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Local News

DPNR Requests $146.9M Budget to Sustain Key Services, Avoid Layoffs

The Virgin Islands Department of Planning and Natural Resources has submitted a $146.9 million budget proposal for fiscal year 2026, along with two supplemental funding requests totaling $2.1 million, aimed at preserving essential services and avoiding layoffs in two of its most critical divisions, officials told senators Thursday.
The proposed budget includes roughly $7 million from the General Fund, $10.9 million in special non-appropriated local funds, and $129 million in federal grants. Of that federal amount, approximately $100 million is earmarked for land acquisition and infrastructure projects that do not directly support the department’s day-to-day operations.
DPNR currently employs 151 individuals across 12 divisions, including 83 classified, 1 general schedule, and 67 exempt employees. While 61 of these positions are funded by the General Fund, the remaining 102 rely on federal grants.
Despite efforts to strengthen staffing capacity, including competitive starting salaries and fellowship programs to attract new hires, DPNR continues to face ongoing human resource challenges, according to Commissioner Jean-Pierre Oriol.
“Without the additional funding we’re requesting, we won’t be able to support all of the salaries, the majority of which are inspectors,” Oriol said during Thursday’s Committee on Finance, Budget and Appropriations hearing, referencing the department’s first supplemental request of $575,143 for the Division of Permits. Many of those inspectors are directly tied to disaster recovery efforts. “This would have a direct impact on recovery projects across the territory,” he added.
The second request, totaling $1.4 million, is for the Division of Libraries, Archives, and Museums, which Oriol said is already operating under financial strain. “The current budget ceiling does not allow for the retention and recruitment of the necessary workforce,” he told lawmakers. “Without supplemental request number two, public libraries will have to remain closed or underutilized, denying access to vital educational and cultural resources.”
Compounding the problem is the recent loss of federal support. Oriol noted that the federal Institute of Museum and Library Services was permanently shuttered in April 2025 under the Trump administration, and that no federal funds are currently allocated to support public library operations. “The $138,000 we received in fiscal year 2025 for subscription services, E-Rate fees, and outreach supplies is likely the last we’ll receive for several years,” he said.
Still, the division remains focused on expanding traditional literacy initiatives, including family literacy nights, intergenerational book clubs, and increased outreach to communities with limited library access. Planning is also underway for new permanent exhibits at libraries and historic forts that highlight the Virgin Islands’ cultural and natural heritage.
In addition to these efforts, DPNR is also modernizing its enforcement systems. The Division of Environmental Enforcement recently rolled out an electronic vessel registration card system, providing digital proof of registration for boaters. “This upgrade will significantly improve efficiency, accuracy, and information sharing between DPNR and local or federal law enforcement agencies,” Oriol said.
As the department looks ahead, Oriol said federal uncertainty remains a concern. While funding under the Clean Water and Clean Air Acts is federally mandated, actual allocations could be reduced under future budget proposals. DPNR is working closely with lobbyists to monitor shifts in federal priorities and prepare for possible impacts.
Overall, the department’s proposed budget reflects the breadth of its responsibilities, ranging from environmental regulation and disaster recovery to cultural preservation and public education. And while the base funding request covers the core of DPNR’s operations, the supplemental requests, according to Oriol, are essential to keeping those operations running smoothly.
“We are committed to doing the work,” he said. “But without these additional resources, the services we provide to the public—and the progress we’ve made — could be at risk.”

July 10, 2025

Local News

Property Owners Urged To Act as Tax Delinquencies Top $120M

With more than $120 million in delinquent property taxes still on the books – and another $60 million in 2025 bills newly issued — Virgin Islands officials are urging property owners to pay what they owe or take advantage of flexible payment plans before key deadlines pass.

“Our intent is not to threaten anyone,” said Tax Collector Brent Leerdam in a recent interview with the Source. “But people need to take it seriously, because once taxes become delinquent, the consequences can be significant.”

As of June 30, real property tax bills are officially due. Property owners who haven’t received theirs in the mail are being asked to visit https://propertytax.vi.gov to view their accounts and make payments online. They can also update their mailing address through a form available on the site. Aug. 30 is the deadline to pay before delinquency status kicks in— and that’s when a number of legal collection steps begin to unfold.

