July 8, 2001 — With the recent foreclosure of the King’s Alley Hotel and shopping area, the Public Finance Authority is now looking for an entity to manage the property. And it could be the St. Thomas-based West Indian Co.
The PFA foreclosed last week on an approximately $3 million loan given to Development Consultants Inc. in 1995 to renovate the King’s Alley area of downtown Christiansted. It was the only loan given as part of the 1994 PFA bond issue set aside for ventures with the private sector.
With accrued interest, Development Consultants owed approximately $4 million. A foreclosure judgment was entered in District Court last March. The PFA took over the 23-room hotel and shopping area with 16 retail shops and restaurants last week.
Amadeo Francis, PFA director of finance and administration, couldn’t be reached for comment Friday. However, in a Source interview late last month, he said that the PFA had asked the WICO board to consider becoming the receiver of the King’s Alley property. WICO, a subsidiary of the PFA, manages the Havensight Shopping Mall in addition to operating the Long Bay docks on St. Thomas.
"WICO’s involvement is in the area of property management, which the PFA isn’t in," Francis said. "We requested WICO to consider" managing the King's Alley property until it "can be sold, or what-have-you."
WICO spokesman Calvin Wheatley said Friday that the WICO board had taken up the PFA’s request. He declined to elaborate. "That matter has been referred back to the PFA," he said. "The next decision will have to come from them."
The foreclosure was against Development Consultants’ lease agreement, not the property on which the King’s Alley development sits. The property is owned by the Meyer family of Washington state. Development Consultants originally had a 15-year lease with three successive five-year renewal options.
