E. Michael Jones and Club Med

When former St. George’s mayor E. Michael Jones called a snap election last month, some people wondered why he’d do such a thing almost a year before the end of his term. Mr. Jones said it was to avoid a potential “change of team” halfway through negotiations on a variety of issues critical to St. George’s future. However, following Friday’s announcement that Mr. Jones is to be the “local representative” of KJA Development, the new developer of the Club Med site, another possibility suggests itself. Did Mr. Jones hold an early election because he was concerned that once his involvement with KJA became public, he’d no longer be able to hold on to the mayorship?

A mayor of St. George's with a financial interest in the Club Med site might be regarded in one of two ways. Some might consider it to be a conflict of interest, with the danger that the mayor might put his personal interests before those of the town. Others might see it more positively, as a way to give the town more of a say in what happens at the site.

Had Mr. Jones become the local representative of the Renaissance group, KJA's predecessor, St. Georgians might have been inclined to consider his involvement more favourably. However, the abrupt manner in which KJA became the preferred developer has left some people suspicious. Why abandon a detailed plan, developed over several years with a well-established hotel chain, for a handful of ideas from a relative unknown? Why will Tourism Minister Dr. Ewart Brown not explain the reason for the breakdown in negotiations with the Renaissance group? And is one of the key members of the new development team, Jack Avedikian, the same Jack Avedikian who filed twice for bankruptcy and been the target of a series of small claims and civil judgements in US courts in the late 1990s?

Given this, it’s certainly conceivable that Mr. Jones’ involvement with KJA may have damaged him. However, losing the election even before his involvement in the project was known probably wasn’t part of his plan.

Comments

[loki on 19.02.06 at 19:45]

Only Ewart Brown would have the arrogance and sheer chutzpah to spin this as a positive: there's no two ways about it - the plans with the Rennaisance group failed. What's disgusting is that he, as a public servant being paid for by US, has point-blank refused to divulge what went wrong with the Rennaisance plans. As a Minister, does he not have a duty to report to the people for whom he works? Also, let's not forget that no contract has been signed with the new developer. Yes, kids, we're right back at square one........

[Slowhand on 19.02.06 at 19:58]

This is Ewart's standard 'M.O.'... how about the Expedia deal and no consulting with the Hotels?!! His reasoning left a lot to be desired.

[Berkeley II on 19.02.06 at 20:53]

Do a search for "Jack Avedikian" on Google and all it comes up with is a couple of rejected planning applications for some small condo units:

http://www.ci.la.ca.us/pln/apc/SValley/Agendas/SV030710Agenda.pdf

Search for "KJA Development" and results are nil.

Well, Google doesn't give the answer to everthing, but you'd think a major developer with the capacity to carry out such a sizeable project would show up somewhere on the internet. Wouldn't you?

This whole thing stinks. Brown should put our minds at rest and tell us what projects these people have been involved in previously and why they have been selected.

If they're respected developers, he's got nothing to hide. The mayor's involvement just makes things even more suspicious.

Its got Berkeley II written all over it.

You could understand him replacing Renaissance if the replacement was someone like Trump, but an unknown??? This PLP Government have some balls.

[Amin Swan on 19.02.06 at 23:55]

I am still wondering how in the WORLD could you allow a deal that includes the prestigious Four Seasons Hotels to fall through. These folks (Four Seasons) operate only the best hotels worldwide, with a very loyal clientele, some of which will NOT travel to a destination where there is no Four Seasons Hotel. I also smell something fishy here!

[Silencio on 20.02.06 at 07:26]

" What's disgusting is that he, as a public servant being paid for by US, has point-blank refused to divulge what went wrong with the Rennaisance plans. As a Minister, does he not have a duty to report to the people for whom he works?"

I think you can keep quiet if it is believed to be in the public's best interest. At some point an answer is required, though. As Amin pointed out, Bermuda let Four Seasons slip through its fingers. And I suppose now we'll take on some no-name brand 5 stars hotel. Bermuda NEEDS Four Seasons. It's the kind of brand that actually says, "Your island is worthy".