The Office of the Tax Collector tracks property tax revenue in two streams: current-year collections and outstanding delinquencies. While both are important to government operations, Leerdam said the long-term goal is to build stronger compliance with current-year taxes by helping more people get into the habit of paying on time. “If we just sent out $60 million in new taxes, and then another $60 million rolls out the next year, we need people to start seeing this as something to stay on top of annually,” he said. “We want to help them avoid falling behind in the first place.”

But when people do fall behind, the office offers an avenue to catch up, namely through installment plans that let taxpayers spread their payments out over time. Leerdam, who took office in 2019, said one of the administration’s first priorities was reducing the barriers to entering those plans. “When I came in, the required down payment was 25 percent. We reduced it down to 15 percent right away,” he said. “We know people don’t have disposable income. We’re not asking for a credit check. We don’t care who starts the plan. We just want to help people avoid losing their property.”

The current structure allows plans to stretch from one to three years, depending on the total balance owed, with no added interest, penalties, or administrative fees. Payments are calculated based on a standardized scale, and the agreement can be initiated online or in person. “You can’t ask for a better deal than that,” Leerdam said. “If someone sticks with the plan, we’ll keep them out of final collection activity.”

Final collection activity is the government’s last resort, and includes actions like tax auctions, lien sales, or even foreclosure. Once a property becomes delinquent and is not under an active payment plan, the Tax Collector’s Office is required by law to begin public notice. That means the owner’s name, parcel number, and amount owed will be listed in local newspapers and online for four consecutive weeks. After that, if the bill remains unpaid, enforcement begins.

Still, Leerdam emphasized that the goal is not to take away people’s homes or land. “The government has a fiduciary responsibility to do the job of the people, but we’re not rushing to sell anyone’s property. We want to give people as many chances as possible to resolve their debt,” he said.

In cases where the property owner is deceased, there is an option to protect the estate. If an heir is probating the estate and registers the case with the Tax Collector’s Office, the parcel will be removed from the Final Collection Activity process and interest or penalties will be waived. But Leerdam made it clear that paying taxes does not provide legal ownership. “Only the court can decide ownership,” he said. “But anyone who wants to protect a property — whether they’re a family member, caretaker, or just someone with an interest — can pay on the account to prevent the risk of losing it.”

With the Aug. 30 deadline approaching, the office is preparing to release its annual list of delinquent properties. Once that list is published, those parcels move one step closer to enforcement. Leerdam is urging residents to act now. “If you’re behind, reach out to us. We’ll work together,” he said. “But waiting only makes it harder. The longer you let it sit, the fewer options you’ll have.”

July 10, 2025

Local News

Virgin Islands Football Federations Plot Ambitious Future Following Groundbreaking MoU

The historic Memorandum of Understanding between the U.S. Virgin Islands Soccer Federation and the British Virgin Islands Football Association was just the beginning. Officials from both territories are already working on what could reshape football across the Caribbean.

Firas Idheileh, general secretary of the USVI Soccer Federation, described the landmark agreement as part of a broader strategy to strengthen regional football through strategic partnerships and shared development programs.

“This MoU is all about enhancing the relationship between our two Federations and working toward a better football environment for everyone in the Virgin Islands,” Idheileh explained. Officials are already developing concrete programs, including joint training camps, shared coaching education initiatives, and coordinated youth development pathways. “We’re even talking about future Inter-Virgin Islands club games. Basically, if it grows the game and connects us, it’s on the table.”

The partnership carries significant weight beyond its practical applications. It represents the first official collaboration between the two Virgin Islands territories and marks the first MoU ever signed by the BVIFA, adding historical significance to the agreement.

For those familiar with both federations, the formal partnership simply codifies a relationship that has been developing for years. “There was already a strong bond between the USVI and BVI Federation,” Idheileh noted. “This was us formalizing that spirit of partnership.”

The general secretary credited BVIFA leadership for their role in making the agreement happen. “Huge credit to President Avanell Morton and General Secretary Juliana Luke of the BVIFA for their leadership and vision. This is about lifting each other up because we’re stronger together.”

