TURNBULL QUICKLY SIGNS SUBMERGED LANDS BILL

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May 28, 2003 – A day after the Senate approved it, Gov. Charles W. Turnbull on Wednesday signed into law a bill ratifying a submerged lands lease agreement and Coastal Zone Management permit issued to IN-USVI, LLC, the company planning to redevelop and expand the derelict Yacht Haven property on St. Thomas.
The governor touted approval of the project as a "turning point in the yachting, boating and marina industry in the territory which is destined to influence the economy and popularity of the Virgin Islands as a tourist and yachting center for years to come."
Further, he said, "This project is proof that our islands remain a viable option for new ventures, both large and small, and that when we work together we can make things happen."
It was the speediest processing of a piece of legislation through the lawmaking labyrinth in recent memory. Turnbull submitted the bill to Senate President David Jones on Sunday, when he also called the Senate into special session for Tuesday. Monday was a government holiday. The Legislature convened at 10 a.m. Tuesday and passed the bill at the end of the day.
On Tuesday night, the governor issued a one-page release thanking the lawmakers for "their prompt and favorable action." By that action, he said, the Legislature "has shown that, in spite of any misgivings or reservations expressed by some about the process, it supports the critical importance of this project."
The major misgivings — raised last Friday when the lease and permit were before the Senate Planning and Environmental Protection Committee and reiterated at Tuesday's special session — were:
– That CZM law forbids the leasing of submerged lands.
– That CZM law limits the length of allowable leases to 20 years, whereas the lease proposed was for 90 years.
– That IN-USVI is a subsidiary of a company that is in the process of being acquired by another corporate entity, and thus may not have a continuing interest in the Yacht Haven property as required by CZM law.
The bill submitted by the governor dealt only with submerged lands in Long Bay. IN-USVI acquired the former hotel property last year and has been granted a 90-year lease by The West Indian Co. for some seven acres of adjacent landfill that WICO owns
The bill called for ratification of the lease and permit "notwithstanding the provisions" of the V.I. Code. Whether it will be tested in court and, if so, whether it will survive the test are imponderables for the moment.
At Tuesday's special session, an executive of IN-USVI's parent company, Insignia Financial Group, said an approved lease for the submerged lands, as opposed to a permit for their occupancy, was essential to its being able to secure financing for the development — which, according to Turnbull currently carries a $150 million price tag. Also essential, the Insignia official said, was provision for reassignment of the lease.
Insignia also argued that if the Yacht Haven project was not included in a proxy disclosure that it was required to file by Wednesday, the pending merger would still go through, but IN-USVI, a wholly owned subsidiary of Insignia, would not necessarily be part of the deal.
The governor apparently was referring to this consideration when he wrote in his transmittal letter to Jones on Sunday: "If I understand the situation, if this development is to move forward and this investment is to be made for the people of the Virgin Islands, the time to act is now. This is the 12th hour and the cock is crowing."
In the Tuesday night release, Turnbull said that he was "firmly convinced that the process followed throughout consideration of the application has been proper and forthright and that the public input required by statute has been well served before both the CZM and the Legislature."
In his letter to Jones on Wednesday accompanying the signed legislation, Turnbull wrote that "the simple removal of the current derelict buildings and structures is of immeasurable value in terms of the territory's image and appearance to the approximately 1.7 million cruise ship passengers what visit Charlotte Amalie each year."
IN-USVI is proposing to build a new hotel and marina, retail and commercial facilities, a yacht club and an esplanade walkway from Havensight to downtown Charlotte Amalie, and to rehabilitate a public park near the Lovers Land intersection with Long Bay Road.
Turnbull said in Wednesday's letter to Jones that "it is important in this economic climate that we project an image of sound and deliberate judgment in support of economically viable and environmentally responsible development that will benefit the people of the territory and bring much-needed revenues to our treasury."

