LAWMAKERS REVIEW KEY LEGISLATION TO BOOST INFRASTRUCTURE, TRANSPORTATION, AND ECONOMIC GROWTH

LAWMAKERS REVIEW KEY LEGISLATION TO BOOST INFRASTRUCTURE, TRANSPORTATION, AND ECONOMIC GROWTH

ST. THOMAS, USVI — The Committee on Budget, Appropriations and Finance, chaired by Senator Novelle E. Francis, Jr., convened at the Capitol Building to deliberate on key legislative measures designed to drive economic growth, enhance infrastructure, and support cultural initiatives across the territory. Lawmakers examined critical proposals, including lease agreements, transportation funding, and financial mechanisms aimed at bolstering public infrastructure projects. Ultimately, lawmakers voted favorably for three bills out of four. All approved measures will be forwarded to the Committee on Rules and Judiciary for further consideration.

Senator Novelle E. Francis, Jr. highlighted the importance of these discussions, emphasizing that strategic investments in infrastructure, transportation, and cultural sectors are essential for the long-term sustainability and prosperity of the Virgin Islands. He noted that these measures go beyond financial considerations, playing a crucial role in shaping the future development of the U.S. Virgin Islands.

Bill No. 36-0028- An Act approving the lease agreement between the Government of the Virgin

Islands and Tropical Marine, Inc., for Parcel No. 37-1 Estate Nadir, No. 2 Red Hook Quarter, St.

Thomas, Virgin Islands and a portion of unsurvey Estate Nadir, No. 2 Red Hook Quarter, St.

Thomas, Virgin Islands. Senate President Milton Potter, who sponsored the bill at the Governor’s request, noted that the marina’s 45-year service to the community, overcoming challenges like the 2017 hurricanes and COVID-19. He noted that the lease agreement would support upgrades, expansion, job creation, and the marina’s growth in the evolving marine industry. Senators voted in the affirmative for the bill. 

On behalf of Commissioner Lisa Alejandro, Vincent Richards, Assistant Commissioner of the Virgin Islands Department of Property and Procurement, testified that the lease agreement spans 50 years, with the option for two additional 10-year extensions. The annual rent is set at $30,000, payable in equal monthly installments of $2,500. The agreement also includes a 24-month construction period for the lessee. Furthermore, Tropical Marine has leased the property since November 2005 and has maintained a strong financial standing. Over the years, Tropical Marine made substantial investments in both the upland and submerged areas, enhancing the premises with improved lighting and a secure parking area. 

Bill No. 36-0040- An Act approving the lease agreement between the Government of the Virgin

Islands and Charles M. Kim V.I. Foundation, Inc. d/b/a Virgin Islands Museum of Art, for a

portion of Lot No. 48b Norre Gade, Kings Quarter, St. Thomas, Virgin Islands; Sponsored by

Senator Milton E. Potter by Request of the Governor. The proposed 99-year lease includes two renewal options, with an annual rent of $1,200, according to Richards. However, Senator Kenneth Gittens stated that solidifying $100.00 in rent for 99 years is not fruitful for the Virgin Islands. Moreover, the lessee has a 60-month construction period for the $5 million project and must place $5 million in escrow as a performance bond before demolition. After demolition, the funds will be released, and the contractor will secure a $5 million bond as construction security. This lease agreement aims to revitalize historic downtown Charlotte Amalie and encourage further redevelopment. Senators voted and approved the measure.

Lawmakers voted to hold in committee: Bill No. 36-0023- An Act amending Title 33 Virgin Islands Code, chapter 4, section 72 relating to the highway user tax; Sponsored by Senator Ray Fonseca. Virgin Islands Department of Public Works Commissioner Derek Gabriel supported the bill and proposed simplifying the highway user tax by reducing the number of tax tiers to three and taxing vehicles annually at registration. He recommended allocating a portion of the revenue from heavier vehicles (Class 5 and above) to the District Road Fund and limiting tax exemptions to government-owned and nonprofit vehicles, excluding taxis. Weighing in, Virgin Islands Bureau of Internal Revenue Director Joel Lee added that last year’s data showed an average vehicle weight of 4,000 pounds. Lee suggested a flat increase to the current 16-cent rate instead of an eight-class tax structure, as the administrative costs of implementing multiple tiers would outweigh the revenue benefits. 

Bill No. 36-0038- An Act amending Title 29 Virgin Islands Code, chapter 10, subchapter III,

section 551, subsection (a) by increasing the limit for outstanding bonds for the Virgin Islands

Port Authority from $100 million to $500 million; Sponsored by Senator Milton E. Potter. Supporting the measure, Virgin Islands Port Authority Executive Director Calton Dowe highlighted that the legislation would enhance financial flexibility to meet future demands. He noted that VIPA’s short-term financing needs could surpass its bonding capacity, particularly for capital maintenance, pre-development initiatives, the construction of a new U.S. Customs facility, and additional dredging projects. Senators voted with a favorable recommendation.

Senators present at today’s Committee meeting were Novelle E. Francis, Jr., Milton E. Potter, Kenneth L. Gittens,Dwayne M. DeGraff, Ray Fonseca, Hubert L. Frederick, Marise C. James, Carla J. Joseph, Clifford A. Joseph, Sr., Avery L. Lewis, and Kurt A. Vialet. Senator Marvin Blyden was absent.

The Division of Public Affairs is committed to providing the community with accurate information on legislative proceedings and other events at the Legislature of the Virgin Islands. Visit legvi.org. 

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Press Contact: Africah N.T. Harrigan

Email: aharrigan@legvi.org