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Friday, March 29, 2024
HomeNewsArchivesSenate Approves Dredging Permit, VIPA Bond Changes

Senate Approves Dredging Permit, VIPA Bond Changes

The V.I. Legislature approved a Coastal Zone Management permit to dredge off St. Thomas for cruise ships and legislation letting the V.I. Port Authority refinance bonds to save interest and fund V.I. port improvements during a special session Wednesday morning.

The permit in question would allow VIPA to dredge the East Gregerie Channel in Crown Bay and a section of the area along the northern portion of the pier at the Austin "Babe" Monsanto Marine Terminal. [Bill 30-0443]

Cruise lines asked for the dredging, which will allow more and larger vessels to dock, V.I. Port Authority Director Carlton "Ital" Dowe testified to the Committee of the Whole before the vote. But if the dredging is not approved right away, 13 ships will cancel, costing millions in lost revenue, Dowe said, echoing arguments made by Gov. John deJongh Jr. urging the Legislature to immediately approve the permit. (See Related Links below)

Dowe said VIPA had received approval from the CZM Commission and is awaiting approval from the Army Corps of Engineers.

He said the delay in approval locally has delayed the submission and approval by the U.S. Army Corps of Engineers.

If the permit is approved, dredging should begin in September and be completed in November, Dowe said. The cost is expected to be around $3.5 million and VIPA is negotiating with several cruise lines to help finance it, he said.

Dowe also testified on proposed VIPA legislation to remove language from an existing act authorizing VIPA to issue bonds for work on Crown Bay, Gallows Bay and the Ann Abramson Pier. The language change would let VIPA refund the bonds without returning to the Legislature for approval. The bill [30-0447] would only affect one set of bonds, originally issued in 2003, Dowe said.

The legislative act that authorized those particular bonds "requires the Port Authority to obtain approval for the refinancing of bonds already approved and issued." He said VIPA is trying to eliminate delays wherever it can, saying the territory has to compete with nations like the British Virgin Islands, St. Kitts and Barbados that are in the midst of multimillion-dollar pier and cruise facilities investments.

There was no opposition to either measure. Several senators, including Sen. Nereida "Nellie" Rivera-O’Reilly, Kenneth Gittens, Janette Millin Young and others, suggested there was no need for the governor to call a special session when another session is scheduled July 28. Dowe said VIPA requested the special session after a July 21 session was canceled, out of concern for any more delay.

Both measures were approved with votes of 14 to 0. Sen. Craig Barshinger was absent.

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