FUCK!!! I AM SO FUCKING DISAPPOINTED IN THE PLP!!! FUCKING IDIOTS!

[JJ on 20.02.06 at 07:41]

Do you think someone might be getting a larger back hander on this deal? surely not! :-)

[Tiger Bay on 20.02.06 at 08:30]

The whole deal smells badly - on a deal of this size, the documentation of the deal must be made public.

Moreoever, the development company should be listed on the Bermuda Stock Exchange allowing Bermudians to own a share.

[sandgrownan on 20.02.06 at 08:51]

Has anybody been able to prove the existance of Ewart's yacht?

[silencedogood on 20.02.06 at 09:24]

Do St. George's voters have the ability to recall a Mayoral election? If not, they should look into it.

[VB on 20.02.06 at 09:35]

My search engine of choice is www.metacrawler.com which searches the major search engines. I also spent some time looking & came up with nothing but a NY address, not CT as given by our ever so trustworthy Minister. Just another example of what the 'gonna' Gov tells us it is gonna do but never gets done. They are an embarassment to us all.

[Rossini on 20.02.06 at 09:47]

Sorry to have the truth interrupt your morning's tirade....this company KJA Devlopment, spent a whole year as the proposed financiers for the Quorum Group. When that Group couldn't deliver in that timeframe, KJA up and left them. Dr. Brown said as much, but ya'll hear what you want to hear. So let's try it this way....if Mr. Avedikian's money is good enough to fund it through Quorum maybe, just maybe, its good enough to fund it directly. again my apologies for letting the truth spoil your coffee and "bitch-n-moan" croissant.

[SmokingGun on 20.02.06 at 11:30]

Interesting point Rossini - which could explain why Mayor Michael Jones is "suddenly" the front man for the new developer. He would have had a history with all the players prior to the change over and given the fact that he lost his re-election he was available to act as KJA's face in Bermuda.

It would be very appropriate for Mr. Jones and Mr. Brown to come forth with all the information as to why, when and how the initial deal fell through. There is still a great deal of stuff that would need to be explained, ie: is the Four Seasons still involved and if not, why?

Was this all just a matter of timing or was it a matter of manipulation. If it turns out that the Mayor had something to do with Qorum's ouster then I'm sure they will re-think their strategy about not suing.

Also Tiger Bay - what you say makes much sense. Mr. Alan Marshall wrote a letter to the RG recently which questions the withdrawal of SAL from being a public company. I am a huge fan of getting the small people to participate in the big projects.

[loki on 20.02.06 at 11:51]

"When that Group couldn't deliver in that timeframe, KJA up and left them. Dr. Brown said as much"

No, I listened to that press conference and he explicitly stated that he would never discuss why Rennaisance had been replaced. He was quite emphatic about it. The public and, more specifically the people of St. George's, for whom the development represents a sigficant injection of lifeblood, has been messed about quite enough over this development, and it's just not good enough for the government to announce that everything's back to square one and refuse to say what the hell happened. Where's all the transparency in government that we keep hearing about?

[44-40 on 20.02.06 at 12:00]

You know something is wrong when Jones is the front man for all this because he is a complete idiot. I live in St. Georges and can tell you his IQ would probably rate around mildly retarded. As for the building of a hotel in St. Georges it will never work, we can't even fill the ones we have in central locations. It would be much better if the present one was raised to the ground and the two forts (Forts Victoria and Albert) which were allowed to be disgracefully pushed to the side and altered in the 1960s by by greedy men who cared nothing for the islands history, were developed as tourits sites, just as Fort St. Cathrine is. But this won't happen because the PLP can't weasel any money out of it to enrich themselves.
I tell you this fuckin' island is in real trouble.

[smith on 20.02.06 at 12:08]

Is this the same guy who held a moment of silence for the victims of "the somalia'?

