ST. CROIX – The 35th Legislature of the Virgin Islands’ Committee on Culture, Youth, Aging, Sports, and Parks, led by Senator Angel L. Bolques, Jr. convened at the Frits E. Lawaetz Conference Room. The Committee heard testimonies and updates concerning the current status of horse racing in the St. Thomas-St. John District, with an effort to finalize the construction plans for the Clinton E. Phipps Racetrack. Committee members also heard discussions addressing the progress of horse racing activities, challenges faced by the industry, and initiatives to enhance the sport.
Calvert White, Commissioner of the Department of Sports, Parks, and Recreation delivered updates regarding the industry in the Virgin Islands. White spoke of the preparation of the May 3, 2024 races on St. Thomas, which were the first races held on St. Thomas since the passage of the 2017 hurricanes. White said the department had to address maintenance issues such as overgrown mangroves and sand distribution on the track. The second race day on June 30, 2024 featured seven competitive races and saw approximately 2,500 spectators. White reminded lawmakers that promoting horse racing long term has never been the intention of the Department. Since the Government entered a deal into the Virgin Islands Gaming Limited in 2016, the Department has not received the appropriations for horse racing. White also stated that the grandstands, accessory rooms, vet quarters and jockey rooms were ready for their final certificate of occupancy. Isolation barns, pony barns and equipment storages are about 90 percent complete, Secondary barns are about 60 percent finished. Remaining tasks include the completion of perimeter fencing, full parking, and main barns. The project is expected to be completed before the end of the Calendar year. White spoke of the urgent need to identify a temporary promoter as soon as possible, stating that the resources needed to provide quality race days are beyond the capacity of the Department.
Shaine Gaspard, Chief Operating Officer for Southland Gaming of the Virgin Islands delivered updates about the construction of the Clinton E. Phipps Racetrack. Gaspard shared that the project is complete, with major buildings, including the grandstand, jockey locker room and vest testing barn fully constructed and awaiting final inspections or certificates of occupancy. Ongoing work includes the isolation, equipment, pony, and secondary barns. The main barn is scheduled for completion by the end of 2024. Gaspard stated that Southland Gaming VI has implemented a subsidy program wherein they provided funds to support racehorses exercising at the Clinton E. Phipps Racetrack up to the May 3rd, 2024 race day. These funds were used to buy feed, vitamins, and hay for the horses. Vouchers were distributed to the Virgin Islands Horseracing Commission, which then confirmed and approved the list of registered horses and their respective owners.
Additionally, lawmakers also received updates from the Department of Sports, Parks and Recreation progress to facilities, construction, projected timelines, and challenges. Additionally, the committee received updates on the status of horse racing in the St. Croix District, with a focus on the progress and challenges surrounding the construction of the Randall “Doc” James Racetrack.
Calvert White, Commissioner of the Department of Sports, Parks, and Recreation, spoke about the issues occurring. Per White’s testimony, On May 28, 2024, the Governor’s legal counsel issued a formal Notice to Cure to VIGL, represented by Andrew Dubuque, for multiple breaches of its franchise agreement with the Government of the Virgin Islands (GVI). VIGL failed to meet the requirement for posting an $8 million performance bond within 30 days of receiving a building permit for the St. Croix Racetrack, a violation of Section 6.3 of the Franchise Agreement. The permit was issued on September 13, 2023, and the bond was due by October 13, 2023, but VIGL did not comply. Additionally, VIGL missed the groundbreaking deadline of September 28, 2023. Although VIGL claimed it needed additional permits, construction still did not commence after receiving the necessary approvals. Furthermore, VIGL breached other parts of the agreement, such as the requirement to complete 40% of the project at Randall Doc James Racetrack. No progress has been made on the construction, violating Section 8.2 of the amended agreement. VIGL also failed to file necessary permits for the project promptly, as required under Section 6, and provided no evidence of compliance. VIGL also failed to file necessary permits for the project promptly, as required under Section 6, and provided no evidence of compliance. The GVI gave VIGL a 30-day period to rectify these breaches by submitting required documents and demonstrating progress, but VIGL failed to respond within that time.
