ST. THOMAS, VI — The 36^th Legislature of the Virgin Islands, led by Senate President Milton E. Potter convened into Committee and the Whole and Legislative Session at the Earle B. Ottley Legislative Hall. Lawmakers received testimony considering a hotel development agreement as well as an act ratifying the Governor’s approval of Major Coastal Zone Management Permits.

Lawmakers first met in the Committee of the Whole to receive testimony on the following:

• Bill No. 36-0147, An act approving the Hotel Development Agreement between the Government of the Virgin Islands and Haven Development, LLC.

• Bill No. 36-0145, An act ratifying the Governor’s approval of the Modification and Extension of Consolidated Major Coastal Zone Management Permit Nos. CZJ-04-14 (W) and CZJ-03-14 (L).

Both measures were proposed by Senator Milton E. Potter by request of the Governor.

Regarding Bill 36-0147, Dwayne Benjamin Sr., Assistant Chief Executive Officer of the Virgin Islands Economic Development Authority delivered testimony reminding the body that the Virgin Islands Hotel Development Program, administered by the Virgin Islands Economic Development Commission, encourages investment in the development, reconstruction, and renovation of hotels in the United States Virgin Islands. For new hotel projects, 100% of the revenues generated from the Designated Hotel Room Occupancy Tax, Designated Casino Tax on Gross Revenue, and the Economic Recovery Fee shall be allocated and deposited into the project’s fund.  For hotel projects where 70% or more of the units have been unoccupied due to natural disasters or related impacts, 50% of the revenues generated from the hotel occupancy tax and casino tax, as well as 100% of the revenues generated from the ERF, will be allocated and deposited into the projects fund. For reconstruction and renovation of existing hotels where less than 70% of the units have been unoccupied due to natural disaster or related impact, 100% of the revenues generated from the ERF shall be allocated and deposited into the Projects Fund. This project would not be entitled to revenues generated from the Hotel Occupancy and Casino Taxes.

The Hotel Occupancy Tax and Economic Recovery Fee are granted for a period of 30 years, or until the direct investment is liquidated, whichever is earlier. The Economic Recovery Fee for any approved ERF project would not exceed 7.5% of the hotel room charge.  Before Haven Development, the USVIEDA approved two HDA Applications. These included RC Hotels (Virgin Islands), DBA Ritz Carlton St. Thomas, and CREF USVI Hotel Owner Inc, DBA the Westin St. Thomas Beach Resort & Spa and Bouy Haus Resort St. Thomas, Autograph Collection.  On March 6, 2024, Haven Development became the third applicant to file an application with the authority. It requested approval to impose a 7.5% ERF in addition to the Dedication of the hotel occupancy revenues of 12.5% to support payment of the debt obligation.

It was approved on December 12, 2024, by the USDA Governing Board. Based on the USVIEDA’s analysis, the Developers $44 Million dollar debt is scheduled to be liquidated in less than the 30 years authorized by law, with the hotel occupancy tax expected to be recaptured in 18 years.

Shaun Miller of Haven Development LLC informed the body that it brought the first new hotel to the US Virgin Islands in thirty years. The Hampton by Hilton Hotel, located next to the Havensight Mall on St. Thomas opened in August 2025. It features 126 rooms across five floors and 71,000 square feet.  Haven Development holds a 50-year lease on the property. Miller stated that he believed that the project represented a significant step forward for the Territory’s tourism sector. Over $44 Million in capital was invested to develop the hotel property. It currently employs 23 full time employees, as well as numerous part time employees.  

When asked by Senator Potter about the impacts of previous projects, Benjamin added that an official analysis was being undertaken, but it is estimated that at least $300 Million has been generated for the government in relation to the previous projects undertaken by the Hotel Development Program.

Regarding Bill No. 36-0145, testimony was read into the record from Jean Pierre Oriol, Commissioner of the Department of Planning and Natural Resources.  The testimony certified that the Summer Ends Group request to modify the St. John Marina project under CZM Permits CZJ-03-14(L) and CZJ-04-14 (W) was reviewed. The changes included the reducing of the marina’s footprint by 5,800 square feet, which decreased the number of slips from 146 to 115, and added mangler islands as mitigation for impacts to benthic habitats. Oriol stated that the adjustments lessen the overall environmental impact, and do not substantially alter the approved permit, and therefore meet CZM criteria for modification.

Chalise Summers, Managing Member of the Summer’s End Group urged the body to ratify the measure. Summers highlighted the history of the legal, environment and regulatory reviews, stating that the project had received approvals from local and federal agencies, such as CZM, USACE, EPA, NOAA, and the US Coast Guard. The developers of the project have invested more than $11 Million into the projects, with a total private investment of $130 Million. The proposed marina is expected to feature 115 slips, a local fish and farmer’s market, waste management systems, Customs and Border Protection Facilities, and slips for Enforcement agencies. Summers stated that the project represented cultural and economic empowerment of the island of St. John, referencing the vision of the late Former At Large Senator Robert O’Connor. Summers stated that the approval of the permit would allow St. John to capture missed economic opportunities, promoting sustainable development, and supporting private investment that uplifts native Virgin Islanders.

