V.I. PUTS STRINGS ON CHASE DEAL; VICB SAYS NO

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Although territorial banking regulators approved the Virgin Islands Community Bank’s bid to acquire Chase Manhattan’s local assets Tuesday, VICB officials said they won’t proceed with the deal under the government’s conditions.
After 10 months of deliberations with federal agencies, the V.I. Banking Board, which is chaired by Lt. Gov. Gerard Luz James II, approved the proposed acquisition, James said in a statement Tuesday afternoon. No details were given regarding the approval, such as whether VICB’s Industrial Development Commission tax breaks would roll over to the Chase acquisitions.
However, Michael Dow, VICB president and chief executive officer, said in a statement issued by his bank that the terms in the Banking Board’s approval were intended to "defeat the feasibility" of the transaction by "placing novel and intrusive conditions never before imposed on any other bank application."
One such condition is a $300,000 annual banking fee that Dow said was "arbitrarily" placed on VICB but no other banks in the territory. He also said the board is requiring government approval of 30 percent of VICB’s directors, despite it being a Federal Deposit Insurance Corp. bank.
"VICB will not close this transaction under these onerous terms," Dow said.
James, meanwhile, lauded the board’s work on the acquisition proposal, saying that the U.S. Treasury and Justice Departments and the FDIC all contributed to the decisions made.
"With the assistance of these agencies," James said, the board was able to scrutinize the proposal effectively and "determine the impact it would have" on the Virgin Islands economy. He added, "We have lived up to our fiduciary responsibility, and I can unequivocally say that the best interest of the people of the Virgin Islands has been met."
Dow blasted the local government for being anti-business. He cited remarks made by his boss, VICB and Innovative Communication Corp. owner Jeffrey Prosser, last week at a business function. Speaking to the St. Thomas-St. John Chamber of Commerce in a rare public address, Prosser criticized the government for impeding the growth of the private sector.
The Banking Board’s conditional approval is "indicative" of the V.I. government’s effort to "overtax and over-regulate the private sector," Dow said. He added, "The conditions imposed by the Banking Board have created a situation whereby this transaction is no longer feasible."
It was not clear whether the tax benefits enjoyed by VICB would automatically extend to the Chase acquisitions — worth much more than VICB's own assets. VICB is the only bank in the territory that receives IDC benefits. It is exempt from all real property, gross receipts and excise taxes, and from 90 percent of income taxes.
VICB proposed to buy the four Chase branches on St. Thomas, the sole branch on St. John and the two on St. Croix. Also included is Chase Trade Inc., a management company for foreign sales corporations, which are subsidiaries of U.S. export companies.
According to VICB’s application to the FDIC, Chase’s deposits were at $357.9 million as of June 30, 1998, making Chase "second in the USVI behind Banco Popular." Of that amount, $72.4 million was in government deposits and $285.5 million consisted of individual, partnership and corporation deposits. Of the $285.5 million, $14.4 million was attributable to Chase Trade FSC accounts, meaning the money was not from V.I. sources.
Chase's Eastern Caribbean Regional Banking Group had a total of $314.8 million in loans outstanding as of June 30, 1999, according to the report. Of that sum, $254.7 million was booked to the USVI branches.
Chase’s local work force as of Feb. 23, 1999, is listed in the report as 210 on St. Thomas, 26 on St. Croix and 10 on St. John.
The VICB board members who signed a unanimous resolution last July approving the deal are Prosser and his wife, Dawn Prosser; his long-time St. Croix business associate Ann E. Abramson; another long-time associate, Nebraska attorney John P. Raynor; J'Ada Finch-Sheen, ICC vice president for legal and human resources; and Dow.
As part of the agreement, both individually and on behalf of his company Innovative Communications Subsidiary Company LLC, Prosser agreed to guarantee that VICB would fulfill its obligations under the agreement. Those included keeping all the branches open for at least 90 days and offering "comparable employment" to all existing employees for at least one year after the purchase.