Vincent Richards, Assistant Commissioner of the Virgin Islands Department of Property and Procurement delivered details on the sublease agreement for the St Croix district between the Government of the Virgin Islands acting through the Commissioner of Property and Procurement on behalf of the Virgin Islands Department of Sports, Parks, and Recreation, and VIGL Operations, LLC for the Randall Doc James Racetrack on St. Croix. The sublease agreement was ratified via act 7953, when VIGL operations LLC received the franchise agreement in 2016. VIGL operations LLC received a sublease because the property is owned by the Virgin Islands Port Authority and leased by the GVI. The sublease term is for 20 years, commencing two business days following the effective date of the franchise agreement. The annual rent payable by VIGL is $108,000.00 payable in equal monthly installments of $9,000.00, with annual increases of five percent after the first year of the Term, which only takes effect two business days following the effective date of the Franchise Agreement.
Elroy Bates Jr., president of the Flamboyant Park Horsemen Association stated that VIGL has had the Randall Doc James Racetrack for almost 8 years without hosting races and could not answer as to when races would happen again in St. Croix. Bates voiced frustration at the situation stating that the Casino Control Commission approved the VIGL Racino license on April 18, 2024, but work had not been done on the track. Bates said VIGL issued a release that construction would begin in September 2024. He hoped that a construction start date and projected race date would come from the hearing. Andrew Dubuque informed the body that sitework will begin with barn renovation along with rail repair and track surface restoration. At the project’s completion, it is expected to provide economic stimulation for years to come. The Randall Doc James project is expected to create 105 new jobs when completed. The Construction phase will generate 120 jobs. VIGL has spent $11 million on the project. To complete construction, another $20 million in expenditures is needed.
Catherine Hendry, Esq, General Counsel for the Virgin Islands Port Authority informed lawmakers that the Port Authority, and the Government of the Virgin Island are parties to that lease agreement dated September 24, 1982, through the Department of Property and procurement on behalf of the Department of Sports, Parks and Recreation, formerly known as the Department of Conservation and Cultural Affairs. The lease agreement for the Randall Doc James Racetrack consists of 56.16 US acres located at Section No. 5 Henry E. Rohlsen Airport, leased since September 24, 1982 to the Government of the Virgin Islands through the Department of Sports, Parks, and Recreation. Amendment No. 2 dated September 18, 1996, increased the acres to 65.1470. Amendment No. 4 included another 19.4672 acres located at Parcel No. 4-B from Estate Bethlehem Middle Works St. Croix, U.S.V.I., increasing total acres of the premises to 84.6149. Amendment No. 4’s rent provision charges the total sum of $118,515 per annum, equal to $1400.66 per acre per year, payable in monthly advance installments of $9,876.25 per month, equal to $116.76 per month. To date, the rent and fees owed to the VIPA for the premises total $489,750.96.
Carolyn P. Hermon-Percell, Vice Chair of the Virgin Islands Casino Control Commission, provided testimony regarding the licensure process for VIGL Operations, LLC to operate a racino at the Randall “Doc” James Racetrack in St. Croix. The testimony outlined the rigorous vetting process involving financial stability, background checks, and investigations conducted by Spectrum Gaming Group, leading to the issuance of a one-year license effective from April 19, 2024. The Commission assessed the suitability of VIGL and its associated entities and imposed several conditions for compliance. The timeline included multiple meetings and hearings where the Commission evaluated evidence, testimonies, and reports. The Commission unanimously approved the license based on VIGL’s qualifications. VIGL must adhere to specific conditions, including meeting construction deadlines and submitting required documents. Should VIGL fail to meet these deadlines, their license could be suspended. The Commission emphasized transparency while balancing the need for confidentiality regarding proprietary information. Dubuque reiterated that work would start on the Randall Doc James Site before September 30, 2024.
Senators present at today’s committee hearing included Angel L. Bolques, Jr., Marvin A Blyden, Samuel Carriόn, Diane T. Capehart, Novelle E. Francis, Jr., Alma Francis Heyliger, Javan E. James, Sr., Franklin D. Johnson, and Carla J. Joseph. Senator Milton E. Potter was excused.
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