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Disaster Recovery

USVI on the Brink of a Recovery Breakthrough with Unprecedented Federal Support

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The Virgin Islands stands at a pivotal moment as President Joe Biden’s approval of an additional $1.1 billion in disaster assistance funding heralds a new era of opportunity for the territory’s recovery efforts. Adrienne Williams-Octalien, the Office of Disaster Recovery’s director, and Governor Albert Bryan celebrated this development during a press conference, marking it as a turning point for the islands.

Governor Bryan, buoyed by the announcement from FEMA Administrator Deanne Criswell, sees this as a “tremendous opportunity” to overcome the significant financial hurdle of matching federal disaster recovery funds. Traditionally, the territory faced the daunting task of funding a 10% match of federal dollars, which would have required the local government to find approximately $1.5 billion to access the full scope of available disaster recovery grant funding.

After persistent lobbying efforts, which initially seemed to bear no fruit, the tide turned with FEMA’s recent declaration. This breakthrough comes from discussions held in September, as recounted by Governor Bryan, leading to a more favorable cost-sharing arrangement. The Virgin Islands now need to provide only 2% in matching funds for 428 fixed cap projects and 5% for other disaster recovery projects, a significant reduction from the previous 10%.

However, this financial windfall comes with its conditions. To benefit from the adjusted cost share, the territory must obligate all projects by September 2024 and complete them within an 11-year deadline, including critical infrastructure such as schools and hospitals. Failure to meet these timelines would see the matching funds requirement revert to the original 10%.

Governor Bryan remains optimistic about meeting these conditions, emphasizing the importance of collaboration and unity in achieving the collective goal of rebuilding the USVI. The strategy involves bundling recovery projects into billion-dollar packages to ensure timely completion and to attract large contracting firms with the necessary resources.

The reduction in required matching funds—from needing $800 million for an $8 billion project scope to now only needing $160 million—represents a significant easing of the financial strain on the territory. This has been made possible by the approval to use Community Development Block Grant (CDBG) funds for federal match requirements, although these funds also have their designated disaster recovery purposes.

Addressing the critical need for skilled labor to support the ambitious rebuilding plans, Governor Bryan highlighted efforts to attract international contractors and pursue “visa waivers” and other initiatives to bolster the local workforce. Despite challenges, including political hurdles in implementing a visa waiver program, the governor’s administration remains focused on innovative solutions to meet labor demands.

With the financial and logistical framework in place for a revitalized recovery process, the Virgin Islands now looks forward to redirecting resources to meet a wide array of unmet needs within the community. Both Williams-Octalien and Governor Bryan are confident in the territory’s path forward, seeing this as an unparalleled chance to rebuild stronger and more resiliently in the wake of hurricanes Irma and Maria, alongside other ongoing construction projects that promise to transform the islands’ infrastructure for the better.

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Disaster Recovery

$384 Million FEMA Grant Boosts USVI School Rebuilding Efforts

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The U.S. Virgin Islands will benefit from a significant federal boost, receiving $384.8 million from the Federal Emergency Management Agency (FEMA) for the demolition and reconstruction of hurricane-impacted schools. This marks a critical step in the territory’s ongoing recovery from the devastating effects of hurricanes Irma and Maria in 2017.

This transformative funding will facilitate the complete reconstruction of three elementary schools on St. Croix and one on St. Thomas, in addition to repairs to a school lunch warehouse on St. Thomas. These efforts are a part of FEMA’s continued partnership with the Virgin Islands government and its Department of Education to provide safe, modern educational environments.

Kristen A. Hodge, Director of FEMA’s Recovery Office in the U.S. Virgin Islands, reaffirmed the agency’s dedication to the territory’s educational future. “I am pleased to approve these latest obligations that help bring the Virgin Islands closer to post-hurricane recovery. Our commitment to the future leaders of the Virgin Islands by providing them safe facilities in which to receive their education remains strong,” she stated.

Project Highlights and Funding Specifics:

  • Lew Muckle Elementary School on St. Croix will see prudent reconstruction of seven of its 11 buildings on a 3.94-acre site in Sion Farm.
  • Eulalie Rivera Elementary School, also on St. Croix, will undergo the replacement of 12 structures, including classrooms and facilities such as the athletic field bathroom.
  • Juanita Gardine Elementary School in Estate Richmond, St. Croix, is set for extensive rebuilding, including its auditorium and several auxiliary buildings.
  • On St. Thomas, Leonard Dober Elementary School will have three buildings replaced following severe damage from the 2017 hurricanes.
  • Additionally, repairs to a 7,000-square-foot lunch warehouse on St. Thomas will restore essential functionality and design.

Enabled by the Bipartisan Budget Act of 2018, these funds will allow the V.I. Department of Education to not only rebuild but also modernize educational facilities, merging several schools into updated campuses like Alfredo Andrews and Alexander Henderson Schools. Leonard Dober Elementary School will be closed as it is currently not used for instructional purposes.

