Virgin Islands senators pressed the West Indian Company Limited on millions of dollars in unpaid payment-in-lieu-of-taxes during an oversight hearing, questioning why the government-owned cruise port operator has paid nothing for years even as revenues rise and cruise traffic rebounds.
WICO, which operates the main cruise ship docking facilities on St. Thomas, appeared before the Legislature’s Economic Development and Agriculture Committee to explain its finances, governance, and future plans. Lawmakers focused on roughly $11.8 million the public corporation owes in payment-in-lieu-of-taxes, a payment set up by law for public corporations that cannot be taxed directly, and what that debt means for the government after hurricanes and the COVID-19 shutdown.
Committee members began by emphasizing that WICO is a public entity subject to territorial law. Company president and chief executive officer Joseph Boschulte reminded senators that “The West Indian Company Limited is a U.S. Virgin Islands corporation… granted the status and authority of a public corporation pursuant to its enabling statute, Act Number 5826.”
The dispute centered on WICO’s failure to make any PILOT payments for many years. By law, the company must pay the greater of 10% of its revenues or $700,000 annually. Senators said that the obligation has gone unmet even as revenue improved, and Chair Hubert Frederick told Boschulte that “zero is not an option” for a government-owned corporation.
Boschulte countered that while revenues have increased, WICO has not generated net income once debt service and operating costs are factored in. “If we were a 100% private company, we would pay no taxes because we didn’t make any money,” he said. “But because there is a law, irrespective of whether you make money, you still owe $700,000.” He told senators the company has not had the cash flow to meet that obligation, a situation worsened by the COVID-19 shutdown, when cruise activity — which accounts for nearly 90% of WICO’s revenue — came to a halt for more than 18 months, and earlier disruptions caused by hurricanes Irma and Maria.
Lawmakers questioned whether that explanation justified paying nothing at all, noting that the obligation exists regardless of profit. Several asked why no partial payments had been made as a show of good faith.
WICO’s recent financial performance featured prominently in the debate. Boschulte said the company recorded $9.4 million in revenue in fiscal year 2025, a 14% increase, while operating expenses declined 6% to $6.2 million. After accounting for roughly $3.3 million to $3.4 million in annual debt service on a refinanced bond totaling about $51 million, however, the company still ended the year with a net loss.
Boschulte said WICO has remained unprofitable since the pandemic, citing the complete halt of cruise calls during COVID-19 and lingering impacts from hurricanes Irma and Maria. Senators responded that the company also benefited from public support, including about $4 million in American Rescue Plan Act funding and roughly $700,000 in Paycheck Protection Program assistance that was later forgiven.
Those figures prompted questions about why WICO has not paid anything toward its PILOT obligation despite receiving taxpayer support. Several lawmakers called for clearer accounting of cumulative losses and liabilities before considering any change to the law.
Under questioning, Boschulte pledged new steps. He said WICO would deliver a detailed PILOT study within 60 days, including comparisons with other public corporations, and propose a revised payment amount for legislative consideration. He also committed to making at least a partial payment in the current fiscal year if revenue projections hold.
“We are going to make a concerted effort to pay something on the PILOT,” Boschulte said. “Within 60 days, we will get some information back so the body could at least consider it.”
Sen. Alma Francis Heyliger expressed strong opposition to forgiving WICO’s debt and questioned the company’s apparent lack of effort to pay it down. “If I don’t see any motivation on your part to pay me, what motivates me to reduce it?” she asked, adding, “We have to hold some of these agencies accountable… I am not in support of wiping out this debt.”
Sen. Carla Joseph pressed WICO on why its recent bond refinancing had not included a plan to address its obligations to the government, and called for a fuller accounting of the company’s finances, citing its “running loss” and requesting more detail on its books. She also said, “We, the government of the Virgin Islands, give you, WICO, money during your hard time, and when we are facing hardship, we don’t get any money at all.” Other senators voiced similar concerns about holding government agencies to their legal obligations.
Beyond finances, lawmakers and WICO officials discussed the mounting strain on the St. Thomas cruise docks as ship sizes grow. Boschulte and Marine and Cruise Services Director Mark Sabino said the facility is nearing capacity for today’s largest vessels.
“The industry is overrunning available berthing downstream… Right now, we’re coming down to a point where we can only put two 6,000-passenger ships on the dock,” Sabino said. Boschulte told senators that WICO is working with the Virgin Islands Port Authority as bids move forward for harbor dredging on the Charlotte Amalie side.
He said WICO handles about 58% of cruise passengers visiting the territory and projects roughly 1.1 million passengers and more than 360 ship calls at Havensight in 2026.
The hearing also touched on plans for the historic Catherineberg estate, which WICO owns. Boschulte noted about $1.5 million in Federal Emergency Management Agency funding tied to repairs there, and senators discussed completing the work and transferring the property to the government as one way to reduce part of WICO’s outstanding PILOT debt.
Lawmakers also raised broader tourism concerns, including the need for more local food and cultural offerings at Havensight. Heyliger suggested incorporating culturally based booths and local foods in the area WICO controls, giving visitors insight into the history and traditions of the Virgin Islands.
Boschulte agreed that modern cruise passengers seek authentic experiences and are increasingly interested in local food and culture. He also noted that WICO is coordinating with the Department of Tourism to enhance the overall guest experience.
The committee took no immediate action on changing the PILOT law or forgiving any portion of WICO’s $11.8 million obligation. Boschulte’s promised proposal within 60 days and a possible partial payment this fiscal year are expected to form the basis for future oversight, as senators decide how vigorously to press the public corporation.