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TURNBULL QUICKLY SIGNS SUBMERGED LANDS BILL

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May 28, 2003 – A day after the Senate approved it, Gov. Charles W. Turnbull on Wednesday signed into law a bill ratifying a submerged lands lease agreement and Coastal Zone Management permit issued to IN-USVI LLC., the company planning to redevelop and expand the derelict Yacht Haven property.
The governor touted approval of the project as a "turning point in the yachting, boating and marina industry in the territory which is destined to influence the economy and popularity of the Virgin Islands as a tourist and yachting center for years to come."
Further, he said, "This project is proof that our islands remain a viable option for new ventures, both large and small, and that when we work together we can make things happen."
It was the speediest processing of a piece of legislation through the lawmaking labyrinth in recent memory. Turnbull submitted the bill to Senate President David Jones on Sunday, when he also called the Senate into special session for Tuesday. Monday was a government holiday. The Legislature convened at 10 a.m. Tuesday and passed the bill at the end of the day.
On Tuesday night, the governor issued a one-page release thanking the lawmakers for "their prompt and favorable action." By that action, he said, the Legislature "has shown that, in spite of any misgivings or reservations expressed by some about the process, it supports the critical importance of this project."
The major misgivings — raised last Friday when the lease and permit were before the Senate Planning and Environmental Protection Committee and reiterated at Tuesday's special session — were:
– That CZM law forbids the leasing of submerged lands.
– That CZM law limits the length of allowable leases to 20 years, whereas the lease proposed was for 90 years.
– That IN-USVI is a subsidiary of a company that is in the process of being acquired by another corporate entity, and thus may not have a continuing interest in the Yacht Haven property as required by CZM law.
The bill submitted by the governor dealt only with submerged lands in Long Bay. IN-USVI acquired the former hotel property last year and has been granted a 90-year lease by The West Indian Co. for some seven acres of adjacent landfill that WICO owns
The bill called for ratification of the lease and permit "notwithstanding the provisions" of the V.I. Code. Whether it will be tested in court and, if so, whether it will survive the test are imponderables for the moment.
At Tuesday's special session, an executive of IN-USVI's parent company, Insignia Financial Group, said an approved lease for the submerged lands, as opposed to a permit for their occupancy, was essential to its being able to secure financing for the development — which, according to Turnbull currently carries a $150 million price tag. Also essential, the Insignia official said, was provision for reassignment of the lease.
Insignia also argued that if the Yacht Haven project was not included in a proxy disclosure that it was required to file by Wednesday, the pending merger would still go through, but IN-USVI, a wholly owned subsidiary of Insignia, would not necessarily be part of the deal.
The governor apparently was referring to this consideration when he wrote in his transmittal letter to Jones on Sunday: "If I understand the situation, if this development is to move forward and this investment is to be made for the people of the Virgin Islands, the time to act is now. This is the 12th hour and the cock is crowing."
In the Tuesday night release, Turnbull said that he was "firmly convinced that the process followed throughout consideration of the application has been proper and forthright and that the public input required by statute has been well served before both the CZM and the Legislature."
In his letter to Jones on Wednesday accompanying the signed legislation, Turnbull wrote that "the simple removal of the current derelict buildings and structures is of immeasurable value in terms of the territory's image and appearance to the approximately 1.7 million cruise ship passengers what visit Charlotte Amalie each year."
IN-USVI is proposing to build a new hotel and marina, retail and commercial facilities, a yacht club and an esplanade walkway from Havensight to downtown Charlotte Amalie, and to rehabilitate a public park near the Lovers Land intersection with Long Bay Road.
Turnbull said in Wednesday's letter to Jones that "it is important in this economic climate that we project an image of sound and deliberate judgment in support of economically viable and environmentally responsible development that will benefit the people of the territory and bring much-needed revenues to our treasury."

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SCHOOL CLOSING DELAYED; HEARING POSTPONED

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May 28, 2003 – Sen. Ronald Russell announced on Wednesday that, in light of recent developments, he has postponed a planned Thursday evening hearing on the reported plans to close Edith L. Williams Elementary School.
Russell said he was postponing the meeting because "the Department of Education has delayed any action related to the closure" of the St. Thomas school. "I am very relieved that, at least for the time being, the students and teachers will not be relocated for the coming school year," he said.
"This situation is not resolved," he added, "but delaying the closing allows the administration and all concerned parties — parents, teachers and students — time to work out a solution that will be best for all involved."
The hearing had been scheduled for 6 p.m. Thursday on St. Thomas, according to a release from Russell's office. That was the time when the Senate Education and Youth Committee, which Russell chairs, had been scheduled to meet.
The official legislative calendar had not included that information as part of the committee's agenda for the Thursday meeting. It listed the committee as considering two bills — one to establish a territorywide pilot after-school program for pupils in kindergarten through sixth grade, and the other to eliminate the statute of limitations regarding student loans.
On the night of May 14, a group of about 50 Williams parents and other stakeholders congregated on the steps of the Legislature Building while a Committee of the Whole meeting was under way inside. The group, there to protest plans to close the school, met with Russell and Sen. Carlton Dowe on the steps. (See "Parents protest plans to close Williams school".)
A memorandum dated April 29 from district schools Superintendent William I. Frett to Carolyn Archer, Williams principal, stated in part: "On March 18, I informed you that the declining enrollment of Edith Williams Elementary School necessitated its closing at the end of the present school year…"
However, in a May 9 letter, the Williams faculty and staff stated that the school's enrollment has actually increased in the last three years. Parents began circulating a petition to protest the school's closing.
On May 16, Education public information officer Juel Anderson said the department's position was that "there was a proposal made" to close the school. "The decision is still not concrete and final," she said.
"There is a process that we are going through internally," Anderson said then. "We have to advise people in the department and get their concerns." She added that the principal, parents and teachers "found out something, and they got up in arms — they felt they were left out of the loop."
An aide in Russell's office confirmed on May 16 that a "town meeting" on the matter had been scheduled for 6 p.m. May 29; efforts to obtain further information then were unsuccessful.
Russell expressed appreciation on Wednesday to Education Commissioner Noreen Michael, Superintendent William Frett and Williams Principal Carolyn Archer "for their sensitive and competent response to this issue." He said that "their willingness to compromise and keep the teachers and parents informed halted what could have been a very volatile situation."