The Department of Education expressed its appreciation for this federal aid. “These grant awards signify a pivotal moment for education in the Virgin Islands, allowing for the development of much-needed new schools and the modernization of existing facilities with a focus on equity for all students,” it said.

The department also highlighted the comprehensive nature of the funding. “It is essential to recognize that these grants cover more than construction. They extend to land acquisition, project management, demolition, and design,” VIDE noted. This comprehensive approach ensures thorough planning and execution to meet the highest educational standards.

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Disaster Recovery

Ongoing Recovery Efforts in the USVI Highlighted at Public Finance Authority Meeting

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Six years after Hurricanes Irma and Maria devastated the US Virgin Islands in September 2017, the territory’s reconstruction journey continues. At a recent Public Finance Authority (PFA) meeting, updates from various agencies underscored the progress and challenges in the extensive recovery efforts.

The Office of Disaster Recovery, tasked with managing the multi-billion dollar federal aid for the territory’s rebuilding projects, has reported significant strides. As of February, more than $3.2 billion has been spent out of an obligated $10 billion. The agency is racing to ensure all Federal Emergency Management Agency (FEMA) projects are obligated by year-end to take advantage of more favorable matching funds requirements set to expire soon. A noteworthy advancement is the recent groundbreaking of the Charles “Tappy” Seales Fire Station and Multipurpose Center.

Stephan Adams, CEO of V.I. Next Generation Network (viNGN), highlighted the particular challenges of funding hurricane restoration projects. He emphasized the strategic management of grants based on available cash flows due to uncertainties in securing matching funds. Adams pointed out the critical importance of protecting the inter-island fiber optic cables’ landing points. “These points are crucial. Any damage there, and St. Thomas could face significant connectivity issues if we see disruptions on St. Croix,” he explained. Despite financial hurdles, Adams reassured that viNGN is committed to using operating funds to prioritize this essential project.

Furthermore, Adams provided updates on broader viNGN initiatives, including the hardening of 24 small roadside buildings that house the network’s communication equipment. These upgrades involve replacing generators and enhancing overall resilience against future storms. He ambitiously aims to complete the majority of viNGN’s FEMA-related projects within the year.

The PFA meeting also touched on tourism recovery. Anthony Ottley, CEO of the West Indian Company (WICO), reported a considerable increase in cruise ship arrivals in 2023 compared to pandemic-affected years. However, figures still lag behind pre-hurricane levels, partly due to the departure of some cruise lines from the port. Ottley remains optimistic, projecting that arrival numbers will normalize next year and announced plans to commence harbor dredging in 2025 to accommodate larger cruise ships, pending federal approvals.

These updates reflect a determined and multifaceted approach to recovery and rebuilding in the US Virgin Islands, signaling a resilient and forward-moving community despite past adversities.

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Disaster Recovery

Progress Reported in USVI’s Hurricane Recovery Efforts

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More than two years have passed since Hurricanes Irma and Maria unleashed their fury on the US Virgin Islands in September 2017, leaving a trail of destruction. The territory’s path to recovery was the focus of a recent Public Finance Authority (PFA) meeting where various agencies reported on the strides being made in rebuilding efforts.

The Office of Disaster Recovery, tasked with managing the influx of federal dollars for restoration projects, highlighted significant progress. As of February, it has spent over $3.2 billion of the $10 billion committed to these projects. A critical goal for the agency is to secure obligations for all remaining Federal Emergency Management Agency (FEMA) projects by year’s end, to capitalize on more favorable matching fund requirements set to expire soon.

One of the major undertakings mentioned was the Charles “Tappy” Seales Fire Station and Multipurpose Center, which began construction recently.

Stephan Adams, CEO of V.I. Next Generation Network (viNGN), shared insights into the unique challenges faced by his agency, particularly in securing funding. Despite these hurdles, viNGN prioritizes essential projects, such as fortifying the points where inter-island fiber optic cables land. “The resilience of our network is paramount. Damage to these landing points could incapacitate the island of St. Thomas if similar issues arise on St. Croix,” Adams explained, emphasizing the critical nature of these projects.

Adams also detailed efforts to strengthen the infrastructure that supports the islands’ communications systems. This includes enhancing 24 small buildings along the roadsides that house communication equipment, upgrading generators, and bolstering their overall storm resilience.

During the meeting, PFA members were updated on the tourism sector’s status by Anthony Ottley, CEO of West Indian Company (WICO). He noted that while cruise ship arrivals have surged in 2023, numbers still lag behind pre-hurricane figures due to some lines discontinuing visits to the port. Ottley remains optimistic, projecting that arrivals should stabilize by next year. Additionally, WICO is preparing for a major dredging project to deepen the harbor for larger vessels, with work expected to commence in 2025 pending federal clearance.

This assembly underscored the complex yet hopeful journey of recovery for the USVI, as stakeholders across the board continue to work diligently towards restoring and improving the resilience of the territory’s infrastructure.

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