation can’t fall further into the sewer they prove you wrong. First class organization you got there. You must be proud.

  2. After all these people had to go through to even get close to this project being completed. What a sin. I just hope that the developer finishes the exterior and the landscaping as promised so that the project doesn’t become more of an eyesore on Cruz bay.

  3. I love!!! Let’s see. Take it or leave it and we’ll give you your deposit back.
    When this started they sold for 450Kish, and now for probably double that back. Hell, if I was the builder, I’d be even nicer….take it or leave it. You’ll get your deposit back. Here’s a couple of extra dollars, now bend over.
    One wonders what dreams the buyers have in a not even destroyed hill when they bought.

  4. What a stressful unhappy place that will be when people can actually inhabit it. Kinda defeats the purpose of being on STJ. Too bad it can’t be uprooted and sunk as the world’s largest artificial reef.

  5. Howard, I actually was reading The Source comment on the injunction against the developers when I thought the same thing. Unhappy may actually be good in this case.
    Honestly though, if you bought into one of these units, you really have to be feeling foolish right about now. But hey if you want to keep your ownership your costs just went up…..let’s see, you do the math too early in LA.
    Howard, bist du ein schweizer oder……

  6. Let’s not forget there’s another lawsuit. Remember my family filed in November 2005 citing privacy nuisance to due zoning law and building code violations. Depositions start this summer and there’s more to come……
    Thanks for everyone’s support, I’ve heard from people all around the globe.

  7. Und ich bin auch Amerikaner, aber als du ein baby war, ich habe in Frankfurt gewohnt fuer sieben jahre. LOL
    I actually noticed that on the blog, afterwards.
    As I sit here and write this, I’m thinking that some of those units might drop in price on fire sale, LOL. I’ll sell our rental unit here in Los Angeles and buy one………NOT.

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