A stop order has been issued to halt the construction of a development on Cayo Rosario, a small island off the northwest coast of San Pedro, Ambergris Caye, which is located within the Hol Chan Marine Reserve. This directive to pause construction came from the Central Building Authority (CBA), which, in a formal note, mentioned that several structures had been built on the island without the necessary permits.
In a letter dated April 11th, the CBA informed the developer, Daniel Kalenov, that during an interagency site visit conducted on April 9th, they discovered discrepancies in the development. In addition to the unauthorized buildings, it was noted that a pier had also been constructed without the required clearance. “Therefore, the Cayo Rosario Development project has constructed buildings and an unauthorized pier,” part of the letter said. The letter concludes by stating that the stop order will remain in effect until all necessary permits are obtained from the CBA for all structures and construction activities at the site.
CBA0317-041125 – Daniel Kalenov re. Immediate Stop Order for Cayo Rosario[1]
Consequently, Kalenov’s group must promptly submit applications and plans to the CBA to secure the required permits. Derick Calles, the Director of Building Control at the CBA, was contacted for further comments regarding this development and whether inspections are also being conducted on other projects. Calles did not confirm whether similar inspections are currently taking place or will take place on other projects on the island.
The proposed development, which includes plans for 40 over-the-water structures, has not been well received by tourism and conservation stakeholders in San Pedro Town. Recent construction activities on the small island have led to peaceful protests by tour guides and environmentalists. They are concerned that the over-water buildings will negatively impact the seabed and threaten one of the main tourism activities—fly fishing.
The stop order, however, surprised many. In June 2021, a letter from the Office of the Prime Minister and the Ministry of Finance, Economic Development, and Investment expressed full support for the project. The letter indicated that the ministry approved the updated Cayo Rosario Site Plan dated September 20, 2020. This approval included the construction of 40 over-the-water structures, a 600-foot arrival dock, and a 600-foot service pier. Additionally, the letter addressed the approval for sand extraction through dredging, mangrove clearing, and the installation of a submarine power cable and a potable water line under the seabed. The note from the ministry concluded by welcoming the development at Cayo Rosario.
At a public meeting on April 8th at the San Pedro Lions Den, local activist Elito Arceo, along with environmental and tourism representatives from organizations such as the Belize Bonefish and Tarpon Trust, Oceana, the San Pedro Belize Tourism Industry Association and the Ambergris Caye Citizens for Sustainable Development, highlighted these pressing issues surrounding the Cayo Rosario project. The attendees conveyed a clear message to the relevant governmental institutions regarding their concerns. A primary point of contention raised during the meeting was the strong opposition to over-the-water structures. The prevailing sentiment was, “Build on your land and leave our water and seabed alone.”
Stakeholders welcomed the stop order issued by the CBA. They believe their advocacy efforts prompted governmental authorities, such as the CBA, to act and enforce the law. Consequently, they plan to continue campaigning for sustainable development and urging developers to comply with Belize’s environmental regulations.
The dispute over the project’s size has been ongoing since 2018. Initially, the project included around 90 over-the-water structures, but it was subsequently downsized to 40. Nonetheless, this revised proposal has been regarded as a threat to the future of some of the most important fishing flats around the island, which are vital for supporting the fly-fishing industry.
Cayo Rosario reportedly came under the control of developer David Mitchell after the Government of Belize allegedly granted the island as compensation for a property that was mistakenly sold to him in Caye Caulker. In 2015, a group of investors, including island realtor John Turley, acquired the island. Currently, Turley and his business partner, Kalenov, appear to manage the development of Cayo Rosario.
A 2015 article from the Denver Business Journal (https://shorturl.at/4IKxU) reported that Turley and Kalenov received a cease-and-desist order in Denver, Colorado, U.S.A. for selling unregistered securities in the state. They allegedly raised funds for real estate projects through Global Diversified Partners, which is headquartered in San Diego, California, and registered in Wyoming. However, this company was not registered in Colorado and had not filed any securities offerings there.
The duo faced criticism for hosting events in Denver, inviting potential investors to pitch investment opportunities in Belize. According to Colorado authorities, their activities violated the Colorado Securities Act. The article noted that Turley and Kalenov agreed to comply with the cease-and-desist order, halting their offerings of unregistered and non-exempt investments in Colorado.
Additionally, the investors are reportedly seeking further funding to complete the project on Cayo Rosario.