[Rossini on 20.02.06 at 13:40]

Friends, Quorum / St. George's Renaissance introduced KJA to Bermuda initially as their financiers.....duh...

[SmokingGun on 20.02.06 at 13:58]

Rossini - so Brown went with the back-stabbers? Is that your point?

And what's with da "duh"? Over at Berkeley you want everyone to talk nice and here you toss out this slag....

[Rossini on 20.02.06 at 14:53]

Don't hate because I prefer facts. I don't get profane like the rest.Your comment about "back-stabbers" is so funny. If "others" do it its prudent business sense...if ewart does it its going with the backstabbers.....it must be lonely in your world. You an Tim Hodgson that is.

[Amin Swan on 20.02.06 at 15:02]

As I mentioned in an earlier posting, the Four Seasons would work in St.Georges. That was a guarantee of a quality traveler, a traveler to whom the costs of Airfare is a non-issue, not to mention a guarantee of a 5 star hotel, a destination hotel with Bermuda seen as an extra perk that goes with it.
Another question is why is no one holding Ewart to account? Where is the UBP? Where are the people of St.Georges? Bermuda? I would want a full explaination as to what happened, I mean I would go as far as contacting the Renaissance group to find out the details. This same crap has gone on far too long with that Property.

[SmokingGun on 20.02.06 at 15:03]

Actually I was just being a wise guy. How the heck am I to know if it was a prudent business decison? Ewart chooses to keep that to himself. Which is unfortunate because I guess neither of us really have the "facts".

By the way: I rarely hate. And never on anything like this site.

[Lost in Flatts on 20.02.06 at 15:05]

Rossini, I prefer facts too, just what are they with regards to what happened with the Four Seasons? And if they're so simple and unproblematic, then why not just release them to the public?

I agree people tend to not give Mr. Brown the benefit of the doubt, but even you must admit he can come across as a little less than trustworthy.

And don't respond to that with a 'well if x did it you wouldn't complain' because that's not an answer really.

[Rossini on 20.02.06 at 15:31]

Lost in Flatts...got you loud and clear. Just one question to all the doubters.....has anyone, St. George's Renaissance, Four Seasons, Dr. Brown, KJA, anyone...siad that the Four Seasons is out of the picture ? Just askin....another vintage assumption based on an inability to give some people the benefit of the doubt.....

[observor on 20.02.06 at 15:52]

Rossini

Given that Dr. Brown consistently prefers to stay silent with regard to the negative aspects of the never ending history of this project (certainly not a unique approach for this government – trumpet predicted (albeit virtually nonexistent) progress and ignore actual failures) perhaps you could give us some more information with regard to the identity and history of KJA Development (“KJA”) together with their financial backers?

Google, that little known search engine, reveals a complete absence of information on KJA (save for what has been in our daily paper). While I'm not saying Google is the be all and end all of information gathering (a statement I'm sure Messrs. Brin & Page would take issue with), I find it hard to believe that KJA has an actual history of real estate success stories, is able tout an excess of US$200 million for this project and yet are a non-existent internet entity.

Furthermore, a quick review of the State of Connecticut (the apparent domicile of this company) website has no listing for ‘KJA’. Go figure??

[SmokingGun on 20.02.06 at 16:15]

KJA Development was registered in the State of New York in October, 2003. It has a listing of an office in New York City. We can assume Jack Avedikian is the JA so maybe what we need to do is figure out who the "K" is to find out where the real money is.

[SmokingGun on 20.02.06 at 16:45]

K for King? As in W. Paul King?

Hmmmm..... Could it be possible that SAL get's bought out and "privatized" (de-listed) so that it can develope Club Med in conjunction with Jack Avedikian? Maybe Michael's not the front man after all?

This is just a total mind wander and is not based on anything remotely based in fact. I'm just having a little abstract moment here. But it would be funny if there is actually any truth in the thought.

[Rossini on 20.02.06 at 16:48]

the funny thing is SmokingGun, that your "abstract moment" is exactly what masquerades as MidOcean / VSB news.....

