VI UPDATE U.S. Virgin Islands Public Records TRANSCRIPT OF PUBLIC PROCEEDINGS Committee on Budget, Appropriations and Finance (Copy) Legislature USVI February 3, 2026 · 4.3 hours · gov Source recording https://youtu.be/L1WIpJF2gPw Status This is a working transcript produced by machine from a recording of a public proceeding. It is a finding aid, not an official record of the Legislature. Transcribed by VI Update, using OpenAI Whisper large-v3-turbo, run locally. Not reviewed by a person. Reliability Automatic transcription, UNVERIFIED. Verify every quotation against the recording before relying on it. Speech recognition splits spoken digits and wraps figures mid-number, so a dollar amount, a vote count or a bill number can be wrong in a way that reads as correct. Speakers are not identified: automatic speaker labelling was measured unusable and removed. 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Thank you. finance of February 3rd is hereby called to order I want to say a pleasant good morning to the listening and viewing audience and start off by saying happy 0:00:00 Black History Month to all who celebrate and also again to offer a word of caution as we've been having some heavy downpours this morning actually started last night and into the morning so you know we had a little bit of change of plans in regards to the hearing this morning where I was scheduled to be on Thomas to conduct the harem but was forced to remain on St. Croix as a result of the cancellation of the morning flights here I also want to take this opportunity to say Black History Month is more than honoring our past it is a time to celebrate our achievements and black excellence while moving forward with intention in ways that would positively shape present and future generations I wanted to take this opportunity as well as to really we've been seeing an increased amount of traffic accidents throughout our roadways and this is territory-wide over the last few days and few weeks and and just to remind individuals to be cautious take your time you know this this is island life and ain't got far to go you know these accidents have been claiming lives many injuries throughout the diversions i'm just asking everyone to please slow down stay off your cell phone avoid texts because of course we know that some of these accidents attributed to you know distracted driving and it's really creating some havoc in our community you know I also want to take this opportunity offer my sincere condolences to my colleague Senator Franklin Johnson and the untimely passing of his daughter Senator you continue to be in our prayers during this difficult time of bereavement. Today marks the first meeting of the Committee of Budget 0:02:01 Appropriations and Finance for this year. We have a packed agenda and we'll hear a total of seven bills which include one new lease and three previously heard lease agreements as well as bills redesignate funding sources, align the division of banking and insurance and financial regulations and national standards and promote roadway safety and establishment the impaired driving and highway sobriety checkpoint program safety fund we have a busy day ahead so at this time I'd like to remind everyone to please put your cell phones turn them off or turn them a mute as to not to interrupt today's 0:03:51 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 1 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) proceedings and ask the madam clerk to please call the roll Senator Marvin A. Blyton Senator Blyton present Senator Dwayne M. DeGraph Senator DeGraph present Senator Ray Fonseca Senator Fonseca Senator Novel E. Francis Jr. I'm here. Senator Francis Jr. Senator Hubert L. Frederick. Senator Frederick, absent. Senator Maurice C. James. Senator James, absent. Senator Kurt A. Vele. Santa Valle, absent. Mr. Chair, four present, three absent. Mr. Chair, we can't hear you. 0:05:09 The committee will take a one minute recess while we work out the technical issues committee He sends a recess for one minute. We'll be right back. Thank you. Thank you. Thank you. We'll be right back. Let's go. We'll be right back. We'll be right back. Let's go. Thank you. Thank you. We'll be right back. 0:05:57 and we're out of recess and back in record and of course before we went on the recess we have some difficulties here and Senator Frederick please test your mic again once once more Madame clerk can you record Senator Hubert Frederick as present as well as recognize the presence of our Senate president Senator Milton Potter and our Senate secretary Senator Avery Lewis. I'm asking again for the viewing and listening audience to be able to patient with us in addition to the weather conditions we do have several power outages throughout both islands you know so we experienced some technical difficulties as we try to endeavor to be able to move this hearing along. At this time, Madam Clerk, please read today's agenda into the record. Block number one. 0:12:48 February 3rd, 2026, Committee on Budget Appropriations and Finance meeting. The Committee on Budget Appropriations and Finance will meet on Tuesday, February 3rd, 2026, 10 a.m. in the Earl Beattley Legislative Hall on St. Thomas to receive testimony on the following bills. Block 1, Bill Number 36-0199, an act approving the lease agreement between the government of the Virgin Islands, acting through the Commissioner of the Department of Property and Procurement, and Accent Property Management, LLC, for parcel numbers 123 and 129 sub base, south side quarter st thomas to develop the premises to operate establish and manage a slate of subtenants pursuant to an approved development plan sponsored by senator milton e potter by request of the governor invited testifiers honorable lisa aleandro commissioner via department of property and procurement randa de souza chief administrative officer accent property management llc bill number 36-0204 an act approving a multi-year lease agreement between the government of the virgin islands acting through its commissioner of the department of property and procurement and commercial investments llc for parcel number 30 submarine base number six south side quarter st thomas virgin islands for our logistics storage warehouse and other related purposes sponsored by center milton e potter by request of the governor invited testifiers honorable lisa aleandro commissioner via department of property and procurement and judy perez ferdinand general manager commercial investments llc bill number 0:13:59 36-0205 an act approving the lease agreement between the government of the virgin islands acting through the commissioner of the apartment of property and procurement and submarine base warehouse llc for parcel numbers 12 and 12 a submarine base crown bay fill number six Southside quarter, St. Thomas and one 45 from the field submarine base number six outside quarters and Thomas for the purpose of bulk storage, establishing a slate of subtenants on the premises, packing and other permitted purposes sponsored by sent to Milton E. Potter by request of the governor. Invited testifiers on a rebel. Elisa Alejandro, commissioner via Department of Property and Procurement, Enrique Rodriguez, managing partner, submarine-based warehouse, LLC. 0:15:59 And bill number 36-0237, an act approving a multi-year lease agreement between the government of the Virgin Islands, acting through its commissioner of the Department of Property and Procurement and DM Hospitality, LLC, for parcel number 2C Crystal Garda, Queen's Quarter, St. Thomas, consisting of a two-story building and a portion of parcel number 3 Crystal Garda, consisting of a two-story building to operate a food and beverage management company with a bakery in Delhi, a jewelry business management company, and other related purposes. sponsored by Senator Milton E. Potter by request of the governor. Invited testifiers, Honorable Lisa Alejandro, Commissioner, VA Department of Property and Procurement, and Mr. Pasch Daswani, member, DM Hospitality, LLC. This ends the reading of Block 1, Mr. Chair. 0:16:59 Thank you very much, Madam Clerk. Again, we have four majors in this Block 1. At this time, we go to the testifier's table to do a quick check, mic check, before we hear from the bill's sponsor and presentation of the bills. We'll start off with Assistant Commissioner Vincent Richards, you recognize? Mic check. Vincent Richards, good morning, from the Department of Property and Procurement. Ms. D'Souza. 0:18:03 Rhonda D'Souza, Axon Property Management, LLC. Good morning, Enrique Rodriguez, Submarine Base Warehouse, LLC. Good morning, Giresh Mirpuri, DM Hospitality. Good morning, everyone. Par Shaswani, DM Hospitality member. Good morning, and we do have someone online. Good morning, good morning, Chidi Perez-Ferdinand, Commercial Investments, LLC, member. Very well. Thank you. At this time, I will go to the sponsor for presentation and the 0:18:33 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 2 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) aforementioned bills, 36.0199, 36.0204, 36.0205, and finally, 36.0237. Who speaks to these bills? I know, Mr. Chair. I know, Mr. Chair. How you doing Mr. Chair? 10-4-1-2 1-2-1-2 Mr. I do, Mr. Chair. 0:19:25 Mr. You're recognized and part of our presentation on these bills. Mr. Thank you very much. Good morning, colleagues. Good morning to our testifiers. Colleagues, I offer Bill No. 36-0199, sponsored by Senator Milton E. Potter, by request of the Governor. The bill approves a lease agreement between the government of the Virgin Islands and Accent Property Management LLC for two industrial parcels at the sub-base in St. Thomas. The bill authorizes a 30-year lease with options for three additional 10-year renewals of approximately 1.6 acres of government property for $144,000 annually. The lease will develop and manage the premises for commercial subtenants according to an approved development plan. As required by Title 31, Virgin Islands Code, Section 205C, legislative approval is necessary for leases exceeding one year. year. 0:20:07 The Governor has already approved this agreement, and it represents an opportunity to generate consistent revenue for the territory while facilitating economic development in the industrial sector. I ask for your consideration of this measure. Thank you very much, Mr. Chair. Should I go through all of them? Mr. Yes, please. Go ahead and proceed. In the essence of time, let's go ahead and proceed with all of them. Okay. Next, I'm pleased to introduce Bill 36-0204, sponsored by Senator Milton E. Potter, by request of the governor. The bill approves a lease agreement between the government of the Virgin Islands and Commercial Investments, LLC, for a property at a submarine base in St. Thomas. The bill authorizes a 30-year lease with two options for additional 10-year renewals of approximately 0.4 acres of improved government property to be used as a logistics storage warehouse. The lease provides for an initial reduced rent of $500 per month for the first two years, followed by $48,000 annually thereafter. As required by Title 31, Virgin Islands Code, Section 205C, legislative approval is necessary for leases exceeding one year. The Governor approved this agreement in June 2025, and it represents an opportunity to generate revenue from underutilized government property while supporting commercial logistics operations in our territory. I respectfully ask for your consideration of this measure at the appropriate time. I must add, Mr. Chair, there are amendments to each of these three bills, the one 36.0199 as well as 36.0204. I offer also Bill No. 36-0205, sponsored by Senator Milton E. Potter by request of the Governor. This bill approves a lease agreement between the Government of the Virgin Islands and Submarine Base Warehouse, LLC, for waterfront commercial properties at the submarine base in St. Thomas. The bill authorizes a 30-year lease with options for three additional 10-year renewals of approximately 1.38 acres of waterfront property zoned for commercial industrial use. The lease includes a 12-month rent-free construction period followed by an annual rent of $12,000. The premises will be used for bulk storage, subleasing to approve tenants, parking, and other permitted purposes. As required by Title 31, Virgin Islands Code, Section 205C, legislative approval is necessary for leases exceeding one year. The governor approved this agreement in July 2025, and it represents an opportunity to vacate underutilized waterfront property while generating revenue and supporting commercial development in the Crown Bay area. There is also an amendment that will reflect renegotiated 0:21:11 terms that will be offered at a later time. And finally, Mr. Chair, I introduce bill number 36-0237, sponsored by Senator Milton E. Potter, by request of the governor. The bill approves a lease agreement between the government of the Virgin Islands and DM Hospitality, LLC, for commercial properties on Crystal Garda in downtown St. Thomas. The bill authorizes a 30-year lease with two options for additional 10-year renewals of approximately 0.26 acres of improved property consisting of two buildings. The premises will be used to operate a food and beverage management company with a bakery and deli, a jewelry business management company, and other related purposes. The lease features a graduated rent structure, $100 per month for the first year, $300 per month for years two to three, $600 per month for years four to 10, and $12,000 annually thereafter. As required by Title 31, Virgin Islands Code, Section 205C, legislative approval is necessary for leases exceeding one year. The governor approved this agreement in December of 2025, and it represents an opportunity to activate downtown commercial space while supporting local business development and entrepreneurship. 