Businesses that spend money to renovate blighted properties on Savanne-Down Street and Garden Up-Street on St. Thomas – and in Frederiksted and Christiansted on St. Croix – will be eligible for a series of "Commercial Zone" tax breaks if a bill approved in committee Wednesday becomes law.
The goal of the bill is to find ways to encourage property owners to fix them up, ameliorating blight and making the islands more attractive, said Sen. Janette Millin Young, who proposed the legislation.
“We have to continue to work to maintain our share [of this industry] and the interest of visitors who come here to the Virgin Islands,” Millin Young said. The bill initially streamlined the process of condemnation by eminent domain, but Young submitted an amendment in the nature of a substitute on Wednesday that eliminated penalties in favor of incentives. The amendment also eliminated demolition of properties, taking away the need to fund demolition. [Substitute Amendment To Bill 30-0153]
Assistant Tourism Commissioner Brad Nugent, several Economic Development Authority officials and members from the St. Thomas-St. John Chamber of Commerce all gave qualified support of the intent and broad outlines of the bill, but each suggested it still needed changes and additions.
“This amendment makes significant changes to the Enterprise Zone Program as it exists today and, if this bill passes without further amendment, [it] will negatively affect the strategies currently being used to fun the revitalization,” said EDA Chief Executive Officer Percival Clouden.
Nadine Marchena-Kean, director of the Enterprise Zone Commission, said they supported the amendment with changes. “The commercial zone is something that is greatly needed,” she said.
The committee also approved a lease agreement and Coastal Zone Management permit between the V.I. Government and Tropical Shipping Construction for its facility at No. 6 Crown Bay. The rent is $30,000 per year.
A CZM permit for the University of the Virgin Islands to renovate and expand its marine science program on St. Thomas was also approved. Work will involve replacing dock pilings, concrete platform repair and new dock decking at its facility north of Cyril E. King Airport.
The committee held a bill from Sen. Nereida "Nellie" Rivera-O’Reilly, at her request, that would require all beneficiaries of the territory’s Economic Development Commission tax breaks to purchase a house in the territory.
All votes were unanimous. Present were O’Reilly, Millin Young, Sens. Clifford Graham and Sammuel Sanes. Noncommittee member Sen. Donald Cole was also present. Absent were Sens. Myron Jackson and Shawn-Michael Malone.