V.I. OKS CHASE DEAL WITH STRINGS; VICB SAYS NO

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Although territorial banking regulators approved the Virgin Islands Community Bank’s bid to acquire Chase Manhattan’s local assets Tuesday, VICB officials said they won’t proceed with the deal under the government’s conditions.
After 10 months of deliberations with federal agencies, the V.I. Banking Board, which is chaired by Lt. Gov. Gerard Luz James II, approved the proposed acquisition, James said in a statement Tuesday afternoon. No details were given regarding the approval, such as whether VICB’s Industrial Development Commission tax breaks would roll over to the Chase acquisitions.
However, Michael Dow, VICB president and chief executive officer, said in a statement issued by his bank that the terms in the Banking Board’s approval were intended to "defeat the feasibility" of the transaction by "placing novel and intrusive conditions never before imposed on any other bank application."
One such condition is a $300,000 annual banking fee that Dow said was "arbitrarily" placed on VICB but no other banks in the territory. He also said the board is requiring government approval of 30 percent of VICB’s directors, despite it being a Federal Deposit Insurance Corp. bank.
"VICB will not close this transaction under these onerous terms," Dow said.
James, meanwhile, lauded the board’s work on the acquisition proposal, saying that the U.S. Treasury and Justice Departments and the FDIC all contributed to the decisions made.
"With the assistance of these agencies," James said, the board was able to scrutinize the proposal effectively and "determine the impact it would have" on the Virgin Islands economy. He added, "We have lived up to our fiduciary responsibility, and I can unequivocally say that the best interest of the people of the Virgin Islands has been met."
Dow blasted the local government for being anti-business. He cited remarks made by his boss, VICB and Innovative Communication Corp. owner Jeffrey Prosser, last week at a business function. Speaking to the St. Thomas-St. John Chamber of Commerce in a rare public address, Prosser criticized the government for impeding the growth of the private sector.
The Banking Board’s conditional approval is "indicative" of the V.I. government’s effort to "overtax and over-regulate the private sector," Dow said. He added, "The conditions imposed by the Banking Board have created a situation whereby this transaction is no longer feasible."
It was not clear whether the tax benefits enjoyed by VICB would automatically extend to the Chase acquisitions — worth much more than VICB's own assets. VICB is the only bank in the territory that receives IDC benefits. It is exempt from all real property, gross receipts and excise taxes, and from 90 percent of income taxes.
VICB proposed to buy the four Chase branches on St. Thomas, the sole branch on St. John and the two on St. Croix. Also included is Chase Trade Inc., a management company for foreign sales corporations, which are subsidiaries of U.S. export companies.
According to VICB’s application to the FDIC, Chase’s deposits were at $357.9 million as of June 30, 1998, making Chase "second in the USVI behind Banco Popular." Of that amount, $72.4 million was in government deposits and $285.5 million consisted of individual, partnership and corporation deposits. Of the $285.5 million, $14.4 million was attributable to Chase Trade FSC accounts, meaning the money was not from V.I. sources.
Chase's Eastern Caribbean Regional Banking Group had a total of $314.8 million in loans outstanding as of June 30, 1999, according to the report. Of that sum, $254.7 million was booked to the USVI branches.
Chase’s local work force as of Feb. 23, 1999, is listed in the report as 210 on St. Thomas, 26 on St. Croix and 10 on St. John.
The VICB board members who signed a unanimous resolution last July approving the deal are Prosser and his wife, Dawn Prosser; his long-time St. Croix business associate Ann E. Abramson; another long-time associate, Nebraska attorney John P. Raynor; J'Ada Finch-Sheen, ICC vice president for legal and human resources; and Dow.
As part of the agreement, both individually and on behalf of his company Innovative Communications Subsidiary Company LLC, Prosser agreed to guarantee that VICB would fulfill its obligations under the agreement. Those included keeping all the branches open for at least 90 days and offering "comparable employment" to all existing employees for at least one year after the purchase.