0:24:58 Finally, Mr. Chair, I offer bill number 36-0219, sponsored by Senator Milton E. Potter, by request of the governor. One second, Senator. That's in the second block. OK, OK. That's in the second block. All right. Thank you. Thank you, Mr. Chair. Thank you for presentation of the aforementioned bills, 36.0199, 36.0204, 36.0205, which was previously heard on November 17th, 2025, and had been recommended for reconsideration and renegotiation, as well as bill number 36.0237. I'd like to recognize the presence of non-committee members, Senator Carla Joseph. Good morning, Senator, welcome. Thank you for joining us. 0:26:38 And at this time, we'll go to Assistant Commissioner Richards for a presentation on these leases. Good morning, Committee Chair Novelli Francis Jr., Vice Chair Marvin A. Blyden, committee members, the Honorable Senators Kurt 0:27:31 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 3 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) A. Viola, Duane M. DeGraff, Ray A. Fonseca, Hubert L. Frederick, and Maurice C. James Esquire, non-committee members, central and legislative staff, my fellow testifiers, visitors are present in chambers and members of the viewing and listening audience I am Vincent Richards assistant commissioner of the Department of Property and Procurement I appear today on behalf of Commissioner Lisa M Alejandro to offer testimony on four proposed lease agreements in the st. Thomas st. John district which are before the Senate's before this committee for consideration the department requests this committee ultimately the full senate's approval of these lease agreements between the government of virgin islands and accent property management llc commercial investments llc sub submarine based warehouses llc and dm hospitality llc the lease agreement between the governor of virgin islands and accent property management llc is for partials number 123 and 129 sub base st thomas u.s virgin islands accent will perform major capital improvements to these hurricanes maryland irma and maria damaged buildings and will conduct a phased redevelopment of the property accent will establish and manage a slate of subtenants on the premises the terms of this lease agreement is for 30 years with additional options if the if the lessee is not in default The annual rent will be $144,000 annually, but the lessee will pay a reduced rent during the construction and stabilization period of this lease agreement. The lessee will be required to pay additional rent of up to 30% of all base rent collected from its subtenant. Accent will undertake, at its own expense and cost, phased property improvements, value approximately three million dollars on parcel number 123 accent will repair the existing building or if necessary demolish the structure and and construct a new building in its place on parcel number 129 the lessee will renovate the interior and exterior of the building repair the roof and replace the windows wooden siding and doors when completed this project will bring an additional 40 000 square feet of warehouse and office space back online and into the market accent and the department executed a one-year lease agreement during which accent has already expended tens of thousands of dollars in removing over a dozen derelict vehicles, boats, appliances dumped on the property, as well as installing a gate to control unauthorized access to the property. 0:29:16 The lease agreement between the government of the Virgin Islands and commercial property investments is for Parcel Number 30, Submarine Base, Number 6, Southside Quarter, St. Thomas, U.S. Virgin Islands, consisting of a one-story building. The property will be used as a logistics storage warehouse and for other related purposes. This lease agreement is for 30 years with renewal options once the lease is not in default. The annual rent will be $60,000 in installments of $5,000 monthly during the term of the lease. The lessee shall be required to pay reduced rent during a permitting and construction period out of 12 months. If the lessee subleases any part or whole of the premises, they shall be required to pay an additional rent of 30% of all base rent collected from its subtenants. Commercial investment shall provide at its own expense and cost the following improvements at an estimated cost of $500,000. The improvements include demolishing and rebuilding the interior offices, repairing and or replacing a roof, repairing or replacing exterior metal wall panels and insulation, upgrading dated plumbing, electrical and HVAC systems, replacing roll-up doors, installing exterior lighting and perimeter fencing, installing a security and surveillance system, and installing an emergency generator. When completed, this project will bring an additional 4,500 square feet of warehouse and office space back online and into the market. The lease agreement between the Government of Virgin Islands and Submarine Base Warehouses LLC is for parcel number 12A and 145 Submarine Base St. Thomas. Under this agreement, the 0:30:53 tenant will develop two brand new buildings to be used as a bulk storage warehouse and or flex spaces, along with parking and other permitted uses on the premises. The lease term is for 30 years with optional terms if the lessee is not in default. The annual rent is $36,000, payable in monthly installments of $3,000. In addition to the base rent, submarine warehouses will pay the government up to an additional 30% of all base rent collected from subtenants. 0:33:00 Subbase warehouses at its own expense and cost will demolish the current derelict structure on the property, clear debris, immediately saving the government between $300,000 to $800,000. It previously planned to spend, now redirecting those funds to the acquisition of alternative properties. Submarine warehouses is also required to install security fencing and repave the parking area. When completed, this project will bring an additional 30,000 square feet of new warehouse space and flexible space into the tight commercial industrial zone market, helping to meet the growing demand for modern business space and to support recovery and infrastructure projects in the territory. The lease agreement between the government of the Virgin Islands and DiEM Hospitality, LLC, is for parcel number 2C, Crystal Gowda, and a portion of parcel number 3, Crystal Gowda, Queen's Quarter, St. Thomas, Virgin Islands. 0:33:46 Both properties consist of, on both properties sit a two-story building where the lessee will operate a food and beverage management company with a bakery and deli, jewelry management services, and other related purposes. The purpose of this lease agreement, I'm sorry, the term of this lease agreement is for 30 years with additional option terms if the lessee is not in default. the annual rent will be $12,000 annually. A reduced rent will be paid during the construction and stabilization period of the lease, while DiEM Hospitality undertakes at its own cost and expense phase property 0:34:54 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 4 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) improvements valued at approximately $250,000 or more. The structure is located within the historic town of Charlotte Amalia. Thus, the improvements are all subject to the approval of the Historic Preservation Committee. DiEM Hospitality has previously renovated multiple buildings and spaces within the district. The latest project is the opening of the Island Grind, located on Main Street, featuring a deli, cafe and wine bar offerings. As outlined in the lease agreement, DiEM Hospitality shall repair and renovate the interior and exterior of the building, the electrical, the plumbing, HVAC, and other mechanical systems, including installing an emergency backup generator, security lighting, and cameras. This project will restore and repurpose another underutilized property within the GVI's real estate portfolio, contribute to the economy, preservation of a historic asset, and the continued revitalization of Charlotte Amalia. The inclusion of a revenue-sharing component for subtenants ensures that the government benefits not only from the base rent but also from the commercial success of any of these developments. This performance-based provision incentivizes the lessees to maintain high occupancy and ensure a growing, diverse revenue stream for the Government over time. 0:35:40 These structured rent schedules are both prudent and feasible, as it balances immediate financial responsibility with long-term economic and infrastructural gains for the Government of Virgin Islands. By providing a reduced construction rent during the earlier years, the agreements allow the lessees to direct critical capital towards the site preparation and development costs, including demolition, debris removal and construction. These phased projects are essential to transforming currently underutilized government property into productive and revenue generating assets. Collectively, these projects will bring approximately 74 to 75,000 square feet of desperately needed office and warehouse spaces to the market, strengthening our commercial and industrial capacity. Just as importantly, they will enhance the appearance and functionality of their surrounding areas, while supporting the growing demand generated by disaster recovery and reconstruction efforts anticipated over the next decade. These investments will create meaningful opportunities for our locally-based developers and locally-owned businesses, while helping to address the shortage of quality commercial space within the St. Thomas district. These locally-driven developments align seamlessly with the broader revitalization initiatives of the government on the Virgin Islands that is planned to undertake in the sub-based area. 0:37:14 Together they represent a transformative step towards rebuilding and re-energizing this critical district. At the conclusion of the lease terms, the properties will all be returned to the government in significantly improved condition. For these reasons, the Department of Property and Procurement respectfully requests that committee on budget appropriation and finance vote in favor of these lease agreements which will unlock the full value of gvi owned properties and strengthen the long-term future of the territory chairman and members of the committee thank you for the opportunity to present this testimony and for your consideration of these leases i stand ready to answer any question you may have thank you for the consideration this concludes my testimony thank you very much thank you very much assistant commissioner richards for presentation of the bills at this time we'll go to the ronda de souza and at her conclusion we'll go ahead and show the video um pictures of the particular site before we move on to the next bill at this time ronda de souza you recognize your testimony Good morning, Chairman, Senator Novel E. Francis Jr., Vice Chair, Senator Marvin E. Blyden, community members, committee members, Senator Kirk Viale, Senator Dwayne DeGraff, Senator Ray Fonseca, Senator Hubert Frederick and Senator Maurice James, non-community members, Senate President Milton E. Potter and Senator Carla Joseph. 0:38:53 My name is Rhonda D'Souza and I serve as the Chief Administrative Officer and General Manager of Accent Property Management, LLC. I'm a proud UVI graduate and an active residential landlord with experience in restoring historical properties in the Virgin Islands. I am before you again today, not with discouragement, but with a renewed sense of purpose. When I walked out of these halls after my last hearing on November 17, 2025, I carried a profound feeling of readiness. I admit there was a slight disappointment that the project was not immediately approved. 0:40:41 That feeling was quickly minimized by the support from my family, colleagues and friends. Most importantly, I was deeply encouraged to learn that members of our community, including my financial team, were watching and hearing and following the discussions closely. day afterward, I receive a message reminding me that all isn't lost. That simple but powerful sentiment reaffirm what we believe. The community is engaged, my financial team is supportive, and everyone is investing in the success of this project. 