For the USVI Soccer Federation, the BVI partnership fits into a larger international strategy that has been gaining momentum over the past year. The federation already has partnerships with the Mexican Football Federation and last year signed landmark agreements with both the Saudi Arabian Football Federation and the Guam Football Association during the FIFA Congress in Bangkok.

The Saudi Arabia and Guam partnerships, signed in May 2024, demonstrated the federation’s willingness to think globally. The Saudi Arabian Football Federation brings significant resources and expertise, while the Guam Football Association offers insights from another small island territory navigating similar development challenges.

“We’ve got a few things cooking,” Idheileh revealed. “We’re looking to build on our existing MoU with the Mexican Football Federation, and we’re in talks about creating an official partnership with the USSF. Beyond that, we want to sign MoUs and boost collaboration with more of our Caribbean neighbors.”

This multi-federation approach reflects a growing recognition that smaller associations can maximize their development potential through diverse strategic partnerships, leveraging regional collaboration as a path to competing with larger football nations. The USVI-BVI partnership could serve as a model for similar arrangements across the Caribbean, where geographical proximity and shared challenges create natural opportunities for cooperation.

“It’s all about making sure football in the Virgin Islands keeps growing and our players get more opportunities,” Idheileh emphasized, highlighting the practical benefits for both federation’s athletes and communities.

The partnership’s success will ultimately be measured by its ability to create pathways for young players who might otherwise face limited opportunities for development and competition. As the two federations begin implementing their joint vision, the broader Caribbean football community will be watching closely. If successful, the USVI-BVI partnership could signal a new era of regional cooperation that transforms how smaller nations approach football development.

The foundation is in place, the vision is clear, and the leadership is committed. Now comes the work of turning historic agreements into lasting change for Virgin Islands football.

July 10, 2025

Local News

U.S. Military Provides Vital Veterinary Care in USVI

More than 1,100 no-cost veterinary services — valued at more than $127,000 — were delivered to residents on St. Thomas through the U.S. Department of Defense’s Innovative Readiness Training Program, according to the final report delivered to the V.I. Health Department this week.

A 20-man IRT team of military veterinarians, technicians, preventative medicine and food safety specialists, deployed to St. Thomas and conducted a two-week training mission, June 16-27, to provide comprehensive pet care in partnership with the Health Department and the Humane Society of St. Thomas, the report stated.

“We are deeply grateful to the service members of the IRT Program for their invaluable contribution to public health and animal welfare during the two-week mission on St. Thomas,” said V.I. Health Commissioner Justa Encarnacion. “This has been a true demonstration of service and partnership. Access to veterinary care is limited for many residents, and this mission not only filled that gap — it did so with compassion, professionalism, and a commitment to improving lives.”

“Our gratitude extends to the Humane Society of St. Thomas, which allowed the IRT to utilize their facilities for this mission. We could not have done it without them,” Encarnacion said.

The military veterinary team performed 443 wellness exams, administered 534 vaccinations, and completed 181 spay and neuter procedures at the Humane Society of St. Thomas, representing a total cost savings to the community of $127,480, the report stated.

These services addressed critical gaps in veterinary care while offering hands-on mission training to the 20 military personnel representing the U.S. Army Reserve and U.S. Marine Corps Reserve, it said.

In addition to enhancing public health outcomes, the IRT mission helped military service members build real-world skills in a joint-service environment, including leadership, coordination, and veterinary surgical care. The total estimated value of services provided in this year’s veterinary mission—including labor, materials, and equipment — is approximately $1.7 million, the report stated.

The 2025 mission included service members from the 7354th Veterinary Detachment, 49th Multifunctional Medical Battalion, 4th Civil Affairs Group, and the 402nd Civil Affairs Battalion. Their efforts align with the IRT’s vision: to deliver high-impact veterinary care that strengthens animal welfare, supports public health, and fosters enduring civil-military bonds, the report stated.

