Three Christiansted businesses received tax breaks from the V.I. government Thursday as the Economic Development Authority board of directors approved the first dual applications for Enterprise Zone Commission tax incentives and small business loans through the Economic Development Bank.
DeCastro Enterprises and Savor St. Croix will each receive tax-exempt status for five years as they plan to redevelop crumbling infrastructure in downtown Christiansted. A third business, Jolly Green Maintenance, received a $150,000 tax credit.
DeCastro applied for Enterprise Zone tax exemptions for repairs of a mixed-use two-story building. DeCastro has committed to investing $120,000 to rehabilitate the building. DeCastro plans to convert the second floor and the separated building into a bed and breakfast with seven residential units and maintain three commercial rental spaces on the first floor. One will likely be a hair salon.
The company committed to employing three V.I. residents, one permanently full-time and two temporarily. DeCastro Enterprises will receive a 90 to 100 percent reduction in taxes. The board also approved a $395,000 loan to DeCastro.
Savor St. Croix applied for Enterprise Zone tax credits for the revitalization of a multi-section, mixed-use three-story building located at 45 King St. It received a $500,000 loan to purchase the property. The property needs a new roof, new plumbing, new windows, and new electric wiring. The renovated building will be a mixed-use facility with two commercial rental spaces on the lower floor, one for Savor St. Croix’s manufacturing and production facility. They also plan to have a retail space and a restaurant. They also plan to have three residential units on the upper floors.
Savor St. Croix has committed to investing $154,000 to rehabilitate the building and employing four temporary V.I. employees. The sole owner, Jahnesta Ritter, will invest $218,000 in capital investment. Savor St. Croix will receive tax credits equal to 25 percent of its investment in the rehabilitation. Based on the input-output model, the total investment of $474,000 for the Enterprise Zone Commission will support approximately $1,430,000 in direct, indirect, and induced economic output in the territory.
Jolly Green Maintenance applied for Enterprise Zone tax credits for the revitalization of a mixed-use two-story building located at 31 King St. The property is currently vacant and needs new electrical wiring, new plumbing, a new floor, new cabinetry, and air conditioning.
The renovated building will be a mixed-use facility with two commercial rental spaces on the first floor and four residential units on the second floor. Jolly Green committed to investing $150,000 to rehabilitate the building and employing three temporary V.I. employees.
The six-member Virgin Islands Enterprise Zone Commission approved each application unanimously.