0:41:28 Knowing that the public is paying attention and standing behind this effort strengthens my determination and bring me here today with a renewed purpose, optimism and commitment. As a reminder, Bill 36.0199 concerns the lease of Parceles 123 and 129 in subways, over 36,000 square feet of industrial land in a vital commercial corridor. These properties are currently in significant disrepair. 0:42:09 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 5 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) However, Accent Property Management has already demonstrated our commitment by investing over $20,000 of our own capital to clear debris, remove abandoned vehicles, secure the site, and conducted environmental assessments even prior to lease approval. The need for this development remains urgent. As the territory enters the multi-billion dollar rebuilding phase, we lack adequate industrial space to support the companies handling this reconstruction. Our proposed redevelopment will solve this by bringing this space back online to support logistics, storage and local contractors. 0:42:42 Our strategy is clear. We will stabilize the buildings, modernize the yard for industrial circulation, and attract a diverse mix of tenants ranging from manufacturers to service sector support companies. The market is ready. I am ready. My team is ready. This project will create jobs, generate revenue through a shared structure, and bring long dormant public assets back into productive use. I respectfully ask for your support of Bill 36.0199 as we look forward to working closely with the government to unlock the full potentials of these properties for the benefit of the community. I thank you for your time and consideration again. Thank you very much, Ms. Randall D'Souza, for presentation on Bill number 36.0199. At this time, Media, can you please show the photos of that particular area, as well as to ask the Assistant Commissioner if he will narrate the photos. 0:43:29 Good morning. Vincent Richards from the Department of Property and procurement again. The photograph on the screen represents number 12 and number 12A, parcel 12, parcel 12A subbase, and parcel 145 subbase to the right. And these are the subject properties that submarine-based warehouses is intending to develop. Next slide, please. one of the this is uh number 145 sub base uh it's next slide please this is a closer look at 145 sub place next slide please this is 145 sub base again the uh you can see the roof go move back you can see the roof is uh completely destroyed or taken off on the western side end of the building next slide please this is the rear of the building next slide please this is inside the building of where the roof is taken off and you can see from the debris inside this property was cleared post irma maria it was destroyed and armored maria and as you can see on the debris inside there are several vagrants living inside the building we've tried to secure it multiple times there's a fence around the building but somehow they managed to still get in and utilize the building next slide please so just for some context this is a form this is a former bmv as well as the former motor pool for for the Vriai Police Department. 0:44:40 Post-Irma Maria, the Police Department moved their operations to Subbase and joined it with the operation for the Department of Property and Procurement. We have since been instructed to consolidate our operations And we're now redesigning and upgrading the motor pool facility for the Department of Property and Procurement in sub-base to accommodate not just VIPD permanently, but also public works to some degree. So doing more with less, basically using the PWs from FEMA and consolidating them to one and basically running a more efficient and streamlined operations to save money. Next slide, please. So another photograph of the same one, 45. Next slide, please. This is one of the proposed renderings the developers proposed to redevelop that space into. 0:46:27 Clearly, it looks much better than what's there now. and uh it would blend very nice into uh the upgrades that are planned and ongoing uh in the sub base area uh next slide please uh this is another proposed rendering um assistant commission i was hoping to just cover the 123 129 and then move on to the others but it seems like i guess these slides may not be in any specific order i could fast forward if you'd like me to or i could continue on this yeah I was hoping to just be able to at least show the public and the listening audience as we go along with the requests that will do the photos simultaneously if we could get to the 129 123 129 media yes okay Mr. Chair, yes, we're there. Depicted on the screen is 129 and 123 sub base. If we look at 123 to the lower right-hand corner, the building, about a third of it is sheared off. That damage dates back to Hurricane Maryland, and yes, I did say Hurricane Maryland, sir. 0:47:39 third of the building is sheared off and damaged and i believe the developer is conducting engineering assessment to see whether or not they can repair this building or they're going to demolish it completely and and rebuild it um that building represents potentially about 15 000 square feet of uh of space if redeveloped um and then the other side is uh number 129. Next slide, please. This is 123. This is what it looked like basically before Accent Property Management started redeveloping and mitigating the site. Next slide, please. 0:49:00 This is another slide. Next slide, please. Next slide, please. These are one of the boats that were left on the property, that littered the property. Next slide, please. These are some of the vehicles that were on the property. I believe there was like over a dozen vehicles there. Next slide, please. When they started removing, they found several vehicles, burnt-out vehicles in the vicinity. There's a lot of drug paraphernalia and other paraphernalia that I wouldn't mention. Next slide, please. I have been asked about experience, Accent, Ms. D'Souza here has been involved in renovation of projects before. This is one property on the island of St. Croix that Ms. D'Souza her group worked on um you can see what it looked like before next slide please this is a concept of what they had planned to do with the building and what it looked like next slide please this is them um going through demolition next slide next slide next this is the uh building currently as it looks now at the completion of our renovation next slide please next next this is another property i believe that they're uh 0:49:46 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 6 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) they're looking at developing as well next Next slide, please. This is in downtown Christianstedt, St. Croix. So next slide, please. This is a rendering of what they plan to do with one of the buildings in Subbase when they're done. Next slide, please. Next slide, please. one of the buildings that they also plan to tackle. It's a former shinnery building. It's got a very aged wooden cedar siding on there. All that siding is gray. It started out brown. It's all gray now, dried, rotted. There's water inundated into the building. There's mold in the building. The last occupant of the building was Haida, and they ran out of their post Irma Maria. And we've been in several discussions with multiple groups about uh renovating this building for us and we've been unsuccessful until now next slide please this is another side of the building uh it's a close-up of the building go back this is a close-up the building you can see where some of the tiles on the side of the building is shared off and basically look at some of the windows they're busted waters are inundating into the building next slide please this is a rendering of what they propose to do with the building uh replacing the wooden siding with metal siding and replace all the windows and basically renovate the building from inside out next slide please or outside in next slide please next slide so that's basically it on uh 123 and 129 sir thank you very much mr chair thank you thank you very much assistant commissioner as well as thank you very much mr souza at this time we recognize judy perez fredinand for her um testimony on bill number 36.0204 miss fredinand i want one second miss fredinand huh go ahead there you are you may you may start over go ahead it's right now you need to unmute your your device you're muted 0:52:16 We're not hearing you, you just need to unmute. Can you hear me, Senator? 0:54:19 No, we can't hear you. Yes, go ahead. Good morning, Committee Chair Noble E. Francis Jr., Vice Chair Marvin E. Blyden, Committee Members, Honorable Senators Kurt A. Verley, Duane M. DeGraff, Ray Fonseca, Hubert L. Franz-Frederick, and Maurice C. Jane. Non-committee members, central and legislative staff, follow testifiers, visitors, present in the chambers. I am Julius Perez-Ferdinand, Member and General Manager of Commercial Investment, LLC. And I appear this morning to offer testimony on the proposed lease agreement currently before this Committee and request this Committee and the full Senate approval of the lease agreement between the Government of the Virgin Islands and Commercial Investment, LLC. 0:54:59 I have called the Virgin Islands home for decades. I am a proud mother and grandmother, a retired DLCA enforcement officer, and the owner of Jay's and Perez Enterprises. Since my retirement from DLCA, I have continued to serve this community as a business consultant, expeditor, and residential real estate developer, and property manager. These combined professional experiences have prepared me for the next chapter in investing in and advancing commercial real estate development and logistics in our territory. 0:55:59 Lease agreement between the Government of the Virgin Islands and Commercial Investment LNC is for parcel number 30 sub-base. Since Thomas U.S. Virgin Islands consists of a one-story building, the property will be fully renovated and used as a climate-controlled logistics storage warehouse and for other related purposes. The term of this lease agreement is for 30 years with renewal options terms if we remain in good standing. The renegotiated annual rent will now be $60,000, payable in monthly installments of $5,000 during a reduced permitting and construction period of 12 months. Commercial investments will pay a reduced rent to allow resources to be directed towards permitting rehabilitation and capital improvements. If the property is ever subleased, commercial investments will remit to the Government of the Virgin Islands up to 30% of all rent collected. 0:56:40 Investment LLC plans to invest an approximately $500,000 in critical improvements. These include demolishing and rebuilding the interior office space, repairing the leaky roof and exterior metal wall panels, installing insulation, upgrading plumbing, electrical and HVAC systems, replacing metal roof cap doors, installing exterior and interior lighting and perimeter fencing, implementing a full security and civilian system, improving the container, loading dock, and installing an emergency generator and operational solar panels. These upgrades were not only restore the building but also transform it into a modern efficient and secure commercial access for the service area this project is deeply personal to me because it is a woman-led development built from vision determination hard work and the belief that women in the virgin women in the Virgin Islands can and should play a leading role in shaping our economy's future. 0:57:53 It is also a multi-generational project, one that I am building not only for myself, but for my children, grandchildren, and great-grandchildren, so they can see what is possible when we commit to creating something lasting for our community. beyond the business aspect this facility will provide critical support for our disaster recovery efforts offering secure climate control space at a time when our testimony is still our story is still rebuilding and preparing for the future for me this is more than a lease or a renovation this is a legacy of the east island service and hope that i am then at least for survey i hope i am honored to continue to contribute to the virgin island i respectfully ask for your support of this lease agreement and look forward to the opportunity to begin this work in partnership with the government of the virgin island thank you for your time and consideration Thank you very much, Ms. Perez-39, for your testimony on Bill number 0:59:14 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 7 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) 36-0204. At this time, media, if we could show the photos of 30 sub-base. And if we could get the Assistant Commissioner to narrate. Forward, please. before? No. No, back, please. 