“Public health extends to the animals in our care,” said Dr. Tai Hunte-Ceasar, Chief Medical Officer for the VI Department of Health who coordinated the mission alongside the IRT team. “This mission helped protect both pets and people, especially in communities where veterinary access is limited. The services provided were also impactful in addressing the overpopulation of cats and dogs in the community.”

“We look forward to future missions that serve even more residents — including those on St. Croix and St. John,” Dr. Hunte-Ceasar said.

In addition to providing veterinary care, the IRT team actively engaged with the community, making a presentation to the Boys and Girls Club and meeting with local businesses and government agencies to discuss ways to better support the territory, the report stated.

The overarching vision is “to be a trusted force for health and services in the USVI, delivering high-impact veterinary care that strengthens animal welfare, supports public health, and builds enduring bonds between military personnel and the local community,” said Maj. Christine Bui, veterinarian and officer-in-charge, during a Distinguished Visitors Day luncheon held on June 26, to brief military and community partners on the mission’s successes, it said.

This marks the third IRT mission to the U.S. Virgin Islands in as many years. In August 2023, a small medical team supported the department’s pediatric clinic with back-to-school physicals and immunizations. In June 2024, the IRT deployed approximately 300 military medical professionals to provide basic medical care to residents across the territory, delivering an estimated $2.25 million in healthcare services to the community, it said.

July 10, 2025

Local News

WAPA Electric Rate Reduction on Pause Amid PSC Reconsideration

The V.I. Public Services Commission granted the Water and Power Authority’s petition to reconsider a June order lowering electric rates for Virgin Islanders, staying the reduction for at least a month.
The stay came after a brief PSC meeting Thursday, one month after the PSC voted to reduce the electric Levelized Energy Adjustment Clause rate of 22 cents per kilowatt-hour by 5.2 cents. The utility responded to the decision by calling it a “deliberate, ill-considered decision” that would lower WAPA’s budget by $2.5 million every month.
“I fully understand the desire to provide rate relief to the customers of the Virgin Islands Water and Power Authority,” Chief Executive Karl Knight said in a statement last month. “We all share that same desire, and WAPA has been working aggressively to get to that point, but we must do so in a responsible manner that does not immediately jeopardize our ability to provide electric and potable water services in the Virgin Islands.”
During a June 30 meeting of the WAPA governing board, Knight told board members that the PSC’s “considerations on the LEAC side do not take into consideration the shortfalls on the base rate side and do not take into consideration making the company whole, and what the company needs from an operating perspective.”
The PSC is expected to return its decision during its next regular meeting on Aug. 12. If the commission reaffirms its June order, general counsel Boyd Sprehn said Thursday that the utility would then have 60 days to appeal the PSC’s decision in V.I. Superior Court, which would further stay the original order.
At the utility’s urging, the electric LEAC has held steady at 22.22 cents per kilowatt-hour for years, and WAPA has repeatedly maintained that the rate is necessary to keep the struggling utility afloat. The PSC’s consultants have periodically argued in favor of lowering it, particularly given projected energy production savings associated with the commissioning of the St. Thomas power plant’s Wartsila generators.
In December, Jamshed Madan of Georgetown Consulting Group recommended that the PSC start passing some of those savings on to WAPA customers.
“The ratepayers have been denied potential savings for over a decade — that the management auditor had identified — and are entitled to some savings now that some additional efficiencies have been implemented,” he said, recommending a reduction to 21.56 cents per kilowatt-hour. “It’s a very small decrease, but it’s a decrease indicating some change in the right direction.”
He recommended a steeper decrease in June, which the PSC adopted.
WAPA ratepayers have long complained about inflated or bizarre electric bills. Since a disastrous first attempt at installing advanced metering infrastructure left thousands of electric meters offline or unreadable, the utility has had to estimate bills for many of its customers. In February, the utility moved forward with a four-year, $30 million contract with Itron to replace the AMI system. WAPA tapped disaster recovery consultants Witt O’Brien’s to manage the project in June.

