Despite a bill passed in June 2011 appropriating $300,000 from the St. John Capital Improvement Fund for the construction of a vendors plaza in Cruz Bay, the funds were never allocated and the structure was never built.
At Thursday night’s Committee on Culture, Historic Preservation, Youth and Recreation hearing at the Cruz Bay Legislature, which drew about 70 people, V.I. Legislature Post Auditor Jose George told senators there was insufficient money in the St. John Capital Improvement Fund to cover the appropriation.
"The issue is the St. John Capital Improvement Fund has a negative balance of $3.9, almost $4 million," said George. "There are a total of $9 million of encumbrances on the fund."
Despite filing a formal request on Jan. 17 with the governor’s office for information detailing the St. John Capital Improvement Fund encumbrances, George said he has not received a reply.
Sen. Craig Barshinger said that since the Legislature is the only body that can make appropriations, the St. John Capital Improvement Fund should have a balance of more than $5 million.
"The balance of the fund is $5 million, not $9 million in encumbrances," said Barshinger. "I know because the Legislature is the only body that can make appropriations to that fund.”
Barshinger said that on Nov. 16, 2011, the ending balance of the St. John Capital Improvement Fund was “more than $5 million. Since then the only thing done to the fund is receive $1.5 million in property taxes each year."
Barshinger led a fight against Gov. John deJongh Jr.’s administration to stop using the St. John Capital Improvement Fund for trash hauling, which ended in an override of the governor’s veto.
"We told the governor, ‘You can’t use the St. John Capital Improvement Fund to haul our trash,’" said Barshinger. "You don’t do it on St. Croix and you don’t do it on St. Thomas. We need the money for capital improvements and we deserve the money for capital improvements."
The lack of information from the governor’s office is intolerable, Barshinger said. "The Post Auditor is diplomatic and I don’t have to be so diplomatic," he said.
"When the post auditor asks for financial information, they must give it to him. They are giving him the runaround."
Barshinger didn’t rule out the possibility that the funds were used inappropriately.
"Perhaps someone dipped into the fund to do other things," Barshinger said. "That fund was not supposed to be touched. That money was earned by your property taxes and that money should be spent here."
"Someone thieved the money," he said. "We have to get that money put back into the St. John Capital Improvement Fund."
The people of St. John deserve answers about the accounting of the fund, he added.
"I am tired of the governor not following through on the mandates of this legislature," said Barshinger. "He has stonewalled us rather than come clean. That is a sign of gross disrespect for the people of the territory and of St. John."
Testifying on the status of the Vendors Plaza at Thursday’s hearing were St. John Administrator Leona Smith, Department of Licensing and Consumer Affairs Commissioner Wayne Biggs and Department of Tourism Assistant Commissioner Monique Sibilly-Hodge. All three supported the construction of a vendors plaza on St. John offering locally made and locally grown food, art and crafts.
Sibilly-Hodge said, "This would be a much needed venue for local artists and crafts. A vendors plaza on St. John would go a long way towards promoting our culture and sharing it with our visitors."
Biggs said a St. John vendors plaza would be "a valued asset to the community."
Biggs said he and the St. John administrator led several vendors plaza advisory council meetings, but the group stopped convening when told that funds were not available.
"The committee hit a roadblock when we were informed that the funds were not readily available because the St. John Capital Improvement Fund was over-appropriated," Biggs said.
Committee Chairman Myron Jackson explained that the vendors plaza offered a needed economic opportunity as well as a chance to showcase St. John culture.
"This plaza should have been built," Sen. Jackson said. "The economic opportunity was there to support our people. This was a great opportunity and we missed the mark. We’ll keep the fire burning on this issue and you keep the fire burning on your elected officials on this issue too."
The lack of money in the St. John Capital Improvement Fund should not stop the government from reaching a purchase agreement for about 170 acres in the Estate Carolina area of Coral Bay, according to Coral Bay Community Council President Sharon Coldren.
The Legislature passed a bill in 2011 appropriating a total of $4 million over four years from the fund to purchase part of the 170-acre Marsh Estate from the Egbert Marsh Trust. While none of allocation was ever made due to a lack of money in the fund, just having a purchase agreement would help CBCC obtain funds to possibility offset that cost, Coldren explained.
"It is important to understand that the guidelines for virtually all land acquisition and construction grant funding require that a written purchase agreement with the property owner be included with the grant application, fully spelling out the condition of sale, any conservation easement, tax treatment provisions, below appraised value provisions, timing, etc.," Coldren said.
The major land acquisition would enable the government to offer a territorial park with hiking trails, interpretive programs at historic ruins on the property and, on the lower flat land, allow for co-uses by government agencies like V.I. Waste Management Authority and Department of Public Works.
"The government owns very little land in the Coral Bay area to meet the needs of its residents," said Coldren. "I realize the governor’s staff has lots of alligators to deal with and this is just a lizard and they probably did not have time to reflect on the high value of making this purchase agreement for a bulk purchase."
The land acquisition would make property available in a "logical co-location for multiple public purposes, from a community center to public recreation to Waste Management Authority and Public Works needs, and even a new fire station," said Coldren.
The lack of funds in the St. John Capital Improvement Fund should not stop the purchase agreement from going forward, Coldren added.
"The Egbert Marsh Trust and Sheldon Marsh have shown a strong and generous interest in cultural and environmental conservation and should be applauded for this and encouraged to go forward by the V.I. government.
Coldren called it a “win-win-win situation” – for the government, the people of Coral Bay, future users and tourists, and for the current property owner.
Barshinger said if the governor’s office continues to withhold financial information, that information will be subpoenaed. "The next step is to subpoena the information and have it delivered within two weeks," he said.
Jackson and committee member Sen. Tregenza Roach were present at Thursday’s hearing. Barshinger, although present, is not a member.
Committee members Sens. Shawn-Michael Malone, Nereida "Nellie" Rivera-O’Reilly, Janette Millin Young, Terrence "Positive" Nelson and Kenneth Gittens were absent.
Invited testifiers Gov. John deJongh Jr., Lt. Gov. Gregory Francis, Office of Management and Budget Director Debra Gottleib, Department of Public Works Commissioner Darryl Smalls, Department of Property and Procurement Commissioner Lynn Maduro and Department of Finance Commissioner Angel Dawson did not attend Thursday’s hearing.
Note: this story has been updated to correct an erroneous suggestion that the Senate’s $4 million appropriation purchased the entire Marsh Estate. According to Sheldong Marsh, the majority of the funds for the purchase came from the Forest Legacy Grant.