[SmokingGun on 20.02.06 at 16:55]

Ross your right. And that's why I stress that my comments are pure conjecture. So please take it all with a grain of salt whilst we pepper Ewart with questions as to who, what, why, where and when. :)

[RedOnion on 20.02.06 at 19:32]

Perhaps the K is for Kirk Kerkorian, a well known Las Vegas developer.

[SmokingGun on 20.02.06 at 19:50]

That's OK Doc ;) Funny thing he was the first K that I was thinking of who might be interested in Bermuda for a large hotel project. But then I got to thinking more local. It's all relative I suppose.

[SmokingGun on 20.02.06 at 20:14]

RedOnion. I think you are right. It's got to be Kerkorian. Maybe we're getting a casino after all....

[Slowhand on 20.02.06 at 20:37]

Rossini is so right! We should stick to the facts.
The facts are that decisions are being made on OUR behalf by OUR representatives with no explanation, reasoning or any semblance of transparency that has been promised time and time again to US the people this Government purports to represent.
Another fact is that this is not the first time we have seen this scenario play out, by this very same Government to such an extent yet to be disclosed but with seemingly disastrous results.
Shame on all of us for jumping to conclusions, because soon, someone will come out, perhaps the PLP spokesman, or maybe even our good friend Bud (he would so love that) and there would be a resounding...
"PSYCH"
The explanation will be simple, and we will all feel so bad for thinking such naughty thoughts.

[Enigma on 20.02.06 at 20:37]

While we are in the realms of speculation allow me to indulge my own attempts at foretelling the future. Why in the world would the minister of tourism give a press conference to announce that once again poor old St. George's is back to square one with this wretched hotel development and yet try to put some bizarre positve spin on the news? Why would the former mayor of St. George suddenly call an election almost 1 year early? Why would the minister grant 'exclusivity' to an unknown developer with an undisclosed plan, and lets not forget no contractual agreement, over a world class resort management company(Four Seasons) and a consortium(Quorum) with a concept that was so highly regarded by the people of St. George including the Corporation and former Mayor Jones, who was outwardly one of the greatest supporters of the Quorum development? Why would Mayor Jones suddenly show up at a press conference with Dr. Brown the day before the St. George's elections to be bathed in the limelight of an announcement that good news was coming for the hotel on the hill? Was someone trying to give his campaign a gigantic injection of high profile good P.R. Even more bizarre, how could former Mayor Jones so suddenly have aquired a new job as the representative of the new developer just days after his abortive attempt to get re-elected as the Mayor singing the praises of Quorum, the existing developer?

As for 'Exclusivity'. Exclusivity can surely only apply after an 'Invitation to Submit or Tender' has been given to a suitably qualified group of developers who are asked to respond to a clearly stated and properly generated 'Statement of User Requirements'. After suitable deliberation and discussion with all the interested parties, or to use the popular vernacular 'the stakeholders' a decision could then be made to select the proposal that best meets the requirements as stated in the above document. This really is business practice 101.

In contrast we are being told to accept a new business model for Bermuda which states 'If you only invite 1 guest to the party, they are by definition exclusive'.

There must be something incredibly juicy that has has caused the latest Dog & Pony show, aka 'alias Brown & Jones' to throw caution to the wind and of course all generally accepted business practice. There is something so juicy here that the people of St. George's don't need to be involved. It is so juicy that the Corporation of St. George (and lets not forget the new Mayor, Maria Caisey) don't need to be involved. It is so juicy that it seems 99% of Bermudians don't need to be involved. It is so juicy that we probably need to be deceived for our own good (why does that sound so familiar?)

What could possibly be so juicy about K.J.A. and so SUDDENLY not juicy about Quorum. Well I promised to try my hand at foretelling the future so here is my answer - GAMBLING! Don't believe me? Watch this space!

[Pitts Bay on 20.02.06 at 20:50]

Enigma

You may have hit the proverbial nail right on the head! Only time will tell.