July 10, 2025

Local News

Plaskett Warns of Federal Cuts While Urging V.I. To Seize Recovery Opportunities

In a statement Thursday, Congresswoman Stacey E. Plaskett said the newly signed federal reconciliation bill, while securing a long-fought win on rum cover-over revenue, will bring deep cuts to Medicaid, Medicare, SNAP, and other essential programs in the U.S. Virgin Islands.
“Last week President Trump signed into law his tax and spending bill, H.R. 1, which passed the House and Senate narrowly with solely Republican votes and several Republican defections,” Plaskett said in a statement. “While the inclusion of permanent rum cover-over in H.R. 1, the One Big Beautiful Bill Act, represents a major win for the Virgin Islands and Puerto Rico … the bill will also bring significant challenges.”
Plaskett said she has already reached out to the Virgin Islands Legislature and government finance team to offer her office’s support and begin preparing for the anticipated fiscal impacts, according to the statement.
“It will be imperative for the Virgin Islands local government to focus on finding new revenues and act creatively to remedy the impacts of federal cuts locally,” she said. “This legislation will require us to find additional sources for increasing revenues to the general fund to continue providing support to families — supporting new businesses, jump starting local small businesses and training our own local workforce to support the rebuilding and construction projects that must come online.”
Plaskett emphasized in the statement the opportunity to leverage the Biden-Harris administration’s cost-share waiver and billions in federal recovery funding to stimulate economic growth. Under the current waiver, eligible projects approved before Sept. 30, 2024, require only a 2 percent local match instead of the standard 10 percent, with others reduced to 5% resulting in projected cost savings of nearly $1.5 billion for the territory.
“Seven years ago, our community’s infrastructure was devastated by Hurricanes Irma and Maria,” she said. “Out of devastation came the opportunity to transform our territory … with profound funding from the federal government.”
Plaskett said she secured legislative provisions in the 2018 Bipartisan Budget Act that allow the Virgin Islands to rebuild to modern resilient design standards regardless of their pre-disaster condition, enabling funding for hospitals, schools, power, water, communications, and other critical systems.
She also pointed to unresolved issues related to the rum cover-over, including ensuring the Virgin Islands receives its proportional share of global cover-over revenues, and pressing rum companies to better use marketing funds to benefit the local economy.
“Under the Caribbean Basin Initiative (CBI), rum produced outside the Virgin Islands and Puerto Rico and then imported into the U.S. also has a rum cover-over that is divided between the two territories,” she said. “That ratio should be based upon the rum produced by each, however there was never a change in ratio made when Diageo came to the Virgin Islands from Puerto Rico.”
She urged the Bryan administration to address the imbalance and ensure rum companies “are utilizing these funds for the maximum benefit for our community.”
Despite the challenges, Plaskett stressed the importance of acting now.
“While federal cuts will create challenges, we also have untapped resources and underutilized opportunities at our disposal,” she said. “The key is acting decisively during this critical recovery window while building sustainable economic growth for our future.”
Plaskett said her office is committed to working with the governor and local lawmakers “to ensure that we can not only weather these changes but emerge stronger.”

July 10, 2025

Local News

CSU Trims Hurricane Forecast; NWS Warns of Saharan Dust Through Weekend

Colorado State University’s updated hurricane forecast indicates a slight decrease in expected cyclones this season. Meanwhile, the National Weather Service in San Juan, Puerto Rico, says another round of Saharan dust will affect the local area over the next few days.

In its outlook released on July 9, the Tropical Cyclones, Radar, Atmospheric Modeling, and Software Team at Colorado State University slightly lowered its forecast for the 2025 Atlantic hurricane season due to higher-than-expected wind shear over the Caribbean, which tends to suppress hurricane activity. However, CSU also noted that a neutral phase of the El Niño Southern Oscillation and warmer sea surface temperatures in parts of the Atlantic still create an environment favorable for hurricane development.

“We have decreased our forecast slightly and now call for a slightly above-normal 2025 Atlantic basin hurricane season,” the July CSU report said. “The primary reason for the slight decrease in the outlook is both observed and predicted high levels of Caribbean shear. High levels of Caribbean shear in June and July are typically associated with less active hurricane seasons,” CSU continued.

