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PFA Eases Bond Requirement for Smaller Construction Projects

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During a special meeting on Monday, the board of the Public Finance Authority (PFA) approved a decision to increase the bond threshold for construction projects. This change is designed to alleviate the financial requirements for smaller contractors engaging with the PFA on various projects.

Historically, construction projects exceeding $250,000 required contractors to obtain bonds—a financial safeguard that ensures contractors fulfill their contractual obligations in terms of quality, timelines, and terms.

The shift in the PFA’s focus from predominantly procuring professional services to incorporating procurement construction projects has led to this adjustment. This shift is partly due to integrating the Office of Disaster Recovery into the PFA’s framework. Lorelei Farrington, staff counsel, highlighted the agency’s involvement in the EnVIsion Tomorrow program, which focuses on rebuilding and rehabilitating homes damaged by hurricanes. She noted that smaller contractors, who are often pivotal to these projects typically under $350,000, struggle to secure bonding due to stringent evaluations of their financial health by bonding companies.

Farrington proposed an amendment to the procurement procedure manual to exclude projects under $350,000 from the bonding requirement. This adjustment aims to streamline operations and accommodate the financial realities of smaller contractors who might have negative working capital.

Addressing potential risks associated with non-bonded projects, Adrienne Williams-Octalien, Director of the Office of Disaster Recovery, outlined measures such as enhanced PFA oversight through more frequent site visits and reviews, and bolstered construction management. Williams-Octalien emphasized that increasing the bond threshold allows for greater flexibility in managing project complexities and expanding the contractor base in the Virgin Islands.

She also acknowledged the economic challenges facing the construction sector, with rising costs necessitating an adjusted approach to project financing. The PFA plans to support these adjustments through training and additional support, ensuring project completion and mitigating potential risks.

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Debate on Sidewalk Bar Proposal Ignites at Historical Preservation Meeting

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The St. Thomas-St. John Historical Preservation Society convened on a recent Tuesday to deliberate on several matters, including a contentious proposal for a new sidewalk bar at Meada’s Plaza in Cruz Bay. The plan, which calls for tearing down an existing concrete slab and erecting new structures with subtle lighting and movable seating, sparked a lively debate over aesthetics, public parking, and the complexities of navigating the permitting maze within historic districts.

Sean Krigger, the director of the State Historical Preservation Office, voiced his reservations about the design elements of the proposed bar, particularly the herringbone pattern intended for the perimeter wall. He suggested that the design might clash with the existing architectural style of Cruz Bay, which leans towards a more modern aesthetic. “The flooring might handle the design, but on a wall, it becomes too conspicuous,” Krigger explained. He proposed exploring the use of stone, which is prevalent in the district’s construction.

During the discussions, the perennial issue of parking resurfaced, mirroring concerns raised at a similar meeting of the St. Croix Historic Preservation Committee. Enrique Rodriguez, a committee member, pointed out that the proposed site for the sidewalk bar had been originally designated for parking. The local zoning laws currently do not allow the Historical Preservation Committee (HPC) to waive these parking requirements, a point Krigger emphasized. However, Kurt Marsh, another member, noted that the developers possessed a nearby parking lot that might serve as an alternative parking space, pending approval from planning authorities.

The committee also considered whether to approve the project conditionally, pending the acquisition of all necessary permits. Krigger strongly opposed this, stating, “We should not approve projects that do not fully comply with zoning and building laws.” This sentiment underscored the committee’s commitment to upholding legal standards rigorously, contrasting with the more flexible approaches sometimes observed on other islands.

Architect Clarence Brown expressed frustration with the convoluted permitting process, recounting instances of being shuffled between departments without clear guidance. “It’s baffling that every agency points to another, and yet we’re expected to have all approvals in place before moving forward,” Brown stated.

Ultimately, despite Krigger’s objections, Marsh proposed granting conditional approval, dependent on confirmation of the alternative parking arrangements and necessary adjustments to the design plans. The committee unanimously agreed, marking a significant step forward for the proposed project at 6B Vester Gade in Cruz Bay, St. John, despite the noted challenges and procedural hurdles.

