Despite being warned of various uncertainties in the proposed agreement between the government and T.D. Enterprises, the 23rd Legislature voted to authorize the governor to negotiate a contract to have basketball star and St. Croix native son Tim Duncan promote the Virgin Islands.
The warning came from Senate Post Auditor Campbell Malone who cited five areas of concern with the contract as presently proposed. The pact would relate to promotional and other business activities by Duncan’s company, T.D. Enterprises.
Presently the agreement calls for Duncan to re-establish residency in the territory, develop certain business enterprises located within the islands, and to do three advertisements per year promoting the Virgin Islands as a tourist destination.
The post auditor cited as key areas of concern, federal income tax and tax administration issues, sports law and surrounding legal issues, local business and macro economic and economic development issues, business and advertising issues and general legal and accounting issues.
In each instance Malone has not been able to procure the information needed to make a substantial analysis. He offered no recommendations on the proposal which was adopted by the senate Tuesday night.
Representing T.D. Enterprises, attorney Joel Holt, said the measure is a long term agreement designed to help the Virgin Islands in the next fifteen years.
"The most important thing we can do in this agreement is to have Tim Duncan establish his residency here so that the territory can collect taxes on his $3 million a year NBA salary."
Attorney Paul Gimenez, representing the government, said the proposal is
"unprecedented" because actual payment of taxes is required before the business' tax benefits are approved.
Senate President Vargrave Richards indicated that the agreement was a gesture to a young man who has made us proud, and a fair exchange for what he has already given to the Virgin Islands."
Whatever agreement is hammered out by the governor must be approved by the legislature.
