A proposed lease of government property in Red Hook to Tropical Marine on St. Thomas raised no concerns in the Senate Committee on Rules and Judiciary Thursday. Still, the proposed length of lease of government property in Charlotte Amalie for an Art Museum did.
Additionally, the third bill considered at the hearing, which would increase the limit for outstanding bonds for the Port Authority from $100 million to $500 million, may require an amendment before it gets final approval.
Sen. Milton Potter introduced a bill that would raise the limit on outstanding bonds that the Port Authority could hold. He stated that the measure was necessary to “provide financial flexibility to the Port Authority to address its critical needs.”
Sen. Clifford Joseph said he thought a 400 percent raise was too much to be given all at once. He said he wanted to see the bill amended to $300 million. However, no amendment was added, and the bill was voted out of the committee, with Sens. Clifford Joseph and Alma Francis Heyliger voting against it. It, like the two lease agreements, is on its way to being considered by the full Senate.
On March 18, the Senate Finance Committee approved an increase in the limit. The standard procedure is for a bill to be aired at the committee under which jurisdiction it falls. If approved, it is sent to the Rules and Judiciary Committee, and if it passes through that committee, it still requires approval from the full Senate before being sent to the governor’s desk.
Tropical Marine has leased the property in Red Hook since 2005. According to V.I. Property and Procurement Assistant Commissioner Vincent Richards at an earlier hearing, it “has made significant investments on both the upland and submerged properties, beautifying the premises by creating a lighted and secure parking area.”
The 50-year agreement between the Virgin Islands government and Tropical Marine to operate a retail shop, commercial spaces, a marine engine repair shop, import activities, and a parking lot in Red Hook with an annual rent of $30,000 was approved unanimously.
However, several senators expressed concern about the length of the proposed lease to Charles M. Kim V.I. Foundation to open a Virgin Islands Museum of Art at 48B Norre Gade in Kings Quarter on St. Thomas. The 99-year lease between the government includes an option to renew for two additional terms of 50 years each, at an initial annual rent of $1,200, with no rent due during the construction period, which runs from months one through 60.
In a press release issued after the meeting, Sen. Kenneth Gittens said, “I fully support the vision of the museum and its potential to enrich our community. However, I cannot in good conscience support a 99-year lease that would bind our grandchildren and great-grandchildren. As a legislator, my responsibility is to represent the best interests of the public, and, therefore, my decision is ultimately about ensuring that future generations have the freedom and flexibility to adapt to an ever-changing world. A 99-year lease represents an extraordinarily long commitment, one that limits future decision-making and could potentially constrain future community priorities.”
Gittens added that he would be willing to support a shorter-term lease, noting that the same goals could likely be achieved.
The building on the property is known as the Hamburg-Amerika Line building. Senators characterized the building as an eyesore and also as one of the most prime pieces of real estate in the territory.
Committee members Sens. Clifford Joseph, Avery Lewis, Angel Bolques Jr., Alma Francis Heyliger, Kenneth Gittens, Carla Joseph, and Milton Potter attended Thursday’s hearing.