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St. Croix Senators Rally Behind Major Developments: Hotel Expansion and New Pharmacy Set to Boost Economy

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During a recent session of the Committee of the Whole, lawmakers in the U.S. Virgin Islands swiftly advanced two rezoning requests aimed at propelling economic growth on St. Croix.

The first initiative, encapsulated in Bill 35-0244, was brought forth by Roncan Inc, which operates under the name Sand Castle on the Beach. The company proposed to rezone various parcels in Estate Two Brothers, Smithfield, and Hesselberg, West End Quarter, from W-1 (waterfront pleasure) to R-3 (residential medium density). This change aims to align the hotel with the current infrastructure on its property and enable expansion over the next 2-5 years.

Leia LaPlace-Matthew, a Territorial Planner, highlighted the current zoning discrepancies, noting the plots’ non-compliance with W-1 zoning standards for lot area, width, and setbacks. The Department of Planning and Natural Resources supports the rezoning to a designation that better fits the existing conditions.

Chris Richardson, President of Roncan Inc, discussed the constraints imposed by the current W-1 zoning, which limits the effective use of space, detracting from the hotel’s aesthetic and functional layout. With plans to expand the hotel’s capacity to 78 rooms, Richardson emphasized the potential to add 30 new jobs, but noted that concrete expansion plans would only be announced post-rezoning approval.

Concerns about public beach access and environmental impacts were raised by Senators Kenneth Gittens and Diane Capehart, respectively. These issues were swiftly addressed by the developers to the satisfaction of the lawmakers.

The second bill, 35-0260, introduced by Dr. Hubert Watty, seeks to change the zoning of his property in Estate Clifton Hill, Kings Quarter, from R-2 (Residential-Low Density) to B-3 (Business Scattered). Dr. Watty, who operates a medical clinic on the site, plans to utilize the rezoning to lease existing office space and establish a new pharmacy, enhancing local access to pharmaceuticals, particularly in light of a recent pharmacy closure in the area.

The Committee of the Whole, while not voting on the bills, expressed strong support for the initiatives. Senators Marise James and Ray Fonseca endorsed the projects as prime examples of responsible development needed on the island.

These developments represent significant strides in bolstering the economic landscape of St. Croix, promising new jobs and improved services for the community.

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$27 Million Boost for High-Speed Internet in the US Virgin Islands

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The US Virgin Islands are gearing up for a significant boost in high-speed Internet access as part of a national effort to ensure all Americans have affordable, reliable connectivity. This initiative falls under the Broadband Equity, Access, and Deployment (BEAD) program, which is a component of the broader Internet for All initiative.

The National Telecommunications and Information Administration (NTIA), an agency within the U.S. Department of Commerce, has earmarked over $27 million specifically for the US Virgin Islands. This funding is intended to enhance Internet connectivity by identifying residential and commercial areas that are currently without adequate service.

The first step in this ambitious project involves creating a comprehensive map to pinpoint which homes and businesses are underserved or completely unserved by current broadband infrastructure. This mapping will be accomplished through a collaborative process where designated “eligible challengers,” such as local governments, nonprofits, and Internet service providers, can submit data affirming or contesting the connectivity status of specific locations.

Once areas in need are accurately mapped, the allocated funds will be awarded through competitive grants. Internet service providers, community cooperatives, and similar entities will have the opportunity to apply for these grants to develop or enhance broadband networks, thereby expanding service to those previously underserved or unserved areas.

While individual residents and small business owners are not directly eligible to challenge or apply for the grants, they play a crucial role. The NTIA encourages them to collaborate with eligible organizations to ensure their connectivity needs are accurately represented in the final mapping.

Local authorities are poised to release more details on how and when stakeholders can submit their challenges and participate in this transformative project. This strategic investment not only promises to bridge the digital divide but also stimulates economic growth and enhances the quality of life for all residents of the US Virgin Islands.

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