The Virgin Islands Economic Development Authority held its governing board meeting Tuesday virtually via Zoom and heard testimony from Historic Heritage Holdings, LLP, a company seeking tax incentives on St. Croix to build a boutique hotel in Christiansted.

“What we’re really trying to do is build an entire arts, entertainment and hospitality district,” said Peter Zielke, majority owner. “I think that St. Croix should be different from St. Thomas and St. John.”

Zielke has been in the process of constructing the hotel for the last four years. Historic Heritage Holdings is seeking tax incentives to operate as a Category III hotel/guesthouse and Category IV family office and venture capital managing and investment entity.

The hotel, which will be located in downtown Christiansted, is anticipated to open in 2028. The property is expected to feature a minimum of 66 rooms, a gym, a pool, and three restaurants.

Attorney Marjorie Roberts spoke on behalf of the company and said that it will also renovate nearby properties to operate as part of the hotel.

“To date, Historic Heritage has renovated and refurbished eight beautifully appointed units,” said Roberts. “Over the next year, Historic Heritage anticipates renovating an additional 20 units and buildings near the hotel site that it has acquired.”

Zielke said the hotel will be constructed between the bypass and the fort next to the police unit. According to him, the property used to serve as an outrigger, then as the largest yacht club in the Caribbean, and later as a hotel, gym, and restaurant. Now, it is on its way to becoming a hotel. Zielke also said that a two-story parking garage with luxury short-term residences attached above will also be constructed.

“Next to Savant, where [there] is the large parking lot and some old ruins, that will also become a parking garage because one of the things we noticed is that there is not enough parking in downtown Christiansted,” said Zielke. In addition, he said, “We would get the lease in front of the police marine unit and be able to work towards completing the whole boardwalk project.”

By doing this, Zielke said the street will be converted into a hotel, restaurant and arts district. He also said that though 66 rooms are expected, he wants to have 100 rooms for guests and an additional 20 to 40 rooms to accommodate employees. He wants to place employee housing on Church Street.

Board members appeared hopeful for the construction of the properties with some inquiring about touring the site. Member Positive Nelson expressed dismay however, after Zielke spoke about some of the challenges he has encountered so far with establishing the hotel.

“We have CZM and permitting issues and historic issues that unfortunately delay projects significantly,” said Zielke. “I bought this property four and a half years ago, intending to as soon as possible start this.”

Zielke said the entire timing of the project is dependent on the Department of Planning and Natural Resources. He said that since beginning the project, he has received multiple zoning certification letters and architectural letters, engaged in public hearings, and spent hundreds of thousands of dollars to be regulated accordingly and rezone his property. However, a year later, he found out that the processes he endured were unnecessary and the result of zoning errors made in the DPNR system and that his property did not have to be rezoned.

“I would say anyone who is willing to build a hotel on St. Croix has to have a lot of courage and quite a bit of foolishness because unfortunately today is not structurally set up to make that happen,” said Zielke.

Roberts said that Historic Heritage Holdings has a capital investment of $11 million and will employ a minimum of 10 employees within one year of operation. The company will provide health and life insurance, retirement plans, paid time off, and 13 paid holidays annually. Additionally, $20,000 will be made to charities in the territory annually, with 55 percent in kind or in cash to the education department for public school programs and initiatives, with $3,000 paid annually to the territorial scholarship fund and $2,500 to the labor department.

“We remain very hopeful that we could open in 2028. And I think that assuming we get all the permits and inspections in necessary time it will,” said Zielke.

After the public hearing, decision meetings for the Enterprise Zone Commission and the Economic Development Bank were held. Members Kevin Rodriguez, Jose Penn, Philip Payne, Anise Hodge, and Positive Nelson were present.