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STARFEST KUDOS AND A PREVIEW OF THINGS TO COME

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May 28, 2003 – The Reichhold Center for the Arts on St. Thomas ended its 2002-2003 season last weekend on a high note with the production of STARfest9. It's hard to believe that we are facing the 10th anniversary next year of this annual showcase of Virgin Islands talent. According to the Reichhold Center's director, David Edgecombe, there will definitely be a STARfest10.
As in the past, this year's show was packed with something for everyone's taste. On Saturday, the moderate house, nearly two-thirds full, was slow to warm up, which could be due to the constant flow of latecomers. The Reichhold Center mostly has an 8 p.m. curtain; however, people were still trooping in on Saturday after 9 p.m.
This is a problem that needs to be addressed by management. It is disturbing to the audience and insulting to the performers when a stream of latecomers after the curtain has gone up are trying to find their seats, interrupting the flow of the show while having to climb past those already seated.
Edgecombe started the evening by giving well-deserved praise to his production team, most of whom have been with STARfest from the beginning. Musical director Josephine Thomas-Lewis, choreographer Malayisha Rabsatt and her assistant, Princess Penn, and set and lighting director Denise Humphrey are among those to be commended for putting on another professional and entertaining production.
Kory Davis, 2002 V.I. Carnival King, and Cherrie Wheatley handled the master and mistress of ceremony assignments with charm and ease. They also provided commentary for the modeling segment, introduced this year as a new element of the show. Juan Hughes, a professional model and makeup artist, made a significant contribution to this part of the show.
The male singing group All the Way did well on it's a capella rendition of the R&B classic "In the Still of the Night," which provided a strong opening piece. Featured dancers VIP — Jhade Pilgrim, Johanie Taylor and 2003 V.I. Carnival Queen first runner-up Michelle Wiltshire — were appealing and fun to watch.
However, most outstanding was Kmisha Counts, a 15-year-old Charlotte Amalie High School student who brought the audience to its feet with her rendition of the Dolly Parton-Whitney Houston mega-hit "I'll Always Love You." This young lady has the makings of a major star. She's also a contestant in this year's Hal Jackson's Talented Teen competition scheduled for the Reichhold in July.
Her mom, attorney Denise George Counts, told me: "Kmisha has done a lot of singing since she was very young, but her voice really matured in the last year. I'm thrilled that she is doing so well."
Another highlight of the show was singer Osayande McCleverty, who is seeking a recording deal on the mainland and came back, to the delight of his screaming fans, just to do STARfest9. Singer Naomi, from St. Croix, added her sultry-bluesy voice and stage presence to the mix.
Edgecombe found an enjoyable way to meld the old and the new in his choice of material for the show. It was good to hear some of the big hits from years gone by and also to bring them to the attention of these young performers. The use of digital video as an introduction mechanism to bring the performers on stage is a good idea that needs some fine tuning.
The big news from Edgecombe is his intention to submit videotapes of this year's production to "American Idol," "Fame" and "Star Search," among other talent seekers. "One of the underlying aspects is to get STARfest participants more exposure to the recording industry and talent scouts," he said. "We recognize that any one of these shows featuring talent from all over the country is also available to us here in the U.S. Virgin Islands."
Locally, Edgecombe has been negotiating with TV2 to produce a variety show. "Television is the most powerful medium on earth — and it's a joy to watch your local folks perform," he said. "It also is self-empowering for these young people to see themselves on the air."
V.I. hopefuls may soon get another chance at stardom. The Disney Co. is coming to the Virgin Islands to cast for its Tony award-winning Broadway show "The Lion King."
"We were contacted through the Department of Tourism's office in New York that Disney was interested in the talent here in the territory," Edgecombe said. "Auditions for singers will be held at the Reichhold Center on Monday, June 30, and they will see dancers on Tuesday, July 1st. The callbacks will be on Wednesday, July 2."
Edgecombe is calling on all STARfest alumni to take advantage of this opportunity and come out for the Disney auditions.
And that's not all. Edgecombe for a long time has wanted to write and produce a local television sitcom, and he has plans to tackle that during his hiatus this summer.
Hats off to the STARfest9 cast. With all the talent abound here, I wouldn't be surprised to see one of our own "making it big," on television or even Broadway, in the near future.

Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.

STARFEST KUDOS AND A PREVIEW OF THINGS TO COME

0
The Reichhold Center for the Arts ended its 2002-2003 season last weekend on a high note with the production of STARfest9. It's hard to believe that we are facing the 10th anniversary next year of this annual showcase of Virgin Islands talent. According to the Reichhold Center's director, David Edgecombe, there will definitely be a STARfest10.
As in the past, this year's show was packed with something for everyone's taste. On Saturday, the moderate house, nearly two-thirds full, was slow to warm up, which could be due to the constant flow of latecomers. The Reichhold Center mostly has an 8 p.m. curtain; however, people were still trooping in on Saturday after 9 p.m.
This is a problem that needs to be addressed by management. It is disturbing to the audience and insulting to the performers when a stream of latecomers after the curtain has gone up are trying to find their seats, interrupting the flow of the show while having to climb past those already seated.
Edgecombe started the evening by giving well-deserved praise to his production team, most of whom have been with STARfest from the beginning. Musical director Josephine Thomas-Lewis, choreographer Malayisha Rabsatt and her assistant, Princess Penn, and set and lighting director Denise Humphrey are among those to be commended for putting on another professional and entertaining production.
Kory Davis, 2002 V.I. Carnival King, and Cherrie Wheatley handled the master and mistress of ceremony assignments with charm and ease. They also provided commentary for the modeling segment, introduced this year as a new element of the show. Juan Hughes, a professional model and makeup artist, made a significant contribution to this part of the show.
The male singing group All the Way did well on it's a capella rendition of the R&B classic "In the Still of the Night," which provided a strong opening piece. Featured dancers VIP — Jhade Pilgrim, Johanie Taylor and 2003 V.I. Carnival Queen first runner-up Michelle Wiltshire — were appealing and fun to watch.
However, most outstanding was Kmisha Counts, a 15-year-old Charlotte Amalie High School student who brought the audience to its feet with her rendition of the Dolly Parton-Whitney Houston mega-hit "I'll Always Love You." This young lady has the makings of a major star. She's also a contestant in this year's Hal Jackson's Talented Teen competition scheduled for the Reichhold in July.
Her mom, attorney Denise George Counts, told me: "Kmisha has done a lot of singing since she was very young, but her voice really matured in the last year. I'm thrilled that she is doing so well."
Another highlight of the show was singer Osayande McCleverty, who is seeking a recording deal on the mainland and came back, to the delight of his screaming fans, just to do STARfest9. Singer Naomi, from St. Croix, added her sultry-bluesy voice and stage presence to the mix.
Edgecombe found an enjoyable way to meld the old and the new in his choice of material for the show. It was good to hear some of the big hits from years gone by and also to bring them to the attention of these young performers. The use of digital video as an introduction mechanism to bring the performers on stage is a good idea that needs some fine tuning.
The big news from Edgecombe is his intention to submit videotapes of this year's production to "American Idol," "Fame" and "Star Search," among other talent seekers. "One of the underlying aspects is to get STARfest participants more exposure to the recording industry and talent scouts," he said. "We recognize that any one of these shows featuring talent from all over the country is also available to us here in the U.S. Virgin Islands."
Locally, Edgecombe has been negotiating with TV2 to produce a variety show. "Television is the most powerful medium on earth — and it's a joy to watch your local folks perform," he said. "It also is self-empowering for these young people to see themselves on the air."
V.I. hopefuls may soon get another chance at stardom. The Disney Co. is coming to the Virgin Islands to cast for its Tony award-winning Broadway show "The Lion King."
"We were contacted through the Department of Tourism's office in New York that Disney was interested in the talent here in the territory," Edgecombe said. "Auditions for singers will be held at the Reichhold Center on Monday, June 30, and they will see dancers on Tuesday, July 1st. The callbacks will be on Wednesday, July 2."
Edgecombe is calling on all STARfest alumni to take advantage of this opportunity and come out for the Disney auditions.
And that's not all. Edgecombe for a long time has wanted to write and produce a local television sitcom, and he has plans to tackle that during his hiatus this summer.
Hats off to the STARfest9 cast. With all the talent abound here, I wouldn't be surprised to see one of our own "making it big," on television or even Broadway, in the near future.