“However, we also anticipate the tropical Pacific to be characterized by ENSO-neutral conditions,” CSU stated. “Sea surface temperatures across the eastern and central Atlantic are slightly warmer than normal, but not as warm as they were last year at this time. A warmer-than-normal tropical Atlantic combined with likely ENSO-neutral conditions typically provides a more conducive dynamic and thermodynamic environment for hurricane formation and intensification. We anticipate a slightly above-average probability for major hurricanes making landfall along the continental United States coastline and in the Caribbean,” CSU explained.

CSU now expects 16 named cyclones to form throughout the 2025 Atlantic hurricane season. The team had initially called for 17 named storms in its previous forecasts, which were released earlier this year in April and in June. Three named storms have already formed in the Atlantic basin so far this year.

“Information obtained through June indicates that the 2025 Atlantic hurricane season will have activity slightly above the 1991 through 2020 average,” according to the CSU report. “We estimate that 2025 will have 16 named storms (average is 14.4), 80 named storm days (average is 69.4), 8 hurricanes (average is 7.2), 30 hurricane days (average is 27.0), 3 major (Category 3, 4, or 5) hurricanes (average is 3.2) and 8 major hurricane days (average is 7.4). The probability of U.S. and Caribbean major hurricane landfall is estimated to be slightly above its long-period average,” the report said.

Key Factors Still in Place for a Busy Season

While it’s impossible to predict precisely how a hurricane season will unfold, meteorologists and researchers base their seasonal outlooks on a combination of current atmospheric and oceanic conditions and decades of historical data to help project what could occur.

Forecasters closely monitor several key indicators, including sea surface temperatures and the El Niño–Southern Oscillation cycle, which encompasses the El Niño, La Nina, and ENSO-neutral phases and can significantly affect wind shear across the Atlantic Ocean. Experts also analyze forecasts for the West African Monsoon, which helps determine the frequency and strength of tropical waves emerging off Africa’s west coast. Many of these environmental signals appear favorable for tropical cyclone development this season.

“The tropical Pacific is currently characterized by ENSO-neutral conditions,” the CSU update explained. “Our best estimate is that ENSO-neutral conditions will likely persist throughout the hurricane season. Sea surface temperatures in the eastern and central tropical Atlantic are slightly warmer than normal, although not as warm as they were last year at this time,” CSU continued.

“A warmer-than-normal Atlantic combined with ENSO-neutral conditions typically favors an active Atlantic hurricane season via dynamic and thermodynamic conditions that are conducive for developing hurricanes, such as low vertical wind shear and increased upper ocean heat content,” CSU stated.

The CSU report stressed that it only takes one cyclone to cause tremendous damage, and preparations should be in place.

“As with all hurricane seasons, coastal residents are reminded that it only takes one hurricane making landfall to make it an active season,” CSU advised. “Thorough preparations should be made every season, regardless of predicted activity,” CSU added.

Local Weather Updates: More Saharan Dust Expands Across the Territory

As of Thursday, the National Hurricane Center does not predict cyclonic development across the Atlantic basin for the next seven days.

However, while no cyclones are anticipated to form near the USVI or Puerto Rico in the immediate future, the National Weather Service in San Juan has warned that other weather phenomena are forecast to affect the region, including more Saharan dust throughout the weekend.

“Moderate to high concentrations of Saharan dust are expected to return late tonight through at least Sunday, resulting in hazy skies, reduced visibility, and poor air quality,” the NWS said in a Thursday morning update.

Although the dry air and desert sand can help to suppress the development of tropical cyclones, individuals are encouraged to be mindful of the potential health impacts caused by the dust, including respiratory issues.

In addition to the dusty conditions, residents and visitors in the U.S. Virgin Islands and Puerto Rico may also see spotty showers and thunderstorms, very warm temperatures, and breezy weather. Gusty winds may create choppy, wind-driven seas and elevate the risk of rip currents along many beaches, particularly on north- and east-facing coastlines across both territories.

The NWS added that a tropical wave could move through the Caribbean in the middle of next week. However, most of the associated moisture is forecast to remain south of the local islands.