1:00:34 I apologize. there we go okay thank you um good morning again vincent richards department of property and procurement the uh building that we're speaking about is um depicted with the red arrow next to it it's located in sub base it's um currently used as the uh school lunch program uh building for the department of education um the building is in significant disrepair we've had multiple complaints about the building from the department of education they're in the process of uh trend um moving their operations to the former island block uh facility or complex that was purchased for uh the department of education um next slide please uh you know i was i wanted to provide some context in terms of experience and background uh and in the photograph is one of the structures as miss perez has uh spearheaded the development of um next slide please uh this photograph is another property that miss perez has spearheaded and i believe is still under construction a residential project next slide please next slide please next slide please i believe this is a concept of another property that miss perez is uh developing in the west end of uh of st thomas as well another residential but i believe uh four uh four units four additional units um uh for miss perez so you know i wanted to I spoke to Ms. Perez after our last hearing here, and in my side conversations, I know there were some questions about ability, everybody's here ability, and their potential, and I just asked them for some reference to show that us locally can do things. 1:01:06 We are doing things. A lot of us are very private about what we do, but we had to demonstrate. We're coming back here again, so we wanted to make sure we demonstrated the local capacity that we have locally. We have all of our developers here. They have their financing. They have their business plan. They have their development plans that are submitted to the Department of Property Carement, and they're ready to go. so um thank you thank you thank you very much assistant commissioner riches and thank you for providing some additional context um it's critical that we're able to provide that to the public as well as we contemplate you know these leases before so thank you for the context and thank you miss uh perez ferdinand for your testimony at this time we'll go to mr enrique rodriguez Managing Partners Submarine Base Warehouse, LLC, for his testimony. 1:03:41 Mr. Chair, if I may? Yes, Assistant Commissioner. Yes, Vincent Richards again. In the lease agreement with commercial investments, they and everyone here in, I believe, Section 2.03, free, there is a provision there that if for some reason the GVI cannot immediately turn over control of the property and there's a delay, that the government is not held responsible. And they all understand, I believe commercial investments understand that there is an operation going on there, there's a transition going on of that operation, and their project may be delayed and they understand and um the government of the virgin island is protected under the agreement that it can't be held liable for not um for not turning over a building um at any time so just want to make that clear and put that on the record i apologize but thank you sir uh thank you uh for that at this time mr roger you recognize for your testimony good morning chairman senator novelli francis jr vice chair mark senator marvin a blyden members of the committee uh senator duane md graf senator ray fonseca senator kurt violay senator maurice james senator hubert l frederick non-committee members president present senator Carla Joseph and our Senate President, Milton E. Potter. I want to thank you for allowing me to return. My name is Enrique Rodriguez, appearing on behalf of Submarine Base Warehouse, LLC. 1:04:35 This is my second appearance regarding this lease, and I want to begin by acknowledging the committee's feedback in the first hearing. We took your concerns seriously. We went back to the table, worked closely with the Department of Property and Procurement, and renegotiated the agreement. The revised lease strengthens protections for the government, clarifies responsibility, reflects the guidance provided by this body. I hope the updated version meets your expectations. The purpose of our request remains straightforward, to activate long, idle government property, generate revenue for the territory, support local employment, provide logistics and storage capacity that St. Thomas urgently needs, especially given the significant public and private investment now moving through the Virgin Islands economy. 1:06:29 These parcels at the Crown Bay Field have sat without productivity for years. With your approval, they can become contributing to the economy, economic activity almost immediately while the government retains ownership of the land and ultimately gains full value for all improvements made. Our commitment is simple, to be responsible stewards of the property, to meet every obligation outlined in the lease, to move quickly so that the community sees tangible progress. I want to thank you for your time, your service, and the opportunity to return with revised terms. I respectfully ask for your support of Bill 36-0205. 1:07:26 I welcome any questions you may have. Thank you. Thank you very much, Mr. Rodriguez. At this time, Media, can you show the photos of 145 subbase? assistant commissioner if you could just narrate microphone okay there we go um vincent richards for department of property procurement again uh this is 145 uh sub base it's the uh former uh bureau of 1:08:15 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 8 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) motor vehicles next slide please this is 145 again um you can look and notice that the roof is destroyed next slide please back of the building next slide please the interior of the building next slide please interior of the building uh next slide next slide please this is a proposed uh rendering of what uh the developer hopes to uh replace the building with in our short in in short order um next slide please this is another rendering of a possible building to be replaced on the uh replace the existing building on the property next slide please another possible rendering next slide please uh this is one this is number 12 and 12a sub base um the current uh property from the roadside next slide please this is um number 12 and 12a is currently what's there i believe uh we have an occupant that's been on the property for several years non-performing um and we're in the middle of uh legally removing them from the property next slide please uh this is the same uh number it's 12. we um next slide please uh and next slide please these are two proposed uh renderings of what possibly could be placed on the uh uh property and in terms of the the aesthetics of how it looked compared to how it looked before. So that's basically it. Thank you very much. Thank you very much, Assistant Commissioner Richards. At this time, we'll go to Mr. Daswani for his testimony on Bill 36.0237. Good morning, everyone. 1:10:11 Since protocol has already been established, I'm actually have my partner, Girish Mirpuri, read the testimony. you. Morning. You must proceed. Put your name on the record again. Good morning. My name is Gareesh Mapuri. Good morning to all Honorable Senators. Honorable Chairperson Senator Novell E. Francis Jr. Vice Chair Senator Marvin Blyden. Honorable Senators and Committee Members Senator Dwayne Graff, Senator Kurt Viallet, Senator Ray Fonseca, Senator Hubert Francis, Hubert Frederick, my apologies senator maurice james senate president milton e potter senator carlo joseph and senator avery lewis again my name is your age my puri i'm a locally born virgin islander and this is my business partner pastor swanny and we're both members of dm hospitality we are here this morning to provide testimony for our vision for this parcel and spaces at 2c crystal gada and parcel a portion of parcel three at crystal gada located in the queen's quarter on St. Thomas. The subjective property is publicly owned and has remained vacant and underutilized for an extended period of time. In its current condition, the property does not generate any meaningful public benefit and continues to deteriorate absent sustained use and investment. The purpose of our proposed lease is to allow for the rehabilitation, maintenance, and productive use of the property through our private investment without reliance on public funding and while preserving the government's ownership and oversight. We propose to rehabilitate the property and utilize as follows. On the lower level of the building we will develop a commissary kitchen to support our centralized food preparation for our coffee shops located at the airport and now on Main Street. We will also be adding coal storage facilities in the parking area and quality control for multiple food and beverage operations that we conduct. On the upper level this will become our office and administrative space for our locally owned businesses, including our accounting, human resources, management, compliance, jewelry management, and other back office functions. This will ensure consistent daily occupancy, operational efficiency, and sustained activity at the site. 1:10:40 Pursuing to the lease, our group commits to invest no less than $250,000 in improvements to the property. All improvements will be completed at the sole cost and risk of our group and in compliance with all applicable zoning permitting historic preservation building safety and environmental requirements the activation of this property will contribute to the stabilization and improvement of the Crystal Gata corridor an area with recognized historical significance but limited recent private investment productive use of this property will support employment increased daytime activity and promote responsible stewardship of our public assets our group has also previously undertaken similar rehabilitation projects within charlotte molly including a property formerly known as a daily news building on back street in our testimony we have attached several photos that shows how this underused underutilized property before and after and has been fully restored through us and placed now into productive use these projects demonstrate our group's capacity to execute long-term investments responsibly and in coordination with applicable government agencies the proposed lease also contains material protections for the government the virgin islands included but not limited to reversion of all permanent improvements to the government upon expiration or termination of the lease without compensation full responsibility by our group for insurance maintenance repairs and taxes assessed on the improvements compliance with all local laws and regulations and clear default termination and enforcement provisions preserving the government's rights and remedies the proposed lease provides a mechanism for the revitalization of a dormant public asset through private investment while safeguarding the government's ownership interests and avoiding public expenditure based on the proposed use the investment commitment and a demonstrated performance our group dm hospitality respectfully requests the legislature's approval of the lease agreement thank you for your service and the opportunity uh thank you very much mr marbury for your testimony there um media can you go 1:12:59 ahead and show the photos of number two two c and three crystal gotta uh vincent richards for the department of property and procurement again on the screen is a photograph of the subject property. It's partially masonry and partially wood. It's a historic building. It's in the Crystal Gata. Next slide, please. This is This is a photograph and or rendering of the eastern 1:14:59 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 9 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) side of the building. Next slide, please. This is a rendering of the same side, eastern side of the building, where the developers plan to put dry and cold storage. Next slide, please. This is the Main Street Island Grind location that they just recently completed and opened. Next slide, please. They renovated this building top to bottom, inside out. Next slide, please. Next slide, please. This is the interior of the building they just completed. Next slide, please. Next slide, please. Thank you. So we showed the potential of this developer as well as what they can do, and I would ask and ask this committee's support to lease and renovate the Crystal Gata building. It's an area of downtown that hasn't gotten as much investment and attention as Main Street, but clearly as you walk the town, you'll realize that there's a renaissance going on on the non-main street properties and um you