A renovated boutique hotel on St. Thomas and a financial consulting firm that still needs to establish a physical presence in the territory aired their cases for tax breaks to the Economic Development Authority Tuesday.
The hotel is located at the top of Crystal Gade and Synagogue Hill. It was a popular guest house in the 40s and 50s known as Smith’s Fancy. It is now called the Pink Palm and opened a year ago. Smith’s Fancy is the name of the parent company requesting the tax incentives for the Pink Palm.
Owner Brent Pelton, who also owns a hotel in New York, testified at the hearing. The hotel has 28 guest rooms, a pool, and a bar. It opened in April 2023.
Smith’s Fancy is asking for benefits as a hotel/guesthouse development.
Benefits a business can reap if eligible for the EDC program include:
- 90 percent reduction in corporate income tax
- 90 percent reduction in personal income tax
- 100 percent exemption on gross receipt tax
- 100 percent exemption on business property tax
- 100 percent exemption on excise tax payments
- Reduction in the customs duty from the standard 6 percent to 1 percent
Achilles Consulting, LLC, operating as a Category IV Designated Services Business for management and consulting services, is also seeking benefits. Owner Bart Leconey testified at the hearing that the company would employ five local residents.
Commissioner Jose Penn asked Leconey whether artificial intelligence would play a part in Leconey’s business in the future. Leconey replied that it might play a small part, but the bulk of his business was based on human capital.
Commissioner Gary Molloy responded that, as AI developed, businesses might have to rethink some of their assumptions.
Besides Commissioners Molloy and Penn, the hearing was attended by Commissioners Kevin Rodriguez, Positive Nelson, Philip Payne, and Anise Hodge.
