THE UNITED STATES VIRGIN ISLANDS
OFFICE OF THE GOVERNOR
GOVERNMENT HOUSE
Charlotte Amalie, V.I. 00802
340-774-0001

May 19, 2026
VIA HAND DELIVERY

The Honorable Milton E. Potter

Senate President

Thirty-Sixth Legislature of the Virgin Islands
Capitol Building

St. Thomas, Virgin Islands 00802

Re: Reinstatement & Amendment to Lease Agreement — By and between the
Government of the Virgin Islands and Water Island Development Company,
LLC

Dear Senate President Potter:

Transmitted herewith for ratification by the Thirty-Sixth Legislature, in accordance
with the provisions of Title 31, Section 205, subsection (c), Virgin Islands Code. is the
Reinstatement & Amendment to Lease Agreement No. BCT-383 between the Government of
the Virgin Islands, acting through its Commissioner of the Department of Property and
Procurement and Water Island Development Company, LLC.

The proposed Amendment to the Lease Agreement reinstates and modifies an existing
lease between the Government of the Virgin Islands, through the Department of Property and
Procurement, and Water Island Development Company, LLC, concerning approximately
197.82 acres of Government-owned land on Water Island originally conveyed from the U.S.
Department of the Interior.

The Original Lease, ratified by the Legislature in 2014, contemplated development of
a hotel and marina, along with the sale of approximately 55 acres for residential resort use. In
April 2025, the Government issued a Notice of Termination for non-performance; however.
that termination was subsequently rescinded following negotiations. and the parties now
propose to reinstate the lease with amendments.

Transmittal Letter for Reinstatement & Amendment to Lease Agreement — By and between the
Government of the Virgin Islands and Water Island Development Company, LLC
Page 2 of 2

Under the Amendment, the lease is reinstated for specified parcels totaling
approximately 180 acres. Certain areas, specifically Catchment Area and Tract, are removed

from the lease and will revert to Government control.

I thank you and the members of the Thirty-Sixth Legislature for your sustained efforts
for the benefit of the Territory.

Sincerely,

\ er rad

Governor