know uh legislation and programs that this body put in place is is fueling now fueling the um the incentives and making it financially viable for these uh developers to um to to make these projects possible um on the screen now is uh the for the former daily news building that they renovated um next slide please um mr if you want to mention what you did sure um good morning garish my prairie from dm hospitality um yes that's our last project was a full renovation of the former daily news building the slide on the screen shows the outdoor courtyard before and after the building was not occupied since hurricane maryland and was further heavily devastated during hurricanes irma and maria next slide please this is the roof level of the building the the roof has been completely destroyed off the property it has now been fully resealed it's currently uh fully ready now for a next investment and project of possibly bringing back the roof next slide this is the outside of the building uh before and after uh the full building was fully repainted scraped re-plastered and all the masonry work involved required next slide please this is another angle on the side next slide this is the interior of the space a multiple bays inside as you'll see both bays were again not occupied for close to 30 years and now serves as a administrative and headquarters space for all of our operations next slide this is a back bay within the building again not occupied i think this was close to 36 years now is a small commercial ghost kitchen for one of our 1:17:26 operations next slide i think that's all mr chair if i may you may send um assistant commissioner mr chair um members of the committee i mean if if we're honest and direct there are parts of downtown charlemalia that we wouldn't walk during the day never mind at night um with with lights with activity commercial activity it makes it now uh a goal zone um so um we the the subject property that we're redeveloping a proposal redeveloping with these gentlemen um it was was formally used by the Virgin Islands Department of Education. I believe there's mold and different issues with the building. These folks are stepping up and want to invest in the building and generate commercial activity, generate taxes, generate employment in that building. 1:19:19 So again, we just respectfully ask for your consideration. And please walk the space. you haven't walked in a while and you know always feel free to reach out to me with any questions you may have in terms of um you know with that building or other buildings and we will be coming to you with some more properties as well in the historic district we have uh increased interest in in underutilized what you want to call them derelict or abandoned buildings in the historic district of Charlotte and Malia. I believe I have a few months to go, but before this stint is over, we're going to have almost every single piece of government-built property in Charlotte and Malia, and hopefully in Frederickstead and Christianstead, reactivated and make it producing of activity as well as investment as well. So thank you very much. 1:20:21 thank you very much assistant commissioner Richards for presentation there and I must say that I'm again I'm very proud of and excited by you know the certainly the the prospect as well as the the future potentials and some of these buildings we have turned eyesores into you know certainly economic activities you know again small business fuel the economy of the in our budget here in the Virgin Islands so we appreciate the work that has been done we know that we have been rather critical of you at times and you're not out of the woods yet but I am excited about the you know the things that you have put forth and the future potentials and the activities and more importantly at least we're addressing some of the safety issues because we know that these buildings have presented some challenges as well with fires and and and other issues you know so we appreciate the improvement that we're seeing in terms of the ice or at this time i'd like to open up the floor to my colleagues for a five minute round um certainly if you need more time i'll exercise that as well and um we'll recognize senator blyton uh you recognize at this time for your five minutes thank you thank you so much mr chair good morning to my colleagues listening viewing audiences staff central staff good morning testifiers and thank you so much for your testimonies and your investment in this territory i know it's not easy but at the same time i appreciate you taking a risk and moving forward with your projects i must say economic development is important for us all especially now whereas there are many robust things going on in our community to include these bundles and other investors and 1:21:21 investments in our territory and for you to see have the foresight of bringing your proposal forward to assist in that space is commendable in respect to bill number 36.0199 Ascent Property Management LLC to operate, establish, and manage a slate of subtenants. And also you spoke to being ready, you said Ms. D'Souza, you said you're ready because of the market, willing and able to move forward. And I appreciate that. 1:23:16 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 10 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) I saw and see your excitement. I see your urgency and I see that you are willing and able to move forward. Let me ask you one quick question though in respect to your investment. You have all the pieces in place and ready to go. You're ready to go for sure. Yes, I am. Just waiting on the lease approval and we can move forward with everything. Okay, very well. Good luck. Thank you. On your investment. Let me speak to bill number 36.0204 which is for a logistic storage warehouse and other related purposes um let me ask in respect to that investment um what made you decide to do um logistic storage warehouse that's miss um yes speak to me quickly briefly it's been my passion it's been my passion i spent my passion to do that and i know we need um we need spaces we need salt spaces those those um rendering that um the assistant commissioner showed of some of the projects you have done before i would have liked to see some before pictures they are beautiful good work i like the craftsmanship but i would like to see some the before and after picture but nonetheless I do concur that you are ready to move forward in terms of the work and have the expertise in terms of hiring the individuals to do the work. 1:23:57 So you got my support. And I know you a long time. I know what you mean and what type of person you are. So you do got my support, have my support. Bain number 36.0205 in respect to bulk storage and establishing a slate of subtenants also on the premises. Good day, Mr. Request. How are you doing? Good day. Of course, we know the type of work you have done in respect to the different projects you have done, all successful. And the rendering, I like the first rendering, not the second one. I really like the first one. 1:25:33 I think it fits with that area. And in respect to storage, though, I know we need storage. There's a shortage of storage. And the last time you spoke to your research and what is necessary when it comes to storage, how much employees you spoke to? Again, how much employees you say you might be employing as a result of your investment? These two particular sites, probably north of six for each one probably six for each one okay very well that's sorry I apologize that's after the construction but during the construction obviously the crews would probably be much larger okay very well let me ask you though in respect to that space though one minute or one minute quick briefly in terms of parking how much how much parking space we speak into that area uh well it depends on the configuration that we finally uh settle on uh whether we do more building and parking but there are dpnr requirements that per a certain size building you have to have x number of spaces uh i do not have that answer for you right now you don't have an answer for me right now but what what do you have in mind at least, okay, the least amount of space that we're speaking to. 30 seconds. So if there is warehouse construction, which is a priority, then there'll be less parking. 1:26:14 Give me a number. Give me a number. At least 30 spaces. Thank you. I appreciate that. DM Hospitality. And I saw exactly what you have done and what you've been doing. And this is a very critical, critical area, food and beverage management company with all that's going on here in the territory and also the investments are being made and I are known for if I may wrap up Mr. Chair let me ask you briefly in respect to your investment are you looking to target and work with our schools etc in terms of actually bringing in those individuals training them and getting them prepared are you working with a different hotels association hotel industry and all you working in those spaces in terms of what's your plan in this way? Because I am very interested in what you're trying to do. 1:27:48 It's something different, and I like it. Talk to me. Good morning. My name is Pash Laswani. I'm one of the owners. Garish is my partner here. Thank you for the opportunity. So the answer is yes and yes. We have already approached young individuals who we want to do a training session with, especially in the current space that we have at Daily News, and we've already established that protocol is already in place. And the answer to your second question is, have we approached hotels? We are currently working with the Western Hotel and producing for them. So the answer to that is yes as well. 1:28:40 And finally, in closing, Mr. Chair, what about individuals who have like a small business and they really don't have the space, they live in a housing community or apartment and they need space to actually go and showcase what they have are you interested in something like that and would you be doing anything like that absolutely we've already taken one step ahead on that sir if you have been to the airport island grind we have chosen and selected several young chefs talent off the virgin islands and we are already showcasing their food at the airport uh with the with the phrased coin phrase called last sip in the virgin islands thank you so much for what you're doing and i vote yes for all of you guys thank you so much mr chair thank you for the time thank you thank you very much senator blyton uh next the chair will recognize senator every lewis he recognized for your five minutes i also like to recognize the presence of senator clifford joseph uh good morning senator thank you for joining us morning yes thank you thank you thank you mr chairman good morning colleagues good morning to the testifiers good morning to people at virgin islands you know i know most of you up there but my question is really to mr richard this morning and this is nothing against the testifiers and i'm for development 100 percent mr richard's a dmv property currently was already awarded to someone for demolition and so forth where is a new dmv going and what happening what will happen to that awarding so gotta be careful i'll answer you um they're 1:29:17 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 11 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) answer me correct i'll tell you the truth The administration is in the process of acquiring two properties, two alternative properties for BMV, both on St. Croix and on St. Thomas. That's one. Number two, there is or was an award for the demolition. The amount is very cost prohibitive. With this lease agreement, there would be a net savings close to a million dollars just for the demolition, and that saving could then be put into acquisition of a space that's more appropriate for the BMV. history of that property currently is it's a flood zone um i remember seeing water literally bubbling out of the floor of the bmv when there's a heavy rain i know everybody here remembers when they would literally go and put foam spray foam around the doors whenever there's going to be a heavy rain and heavy rain could happen just like any given day like today i understand i'm just asking where is the new dmv going i am all for upgrading and thing but i am not for we're going give up the government land and then we're going to rent a space so let's fix that today so nothing against none of the people in front of us today but we have to do what's right i am not giving up the government land to go rent nobody's space so let's scratch that one today so you know you're going to tell me that today let's not waste my time government's not renting any space for the bmv sir but with the new projects are going on in subways no we just signed that not we but viper just signed a deal with royal caribbean for about 200 million dollars or something how is these projects going to fit in with the synergy