[Slowhand on 20.02.06 at 21:16]

HOLY CRAP! Couldn't see the forest cause the bloody great big neon sign was blinding me!!!!

[Bald Eagle on 20.02.06 at 22:23]

Enigma...and if you're right you don't have to worry about Mr. K. coming up with the dough...there must be plenty of cash waiting to be laundered in this direction (and splashed around a little bit too) when it comes to a gambling facility. The question then will be if Bermuda wishes to keep its 'lilly white reputation' and verify the source of financing before getting in too deep.
Tempting....and Juicy!!!!!

[SmokingGun on 21.02.06 at 11:35]

How about: Kerkorian, Jones & Avedikian AKA KJA Development. ???
Which would put Jonesy back front and center as the Frontman. Registering in 2003 would raise some questions no doubt.

Pure and absolute speculation and conjecture of course.

Of course we could always call Elliot Spitzer and ask him if he has any further details seeing as our local reps have all gone mute. Besides I'm sure he's quite familiar with how things work in Bermuda by now.

It would make sense for Quorum not to get too upset if Kerkorian is involved. He probably covered their expenses. Besides no-one would want to get on his bad side. Just look what he forced Fairmont to do. He's a brilliant man but as ruthless in business as they come. Maybe the Four-Seasons got the jitters having him around.

Question: What does the Universe and Club Med have in common?
Answer: They were both created in a vacuum.

Well God came up with something pretty creative. I guess we'll just have to wait and see what Ewarts got in store for us.

[Rossini on 21.02.06 at 12:00]

Good for you Gun....when the old structure is rubbble and the construction starts...maybe you and the rest can finally let your blood pressures go down.

[SmokingGun on 21.02.06 at 12:09]

Just having a little fun Ross. Besides it's not the blood pressure that's my problem. It's the head spins that are keeping me from seeing straight.

[Rossini on 21.02.06 at 12:10]

and there are some professional headspinners out there trust me....

[SmokingGun on 21.02.06 at 12:23]

and I'll take that as a compliment.... :)

[Rossini on 21.02.06 at 12:55]

I like that....hey...we can't be getting along on here, it flies in the face of everything some people say !

[SmokingGun on 21.02.06 at 13:35]

Are you kidding me? As far as I'm concerned that's what ALIB's all about.
As you say, it may fly in the face of everything some people say but here you get to say it straight to my face. Sort of..... :)

[SmokingGun on 22.02.06 at 15:28]

Interesting lack of information from the Honorable Minister of Tourism, Dr. Ewart Brown at last nights meeting. At least he didn't lie.

If the government knows what the "new" developer has in store for Club Med and they have been given exclusive rights then surely the concept must make sense and the players must pretty much have all their ducks in a row. So why not be open about it?

What bothers me is that as one of many a Bermudian with a few ideas that could really turn that place into something useful, and possibly the resources to get it done, no-one put out a bid for new proposals. Is it a good thing for our government leaders to not see it fit to involve it's own people (other than a pre-determined select few) when they decided the original group, Quorum, had run out it's exclusitivity?

It begs the question. Who really comes first.....?

[Pompous G Windbag III jnr. on 20.09.06 at 14:28]

Could anyone tell me which government department was responsible for doing the due diligence on KJA Developments?

[observor on 20.09.06 at 14:40]

The DrEB contingency fund committee of one.

[Pompous G Windbag III jnr. on 20.09.06 at 14:48]

observor - considering what I have been told about KJA by some completely objective p/e firms in NYC over the last month you might be right.

[observor on 20.09.06 at 15:09]

PGW3Jr - I wouldn't have mentioned it unless I had similar first hand comments ...

[Tiger Bay on 20.09.06 at 16:27]

I don't know what to make of the Club Med situation - there must be more transparency as well as the commitment that this site will be used as a hotel not a "housing development for foreigners".

With the large numbers of people camping out there, it will be interesting to see what happens to the homeless numbers when the building is knocked down.

And where will they put the rubble? Please NOT in Castle Harbour.