Transformation of Historic Naval Site into Premier Business Hotel and Moe’s Fresh Market Underway

In a show of unanimous support, the territory’s lawmakers have endorsed Demah Inc.’s proposal to repurpose a historic site in St. Thomas into a cutting-edge business hotel, coupled with a Moe’s Fresh Market. This initiative, presented to the Senate Committee of the Whole on Monday through Bill 35-0234, seeks a zoning variance from the V.I. Department of Planning and Natural Resources. The request aims to change the designation of a parcel in Estate Nisky, No. 6 Southside Quarter, from I-2 (Light Industry) to accommodate the new development. This land, owned by the Government of the Virgin Islands and leased to Demah Inc., currently houses a 14,491-square-foot steel structure.

Demah Inc. has laid out a 24 to 36-month timeline for the transformation of the existing structure into a facility that will feature a ground-floor Moe’s Fresh Market and distribution center, and 52 hotel rooms spread across the first and second floors. This project is anticipated to be a cornerstone in the administration’s redevelopment plans for the area, offering a welcome stop for cruise ship passengers.

Legislators have warmly received the project, with Senator Franklin Johnson remarking on the ongoing need for additional hotel accommodations. Senator Donna Frett-Gregory praised the initiative as a remarkable venture that will significantly enhance the territory’s economy. She highlighted the dual benefits of increased income and gross receipts taxes as outcomes of the project’s completion.

The projected investment for this venture ranges from $10 to $15 million, according to Waleed Hammad, who represents Demah Inc. The plan includes retaining a local architectural firm to ensure the hotel’s design respects the historical essence of the site, a naval warehouse during World War II.

Leia La Place-Matthew from the Department of Planning and Natural Resources outlined the State Historic Preservation Office (SHPO)’s involvement, ensuring the development respects the site’s historical significance. Requirements include the use of similar window designs, a glass window enclosure system for the main entrance, and metal finishing on the exterior to reflect the warehouse’s naval past. Furthermore, SHPO advises keeping the building’s structural elements visible inside to honor the original naval architecture.

Amid discussions on the preservation guidelines, Senator Samuel Carrion inquired about Demah Inc.’s views on SHPO’s requirements. Mr. Hammad acknowledged ongoing discussions but confirmed SHPO’s supportive role in the project.

While the Committee of the Whole has yet to vote, a decision on the zoning variance request will be made in a forthcoming legislative session, marking a significant step forward for this ambitious redevelopment plan.