Crystal Blue Operations (CBO) is revitalizing 13 properties it manages in the Charlotte Amalie Historic District. Cristina Blackburn, CBO’s chief executive officer, said at an Economic Development Commission public hearing on Thursday that tax incentives are critical for it to continue.
CBO has combined the projects which, according to one testifier, would change the face of the harbor front and call the overall project HARP (Historic Area Revitalization Project). The off-island owners of the properties would receive a federal tax break on the capital gains they invested in St. Thomas because the district is a Federal Qualified Opportunity Zone.
Work has been ongoing on some of the projects. Properties include International Plaza, Curacao Gade, Hibiscus Alley, Creque’s Alley, Palm’s Passage, the Big House, Continental Building, Bankhaus, Crown House, Berne’s Alley, and C and M Caron Building. Phase 1 of the project, which cost about $2.7 million, is complete. Phase 2 will be completed at the end of 2026 and cost $12 million. Phase 3 is expected to be finished in 2029. The properties were acquired for $28 million.
Board members had positive responses to the presentation.
Positive Nelson called the plan “a major, major project.” He also called Sean Krigger to testify. Krigger, director of the Department of Planning and Natural Resource’s State Historic Preservation Office, said CBO has complied with all requests and “has been a pleasure to work with.”
Gary Molloy said he liked CBO’s vision.
Philip Payne said the plan looked like a dream but added things don’t always go as they should in the territory.
According to testimony, CBO, which originally had two employees, now has 18 employees. The company projects that the construction part of the project will create over 250 jobs.
Joseph Sibilly, facilities manager, Richard Berry, a consultant, and Erika Kellerhaus, legal representative, participated in Thursday’s presentation.
Berry, a past President of the St. Thomas-St. John Chamber of Commerce said, “This is a once-in-a-generation opportunity to revitalize our historic district.” He also said that the properties in their present condition were beyond an eyesore and were “a blight.”
Off-island owners have acquired the 13 properties included in HARP since 2021 for $31 million. CBO manages four other properties in Charlotte Amalie, but they are not part of HARP.
The 360,000 square feet of property to be renovated in HARP includes residential as well as commercial space. Phase 2 of the plan includes 41 parking spaces. Payne said that is a small number and won’t help the parking problem downtown. Blackburn said the Crystal Blue Operations team understood that and would be working to find a “creative solution” to the parking problem. CBO hopes to have added 111 parking spaces by the end of the project.
Berry said a key to completing the project, which would enhance the attractiveness of the Virgin Islands to tourists, was a good “collaborative working relationship with government agencies.”
Blackburn told The Source after the hearing that the team walked out feeling proud of its work. She added, “We believe in our mission, and we believe in these projects, which are absolutely attainable if we, as a company and as an engaged member of the community, work hard to make it happen.”