“By midweek next week, a tropical wave is expected to approach the forecast area, bringing increased tropical moisture,” the NWS said. “However, the most intense part of the wave is expected to pass south of Puerto Rico and the U.S. Virgin Islands. Nevertheless, scattered showers and thunderstorms are anticipated each afternoon, especially across interior and western areas,” the NWS continued.

USVI residents and visitors can find weather information from the NHC, the NWS, and NOAA. Additionally, the Virgin Islands Territorial Emergency Management Agency offers residents and visitors the opportunity to sign up for emergency alerts. Also, the local weather forecast for the U.S. Virgin Islands is regularly updated on the Source Weather Page and VI Source YouTube Channel.

July 10, 2025

Local News

St. Thomas, St. Croix Hotel Developments Granted Full EDC Benefits

Two hotel developments — one on St. Croix and one on St. Thomas — have been approved for tax incentives under the Economic Development Commission after the agency’s governing board voted unanimously in favor of the applications at a decision meeting Thursday.
DV USVI Investment LLLP plans to reopen what’s been known as the old Sugar Bay Resort on St. Thomas under the Hilton brand, according to its presentation at a public hearing on its application in May, where it was represented by attorney Adriane Dudley.
The St. Thomas property, which has been shuttered since it was damaged in hurricanes Irma and Maria in 2017, will have 300 rooms on 30 acres and is anticipated to open in the first or second quarter of 2026, Dudley told the board at May’s public hearing. Some $20 million was spent to purchase the property in 2022 and the owners will have invested $62 million more for the construction of the resort, she said.
“We believe that this project will contribute significantly to the Virgin Islands tourist industry as well as the Virgin Islands economy,” said Dudley.
The hotel will employ 150 people when it opens, which will increase to 175 employees the following year, according to Thursday’s decision meeting, which was held virtually via Zoom.
Historic Heritage Holdings LLP plans a boutique hotel in downtown Christiansted that is expected to feature a minimum of 66 rooms, a gym, a pool and three restaurants, according to the public hearing on its application in March, where it was represented by attorney Marjorie Roberts.
“What we’re really trying to do is build an entire arts, entertainment and hospitality district,” Peter Zielke, majority owner, told the board at the time. “I think that St. Croix should be different from St. Thomas and St. John.”
Under conditions outlined Thursday, Historic Heritage Holdings will employ a minimum of 15 full-time workers within one year of receiving its certificate of occupancy from the Department of Planning and Natural Resources, or within one year from the date its EDC certificate is signed — whichever is later. It is also required to employ five full-time employees in its separate venture capital management and investment entity within one year of starting operations, the board said.
After meeting in executive session, the board approved both applications for tax exemptions at 100% of the incentives authorized under V.I. Code, Title 29, Chapter 12 — DV USVI Investment on St. Thomas for a period of 20 years, and Historic Heritage Holdings on St. Croix for 30 years.
Those benefits include: a 90% reduction on personal income tax; a 90% reduction on corporate income tax; a 100% exemption on the excise tax; a 100% exemption on the business property tax; a 100% exemption on the gross receipts tax, and a reduction in the customs duty from the standard 6% to 1%.
In both cases, retail sales, concessions and rental activities on the resort properties that are not owned and operated by the companies will not be eligible for the tax incentives, the board ruled.
Because Thursday’s meeting was a decision meeting, there was no public discussion. Board members Kevin Rodriquez, chairman; Gary Molloy, vice chairman; Jose Penn, secretary; and Positive Nelson attended.

July 10, 2025

Local News

Plaskett Discusses One Big Beautiful Bill Act’s Impact on Virgin Islands

Congresswoman Stacey E. Plaskett released the following statement on the federal reconciliation bill signed into law by President Trump and its potential impacts on the U.S. Virgin Islands:

“Last week President Trump signed into law his tax and spending bill, H.R. 1, which passed the House and Senate narrowly with solely Republican votes and several Republican defections. While the inclusion of permanent rum cover-over in H.R. 1, the One Big Beautiful Bill Act, represents a major win for the Virgin Islands and Puerto Rico and the culmination of years-long efforts by elected officials and stakeholders, as I have consistently indicated from the beginning of the year, the bill will also bring significant challenges to our territory through cuts to Medicaid, Medicare, SNAP, and other critical programs.