down there and what's not i saw a nice rendering by mr rodriguez but it was two to three different renderings so help me out you know we want us come put containers on top of containers and moving forward so how is it going to fit in with what we're trying to build aesthetics even mr souza everybody on top of the hill come down so i think 1:31:19 that's a good question senator uh they need to work with the aesthetics of making it better and improved um the kind of money that they're talking about investing it has to look good it has to look good to attract tenants that want to be there it has to look good to be able to increase your rent rule so uh you can ask that question to developers but uh i'll come back to that because i like i we liked what we saw yes i'll come back to mr rodriguez and to mr susan one second what time let's move up tongue now yes sir where dm properties is going to take over that building that com that complex is comprised about three different buildings is miss is pass taking over all three no sender just one business bill and sender now what are we going to what the plans for the other two uh the other one has been leased out already previously in this body and um okay and that's it if my memory saw me correct if i'm watching the rendering the picture correct the one that um dm is taking leads over to the the other street right leave it it you enter the property next you enter the net from you enter the property from from crystal gala that's the the only entrance to the property or exit is from crystal goddess center okay oh there is a map in my in my presentation the uh the media didn't show the map but um there is a map that shows so where's adult education currently now uh i don't know specifically but they've they've been out of that building since hurricane irma maria center okay thank you mr rodriguez Tell me in your proposal, how do you plan to upgrade and meet the synergy of what's going on in the sub-base area just to be part of it to make sure that, hey, sub-base is the space to be at? 1:33:21 So the architects involved in the project are definitely looking at the other areas to make sure that there is a cohesive development that fits for that area. So I know that there needs to be a balance between retail and warehousing, so the architect is trying to find out how he can come to that final design before we go to the bank. Good. Mr. Souza, not because you're on the hill, so tell me how you're going to make the hill look like, wow, what's up there? 1:35:18 well senator first one of the buildings is office space so that says itself uh that would definitely be one minute let me go through my history you see the building no no no tell me how sexy that was okay i plan on making those two buildings just as sexy as that all right office space of course I didn't have the right term for in here today, but I'm going to leave it there. Mr. Pash, good morning. Good morning, sir. How are you doing? 1:35:52 Well. I heard you talk about employees. Yeah. Tell me, new employee coming in, what does that job look like for that employee in terms of benefits? Well, we have multiple, again. Benefits. 30 seconds. My name is Pash Daswani, just for the record. Currently, we have about 8 to 10 employees just managing the kitchen portion in the back for the two airport location and downtown location. We've also added some local, we've added the Westin as a vendor who's currently, we're preparing food for them as well. That answered Senator Blyden's question. 1:36:21 So with the new property, if we still are leased in the old space, we'll be adding quite a few employees. If we don't have the old space, then we'll probably be looking at adding maybe four to six more to take it up to ten employees in the new space. Mr. Chair, if I may not strap up, because I don't think that Mr. Paschal understood my question when I talk about benefits. I talk about health insurance and retirement and so forth. Sorry, I just thought you meant quantity. I apologize. All our employees, full-time employees, get all of the above. They get health benefit, they get vacations, they get sick leave, everything is, and life insurance, along with the policy. good and lastly before i go i don't abuse my time to all of us here today i don't care what you're building how you build it aesthetics and make sure the facility is age friendly don't put the restroom way in the back that when the seniors come they're fighting to use the restroom whatever make sure it's 1:37:07 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 12 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) hand handicap accessible but you're not going to have a problem with you um let's put it in there thank you mr chair if i may yeah that's the commission you recognize uh vincent richard's department of property procurement uh senator lewis very good question very good statement all the lease agreements have a requirement in there that they're ada compliant so thank you very much and it's in there thank you uh thank you mr riches what about in terms of maintenance um how are we building in to ensure that these there is upkeep of these buildings we actually understand the initial injection uh that we're going to funding and getting these buildings done but in terms of long-term maintenance um you know what's built into the lease to ensure that that occurs uh senator good question in the lease agreements um there are there are there are uh stipulations in there that the properties need to be maintained and kept a certain manner uh if if for any reason they're damaged uh they need to be repaired within a specific time uh if during our monthly inspections we notice a deficiency we we we have a mechanism where we give cure we give notice and they're required by the lease to cure within a specific amount of time senator okay and then who's who's policing that you're saying property procurement and property managers are responsible then to ensure that that mechanism is exercised and enforced the department the The Department inspects all of its leaseholds every month, and if we ever find deficiencies, we do have a mechanism internally where we give notice, and they have to be cured within a certain period of time. Yes, Senator. How many such of those have been issued in the last six months? I believe·I don't know in the last six months, but I know that we've given notice in the last two weeks one in the last two weeks very well at this time the chair will recognize senator ray fonseca you're recognized for your five minutes yes thank you excuse me 1:38:56 thank you mr chair and pleasant good morning to the viewing and listing audience all those tuned in and also to our distinguished panel of testifiers this morning while a little rough i think i was out of power um from about 10 o'clock last night to about 9 30 this morning um my sympathies to all of the residents that were affected you know that was a good little test if we get a big storm we spent um federal government over a billion dollars to strengthen the grid in st thomas st croix and john and that was a test i hope we get improvements um you know excuse me bill 0237 you know i'm going to tell you a story here papa this here you're right um assistant commissioner richards this used to be commanding gardener school i went to commanding gardener school um edith williams we have a statue of edith williams right there in um um educations where she was a principal she had a little um a little stick or something there i think she must have given me a half a lash so i'm familiar with this area um the board of education used to be right next door and also they had a dentist so in addition to being a Bovoni man and a barn savonero I also spent a lot of time up up street garden street commanding garden so you see that I got claimed to all over the place so Mr. Pash Daswani so the area that you're going to renovate is where the principal the area you're going to renovate is where the principal was there's the other area Vince in the front coming down garden street that's not in this package no it's not senator okay so richards no it's not senator 1:40:46 okay so but i i imagine based on your statements on the developments that's going on you have that part which was actually a schoolhouse where you're renovating is where the um the principal office and the board of education used to be so this is a goal for me i i love this development okay so So, Bill 36205, this is a locally owned business, you've been doing redevelopment, you're dedicated, this is good. 1:42:48 So let me ask you now, the front of the building is open and there's thousands of passengers walking by there now and it currently don't have a sidewalk or it does have a sidewalk and his public works is going to address that because thousands of people walk up there going up to um you know up to pueblo and where the dmv used to be how any is that accounted for the pedestrian traffic vincent richards department of property becoming senator good question um the you know the department of public works is the one that's responsible for managing the sidewalks I believe, you know, we are cognizant that that corridor is going to be transformed. And I could only assume that the Department of Public Works will do what they have to do to continue to maintain the sidewalks. 1:43:19 The subject property starts from inside the sidewalk back towards the ocean. towards the ocean, so I don't believe, well, the developer does not have jurisdiction over the sidewalk, but I would only assume that with the ingress and egress and the flow is going to be taken all into the design. OK, yeah, because thousands of people walk by there. I would add this and say this, though, but I have sat in the parking lot at Pueblo, and I have seen, I don't want to use the term vagrant, But I guess I have to have seen people that reside inside the building squeezing in and out of pieces of plywood that we've put on the building to basically secure the building and to enter and come out of the building. 1:44:16 I support Bill 36-205. I want to go on quickly to 36-0199. I also support this. I used to walk up at WBNB up on the hill, so that's Hay Peace Hill. I traversed that road daily for a couple years. I remember when this here was built, so that's a definite yes for me. I'm glad, and congratulations on developing that. I want to go to Bill 36-204, which I also support. 1:45:06 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 13 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) And, you know, I have to congratulate you overall because some of these items have been before us before, and there's been some significant modifications, and you've addressed a lot of the issues that this committee had. So I want to support also Bill No. 36-204. So let me ask you now. So it's 30 years and it's a 10-year renewal. How long is going to be when the full amount of 48,000 kick in? The construction, I know you have your projection here, but how long, how far off are we? 1:45:45 Do we have design and where are we? Do we have design, you said? No, I'm asking Mr. Rodriguez. We have preliminary designs, but we're trying to negotiate with some tenants to see the mix of whether or not we're going to be retail or more warehousing. We've got to find a good balance because you get more money for retail, which means more money for the government in the long run and less money for warehousing. Yeah, also. And I think you used to go to Anglican School too, right? 1:46:31 I am an Anglican School graduate, class of 1981. one yes see that so you use a upstreet pussy too and so thank you mr chair for the time i support all of these these leases uh thank you very much senator ray fonseca at this time we'll recognize senator duane de graf minority leader you recognize for your five minutes uh thank you mr chair good morning colleagues good morning testifiers all of you listening and present um Right off the bat, I've always had an issue with these leases and the terms, even with Mr. Deswani, the term for the building. We get into that. Incidentally, the Daily News building, I used to work my first job. I used to go Daily News. You buy newspaper for five cents, you sell it for ten cents. That was back in the good old days. The Shinnery building, I worked there when I worked with the first entity of Haida. The building, the old inspection lane, I used to work there in the police motor pool in the early 70s. 1:47:02 So I know all these properties and, you know, I understand the investments that you're making in this area to change our territory. But, Ms. D'Souza, I see your annual rent at $144,000. Yes, Senator. I'll never agree to that. I'll never agree to you paying $144,000 a year for a sub-based property where, and then Ms. Perez, I forgot your last name. Ferdinand Perez. Ferdinand, I do apologize. Ms. Perez Ferdinand, $60,000 for the corner, I'll never agree to that. 1:48:10 I don't agree to that either. I had issues, like I said, with one time maybe we went too low, maybe now we're going too high. Mr. Rodriguez, you're paying $12,000 a year still. Okay, that's what I wanted to get the term because I don't have all. I wanted to have the terms put out on the record for me so I could hear. I may have different documentation than me. Okay, so your terms are now currently. Well, before we get to your terms, I was told with the other property down where the gentleman sold construction, it was mentioned that legally removing tenant is what the assistant commissioner mentioned that is being done now. 1:48:56 So my understanding is there is a court case, a legal settlement against this issue. Why? So are we renting something or leasing something out when there's a court case going on? So Richard's... Hello. Yeah. Vincent Richards, Department of Property and Becurement. We do not have a legal tenant that's there. The person that's there is, quote-unquote, an occupant. They have no legal document with the government of the Virgin Islands to be there and to be operating there. So we're working with the Department of Licensing and Consumer Affairs. So is there litigation going on regarding that property? 