Historic Frederiksted Senate Building Lease Granted to VIHFA for Enhanced Community Development

The Senatorial Committee on Budget, Appropriations, and Finance recently endorsed two significant lease agreements poised to bolster economic growth within the territory. Among the pivotal discussions was the Virgin Islands Housing Finance Authority’s (VIHFA) proposal to lease and refurbish the historic Legislative building complex in Frederiksted. This strategic move aims to centralize VIHFA’s operations and effectively manage vital initiatives, including the deployment of Community Development Block Grant Disaster Relief (CDBG-DR) funds.

The committee greenlit a 15-year lease for VIHFA, featuring two subsequent 5-year renewal options, all for an annual nominal fee of $12. This arrangement enables the agency to allocate approximately $2 million towards essential renovations, thereby avoiding hefty rental and operational costs. VIHFA’s Chief Financial Officer, Valdez Shelford, assured lawmakers of the secured funding for comprehensive renovations, which encompass a total HVAC system overhaul, window replacements, and electrical upgrades. Construction Manager Jason Brown provided a timeline, estimating the completion of renovations within six to eight months following environmental assessments.

Shelford expressed VIHFA’s aspiration to permanently establish its headquarters at this St. Croix location, pending a favorable land swap deal with the Department of Property and Procurement—a proposal that received lawmakers’ support.

In a parallel development, the committee endorsed a lease for Pro Mar Services Inc., a St. Thomas-based marine construction firm, for nearly 30,000 square feet at the Submarine Base #6 in Charlotte Amalie. This 10-year lease, with options for two additional 5-year renewals at $24,000 per year, supports Pro Mar’s plans to fortify coastal defenses, construct a new office, and clear debris from the site. Jean Patrick Vivot, the company’s president, highlighted their commitment to employing and training local staff, emphasizing their role in marine infrastructure projects across the territory.

During discussions, senators inquired into Pro Mar’s operational specifics, workforce development initiatives, and project timelines. Vivot’s presentation underscored the company’s contribution to the local “blue economy,” through its extensive marine construction activities, including services for the National Park Service and St. Croix’s south shore refinery.

A notable point of debate emerged around the equitable structuring of lease agreements, particularly in light of VIHFA’s minimal rental fees juxtaposed against the Taxicab Commission’s significantly higher charges. Senator Donna Frett-Gregory, chair of the Committee, advocated for a review of these disparities to foster a more balanced fiscal approach in support of local entities.

The session concluded with unanimous approval of both leases, setting the stage for their subsequent review by the Committee on Rules & Judiciary, marking a forward step in the territory’s economic and community development endeavors.