The planning authority cleared the way for Eden Leisure to open a new casino at the Intercontinental Hotel in St Julian’s, the Times of Malta was told.

The owners were informed by the Malta Environment and Planning Authority late last month that the conversion of a former discotheque into a new casino did not require a development permit.

In view of this communication, Eden Leisure on December 3 withdrew an application it had submitted exactly three months earlier for alterations at the hotel at basement level and for change of use of part of the existing basement into a casino.

Mepa CEO Johann Buttigieg sent an e-mail on the evening of November 26 to Simon DeCesare, who heads the project, informing him that the proposal did not require a development permit because the law said the use of any part of a hotel for the operation of a casino licensed under the Gaming Act “shall not, for the purpose of the Development Planning Act, be deemed to be a change of use”.

Originally, Mepa established April 2016 as a target date for the eventual clearance of the permit. Mr Buttigieg’s e-mail effectively allows the owners to proceed with the opening.

“The hotel is interlinked through the main hotel lobby leading to a pre-function area from a main staircase. From the pre-function there is a controlled access directly leading to the casino registration area. Therefore, no application for change of use is necessary,” Mr Buttigieg wrote in his e-mail.

Leisure industry sources said Eden Leisure had still to obtain the necessary Malta Gaming Authority licence to start operations at the casino. In view of this, legal observers wondered whether Mepa had interpreted the law correctly when it concluded that no development permit was required, since the provision quoted by Mr Buttigieg spoke about the running of a casino licensed under the Gaming Act, implying the casino operators had first to be in possession of a licence.

Mepa CEO Johann Buttigieg’s e-mail to Simon DeCesare.

Mepa had already started processing the application that was submitted by Kevin DeCesare on September 3. Official documents show the planning authority validated the application, including detailed drawings of the necessary works, on October 20 and initiated a consultation process in writing with various entities, including Transport Malta and the Civil Protection Department.

Mepa had also assigned a case officer and established April 2016 as a target date for the application to be discussed and for a decision.

However, following the direct intervention of Mr Buttigieg, Eden Leisure officially withdrew the application. Asked to confirm that the company withdrew its application and to give a reason why it had applied in the first place, Mr DeCesare said that “we didn’t need one [a permit] at law.”

On the other hand, Mepa said that following further plans and information submitted by the developer’s architect in November, which showed that the site forms part of an existing hotel building with direct access, Mepa decided that “the proposed development is no longer subject to a full development permit but through a Development Notification Order.”

At the beginning of November, the Times of Malta reported that substantial works were being carried out internally and externally on the former Styx discotheque to transform the premises into a casino, although no planning permit was issued.

At the time, both Mepa and Eden Leisure said the job consisted of “refurbishment works which did not need a permit” and that the change of use application was still being processed.

The Malta Gaming Authority last month ordered Eden Leisure to remove billboards advertising the opening of the new casino in December as they were deemed illegal. “Coming to St George’s Bay in December”, the billboards said.

Asked on Tuesday to confirm whether the company planned to open its casino at the Intercontinental in the next two weeks, Simon DeCesare replied: “We will open once all our obligations are fulfilled.”

Chronology of events

May 24, 2013: Two months after returning to power, the government issues an expression of interest to grant a new casino concession.

October 2013: Offers received opened. Eden Leisure submits €1.2 million offer for licence to open casino at Intercontinental Hotel. Three other offers are higher than Eden’s and Dragonara submits highest offer at €4.3 million. Concession to be awarded by end of month.

February 2014: Government announces shortlist, including Eden and Dragonara’s offers.

March 2014: Proponents make detailed presentations in front of government technical committee. Final report never presented as government disbands committee due to claimed conflicts of interest.

October, 2014: Government announces Eden Leisure as ‘preferred bidder’ and declares it is ready to give another concession to Dragonara Ltd.

December, 30, 2014: Government and Eden Leisure sign casino concession agreement.

April 2014: Government and Dragonara discuss new concession for another casino in Qawra. Concession never issued.

September 3, 2015: Kevin DeCesare, on behalf of Eden Leisure, files application in front of Mepa for alteration at existing hotel at basement level and change of use of part of existing basement into a casino.

October 20, 2015: Mepa starts full development application process and officially starts consultation with involved parties including Transport Malta, Malta Tourism Authority and Civil Protection Department. Sets April 2016 as target date for final decision on permit. External and internal works on new casino are in full swing.

October 30, 2015: Mepa acknowledges receipt of an objection to the Eden Leisure permit (from Dragonara Gaming Ltd) and tells objectors they “will be informed of the date and time when the case will be decided according to law”.

November 1, 2015: Eden Leisure puts up billboards advertising the casino is “coming to St George’s Bay in December”.

November 5, 2015: Mepa is asked why works on new casino are ongoing despite permit still being discussed. Mepa officers inspect site and declare “works in hand are refurbishment and do not require permission”. Mepa says application for change of use still being processed.

November 5, 2015: Eden Leisure’s Simon DeCesare confirms ongoing works but says “bulk of works was removal of gypsum partitions and replacement of AC ventilation systems” adding Eden Leisure working with Mepa “to ensure that permit is issued soonest”.

November 7, 2015: Times of Malta reports that the Malta Gaming Authority ordered removal of billboards deeming them illegal. MGA confirms no permit was issued to Eden Leisure and that this is conditional to Mepa development permit.

November: Works continue to turn former Styx discotheque into a new casino.

November 26, 2015: Mepa CEO Johan Buttigieg informs Simon DeCesare there is no need for the permit to change the use, as law exempts such requirement if casino “is interconnected with the hotel”.

December 3, 2015: Eden Leisure officially withdraws Mepa application for development permit.