FULL POLICE PRESENCE TO RETURN TO C’STED

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The 10-month search for a new police substation for Christiansted will end on June 1 when officers move into a new building at the Bassin Triangle intersection.
Police officers have been covering Christiansted and the east end out of the Patrick Sweeney Headquarters in Golden Grove since last August when the department’s lease extension of the downtown Post Office building expired. Because the headquarters building is several miles from Christiansted, St. Croix Deputy Police Chief said the move will mean better service for residents in La Grande Princess all the way east to Point Udall.
"The most important thing is for us to cover the area and do it in a timely manner," Francis said. "We’re looking forward to returning to Christiansted."
The new leased building will house 45 to 50 officers on various shifts, Francis said. Work crews are currently removing an old underground storage tank from the area in front of the building while touch up work is being done inside.
Meanwhile, a space on Times Square donated to the department will continue to be used by downtown bicycle patrols, Francis said. The St. Croix Community Foundation donated the Times Square location several months ago and businesses and individuals kicked in $15,000 to equip and renovate it.
"We intend to maintain that for our bicycle unit," Francis said, "and for the time being as a sub-substation."

GUNFIRE KILLS MAN ON MAIN STREET, ST. THOMAS

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This is an updated version of an earlier story.
A young man shot fatally on Main Street near the Raadets Gade intersection in Charlotte Amalie Tuesday afternoon was identified as Jason Carroll, the son of Assistant U.S. Attorney James Carroll and his wife, Cecilia.
A police statement issued late Tuesday afternoon indicated that shots were fired in an altercation but that Carroll was apparently an innocent victim of the gunfire.
At least two shots were fired at about 1:20 p.m., and Carroll was dead by the time police and two ambulances arrived on the scene a few minutes later, according to St. Thomas-St. John Chamber of Commerce executive director Joe Aubain, who heard the gunfire and rushed to the scene.
Carroll, a University of the Virgin Islands student, was struck in the abdomen and died within three minutes, Aubain said. A statement issued by the Police Department late Tuesday afternoon said the victim was wounded in the chest and the left arm and described him as "an apparent innocent by-passer."
According to unconfirmed reports, Carroll was shot after intervening in an attempted robbery in a Main Street jewelry store. The police statement said the shots were fired after "two individuals apparently had an altercation." The victim was felled near the H.Stern Jewellers shop just east of Raadets Gade.
Aubain said he and a Chamber of Commerce colleague, Joe Elmore, were walking back to the chamber office from lunch on Back Street and had just turned the corner onto Main Street by the Captain's Corner gift shop when they heard two or three shots. "I thought at first it was a backfire, but Joe [Elmore] knew what it was," Aubain said. Elmore, a longtime staff worker with the American Red Cross, has had experience serving in war-torn areas.
Aubain said Elmore and another individual at the scene started cardiopulmonary resuscitation on the victim while Aubain rushed into a nearby shop to call the police. Carroll died before or just as an ambulance arrived, he said.
According to Aubain, while most tourists in the vicinity were "basically trying to stay in other stores or head towards the waterfront," a large crowd of about a hundred people gathered around the victim within moments of the shooting. Aubain said he "tried to help with crowd control" until police arrived. He said he was not aware of any bicycle officers on the scene and did not observe any weapon by Carroll's body.
Other witnesses said the assailant was a black man about 5'9" tall, wearing a white shirt and blue jeans, and that he ran toward Back Street after the shooting. The police statement said a suspect was being sought.
According to a friend of his family, Carroll had just finished his spring semester studies at UVI and was downtown to look for a summer job.

