The Virgin Islands Economic Development Authority’s governing board met Thursday to approve funding initiatives, business incentives, and infrastructure updates across the territory.
The V.I. Economic Development Bank approved $240,000 for KCV Associates Inc., doing business as St. John Brewers, to support the company’s expansion into retail operations and the production of hard seltzers, nonalcoholic beverages, and beer.
During the same meeting, the VIEDB selected SBC Consulting to administer the State Small Business Credit Initiative 2.0, a federal program under the American Rescue Plan Act that will allocate $57,860,549 in loans to businesses in the Virgin Islands. The firm was chosen through a competitive process based on a scoring system.
Following the VIEDB session, the Economic Development Park Commission convened to discuss ongoing infrastructure projects. Mark Finch, the authority’s physical plant director, updated the members on FEMA projects and reported that architectural plans are underway for roof replacement and fencing at the William D. Roebuck Industrial Park. Meanwhile, Phase I of work at the V.I. Industrial Park on St. Thomas is nearly complete, and bidding documents for the EDA office in Frederiksted will be issued next week. Finch said bids for the rebuild are expected by the end of June.
The board also addressed a rent reduction request from Leatherback Brewing Company, which operates out of the Industrial Park on St. Croix. CEO Wayne Biggs explained that since the 2017 hurricanes, the company has faced recurring issues with water intrusion that have led to equipment losses. After reviewing documentation provided by Leatherback, the board voted to reduce the company’s rent obligation by $142,000 to account for its reported losses.
“We gave Leatherback the option of moving out, but they said they were unable to due to their production facilities and everything else,” Biggs said. He added that FEMA halted roof repairs out of concern that it could jeopardize the structure’s integrity and put a $9 million investment at risk. Instead, FEMA has committed to fully rebuilding the roof and replacing fencing at the Industrial Park.
In the final board meeting of the day, the Economic Enterprise Zone Commission voted to adjust investment requirements for two businesses and withdrew an application for economic development benefits from another. The commission rescinded SHE-CAT Investments, LLC’s application after the company reported it could not meet its required investment. Virgin Estates’ investment requirement was lowered from $60,000 to $54,179 after certain rehabilitation expenses were deemed ineligible. Similarly, Dennis and Deborah Howell’s investment threshold was reduced from $150,000 to $81,595 after adjustments for qualifying expenses related to their Airbnb project.
The virtual meeting was attended by board members Kevin Rodriquez, chair; Gary Molloy; Jose Penn; Philip Payne; and Positive T.A. Nelson.