1:49:41 When you say litigation, I mean, there isn't a case in court, no. But we have mechanisms to use, and we're going to use those mechanisms to make sure we get control of the property. Okay, so it sounds half a dozen, what is it, you know, are we the state home? It's not clear what you're saying. You have mechanism, six and one half, half a dozen next. You have mechanism that you're getting. Is the person of the property, Mr. Rodriguez can't take control of the property because you have an issue with the person or entity that had the property before. Is that a fact? 1:50:22 The question is, is there someone on the property? Yes, there is someone operating on the property. Okay, so it would cause an issue for Mr. Rodriguez obtaining that property currently if we do pass this lease. There may be a delay in time, but in Section 2.03 of the lease agreement, it states that the government, Mr. Rodriguez is protected or the developer is protected from any financial loss due to the GVI not being able to give the property immediately. And that's fine. Financial loss is the big part, but again, you know, still waiting. Okay, so that's one issue with that problem. So, Mr. Jukia, what are your new terms? If you could put them on the record, please. And everyone put their terms on the record. Assistant Commissioner, yes? 1:50:58 We tripled the amount that we had discussed before, and it's now three thousand dollars three thousand dollars annually for the rent okay and now the other stipulations um we we reduced the we reduced the uh construction period i believe as well wait okay again only got five minutes i try and get direct questions because i'm saying mr the issue that the properties were held not mr daswani hill this one came up after because we had issues with the contract, basically the lease that they were signing, payments amount, that was the issue. 1:51:51 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 14 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) Now, okay, before we get back to those, Mr. Daswani's property, the state, what the terms are. Do I have to ask them or should I just get this directly from you? I think in order to save time, give me the terms for each of the projects. properties there with with all the different stipulations the different for each of the properties because i'm saying it's one year to three years they had this amount and think that's what it is i would like put on the record so i'll i'll read i'll reread the terms again it was it was part of my testimony okay but all the properties are different they're different in in in of themselves i got it so some are raw land 30 seconds some is uh minor well some is minimal uh some is minimal uh investments some are major investments so i'll i'll repeat for accent property management their annual rent is 144 000 a year um for 30 years um for commercial investments their annual rent is 60 000 a year for 30 years for submarine based warehouses raw land Wait, excuse me, Mr. Chair, if I may wrap up. Yes, Senator, you may wrap up. 1:52:35 For submarine-based warehouses, raw land, the rent is $36,000 a year. And for DM Hospitality, their rent is $12,000 per year, Senator. Okay, so $144,000, $60,000, $12,000, and $12,000? Yes, Senator. Not $36,000 and $12,000. 4th, 36th. And then 12th, correct. Okay, so they were always my issues prior to adding Mr. Depash. So basically, in Crystal Guarda, again, I don't have a problem with you fixing up the properties and getting the lease, but they have terms where you're paying, I think, $100 for two years and then $300 for three years, and then we go to $600, and then we go to the $12. Right, so that's what I'm saying. So in terms of how we are seeing the other properties, I'm seeing where even Ms. De Sousa, so you went from paying, what were you paying before, to $144? If I may? 1:54:02 If you could answer it quick, because I'm on the chair stand. Their numbers stay the same, that their construction period was reduced, and the construction period was reduced. Okay, so because of time, we have a second one. We could address it, but thank you for the time, Mr. Chair. I don't want to abuse my... So, Senator, I think it's... If you can answer on the Chair's time. Mr. Chair, if you can answer your time, if it don't matter. Mr. Chair, if I may. You may respond, go ahead. All these are different fruits. 1:55:11 These are apples, oranges, pears, and guavas. I mean, everything is completely different. And I'll be happy to either on the record in another round, if there's another round or on the side basically sit next and show you how they're all subjectly different and how we get to where we get you prefer thank you thank you mr chair uh thank you very much assistant commissioner richard thank you senator um the graph at this time the chair will recognize senator hubert frederick you're recognized for your five minutes a pleasant good morning colleagues testifiers listening and viewing audience the office of Hubert Frederick and central staff my question is going to be a very generic question and then whoever wants to jump in jump in but I have no problems I am so happy to see young developers willing to take on projects like these but we've got a huge project ahead 24 billion dollars worth of infrastructure improvement that's coming our way the government needs to be prepared to handle this type of development we should be the one the government of the Virgin Islands should be the one leading the way to develop spaces to accommodate the construction businesses that are coming here but instead as always we've got smaller developers that's out front you know situating getting prepared for you know small development projects which is fine I commend you guys thanks for risking your capital some of these buildings are just beyond a useful life but we should be getting ready for what's coming ahead we should be developing spaces and getting ready so 1:55:39 we could lease properties to these developers to recover some of that money that we're gonna be paying out but as usual we're not we're not even close we're not there we don't have a plan and I could tell you this is something that's gonna come back and bite us I want to just say this I want everyone to make sure that they seriously considered the environmental impact of some of these buildings because if mold, lead paint, or anything else that's discovered, your cost just went through the roof. I need each one of you to make sure you answer. Just say yes, I'm aware of that and I'm willing to cover that so that we know this up front. Logistically, are you going to be prepared because now we know that the other huge developers are going to be competing for the same resources that you need and you're going to be delayed substantially because of that. Building supplies, equipment, you know, heavy equipment, all that stuff. It's going to be tough. I hope you guys could get ahead of this before the big jobs get started. Sprinkler systems. Some of these spaces, we're talking 40,000 square feet. 30 000 square feet are we gonna have sprinkler systems because that's another astronomical cost um i i didn't see any mention of those things i hope we do energy savings we saw what's going on with wapa power on power off you're gonna have to have a backup system reliable power for your tenants because ultimately these development projects you have to be forward thinking I mean, we can't rely just on whopper. So if you could, please, each developer, please, if you can, just tell me, did you consider these factors, and are you prepared and ready to act? 1:57:38 I can start. Good morning again. Pashto Daswani, DM Hospitality. Senator, yes. The answer is yes. It's already part of our lease agreement. Us, personally, I can't speak on behalf of the other testifiers. we have food involved and with food we have to have refrigeration and several other mechanisms in place so a generator for us is a must because that will also 1:59:34 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 15 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) help us with the refrigerated containers that we're gonna have storage in so the answer to that is yes I'll let the other testifiers go forward Good afternoon. One minute. Good afternoon, Senator. Can you hear me? Oh, good afternoon, Senator. Yes, good afternoon. Go ahead. Yes. My response to your question is yes. When we did our initial environmental assessment, sorry, engineering assessment, environmental and structural aspects were taken into consideration. Not being initially approved, we also factor in the cost and expense of getting the repairs made to the both structures so yes we are mr. Rodriguez yeah and do provide for environmental issues if they do pop up so we're prepared to deal with them okay and last but not least the financing that you currently have in place will accommodate any unforeseen eventualities so these projects are completed absolutely do i have a yes on everybody yes property management that's a yes miss ferdinand is that a yes that's a yes yes yes okay great okay so i will fully support these these bills Mr. Chair if I could wrap up I will fully support these bills providing that this discussion has been had and the next step will be us as a community focusing on what the government of the Virgin Islands need to do to prepare ourselves for those huge projects that are coming thank you very much for the time Mr. Chair thank you very much Senator Frederick this time the chair will recognize Senator Collage Joseph you recognize for your five minutes thank you so much mr chairman a pleasant good day to you my colleagues 2:00:14 of course the people of the Virgin Islands and these four local business owners here in st. Thomas because I really want to commend all four of you Mr. Pash Deswani, I know you as well. You rent the property from the Moravian Conference, the former Daily News building. So I am intricately knowledgeable about your work performance. I also want to mention, Ms. D'Souza, I may not know your work performance, But I know you have a lot of grit and tenacity because your hair back and back and you're not giving up. And also, Mr. Rodriguez, you signed on a bill. Well, it was a grant for YouthBuild readily to provide training for young people who were disadvantaged. 2:02:12 And, of course, you also own that, well, you lease the property right adjacent to Pueblo in Subbase. And that is a very good development that you have undertaken. And last but not least, Ms. Judy Ferdinand. I know Judy. Judy is also, Ms. D'Souza, you would love this. She's also a graduate of Charlotte Amali High School, class of 1974. and you want to know how I know that Charlotte Amali High School Charlotte Amali she is a businesswoman I am intricately knowledgeable about her construction experience because I've seen her construct home and place affordable affordable rent to our people in the Virgin islands in st thomas and everyone knows that rent is sky high in st thomas compared to the other island our big sister island and in st john is sky high so i want to commend all of you i do have one burning question and i i really have to say for the property um an accent property i i really think this is a large amount especially given that you You are here in the Virgin Islands, suffering as all of us do here with the power outages as small business owners. One, and you're here after the hurricanes. You'll run nowhere. You'll leave the island and jettison to some other place. You're here in the trenches with us, and we depend on you as well. So that $144K annually, based on the investment, because you are you may have to demolish and the previous speaker was correct they these are all building there is there is a great possibility that is asbestos and lead in them and then the delay in getting it but uh we don't negotiate these contracts and leases in this body we just make those comments uh and the same goes for the the storage place for commercial i'm sorry commercial that miss judy fernand is going to look to rehabilitate as well as the investment that mr rodriguez is going to undertake it's which is the old bmv um facility let an abestos ain't nothing more vexing than them two let an abestos and it can skyrocket 2:03:14 and you're not inherit you're not leasing a vacant property that property has structure on it i know the assistant commissioner says it's vacant that has a structure on it and it's going to have to have those mitigation in place and mr diswani i really want to commend you uh for taking on another challenge with an old derelict building i have seen your work i know the the the bar restaurant right there main street i drive there i think it was last week friday and it was popping one minute um so i had that i really had experience now my question is just one question is regarding the construction period, Mr. A.C. Richards. 