Images from a video on DAM Caribbean’s website, in which architect Wouter Schipper explains that he designed The Morgan Residences, comprising 120 luxury condos and a 150-metre-long infinity pool, to evoke the style of high-end apartment buildings in Dubai and Miami.
PHILIPSBURG--The Court of First Instance of St. Maarten has overturned a decision by the former Minister of Housing, Spatial Planning, Environment, and Infrastructure VROMI to deny a building permit for The Morgan Residences, a project designed by architectural design firm DAM Caribbean. The case centred on the interpretation of parking requirements under local regulations.
The case was brought to court by the project developer aiming to renovate and redevelop the former Alegria complex located on Beacon Hill Road. The project, known as The Morgan Resort, is part of a multi-phase development plan.
The first phase involved renovating the former hotel, upgrading the seawall, adding a swimming pool and creating a new hotel entrance. Subsequent phases include building a breakwater/lagoon, expanding the hotel with condos (The Morgan Residences), developing a central village with a parking garage, and improving the surrounding infrastructure and landscaping.
On August 20, 2019, the project engineer submitted a master plan for the entire development to the ministry, which was approved in a letter dated March 19, 2020. However, the approval included specific conditions: the central village development would be on hold until a parking garage was constructed, and the parking garage would be handled in a separate request.
A building permit for phase one of the project was granted by then-Minister of VROMI Egbert Doran on June 26, 2020. On December 15, 2022, the developer submitted a new permit application to build and expand The Morgan Resort with condos under the name The Morgan Residences. However, on January 22, 2024, Minister Doran denied this application, citing non-compliance with the Building and Housing Ordinance (BWV).
The VROMI Minister’s rejection was based on two main points: Firstly, the proposed development did not provide the required number of parking spaces as per the BWV and, secondly, the conditions of the initial building permit, which mandated the construction of a parking garage, had not been met.
At the hearing on June 27, 2024, attorney Richard Gibson Jr., representing current caretaker Minister of VROMI Patrice Gumbs, argued that the development only included 279 parking spaces, while the parking policy required 426 spaces, creating a shortfall of 147 spaces. The attorney also argued that the lack of sufficient parking would lead to increased congestion and inconvenience for the surrounding area.
On the other hand, lawyer Charles Rutte argued on behalf of the developer that the project provided more than the required number of parking spaces on its property, with a total of 284 spaces against the required 257, according to the parking policy. Rutte further contended that each phase of the development should be assessed as an independent project and that the VROMI Ministry’s decision improperly linked the current application to the requirements of the master plan and earlier permits.
The Court of First Instance ruled in favour of the developer, determining that Government’s decision to deny the permit was based on an incorrect interpretation of the parking policy.
The court found that the current permit application should be evaluated on its merits, independent of other phases of the master plan. It was not agreed that the developer must submit a permit application for the parking garage before applying for the current project. The court also concluded that the former VROMI Minister had wrongly cited non-compliance with earlier conditions as a reason to deny the permit.
The court also addressed the differing interpretations between the parties regarding the number of required parking spaces. The Ministry argued that the project needed 426 spaces, while the developer contended only 257 spaces were required. The court found that these differences stemmed from varying interpretations of the terms in the "Parking Standards" document, approved by the Ministry in 2016.
The court scrutinised the definitions in the parking policy to address the disagreement between the parties over the required number of parking spaces. According to the policy, the category “Hospitality: provision of accommodation” encompasses hotels, resorts, and guest-houses, and mandates a minimum parking standard of 1.2 spaces for every two rooms.
On the other hand, the “Residential” category covers all types of dwellings, including condos, with a requirement of one parking space per dwelling plus an additional space for every two bedrooms. This distinction was central to the case, as the parties debated whether the proposed condo-hotel development should be classified under “Hospitality” or “Residential” standards.
The VROMI Ministry had classified The Morgan Residences as a “residential” project, which required more parking spaces, whereas the developer argued for the “hospitality” standard, given that the development was a condo-hotel.
The court concluded that the ministry could not rigidly apply the residential standard, nor could it wholly accept the developer’s assertion that a hotel standard should apply. Instead, it found that the project had characteristics of both a residential development and a hotel. Thus, the existing standards were not adequate for this unique type of development, known as a condo-hotel.
The court determined that the VROMI Ministry should have developed a specific parking standard for such mixed-use developments. It was also noted that the ministry had the authority to set a new standard when existing categories do not fit, which should have been done in this case.
Given these findings, the court annulled the decision of the former VROMI minister, citing that the refusal was not adequately justified and lacked proper preparation. Based on the legal requirement of continuation of Government when a new Council of Ministers takes office, current VROMI Minister Gumbs has been ordered to make a new decision on the permit application within four months.
The court also indicated that the onus is on the developer to provide additional information to aid the VROMI Minister’s staff in determining the appropriate classification and parking requirements for the development. This includes clarifying the total number of condos, the gross floor area of the development, and details about the sale and rental conditions of the condos.
The court encouraged both parties to engage in discussions to reach an agreement on the number of parking spaces required for The Morgan Residences. During the hearing, the project engineer indicated willingness to increase the number of parking spaces if necessary, potentially adding more spaces on the Deck, where 74 parking spaces are currently planned. This flexibility could expedite the approval process.
Additionally, the court recommended that the developer provide the ministry with insights, where possible, on the total number of parking spaces needed for the entire project covered by the master plan. Discussions about the construction timeline and capacity of the parking garage could also help achieve consensus.
The Court has ordered Country St. Maarten to cover the legal costs incurred by the developer, amounting to NAf. 1,400 for legal fees and an additional NAf. 150 for court fees.
Both parties have the right to appeal this decision to the Joint Court of Justice.