“My office has reached out to the Legislature of the Virgin Islands and the Government of the Virgin Islands finance team to share our concerns and offer our support as we hope the local government will begin the efforts to prepare for these impacts over the coming years. It will be imperative for the Virgin Islands local government to focus on finding new revenues and act creatively to remedy the impacts of federal cuts locally. This legislation will require us to find additional sources for increasing revenues to the general fund to continue providing support to families—supporting new businesses, jump starting local small businesses and training our own local workforce to support the rebuilding and construction projects that must come online.”

Congresswoman Plaskett emphasized the importance of the Government of the Virgin Islands taking advantage of the rebuild to create additional revenue, ancillary businesses and increased workforce. Doing so means capitalizing on the cost-share waiver granted by the Biden-Harris administration, which has allocated billions of federal dollars for recovery projects across the territory.

“Seven years ago, our community’s infrastructure was devastated by Hurricanes Irma and Maria, leaving our critical infrastructure decimated. Out of devastation came the opportunity to transform our territory and rebuild our critical infrastructure in a more resilient manner with profound funding from the federal government. In the Bipartisan Budget Act of 2018, I obtained provisions to allow the Virgin Islands to rebuild critical infrastructure with resilient design and features, up to the latest industry building standards and notwithstanding pre-disaster conditions in the Virgin Islands (the standard that normally applies).

“That change in law has meant the Government of the Virgin Islands has been allocated billions in federal funding for our schools, hospitals, water systems, power grid, communications infrastructure, and other critical projects. In 2024, the Biden-Harris Administration announced that rebuild projects approved before September 30, 2024, require only a 2 percent local match instead of the original 10 percent, with other projects requiring just 5 percent – projected cost savings for the local government of almost $1.5 billion. This represents an unprecedented opportunity to complete our hurricane recovery while stimulating economic growth. However, the cost share is for a ten-year period. We must capitalize on this timeframe and utilize this opportunity not only to rebuild our infrastructure but also to attract small businesses and other industries to our territory,” Plaskett added.

“Now that the battle for the permanent increased rum cover-over rate of $13.25 is over, we need to focus on two critical areas related to the rum cover over: ensuring the Virgin Islands receives our fair share of worldwide rum cover-over revenue and working with rum companies to understand the utilization of funds for marketing and potentially increase the amount that comes directly to the Virgin Islands Government. Under the Caribbean Basin Initiative (CBI), rum produced outside the Virgin Islands and Puerto Rico and then imported into the US also has a rum cover over that is divided between the two territories. Under the CBI, that ratio should be based upon the rum produced by each, however there was never a change in ratio made when Diageo came to the Virgin Islands from Puerto Rico. I previously engaged both the Mapp-Potter and Bryan-Roach Administrations on this issue, and it is my hope that the Bryan Administration will take this matter up so the Virgin Islands will receive its fair share of the cover over. Additionally, we need to ensure the rum companies are utilizing these funds for the maximum benefit for our community.”

“While federal cuts will create challenges, we also have untapped resources and underutilized opportunities at our disposal. The key is acting decisively during this critical recovery window while building sustainable economic growth for our future. My team and I remain ready to work with Governor Bryan and his team along with the Legislature of the Virgin Islands to ensure that we can not only weather these changes but emerge stronger.”

July 10, 2025

Local News

Jean Marjorie Thompson Walcott Dies

The family of the late Jean Marjorie Thompson Walcott is saddened to announce her passing on April 12, 2025.

She is survived by her Daughter(s): LaVerne Walcott, Lesa Walcott; Son(s) Lorenzo Walcott Jr; Grandchildren(s): Raqaun Bennett, and Alicia Slusher; Brother(s): Tyrone Thompson; Sister(s): Annabelle Lockhart, Sandra O’Brian, and Olive Jensen.

Memorial service will be held on July 17,2025, at Anglican Church in Christiansted, Service begins at 9:30am.

Interment will follow at Gallows Bay at 12:00 noon for the scattering ashes of Jean Marjorie Thompson Walcott.

July 10, 2025