GUNFIRE LEAVES UVI STUDENT DEAD ON MAIN STREET

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This is an updated version of an earlier story.
A young man shot fatally on Main Street near the Raadets Gade intersection in Charlotte Amalie Tuesday afternoon was identified as Jason Carroll, the son of Assistant U.S. Attorney James Carroll and his wife, Cecilia.
A police statement issued late Tuesday afternoon indicated that shots were fired in an altercation but that Carroll was apparently an innocent victim of the gunfire.
At least two shots were fired at about 1:20 p.m., and Carroll was dead by the time police and two ambulances arrived on the scene a few minutes later, according to St. Thomas-St. John Chamber of Commerce executive director Joe Aubain, who heard the gunfire and rushed to the scene.
Carroll, a University of the Virgin Islands student, was struck in the abdomen and died within three minutes, Aubain said. A statement issued by the Police Department late Tuesday afternoon said the victim was wounded in the chest and the left arm and described him as "an apparent innocent by-passer."
According to unconfirmed reports, Carroll was shot after intervening in an attempted robbery in a Main Street jewelry store. The police statement said the shots were fired after "two individuals apparently had an altercation." The victim was felled near the H.Stern Jewellers shop just east of Raadets Gade.
Aubain said he and a Chamber of Commerce colleague, Joe Elmore, were walking back to the chamber office from lunch on Back Street and had just turned the corner onto Main Street by the Captain's Corner gift shop when they heard two or three shots. "I thought at first it was a backfire, but Joe [Elmore] knew what it was," Aubain said. Elmore, a longtime staff worker with the American Red Cross, has had experience serving in war-torn areas.
Aubain said Elmore and another individual at the scene started cardiopulmonary resuscitation on the victim while Aubain rushed into a nearby shop to call the police. Carroll died before or just as an ambulance arrived, he said.
According to Aubain, while most tourists in the vicinity were "basically trying to stay in other stores or head towards the waterfront," a large crowd of about a hundred people gathered around the victim within moments of the shooting. Aubain said he "tried to help with crowd control" until police arrived. He said he was not aware of any bicycle officers on the scene and did not observe any weapon by Carroll's body.
Other witnesses said the assailant was a black man about 5'9" tall, wearing a white shirt and blue jeans, and that he ran toward Back Street after the shooting. The police statement said a suspect was being sought.
According to a friend of his family, Carroll had just finished his spring semester studies at UVI and was downtown to look for a summer job.

MAN SHOT TO DEATH ON MAIN STREET

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A man was shot fatally on Main Street near the intersection of Raadets Gade in downtown Charlotte Amalie around 1:15 p.m. Tuesday.
By the time police and an ambulance arrived on the scene, the man, who did not appear to be a tourist, was dead, according to St. Thomas-St. John Chamber of Commerce executive director Joe Aubain, who heard shots being fired and rushed to the scene.
The man was struck in the abdomen and died within three minutes, Aubain said.
Aubain said he and a chamber colleague, Joe Elmore, were walking back to the chamber office from lunch on Back Street and had just turned the corner onto Main Street by the Captain's Corner gift shop when they heard two or three shots. "I thought at first it was a backfire, but Joe [Elmore] knew what it was," Aubain said. Elmore, a longtime staff worker with the American Red Cross, has had experience serving in war-torn areas.
Aubain said Elmore started cardiopulmonary resuscitation on the victim while Aubain rushed into a nearby shop to call the police, but the man died before officers or an ambulance arrived.
According to Aubain, while most tourists in the vicinity were "basically trying to stay in other stores or head towards the waterfront," a large crowd of about a hundred people gathered around the victim within moments of the shooting. Aubain said he "tried to help with crowd control" until police arrived. He said he was not aware of any bicycle officers on the scene and did not observe any weapon by the body of the slain man.
He said he did not see the assailant fleeing and had not received any information as to a description of that person or how the shooting came about.

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MEMORIAL SERVICE JUNE 4 FOR JOHN RUSHFORD

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A memorial service for John Rushford, 65, will be held on St. Thomas at 3 p.m. Sunday, June 4, at the Baha'i National Center in Contant.
Rushford, who died May 14 in Haifa, Israel, after having been diagnosed with cancer in January, became a member of the National Spiritual Assembly of the Baha'i of the Virgin Islands in 1977. He moved from St. Thomas to Haifa in 1989 to serve at the Baha'i International Teaching Centre. There he met and married Serena Hamilton that same year.
Known to friends as "Twiggy," Rushford lived on St. Thomas from the late 1960s until he moved to Haifa. In the '70s, he was part owner of the Driftwood Inn, a popular hillside dining spot. Around that time he starred in a movie, "Pink Net in the Sunset," filmed by local personalities including David Chrobak of the Floraphernalia flower shop.
Rushford, who also was known as an accomplished tap-dancer, worked in the 1980s for Cathy O'Gara at Advertising Production Services. "There was never a dull moment with him around," she recalled. "If someone walked into the office, he was just as likely to jump up and do a little tap routine, as not."
Fellow Baha'i William Nedden, who lived on St. Thomas when Rushford was on the island, recalled, "Years ago, it was John's fantasy that he be permitted to serve and die in Haifa," the world center of the Baha'i community. "I had the opportunity to spend some time with John and Serena in January, when his wish was to turn back the cancer just discovered, to be able to serve the faith after his retirement," Nedden said. "He has other ways to serve now."
Friends are invited to the memorial service. For directions to the Baha'i center and for further information, call (340) 776-7024.

