Commercial high-rise projects approved under misclassified residential permits

 PHILIPSBURG--Several new commercial developments, ranging from four to eighteen storeys high, have begun construction in residential areas despite being approved under residential permits, which only allow a maximum of three storeys or 12 metres. Minister of Public Housing, Spatial Planning, Environment, and Infrastructure (VROMI) Patrice Gumbs acknowledged on Wednesday that the permit classification published in the National Gazette as residential is incorrect.

Speaking at the Council of Ministers’ press briefing, Gumbs addressed questions posed by The Daily Herald on Wednesday, February 27, regarding a building permit issued for Jordan Road – a small road historically used by public buses and residents’ vehicles until a developer began clearing the area in April 2024. Following the removal of the road, bus stop, flamboyant trees, and surrounding greenery, the house at Jordan Road 11 was bulldozed.

Jordan Road 11 consisted of three small parcels, yet the certificates of admeasurement (meetbrieven) for these parcels were not included in the National Gazette’s March 1 listing of Building Permit (BP) 203/2022. The permit, which referenced meetbrief 013/1968, was issued by former VROMI Minister Egbert Doran on February 9, 2024, as a residential permit for an 18-storey luxury condo hotel, The West Vue.

“The incorrect classification of this development as residential, along with the omission of three other parcels, does not reflect the full scope and nature of the project. The lack of complete and accurate information may have affected the ability of concerned parties to object or enquire about the approved permit, as is their legal right,” Gumbs said.

While Gumbs referred to “the omission of three other parcels” in the permit’s publication in the National Gazette on March 1, these parcels could not have been included because they were not incorporated in meetbrief 013/1968 at the Kadaster in Philipsburg.

A copy of this meetbrief, obtained by The Daily Herald, indicates that it only defines the former Jordan Road, measuring 2,610 square metres, and does not include the three other parcels – for which separate building permits would be required.

Furthermore, the project owner, NLGY Development, does not have a Civil Works permit, which is legally required under Article 28a of the National Ordinance on Spatial Development Planning (LROP) for activities such as land clearing, tree removal, demolition, excavation, and altering terrain elevation. After witnessing ongoing excavation work at the site on Tuesday, Gumbs confirmed on Wednesday that no Civil Works permit had been issued.

The West Vue is one of several commercial projects in residential areas such as Beacon Hill and Simpson Bay for which residential permits were granted by former VROMI Minister Egbert Doran. A court hearing is scheduled for March 17 regarding an appeal against a residential permit issued for a commercial development in the residential-only neighbourhood of Beacon Hill.

Despite its name, Villa Sasha is a high-rise development featuring luxury apartments, a rooftop swimming pool and an open garage on the ground floor. The units were marketed for pre-construction sale to foreign investors.

The building permit, issued by then-VROMI Minister Doran on June 23, 2021, was revoked on July 8, 2022, following a report from the advisory committee that reviewed objections filed by local homeowners.

After the permit’s revocation in July 2022, Beacon Hill residents noticed construction workers returning to the site to prepare the foundation for the project. It was confirmed in court on January 20, 2025, that Doran had issued a new permit to developer Bernard Grosjean, owner of Sasha Management NV, on September 8, 2022, three months after the original permit had been revoked.

This reissued permit was not published as required by law, neither in the National Gazette nor in a newspaper. As a result, homeowners were unaware of the permit's issuance until they sought legal advice regarding the new construction activities.

During the January 20, 2025, court hearing, the current VROMI Minister was expected to explain the re-issuance of the building permit. However, Gumbs failed to appear and instead was represented by a policy advisor and government attorney (Landsadvocaat), Richard Gibson Jr. Neither was able to provide an explanation to the judge or submit all relevant documents, leading to the hearing being postponed to March 17.

The Pride of Beacon Hill Homeowners Association has appealed not only the re-issuance of the residential permit for Villa Sasha but also a residential permit granted for the Phoenician, a six-storey ocean-front building comprising 58 apartments.

During the January 20, 2025, court hearing, the judge asked, “A permit was issued on March 1, 2024. Is that correct?” She also remarked, “It is alleged that the issuance of this permit was part of the farewell policy of the outgoing Minister,” a statement to which the VROMI representatives had no immediate response. The judge emphasised that she expects a formal reply from the Ministry.

The Phoenician case has been postponed until May 19, as the judge has not yet received all relevant documents and VROMI does not expect the dossier to be completed soon.

On Wednesday, Minister Gumbs pointed at his predecessors for wrongful decision-making. Between 2018 and his appointment on June 25, 2024, commercial developments were approved under residential permits, he said during the Council of Ministers’ press briefing.

“If I have to spend every moment investigating every single development, it is very time-consuming,” Gumbs said. “But we are looking into it. What we have come to realise is that what is classified as residential includes developments where people tend to live.”

He referenced standards used by banks, saying, “In the banking world, a building of four levels and above is considered commercial.” He then raised the question, “Why is it that we, in government, classify this as residential?”

Before making decisions that “actually cost money,” Gumbs said, “It is important to realise that if I halt permits without solid grounds, I open myself and the government of St. Maarten to litigation.”

The Daily Herald

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