During a V.I. Economic Development Commission decision meeting held via Zoom Thursday, governing board members voted in favor of allowing Margaritaville Vacation Club by Wyndham, Inc., an opportunity to resolve its compliance matters after the company came under scrutiny for multiple violations related to its economic development benefits.
“This matter is before this body today for resolution of noncompliance for the period of January 1, 2022, to Dec. 31, 2022,” said Margarita A. Benjamin, managing director of economic development. “On Aug. 5, 2024, we transmitted the compliance review, which identified areas of noncompliance or cases where compliance could not be determined. By letter dated Dec. 5, 2024, and in a subsequent email, the beneficiary’s legal counsel responded to these findings. We are here today to address and resolve the compliance matters.”
Following Benjamin’s remarks, the governing board entered a closed executive session to deliberate on the application and compliance issues.
Among the findings, Margaritaville Vacation Club by Wyndham, Inc. was cited for the following:
- Failure to comply with Standard Provision No. 10 (local payroll account), as the company demonstrated that it offers multiple payment options to employees, including checks drawn on a local payroll account.
- Failure to register job vacancies with the Virgin Islands Labor Department. The company is now required to submit clearance from the Virgin Islands Labor Department within 10 days of receipt of the clearance.
- Noncompliance due to inability to substantiate compliance with Standard Provision No. 14 (Compliance with Law) due to a pending response from the Department of Planning and Natural Resources.
- Failure to provide adequate proof of support for athletic and sporting events, insurance purchases, and local procurement. The company must submit proof of compliance within 30 days of the board’s decision or contribute $15,000 to the Industrial Promotion Fund.
- Compliance with Special Provisions: In compliance with Special Provision Nos. 5 (Retirement), 9 (Paid Internship Program), 12 (EDB Approved Business Right-of-First-Refusal), and 17 (New Shareholders, Partners, Owners, Members or Beneficiaries).
- Hotel Occupancy Report: Did not meet the requirements of Special Provision No. 13 (Bureau of Economic Research Monthly Hotel Occupancy Report) and directed the company to provide proof of filing within 30 days of the board’s decision.
- Margaritaville Vacation Club is required to provide proof that it offers sufficient health and life insurance, as well as vacation, sick leave, and paid holidays. Failure to comply within 30 days will result in a $20,000 contribution to the Industrial Promotion Fund.
- A fine of $2,720 was imposed for failure to timely file the annual report and certificate of good standing with the Office of the Lieutenant Governor.
In addition to Margaritaville’s case, the board also voted in favor of reconsidering applications involving the Historic Area Revitalization Project Joint Venture and SK Venture Group, LLC.
Board members present at the meeting included Philip Payne, Positive Nelson, Kevin Rodriguez, Anise Hodge, Jose Penn, and Gary Molloy.
