March 27, 2008 — The $275 million Golden Gaming/Wyndham Hotels and Resorts casino resort project hit a snag Wednesday when the federal Third Circuit Court of Appeals rejected its appeal of a ruling that may mean further environmental review of the development.
Andrew Simpson, attorney for the Virgin Islands Conservation Society, told the Source Thursday he believes the ruling will seriously set back and possibly kill the project, planned for on St. Croix's South Shore. VICS opposes the casino development and is the plaintiff that filed suit challenging Golden Gaming's Coastal Zone Management (CZM) permit. Wednesday's ruling is the latest development springing from the VICS lawsuit.
"What the Third Circuit ruling means is several years of delay," Simpson told the Source Thursday. "Golden has been trying to evade environmental review, but this ruling has put a stop to that."
But despite Wednesday's ruling, Golden has a legally valid CZM permit, upheld by the court, and there is no stay placed on the start of construction. In February, Golden said construction is to begin in March and the project completed by 2010.
The project has faced fierce opposition from environmentalists, who were concerned about its ecologically sensitive location near St. Croix's Great Pond. Golden has asserted on several occasions that the casino development is designed in a way that is not harmful to the environment.
Golden Gaming waited for all of 2004 for action on its request for a CZM permit. In January 2005, the Board of Land Use Appeals (BLUA) granted the permit by default due to the CZM's failure to act.
VICS filed suit in V.I. Superior Court in February of 2005, seeking to block the permit. VICS attorney Andrew Simpson argued, among other things, the BLUA did not have jurisdiction to make the decision and the environmental assessment done by Golden was insufficient.
When the suit came before the court, Judge Maria Cabret ruled in favor of Golden Gaming. VICS filed a writ of review in Superior Court in 2005. It asked the court to review BLUA's decision to grant Golden a coastal zone permit.
However, in May 2006 Cabret upheld the issuance of the permit. Simpson and VICS appealed Cabret's decision. The appeal was heard in October and the appellate division of Virgin Islands District Court issued its decision Dec. 6.
The court ruled that under Virgin Islands law, it is the duty of the CZM board to make factual conclusions about the environmental assessment and other issues, but BLUA acted appropriately, and the permit it issued, which the Superior Court upheld, were proper. The mixed decision was issued by a three-judge panel, consisting of District Court Chief Judge Curtis V. Gomez, District Court Judge Raymond L. Finch and Superior Court Judge Leon A. Kendall.
Golden appealed the decision in January, asking the U.S. Court of Appeals for the Third Circuit to uphold the permit as is, without having CZM make factual conclusions. VICS filed a motion in opposition, asking the court to dismiss the appeal. Circuit Judge Maryanne Trump Barry ruled in favor of VICS and dismissed the appeal.
Calls to Paul Golden and his attorney Treston Moore shortly after 5 p.m. Thursday for comment were not returned as of press time.
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