During the Port Authority’s monthly board meeting on Wednesday, several items were approved including the board’s decision to lease additional space on the former Addelita Cancryn Junior High School property to Priority Roro Services and increasing their bond limit. The board also shared concerns over ongoing engineering projects.
Priority Roro Services requested the board’s approval to lease additional space on the former junior high school field for the expansion of its business. The company has been operating its maritime cargo activities at the Crown Bay Sandfill and wants to relinquish the property space at 15 Crown Bay Sandfill for a larger one. The former space at the Crown Bay Sandfill, which consists of 9,752 square feet will be swapped for 17,004 square feet of space.
“So what we would do is we would amend their lease and substitute the premises they will be giving up for the new premises,” said Port Authority legal counsel Catherine Hendry.
According to the board, another shipping company requested use of marine space from the Port Authority. Therefore, once Priority Roro Services surrenders its space, the interested party will be given the opportunity to occupy it.
“Interestingly, one of the new folks that wants to come in is a person that operates a company that operates out of St. Croix, and they deal with fuel primarily,” said Carlton Dowe, Port Authority executive director.
“The swap doesn’t appear to be equitable,” said Port Authority board member Joseph Boschulte. “They’re returning a small piece and they’re getting a significant amount more in square footage,” he added and asked the board if consideration of the parcel sizes was evaluated. “My concern is for the Port Authority to ensure that they are receiving fair value for what they’re giving up.”
Dowe responded, “It’s an increase in the dollar value, but what’s significant in the whole transaction is, the ability to bring in another party bringing fuel to the territory, increasing capacity for the territory.”
The board unanimously voted to approve the request.
In other news, the Virgin Islands Port Authority is currently working on six active construction projects in the St. Thomas-St. John District. Of the six projects, the CEKA Parking Garage & Transportation Center and the CEKA Taxiway A West Reconstruction are nearing completion. The parking garage is expected to be complete in March 2025 and minor work remains to be carried out for the completion of the runway.
“There are also numerous projects in the scope development, planning, and design phases that the team continues to work on,” said Majonia Denis, engineer with the Port Authority.
The total cost that the Authority in the St. Thomas-St. John District has obligated under active construction projects is $65,664,386.04.
In St. Croix, the Port Authority is currently working on eight active construction projects. The HERA Runway 10-28 Shoulder and Electrical Vault Construction is in its closeout phase, however two projects raised concerns with the board. First, the Pier Blow-Out Panels and Structural Repair project was addressed.
“Due to issues that were called out during multiple fields inspections and meetings, VIPA is currently in discussion with the contractor regarding termination of the contract,” said Denis.
“Do we anticipate paying them the remaining $29,000-$30,000 left on the contract,” asked board member Derek Gabriel, who also inquired about seeking damages for almost $300,000 paid to the contractor Tang How Brothers.
Denis replied, “We did a settlement with the contractor because there were some change orders that they requested from us, and due to the amount of liquidated damages that they incurred on the project we did a settlement with them.”
Denis added that the remaining money owed in the contract to the contractor will not be paid out.
Second, board members questioned the status of the Gordon A. Finch Molasses Dock Terminal Cargo Building, as the occupancy permit has not yet been issued.
Denis said due to a “small leak issue with the roof,” the occupancy permit has not yet been acquired, but he expects repairs to be completed by next week in order to obtain the occupancy permit.
The total cost that the Authority in the St. Croix district has obligated under active construction projects is $44,618,957.08.
Board members Joseph Boschulte, Leona Smith, Derek Gabriel, Willard John, Gordon Rhea, and Kevin Rodriguez were present.