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CORRECTION: REGARDING ICC PAYMENTS TO MAPP

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In an article I wrote for the Source on Jan. 16, 2003, I wrote:
"Kenneth Mapp, beginning while Lt. Governor in the Schneider administration, was sent some $25,000 a month in 'training payments' from an off-island company owned by Innovative Communication Corp., according to sworn testimony of three witnesses."
Rather than attributing the statement regarding the timing of such payments to the three witnesses directly, the article should have attributed the statement to Attorney Lee Rohn, who had taken sworn testimony from the three witnesses. However, none of the witnesses testified or told Attorney Rohn that Kenneth Mapp was paid by ICC or any of its subsidiaries while employed as Lt. Governor of the Virgin Islands.
Rohn made the statement that the payments had begun while Mapp was Lt. Governor in a letter to the editor dated Nov. 1, 2002, and in a letter to Governor Turnbull on May 21, 2002.
She made both letters available to the Source. I relied on the letters rather than the actual sworn statements. At no time did I contact any ICC subsidiary or ICC employee to ask for the company's side of the story, as I relied solely on Ms. Rohn's comments regarding the deposition of these witnesses. Both ICC and Mapp deny the veracity of Ms. Rohn's statement regarding the timing of the payments.
The Source and I regret any confusion that may have been caused by the article.

PUBLIC WORKS: ST. CROIX TO GET ITS BUSES BACK

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May 28, 2003 – St. Croix's transit system should have both of its absentee Vitran buses back on island and in service shortly, according to Public Works Commissioner Wayne Callwood.
Sen. Norman Jn Baptiste brought the absence of the two buses to public attention earlier this month when he wrote Callwood that "several irate constituents have called my office complaining about the unavailability of Vitran bus service."
Baptiste said he had heard that the buses had been transported to St. Thomas for use during V.I. Carnival, which ended May 3.
Callwood says that's half right.
"We brought one bus over [to St. Thomas from St. Croix] to assist in Carnival, then we brought another bus that was inoperable to be repaired," he said on Tuesday.
Since the transporting of the bus needed for Carnival had been arranged, he said, it made sense to ship the broken-down bus over along with the other one.
At the time, he said, St. Croix had the most Vitran buses in operation.
The decision to redeploy part of St. Croix's fleet came in consultation with federal officials. The St. Croix buses are five years newer and can repaired more easily than those on St. Thomas, Verne Callwood Jr., Public Works transportation director, said on Wednesday. "The only reason we brought the St. Croix buses over is because the St. Thomas buses need to be retired," he said.
The Public Works Transit Division allows St. Croix to run up to four buses serving 100 to 150 passengers daily. Verne Callwood Jr. said St. Thomas is allowed to run up to five buses serving about 500 people a day, he said, but because of breakdowns in its 13-year-old fleet, only three are in service — and one of those is the borrowed bus from St. Croix.
Wayne Callwood said both St. Croix buses will be returned, one perhaps this week yet. The bus now in service on St. Thomas will be sent back once mechanics finish replacing a transmission on one of the older St. Thomas buses, he said.
Verne Callwood said plans to resolve the bus shortage are in the works. A Vitran task force is calling for Public Works to acquire 10 new buses — four for St. Croix, five for St. Thomas and one for St. John, where ridership is estimated at 300 passengers a day.
The new buses would be paid for with a combination of $1 million in federal funds and $1.2 million in local funds, he said.
"I hope it will happen this year," Verne Callwood said.

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PUBLIC WORKS: ST. CROIX TO GET ITS BUSES BACK

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May 28, 2003 – St. Croix's transit system should have both of its absentee Vitran buses back on island and in service shortly, according to Public Works Commissioner Wayne Callwood.
Sen. Norman Jn Baptiste brought the absence of the two buses to public attention earlier this month when he wrote Callwood that "several irate constituents have called my office complaining about the unavailability of Vitran bus service."
Baptiste said he had heard that the buses had been transported to St. Thomas for use during V.I. Carnival, which ended May 3.
Callwood says that's half right.
"We brought one bus over [to St. Thomas from St. Croix] to assist in Carnival, then we brought another bus that was inoperable to be repaired," he said on Tuesday.
Since the transporting of the bus needed for Carnival had been arranged, he said, it made sense to ship the broken-down bus over along with the other one.
At the time, he said, St. Croix had the most Vitran buses in operation.
The decision to redeploy part of St. Croix's fleet came in consultation with federal officials. The St. Croix buses are five years newer and can repaired more easily than those on St. Thomas, Verne Callwood Jr., Public Works transportation director, said on Wednesday. "The only reason we brought the St. Croix buses over is because the St. Thomas buses need to be retired," he said.
The Public Works Transit Division allows St. Croix to run up to four buses serving 100 to 150 passengers daily. Verne Callwood Jr. said St. Thomas is allowed to run up to five buses serving about 500 people a day, he said, but because of breakdowns in its 13-year-old fleet, only three are in service — and one of those is the borrowed bus from St. Croix.
Wayne Callwood said both St. Croix buses will be returned, one perhaps this week yet. The bus now in service on St. Thomas will be sent back once mechanics finish replacing a transmission on one of the older St. Thomas buses, he said.
Verne Callwood said plans to resolve the bus shortage are in the works. A Vitran task force is calling for Public Works to acquire 10 new buses — four for St. Croix, five for St. Thomas and one for St. John, where ridership is estimated at 300 passengers a day.
The new buses would be paid for with a combination of $1 million in federal funds and $1.2 million in local funds, he said.
"I hope it will happen this year," Verne Callwood said.

Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.

PUBLIC WORKS: ST. CROIX TO GET ITS BUSES BACK

0
May 28, 2003 – St. Croix's transit system should have both of its absentee Vitran buses back on island and in service shortly, according to Public Works Commissioner Wayne Callwood.
Sen. Norman Jn Baptiste brought the absence of the two buses to public attention earlier this month when he wrote Callwood that "several irate constituents have called my office complaining about the unavailability of Vitran bus service."
Baptiste said he had heard that the buses had been transported to St. Thomas for use during V.I. Carnival, which ended May 3.
Callwood says that's half right.
"We brought one bus over [to St. Thomas from St. Croix] to assist in Carnival, then we brought another bus that was inoperable to be repaired," he said on Tuesday.
Since the transporting of the bus needed for Carnival had been arranged, he said, it made sense to ship the broken-down bus over along with the other one.
At the time, he said, St. Croix had the most Vitran buses in operation.
The decision to redeploy part of St. Croix's fleet came in consultation with federal officials. The St. Croix buses are five years newer and can repaired more easily than those on St. Thomas, Verne Callwood Jr., Public Works transportation director, said. "The only reason we brought the St. Croix buses over is because the St. Thomas buses need to be retired," he said.
The Public Works Transit Division allows St. Croix to run up to four buses serving 100 to 150 passengers daily. Verne Callwood Jr. said on Wednesday that St. Thomas is allowed to run up to five buses serving about 500 people a day, he said, but because of breakdowns in its 13-year-old fleet, only three are in service — and one of those is the borrowed bus from St. Croix.
Wayne Callwood said both St. Croix buses will be returned, one perhaps this week yet. The bus now in service on St. Thomas will be sent back once mechanics finish replacing a transmission on one of the older St. Thomas buses, he said.
Verne Callwood said plans to resolve the bus shortage are in the works. A Vitran task force is calling for Public Works to acquire 10 new buses — four for St. Croix, five for St. Thomas and one for St. John, where ridership is estimated at 300 passengers a day.
The new buses would be paid for with a combination of $1 million in federal funds and $1.2 million in local funds, he said.
"I hope it will happen this year," Verne Callwood said.

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SENATE APPROVES SUBMERGED LANDS LEASE