$600K COULD MEAN SOME VITRAN CALL BACKS

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An unspecified number of laid-off Vitran workers could be called back to work following Gov. Charles Turnbull’s signature of a wide-ranging bill last weekend.
Among other things, Bill 23-0165 appropriated $600,000 for Vitran from the Indirect Cost Fund prior to the layoff of half the Vitran work force as of May 11. In signing the bill, Gov. Charles Turnbull said the layoffs were made "for lack of funds to continue operations after amassing a $12 million deficit."
Public Works Commissioner Harold Thompson Jr., who oversees Vitran, said the appropriation is "good news."
"The additional money will help get Vitran back and improve operations," he said. "I’m optimistic that there would be at least a few call backs."
Thompson, however, stopped short of saying how many of the 62 laid-off workers would go back to work, saying that Vitran management is "committed" to working within its means.
Administration officials have said the layoffs and cuts in service were needed because fare box revenues could not cover salaries, benefits, parts, fuel and other expenses of operating the public transit service. Vitran is approximately $12 million in the red despite V.I. government subsidies of $1.8 million per district.
Meanwhile, Turnbull vetoed a section of Bill 23-0165 that aimed to establish a Public Transportation Enabling Fund with the same funding sources as the existing Public Transportation Fund, which made it "duplicitous," he said.

UVI OFFERS PROGRAMING COURSE IN VISUAL BASIC

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The University of the Virgin Islands is offering a free introductory mini-course programming using Visual Basic on the web to the first 50 High School Students who register and qualify. To qualify, you must be a high school student who has completed 9th grade; have a computer with internet access (Sorry, no Macs); Be familiar with attaching documents via email; and be familiar with web browsing operations.
Applications are due Friday, June 9. For details contact Dr. Alan F. Lewit.

DPW STILL FIGHTING SEWAGE SYSTEM MALFUNCTIONS

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Two days after the Department of Public Works stemmed the flow of sewage into the sea at the problem-plagued Figtree Pump Station a malfunction at another facility Monday caused another spill.
An electrical system failure at the Barren Spot pump station caused a sewage discharge on Monday, according to Public Works Commissioner Harold Thompson Jr. in a release Monday afternoon. Thompson didn’t say how long the station was down or how many gallons spilled.
He did say crews were able to install a new electrical motor, restoring operation at the station.
On Friday, long-standing problems at the Figtree station, located just east of the HOVENSA refinery, were partially fixed when an off-island technician repaired the station’s motor control center. The repair will place one of three pumps back online and halt the discharge of 1.7 million gallons of raw sewage a day into the Caribbean Sea. The bypasses had been occurring for several weeks.
"That has basically stopped the . . . hemorrhaging," Thompson said on WSTX radio Monday. "The main thing was stopping the bypass and we’ve done that."
Thompson said two additional back-up pumps at the Figtree station that have been out of commission for months will be operational soon and bring the facility "up to capacity."
On April 28, District Court Judge Thomas Moore issued a draft order that set proposed deadlines for Public Works to complete a range of repairs to the ailing sewage system on St. Croix.
The Figtree station discharges were to have been stopped on May 8, but problems with obtaining replacement parts caused Public Works to miss that tentative deadline. Moore did order that the Figtree station must be fully operational with all three pumps, back-up power and other equipment by June 30. By the same date, the LBJ Pump Station must have a number of fixes made, including all three of its pumps in operation.
Moore has warned the Turnbull administration that once final deadlines are agreed upon he will no longer accept excuses for sewage spills. If deadlines are broken and problems persist he said contempt hearings will take place, with possible penalties ranging from fines to jail terms for government officials.