ST. THOMAS – Members of the Committee on Budget, Appropriations, and Finance, chaired by Senator Donna Frett-Gregory, held a meeting at the Capitol Building. Officials from the West Indian Company, Limited provided testimony regarding a financial overview for fiscal years 2024 and 2025. Additionally, senators voted to advance lease agreements between the Government of the Virgin Islands and the lessees, including a $20,000 settlement agreement from the Estate of Jeffrey Epstein, an extension of the lease for Coral World. All approved items will be forwarded to the Committee on Rules and Judiciary for further consideration and action.

The West Indian Company Limited (WICO), the U.S. Virgin Islands’ premier cruise docking facility, continues to play a vital role in the Territory’s economy, significantly contributing to local revenue, according to Anthony A. Ottley, Interim President and CEO of the West Indian Company, Ltd., who shared the financial update. Although the 2024/25 cruise season faces challenges such as limited berthing capacity and delayed harbor maintenance, the cruise industry remains a strong economic driver. With 286 confirmed berthing requests and an expected 980,000 visitors, WICO anticipates over $162 million in passenger spending. Despite these challenges, WICO’s proactive approach to upgrades—including a crucial dredging project scheduled for 2025—positions the company for long-term growth, potentially surpassing one million visitors in the 2025/26 season.

Senator Donna Frett-Gregory emphasized the importance of WICO meeting its financial obligations, noting that it is essential for the company to pay the taxes owed to ensure long-term sustainability and continued success for the Territory.

However, WICO faces serious financial hurdles due to a longstanding PILOT (Payment in Lieu of Taxes) debt exceeding $10 million, which has affected its credit rating and borrowing ability. Past miscalculations in PILOT obligations, combined with external events such as the opening of Crown Bay, hurricanes, and the COVID-19 pandemic, have left the company struggling to meet its payments. WICO has submitted a comprehensive plan for PILOT debt reduction and is seeking legislative remedies to ensure its financial stability and continued growth. With new infrastructure projects, marketing strategies, and legislative support, WICO is committed to securing a prosperous future for the Territory’s cruise industry.

Separately, lawmakers voted and approved three key lease agreements aimed at fostering economic development in the U.S. Virgin Islands. The first, Bill No. 35-0108, allocates $20 million from the Estate of Jeffrey Epstein’s settlement to fund the design and construction of nursing homes on St. Croix and St. Thomas. Bill No. 35-0423 approves a lease extension for Coral World (V.I.), Inc., including rent adjustments and updated property boundaries. Lastly, Bill No. 35-0414 authorizes a lease agreement with Submarine Base Warehouse, LLC for bulk storage and parking at the St. Thomas Submarine Base, supporting job creation and economic growth.

• Bill No. 35-0108 – An Act appropriating $20,000,000 from the Settlement Agreement between the Government of the Virgin Islands and the Estate of Jeffrey E. Epstein to the Department of Public Works for the design and construction of nursing homes on St. Croix and St. Thomas (proposed by Senator Dwayne M. DeGraff).
• Bill No. 35-0423 – An Act approving the Fifth Amendment to the Lease Agreement between the Government of the Virgin Islands and Coral World (V.I.), Inc. to extend the lease term, provide for additional rent, and incorporate two surveys reflecting the metes and bounds description of the leased premises (proposed by Senate President Novelle E. Francis, Jr. on behalf of the Governor).

However, the following was removed from the agenda:

• Bill No. 35-0414 – An Act approving the lease agreement between the Government of the Virgin Islands, acting through the Commissioner of the Department of Property and Procurement, and Submarine Base Warehouse, LLC for the bulk storage, subtenant establishment, and parking purposes at the St. Thomas Submarine Base (proposed by Senate President Novelle E. Francis, Jr. on behalf of the Governor).

Senators present included Donna Frett-Gregory, Novelle E. Francis, Jr., Javan James, Sr., Dwayne M. DeGraff, Marvin Blyden, Novelle E. Francis, Jr., and Ray Fonseca.

The Division of Public Affairs remains committed to delivering accurate information on legislative proceedings and events at the Legislature of the Virgin Islands.                                                  

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