VIPA Inks Exclusive Deal With Holland America Line Cruises

January 26, 2007

Jan. 25, 2007 – Holland America Line cruise ships will now pull into Crown Bay, rather than the Havensight dock, thanks to an exclusive agreement approved by the V.I. Port Authority at its Wednesday board meeting.
This is the second exclusive agreement VIPA has secured with major cruise lines since last fall when it reached a similar contract with Princess Cruise Lines. That agreement was the one which provoked the West Indian Co. Ltd. (See "Taking Care of Business: Dispute Between Feuding Agencies Ends").
The approximately 10-year agreement includes American Holland subsidiary, Windstar Cruises. One of those luxury sailing ships is due to dock Sunday at Crown Bay.
The Holland America agreement guarantees at least 48,000 passengers will be brought to Crown Bay in its first year; 80,000 in each of the second, third, fourth and fifth years; and 100,000 in the sixth through 10th years. Should the cruise line exceed the stated minimum number of passengers, it will receive reimbursements for passenger fees it has paid. For instance, if the line brings more than 54,000 passengers in the first year, VIPA will reimburse the line for $54,490 of the passenger fees it has paid. The fees total $9.35 per passenger for the first five years of the agreement. The fees cannot be increased more than $2.50 per passenger over the second five-year period.
Holland America also gets berthing rights over other cruise ship lines, with the exception of Princess Lines.
The authority operates the Crown Bay dock, which has recently been expanded, and dredged, as well as the Crown Bay Center .
Former board members had approved the agreement in a poll vote last month, according to board chair Robert O' Connor, after the board in November and December was unable to muster a quorum to ratify the agreement, which was executed Dec. 22, 2007.
He said the agreement could not wait any longer. "We found it [Holland America] a willing participant … rather than wait for a quorum, we did it this way."
Darlan Brin, VIPA executive director, said with the $31 million Crown Bay Center almost completed, and the government's operating agreement with the Florida Caribbean Cruise Association expired, the authority couldn't wait. O'Connor agreed, "We floated bonds for $500 million; we can't just sit back or we'll go to jail."
Current members Leslie Milliner, acting Public Works Commissioner Robert Moorehead, O 'Connor and Eleanor Thraen voted to ratify the agreement. Elliott MacIver Davis, acting attorney general, abstained.
Four board members are no longer part of the governing body, owing to resignations under the new administration. They are: Kerry Drue, former Attorney General; George Phillips, former DPW commissioner; Dean Plaskett, former Planning and Natural Resources commissioner; and Pamela Richards, former Tourism commissioner.
The Crown Bay Center, which is not yet officially open, has a checkered and colorful political history, spanning two decades and many administrations. It has changed from public development to private development, and back again to the public realm (See "Crown Bay Development Set to Open in Late 2005").
First Bank, one of the center's major tenants had a grand opening Wednesday, as it christened its 14th branch in the territory with dignitaries, a steel band and refreshments. It sits on the western end of the property.
The development surrounds a replica of a West Indian sugar mill, constructed of local rock and complete with the windmill blades. It will house an eatery, but Diana Richards, center manager, declined to name the tenant. Many of the shops were open and doing business Wednesday. An official opening date for the center has not been set, Richards said. She is waiting until more businesses are open.
In other business, after meeting in executive session, the board announced that property management director Ken Hobson, a 20-year VIPA employee, had been promoted to deputy executive director.
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