On Tuesday, the Economic Development Authority’s Enterprise Zone Commission held its annual meeting virtually via Zoom, voting to modify employment requirements for BrandChamp, Inc. and Waterfront Development & Management, LLC. The commission also approved tax incentives for a property on Garden Street and voted to expand and establish new enterprise zones across the territory.
The Enterprise Zone Commission Board held its decision meeting after postponing the start of a scheduled public hearing for the Economic Development Commission.
Shaylah Anthony, program and grants compliance officer for the EZC, spoke on behalf of BrandChamp, Inc., and Waterfront Development & Management, LLC, a company seeking modification to its employment requirements for its property at #80 Kronprindsens Gade Savanne-Downstreet. According to Anthony, they were granted tax exemption benefits in March and requested to reduce the number of local residents required for their benefits.
“The beneficiary stated that upon review of the submitted application, a misunderstanding was discovered related to the interpretation of the employee commitment section,” said Anthony.
The company is requesting a decrease from their eight required local residents to two residents.
“Most of their employees are not VI residents, and you know the program requires you to have a minimum, at least, a minimum of two local residents. So when they filled out their application they had a larger amount, including the ones that are not VI residents. So it was not clear while they were filling out their application, so they are asking for a reduction,” she said.
Board members unanimously voted to reduce the resident requirement for BrandChamp.
Raheem Smith, applications analyst for the EDC, spoke on behalf of Conn Jay Davis, II, who is seeking tax incentives for the property at #12 Crystal Palace & 2E Bjerge Gade in the Garden Street-Downstreet Enterprise Zone. Davis will invest $633,000 to make repairs to create a luxury event space and boutique bed and breakfast for short-term rentals.
Board members Gary Malloy, Jose Penn, Positive T.A. Nelson, and Anise Hodge unanimously voted to grant tax incentives to Davis.
Additionally, board members voted to approve the zoning expansion of Dronningens Gade on St. Thomas, Two Brothers on St. Croix, the creation of a new commercial zone in Cruz Bay, and the creation of a new zone in downtown Charlotte Amalie.
Nadine Marchena Kean presented the requested zoning changes to the board, detailing the current acreage and funding for the addressed zones. According to Kean, 252 acres make up the Dronningens Gade Step Street and $520,000 in grants is being expended to improve the zone. The expansion request is to include the southern side of the step street.
On St. Croix, Two Brothers, often referred to as Smithfield, is located in the Frederiksted Enterprise Zone, spanning 272 acres, and has secured $2 million in funding. Kean said that the expansion request will be about the existing zone and include a well-used corridor.
Creation of a new zone in Cruz Bay is anticipated and will be the first commercial zone for the EZC. A new zone in Charlotte Amalie along Veterans Drive is anticipated as well.
“Look at STJ as a blueprint for the rest of the territory,” said Penn, who highlighted that issues such as parking and burial space are issues due to improper space planning. “We need some comprehensive planning for these properties,” he added as he expressed support for the zoning changes. “Going forward, the need for comprehensive planning, looking at all levels, where we forecast the future developments, affordable housing needs, all of these things need to be a part of this planning.”
Nelson asked Kean about conflicts between restoring historic properties in commercial zones.
“They [Historic Preservation Committee] are concerned with making sure that there is a preservation of these historic buildings,” said Kean. “When we drive through these historic towns, we often remember what used to be there and don’t actually look and see what is actually there. And when you actually look at these buildings, you’ll see that a lot of it looks old, as in needs to be refreshed, needs to be repainted,” said Kean.
Nelson inquired about challenges with acquiring outdated and obsolete resources that were used in the past.
“Even in ‘refreshed’ when they want you to use the same type of stone that they brought over as ballast in the ships to balance, you know, those kind of things to me is far reaching,” said Nelson.
EDA Chief Executive Officer, Wayne Biggs Jr., responded that “They’re more concerned not so much with the actual materials…what they’re looking for is the facade.” He added, “We cannot use all historic materials all the time.”
Board members Gary Malloy, Jose Penn, Positive T.A. Nelson, Anise Hodge, and Kevin Rodriguez voted to approve the zoning changes.
St. Croix Source
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