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May 27, 2003 – The Senate in a bittersweet special session on Tuesday approved a bill submitted over the Memorial Day weekend by the governor that ratifies an agreement between the government and IN-USVI, LLC to lease submerged and filled lands in Long Bay to be developed as a marina for mega-yachts, a hotel, and retail and entertainment facilities.
Despite concerns about the Coastal Zone Management statute and the far-reaching 90-year term of the lease, all senators present but one — Ronald Russell — voted for the measure. No one on either side of the Senate floor expressed anything but full support for the Yacht Haven redevelopment project. But several people, both senators and witnesses, lamented the way the approval process was handled by the administration.
Even with two "notwithstanding the provisions" of the V.I. Code references in the lease agreement, senators were pressured on all sides to act quickly to move the project along by approving the lease, for two reasons:
– First, because Insignia Financial Group, the corporate owner of IN-USVI, is in the middle of a merger.
– Second, because of the abysmal fiscal state of the Virgin Islands government. And so 13 senators, with one nay and one absent, voted to approve the lease — not on the basis of law, but on the basis of precedent and pressure.
In his transmittal letter to Senate President David Jones, Gov. Charles W. Turnbull had said: "If I understand the situation, if this development is to move forward and this investment is to be made for the people of the Virgin Islands, the time to act is now. This is the 12th hour and the cock is crowing."
It is likely the governor was referring to the pending $418 million cash merger of Insignia Financial Group, a publicly held company, and CB Richard Ellis, also a public company.
24-hour deadline cited
Insignia is under deadline to implement a "proxy filing" within the next 24 hours, according to Andrew Farkas, chief executive officer of Insignia. If the Yacht Haven deal is not included in the proxy disclosure, Farkas said, it wouldn't affect the merger, but IN-USVI, a wholly owned subsidiary of Insignia, wouldn't necessarily be part of the deal.
Invoking Security and Exchange Commission privacy rules, Farkas declined to provide details of the high-finance dealings of the two companies. He would say only that the project would still go forward if the lease were not approved on Tuesday, just not necessarily with the same players.
Those players were what Sen. Celestino White wanted to know about. Taking up his recent crusade for exacting "the truth," he said: "We want to know that what we are approving does not involve" what he called "fronting" for some other business or deal.
White said he wanted assurance that "You is who we see," referring to Farkas, and that "after you win our confidence," Farkas wouldn't bring some "Johnny come lately" to the table.
White pressed Farkas to state on the record that it was not his "intent to assign" the lease to someone else. However, the lease allows for reassignment or transfer. Farkas said this is necessary to secure financing. He introduced a theme that continued throughout the proceedings by saying "There's not a financial institution in the world that would lend" the developers money without such rights of transfer within the lease.
However, Farkas told White, "To the extent that this remains in my control," he would be the person sitting in the Virgin Islands moving the project along to what he hoped would be a finished product in three to four years, "please God."
Things that "nobody" would do
Commenting on White's proposed amendment to make the lease null and void if Insignia or IN-USVI should attempt to transfer the property to another entity, Farkas gave a similar response: "No lender on the planet would agree to such a thing."
Helen Gjessing, president of the Save Long Bay Coalition, used even stronger words than White in her indictment of the way the deal had been handled. She accused "development-giddy senators" of urging the government to buy into the demands of "a huge outside real estate conglomerate" that "sees our plight and tells the government that it can solve our economic woes."
Darlin Brin, Port Authority executive director, cautioned against making the lease for 90 years. It was explained that the period was so it would be "co-terminus" with a lease already executed between The West Indian Co. and Insignia for the landfill part of the development.
And there were more cautions from Edward E. Thomas Sr., WICO president, who told the Source after the meeting ended that "no financial institution" would lend money for the project if there were two landlords holding two leases of different terms.
Asked why WICO had executed a 90-year lease for the landfill, Thomas said: "We got a good deal," adding that the financial gains would be felt by "the people," too. He didn't explain further.
However, Brin, who was asked to testify by Sen. Louis P. Hill, chair of the Planning and Environmental Protection Committee, said lending institutions usually require 30-year terms at most.
Brin was the program manager when the Coastal Zone Management program was developed and as such, he said, he was very familiar with the CZM statute. He said the law does not allow for the leasing of submerged lands, and that it allows only for permitting for up to 20 years.
These same points had been made by legislative legal counsel Yvonne Tharpes in her report submitted to Hill at the start of Friday's Planning and Environmental Protection Committee hearing on the IN-USVI lease and CZM development permit. It was Tharpes' 31-page opinion that led Hill as committee chair to call an abrupt halt to the hearing — prompting the governor on Sunday to call Tuesday's special session of the full Senate.
Amending the law vs. breaking it
Brin said that overlooking the statute by approving the governor's bill could set a bad precedent. Instead, he said, the Legislature should seek to amend the statute by "carefully crafting" an amendment. He said the amendment should be patterned after the idea of "minor" and "major" CZM permits, thereby differentiating preferential treatment for large projects versus small ones. Otherwise, he warned, all the small marinas on the island currently operating under permits would start looking for lease agreements instead.
The submerged lands, Brin said, were given to the V.I. government by the federal government in 1974 and are "public trust" lands given to the government to safeguard for the people.
Dean Plaskett, Planning and Natural Resources commissioner, said precedent for the Insignia lease had been set in at least two instances — the Banco Popular development in Altona and the Crown Bay landfill. Banco Popular has a 90-year lease and VIPA has five 20-year renewable Crown Bay leases, he said.
Brin said the two projects were not the same at the Yacht Haven redevelopment, in part because they weren't about submerged lands. "Submerged land is not like up-land," he said, again cautioning: "We've got to be very careful. Even if you have the right to lease, we don't know what's going to happen 70 years from now."
During a recess, Brin said that "a lease that provides for 90 years is tantamount to a sale." He added, "We don't have the right to sell public trust land."