Testimony was read into the record from John H. Benham, Attorney for the Summer End’s Group. Benham’s testimony outlined the authority that the Legislature must act on Governor Albert Bryan Jr.’s July 2025 request to extend and modify the St. John Marina permits.  Benham’s testimony states that the Legislature’s power to ratify such modifications was affirmed in 2020 with the passage of Act No. 8407, which was upheld by the Virgin Islands Supreme Court in Save Coral Bay, Inc v. Bryan (2022). The court ruled that permit ratifications are a valid exercise of legislative authority and not subject to CZM Committee review. The U.S. Supreme Court declined to hear the case, which left the local decision as the controlling law. An additional challenge brought by the Moravian Church in federal court was also dismissed, with summary judgement granted in favor of Summer’s End and the Government in March 2025. Benham’s testimony stated that the Legislature is the proper body to consider the Governor’s request. 

David Cattie, an attorney representing Summer’s Ends Group spoke in favor of the proposed measure. Cattie stated that the proposed development had always acted in good faith and seeks to bring economic opportunities to St. John.  Cattie stated that all obligations under its lease with the Marsh Sisters Trust, granting the Trust an ownership stake in the project and negotiating a purchase agreement for the trust property at a price far above market value. Cattie stated that the disputes over the trust or property belong in the courts and not the Legislature and warned that many opponents sought to derail the project for their own agenda, which he said was detrimental to the St. John and the US Virgin Islands economy.  Cattie rejected claims of irregularities in the lease progress, stating that Summer’s End had always provided significant financial benefits to the trust. He urged the Legislature to approve the modification, saying that the project fulfilled the Marsh Sisters’ original vision to protect their land.

Andrew Penn, Chairman of the St. John Coastal Zone Management Committee voiced major opposition to the measure. According to a letter from the Committee read into the record by Penn, he stated that the original permits are now null and void due to non-compliance with the original permit conditions, which required project initiation within 12 months, and the completion of all necessary federal and territorial approvals. According to the letter, the permittee has failed to meet the obligations or request an extension since the permits’ ratification in 2020.  It also stated that proceeding without a properly approved extension or permit would violate legal procedures. Including public notice and comment rights and would undermine the integrity of the CZM Process. Penn urged the Legislature to require full compliance with legal and environmental standards before considering any further approval.

Jacquelyn Clendenin, testifying on behalf on the Marsh and Clendenin Family, urged the body to oppose the measure. Her family owns waterfront property that was placed in a trust and lease in 2013 to Coral Bay Marina, later transferred to the Summer’s End Group. Clendenin states that the lease was signed without independent legal counsel, and in 2016, an amendment was signed by her mother, despite a dementia diagnosis. It waived all prior and future lease payments until construction began. Clendenin states that the Summer Ends Group has not paid rent or land taxes, leaving the family financially burdened and unable to use the inherited land.  Clendenin stated that despite multiple attempts to renegotiate or void the lease, the family has faced legal challenges, financial strain and pressure to sell the property under favorable terms. Clendenin states that the expired permits should not be renewed, saying it would set a dangerous precedent for corporate exploitation and erosion of generational land ownership in the US Virgin Islands.

May Adams Cornwall, Chair of the Virgin Islands Coastal Zone Management Commission voiced strong opposition to the proposed modification and extension of the CZM permit for the Summer’s End Marina project in Coral Bay, St. John. Cornwall emphasised that the original permit has expired, and that the applicant failed to adhere to permit conditions, making the permit null and void. Cornwall also said that the St. John CZM Commission is the only body that could extend or reinstate the permit, saying that there is no legal provision that would allow the governor to unilaterally modify or extend an expired permit. Cornwall criticised the bypassing of the CZM review process, citing concerns over procedural violations, improper submissions, and the applicant’s failure to follow the law. Cornwall urged the Legislature to return the request for further legal review or rescind the Governor’s approval within the legal timeframe.

Lawmakers then met in Legislative Session to act on the previously discussed matters.  Bill No. Bill No. 36-0147 was approved and Bill No. 36-0145 failed.  

Senators present at today’s Committee of the Whole and Legislative Session included Milton E. Potter, Kenneth L. Gittens, Marvin A. Blyden, Dwayne M. DeGraff, Ray Fonseca, Novelle E. Francis, Jr., Alma Francis Heyliger, Franklin D. Johnson, Carla J. Joseph, Clifford A. Joseph, Sr., Avery L. Lewis, and Kurt A. Vialet.

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