Developers 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