Under the permitting process, permits expire periodically and then can be renewed. The same usually applies to a lease. But when asked what would happen at the end of a 30-year lease, Plaskett said he guessed the property would revert to the government.
One thing that would revert, it was revealed, is all of the leased property in the e vent of a default by the lessee. All of the property — not just the property originally leased to Insignia — would go to WICO.
Default would occur if the developer failed to pay the rent or meet any of the terms of the lease. Rent for the period of development – the first five years — is $75,000 a year. Thereafter, the rent, which Farkas said increases every year, is based on the "fair rental value of the premises as unimproved real property."
Sen. Luther Reneé also expressed a need for caution. "We must be careful that while we are in a financial crises that we don't do something that will … deprive future generations of these natural resources," he said.
At least one senator wasn't concerned about the natural resources. Sen. Adlah "Foncie" Donastorg said the harbor was "dead" and that it had been "dead for a long, long time."
Donastorg has been a vocal opponent of several development deals. As chair of the Planning and Environmental Protection Committee in the 24th Legislature, he adamantly opposed development of Botany Bay on St. Thomas's western end.
What the people want to know
But on Tuesday Donastorg made it clear he didn't see Yacht Haven in the same light. "I find most people saying "When are they going to develop that derelict piece of property?'" he said.
Sen. Raymond "Usie" Richards objected to the limited time given the Senate to address the development issues.
Sen. Ronald Russell, the only Senator to vote against the governor's bill, said his concern was that if the law weren't followed, the development could be slowed down by lawsuits.
"When you don't follow the procedures, you open the doors to the people who are against the project"– which he is not — Russell said. "They won't fight it based on the value of the project, but on the basis of the law," he said.
The administration was roundly criticized for waiting until the last minute to let the Legislature have the documents and information necessary to begin the hearing process.
White said he was not happy with the "strategy of placing the Legislature in a bad light."
He said, "They hold, hold, hold until the Legislature is forced to act."
Sen. Lorraine Berry told Farkas: "You have done your homework. No one's questioning that." She then asked Plaskett and Thomas if they had known about the impending merger and attendant need for haste; both said they hadn't.
But when she asked Farkas if someone in the administration had known about it, he replied, "Yes, someone knew."
Farkas said Insignia had been waiting six weeks for the permitting issue to be placed on the Legislature's agenda.
Although the process of getting it to the Legislature might have been sluggish, the atmosphere in the chamber on Tuesday was charged with the need for expediency.
Twice Sen. Shawn-Michael Malone expressed a need to push on and deal with the matter immediately. "I believe the time to address this eyesore is here," Malone said, referring to the derelict Yacht Haven hotel, which is to be replaced. "We risk losing this project if we don't approve it today," he said.
Sen. Carlton Dowe turned the tables, however, calling on the governor also to move "post haste" on several capital projects that have been languishing for years. He also called for "dialogue before hearings," adding: "I have never seen a permit come from DPNR without a problem."
Dowe told the story of Tom Qualey, a white man who Dowe said used to go into the housing communities picking up young men to work on his construction projects. Qualey was rewarded, Dowe said, by "never being touched" by any "robbers." The residents in the housing communities would never have allowed him to be harmed, Dowe said, making the point to Farkas that he expected IN-USVI to employ "the youth" of the housing communities both during the construction phase and after.
500 jobs projected for construction phase
At a time when the economy is in a downturn, the government is broke and tourism, the territory's major product, is at an all-time low, Farkas offered in his prepared statement a promise of jobs, tax and rent revenues, and general goodwill when the project begins. He said 500 jobs will be created when construction begins, "drawn largely from local labor and sub-contractors during the first 18 months of demolition and building."
Once the complex of hotel, marina, restaurants, bars and boutiques opens, 600 jobs with an annual payroll of $1.8 million are expected to be generated, he said, along with $7.6 million in taxes in the first year of "base operations," $5.4 million per year from gross receipts, income taxes, and excise taxes, and $8.4 million in rent over 34 years under the terms of the submerged lands lease, and an additional $14. 4 million to be paid to WICO.
Farkas said it is anybody's guess what the return of the charter and luxury yacht business would mean for revenues. Estimates have ranged from $80 million to $150 million a year. Little of the taxes will be paid by IN-USVI, however, if it qualifies for Economic Development Commission benefits, as it hopes to do.
Farkas said the company has yet to apply for the EDC benefits. We can't apply until we have the permits" and other documentation in place, he said.
Legal counsel's opinion unchallenged
In the end, no one accused Tharpes of being wrong in her opinion. Sen. Emmett Hansen II asked why, if she were wrong, the governor's bill included the "notwithstanding the provisions" clauses. Obviously, he said, the governor's bill sought to circumvent the very legal issues that Tharpes had raised.
Hansen was one of several senators who admonished Farkas for the animosity displayed toward Tharpes in a letter Farkas sent to Senate President David Jones on Sunday regarding Tharpes' last-minute legal opinion that caused Friday's hearing to be adjourned.
Farkas then apologized to Tharpes for his tone, stating that he was frustrated because he had been forced to cancel weekend plans with this wife and six of her college friends and their husbands.
Later, when asked if he had actually written the letter to Jones, Farkas admitted he hadn't. James Casner, local legal counsel for Insignia, said the letter had been drafted by several people, including himself; he did not name the others.
Donastorg asked the Insignia executives what would happen if the land and lease should be transferred at some point. "Can you assure the people to whom you transferred it would keep these commitments?
Elie Finegold, Insignia chief innovative officer, said, "There is no way to guarantee or control what could happen."
Grave concerns were set aside after the vote was taken and elation filled the room, with the hope that soon "Rat Haven," "Hotel Beirut" or simply "the eyesore" on Long Bay Road and in the harbor will begin a transformation into the "cornerstone of economic development," as Malone put it, for St. Thomas. The work should begin within six to eight weeks, according to John Stadler, point person on Insignia's development group.
Sen. Douglas Canton Jr. was absent from the special session, having been excused due to a previously planned off-island trip.

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