The Virgin Islands Port Authority reported stronger-than-expected financial results and advanced several major infrastructure projects during its governing board meeting, according to officials and documents presented at the session Wednesday.
The authority posted an operating profit of $5.3 million for the fiscal year to date, surpassing an anticipated operating loss of $1.1 million, Chief Financial Officer Anna Mauricia Penn told board members. The Marine Division recorded a $7.3 million operating gain, more than double its budget expectations, while the Aviation Division’s $2.3 million operating loss was significantly less than the projected $6.6 million deficit.
“At the end of June, there were a total of 1.6 million cruise passengers, an increase of 204,000, which is 40% above last year,” Penn said, highlighting a key driver of the authority’s improved revenues.
The authority’s accounts receivable as of June 30 stood at $30.8 million, with efforts underway to revamp reporting and collections processes. Spirit Airlines remains the largest aviation tenant, with $878,000 in accounts receivable, of which $573,000 is past due.
The Virgin Islands Port Authority oversees the territory’s airports and marine terminals, managing significant capital investments and supporting economic development. Officials said the authority’s financial health remains strong, with net assets standing at $229.8 million.
VIPA is also moving forward with its public-private partnership (P3) process, which involves regular coordination with consultants and stakeholders. “Staff and I continue to meet and work with our consultants as we navigate through the P3 process. The VIPA Team conducts weekly meetings and is working diligently with all parties involved to ensure that we are on the right path,” Executive Director Carlton Dowe reported in the Executive Director’s Report released today.
VIPA is making significant progress on the Crown Bay Development Project through ongoing collaboration with Royal Caribbean and CTI. “Staff and I had a working meeting with representatives from Royal Caribbean/CTI, virtual and in-person, as we continue to work feverishly on the Crown Bay Development Project,” Dowe said.
The recent passage of Tropical Storm Erin had minimal impact on VIPA’s operations. “The agency fared well with no reports of any major damages to our facilities territory-wide,” Dowe said.
In addition to development and storm response, VIPA has maintained active engagement with airline and federal partners. Staff met with representatives from Southwest Airlines for a walk-through of port facilities, and according to Dowe, “constructive dialogue with the airlines on both CEKA and HERA,” referring to the Cyril E. King Airport and Henry E. Rohlsen Airport.
The VIPA governing board approved a series of major contracts, project changes, and grant authorizations at its Aug. 20 meeting, advancing critical infrastructure and operational improvements across the territory.
In the St. Thomas and St. John district, seven active construction projects are underway with $70.5 million obligated, including the completion of a new parking and transportation center and ongoing apron replacements at the Cyril E. King Airport. On St. Croix, eight projects totaling $44.6 million are in progress, with work continuing on the Henry E. Wilson Airport apron rehabilitation and marine terminal improvements.
The board ratified a poll vote authorizing an equitable adjustment agreement with AT Construction Solutions for flood damage recertification at the Gordon A. Finch Marine Cargo Building. The agreement, not to exceed $65,973, addresses repairs following recent flood damage.
The board also ratified a poll vote approving the execution of a Federal Aviation Administration Airport Improvement Program grant for the Henry E. Rohlsen Airport. The grant will fund runway rehabilitation and is part of ongoing efforts to upgrade aviation infrastructure in the territory.
The board approved a change order for the ongoing demolition of the former Beachcomber Hotel on St. Thomas, awarding DCM Corporation an additional $89,000 to install new security fencing and repair damaged sections of the existing perimeter. The additional funding was authorized after contractors discovered that large segments of the original fencing were missing or damaged, raising concerns about unauthorized access to the site during and after demolition.
“The contractor has demolished the majority of the major structures and debris has been removed from the site. So we are expecting this project will move to close out once it’s completed, next month,” said Preston Beyer, the authority’s director of engineering.
The board also approved two significant contracts for airport maintenance. Highlight Airfield Services was awarded a $460,740 contract for runway rubber removal and taxiway edge line cleaning at Cyril E. King Airport. For Henry E. Rohlsen Airport, a $995,728 contract was awarded to Virgin Islands Paving Inc. for runway rubber removal and restriping of airfield markings. The board determined that the lowest bidder for the latter project was not eligible due to licensing issues.
Additionally, the board received updates on lease agreements, including the execution of a lease with Global Solutions LLC for a proposed hotel development on St. Croix. “We have sent correspondence to the tenant, requested a timetable from them as to the development and their financing,” Dowe said, noting the board’s ongoing oversight of the project’s progress.
The VIPA board has approved an amendment to its lease agreement with the Virgin Islands Waste Management Authority after a review found the landfill operation was using more land than previously documented.
The investigation determined that, beyond the original nine acres, an additional 38 acres had been occupied, bringing the total leased area to 47 acres. The updated lease now reflects the actual land in use and aligns with fair market value assessments.
Under the revised agreement, the Waste Management Authority must pay $1.1 million to the Port Authority within six months. A further $3.6 million penalty, accrued under a previous agreement for missed landfill closure deadlines, will be deferred if all project milestones are met by August 2028. Should the authority fail to meet these milestones, the penalty will become immediately due and a daily fine of $1,000 will be reinstated, as established in a 2012 agreement.
The changes were made to comply with Federal Aviation Administration requirements, which prohibit the diversion of airport-related revenues to other government uses. Officials said the revised lease and penalty structure are designed to ensure federal compliance and protect the Port Authority’s eligibility for future funding.
The Virgin Islands Port Authority board also approved a series of policy updates and financial measures. Actions included revisions to employee compensation and travel policies, authorization to publish proposed changes to marine rates and hold public hearings, and the creation of a Contract Administrator position. Temporary employees will now receive holiday premium pay in line with central government practices.
St. Croix Source
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