2:05:56 The construction period, it says here that there's no negotiation. They have to complete it in those months. Suppose we have a hurricane. Suppose, God forbid, let me just say God forbid, suppose we have something happen here, mass destruction. We don't have any electricity happening in St. Thomas now. How is that? Because it says no extension of the construction period. I am concerned for these committed small business owners from the Virgin Islands. 2:06:50 I got to be looking out for our people. Vincent Richards for the Department of Property and Procurement. There is force majeure clauses. there considerations in there where is it where it's located in the force majeure uh clause in this lease because i read it and it says there's no extension for the construction period i read the lease and that's that popped out that was that was glaring to me i know we have a property up here in dunoo that's supposed to have been developed long time they had to go through a lot of other construction contractors because lead and abestos was found on the site these are realities so kindly indicate for us where you are stating in this lease that that exists so in 6.05 there's a environmental 2:07:23 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 16 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) limitation clause in in the agreement where which doesn't hold the lessees liable. And if there's any environmental concerns on there, the government of the Virgin Islands will shall indemnify them, defend, and hold them harmless to the extent extended permitted by applicable law, as well as um but it doesn't say that they could get it says here um mr vincent richards on the 302 b it says the construction rent period should not be available or extended beyond the construction period of this one is for the submarine base warehouse beyond 48 months that's for mr rodriguez and he's going to have lead on a best source in that property all of you know you and i both know this okay and i'm a woman i'm a female and i know this and i don't have a construction degree but i trained young people in that and i work along construction contractors everybody knows that so how is it that you don't have that ability to grant them an extension for the construction period so some senator i think it's a very good question um i mean bottom line is the government of virgin islands um is for all intents and purposes a partner in all four of these developments um you know a lot of things can happen um terrorism uh hurricane earthquake disaster um the department of property and procurement is open to uh is is a partner in these developments, and I'm certain we'll make adjustments if at some point. Where in this lease does it say you can make those adjustments? Mr. Chairman, I know I'm sorry. 2:09:21 Did you call the time? I'm sorry, Mr. You called the time? I'm sorry. My time has expired. I do apologize. I'm sorry. You may wrap up, Senator. Oh, thank you. You guys are right over there. Oh, yes, I'm sorry. I'm so sorry. I was so, thank you kindly. I was so, so involved in this question because I'm looking out for these small business who have been here with us. Tell us. Ma'am, if these developers need to have any of these agreements amended, they can come back to us, ask us to amend, and we'll come back to the legislature and ask this body to amend as well, approve amendments as well. But it doesn't go without saying that the GVI is vested in every single one of these developments. They're bringing online investments, they're bringing online employment, they're bringing online economic activity, they're bringing online... You know, there's a multiplier effect for every dollar that's going to be spent and invested in these properties. And these properties and these developments are going to assure and feed off of the billions of dollars that's going to be spent here and spent here for the reconstruction projects as well. 2:10:27 Okay, thank you. But I don't like delays. And I see that as a delay mechanism, especially in construction. The cost is going to go up. Thank you so much, Mr. Chairman, for your leeway and your patience. I deeply appreciate it. Thank you very much, Senator Carla J. Joseph. Next, the chair recognizes Senator Craig VLA. You recognize for your five minutes. Listen, thank you, Mr. Chair. Good afternoon to the people of the Virgin Islands. Good afternoon, colleagues. Good afternoon to the testifiers. Yes. Mr. Richards, just to be clear, in reference to the island laundries, you're saying it's not in litigation or it is in litigation? Have island laundries filed a case against the government of the Virgin Islands property and procurement? 2:11:40 Vincent Richards, Department of Property and Procurement. Are we talking about island laundries and sub-base, Senator? Yes. Which other one it has? Is the property where island laundries presently exists, is that one of the properties that we're trying to lease today? No, Senator. No? No, Senator. Okay, thank you. Skip, so don't answer the above question. DMV, is DMV still operating out of the structure? The DMV is operating a part of their operations in the backyard of the structure. They're conducting inspections of vehicles in the backyard. one of the parcels, Senator. 2:12:28 What is the plan for them to move out of that structure or that location? The GVI is in negotiation to acquire a replacement property for them, Senator. So there is no replacement property at this time? Currently, right now, I cannot say that, no, Senator. Mr. So, if this lease is executed, it cannot take place until BMV is relocated, correct? Mr. That is not our opinion. In section 2.03, the lesser shall not be liable for the failure to give possession of the premises upon the commencement date by reason of the fact that premises are not ready for occupancy or due to prior lessee wrongfully holding over or any other person. So it does give the GVI cover. The developer is aware and we have terms. Senator. 2:13:11 Okay, so there's a possibility we're moving out of a space that we own and we'll be moving to a space where we have to rent? The property is in a flood zone, Senator, and again, the government of the Virgin Islands will have to rent a space in order to move out. No. Respectfully, the government of the Virgin Islands is in the process of acquiring property for both VMV locations on St. Thomas as well as on St. Croix, Senator. Government all land or private land? Private property, Senator. 2:14:13 so that is going to come before this body we're talking about at least a theme to me to be stretching out a couple years before anything is done senator uh it's it's let me move away from that let me move away um my opinion i can't see renting property where the government probably presently exists that doesn't make any sense uh especially keeping in mind that we even haven't acquired another property we don't have a building we don't have any facility um where Bureau of Motor Vehicle is going to be housed. My big issue is some of the terms and also the sublease agreement. I'm looking at it and DM Hospitality subleasing, 30% of sublease rent. 2:14:48 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 17 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) 30% off the top. You go to the others, you go to the submarine-based warehouse, it's 5% year 1 to 5, 10% year 6 to 10, 15% year 11 to 15, and 20% year 16 until the end. Commercial investment 5% 1 to 5 years, 10% 6 to 10 years, 15% 11 to 15 years, 20% 16 to 20 years, and 30% 21 until the end of the term. Why are you being so flexible in the government being able to collect from these sub-leases that will be executed? Why are you going 5% with 10% up to 10 years? I don't understand why Daswani has to pay 30% if he's sub-leased, but the others have this scale, this graduated scale from one all the way to 30 years. What's the rationale there? 2:15:36 Senator, that's a very good question. Once again, all these properties or all these developments are not one and of the same. They all have different business models. We've looked at the business model? Are you going to let me answer, Simon? Are you going to let me answer? Hold up. I don't want to hear about the business models. I honestly don't. I want to know why this government is not just charging a flat fee for any developer that wants to sublease government property. If you're subleasing government property, you should be charged at 30% from the onset because they're collecting monies. Why do we have a scale that stretches all the way out to 20, 30 years. Somebody said, that's why they don't have a business model. He has to pay 30% if he agreed to sublease from the onset, while the others just stretch it out all the way to 20, 25 years. I go on to look at it. 2:16:28 You have commercial investment, 0.399 acres. They're paying $60,000. Submarine-based warehouse, 1.379 acres. They're paying $36,000. They're paying less than a third of an acre. Then you go to Ascent Property Management. which have 1.6 acres they're paying a hundred and forty four thousand dollars and during the construction period of year one to twelve they're paying seventy two thousand dollars the construction period from um construction period month 13 to 24 they're paying 96 000. they're paying more in the construction period they're paying double what submarine based warehouse is going to pay after their construction period ends at 48 months because submarine-based warehouse construction period one to 24 months they paying one thousand dollars a month for a total of 12 000. 24 5 to 48 they're paying 24 000 which is 2 000 per month and then you're giving them 30 years with three 10-year extension that's 60 years i i do not agree with the sublease portion and the amount i know you're gonna say it's different business model but submarine based warehouse investing two million dollars and they're paying 36 000. that's incorrect investing three million dollars and they're paying 144 000 a million more that's incorrect senator your numbers are incorrect you look at it mathematically it does not add up and i do not believe that this government should be leasing land to anyone that have this graduated scale of sublease when it is clear we're submarine base we will say our main issue is to sublease ain't a runner existing but it's to sublease to bill and sublease are you saying hey don't 2:17:16 worry about it you only give us five percent for the first five years and then ten percent up to year 10 it it just doesn't make sense there's no consistency in any of these lease agreements there's none i'm looking for at least one part that is consistent i guess the only part is consistent they're all 50 and 60 years we got to be careful i know this is prime property this is crown bay with a 200 million dollar development that you'll lease 30 seconds for a sub lease of 20% to submarine base until the end of the contract which is possibly 60 years while other developers and St. Thomas and St. Croix paying 30% sublease for property that isn't worth as much this is waterfront pristine is going to become after the development at Crongby this is big money I wonder why this government couldn't even negotiate some of the companies they want to house material and everything directly get a land back after five ten years the bill if you look at the contract and i'll finish now if they're going to be subleasing to contractors so forth coming in that construction is supposed to be finished within 10 years within 2035 or the percentage everything changed when it finishes when they're starting to pay 15 so when the real bulk of the work is taking place on st thomas and they're looking for spot and everything they're paying five and ten percent of sublease how are we supporting this at the very least we got to say be consistent 30 across the board you wanted 30 percent don't tell us you will make money when it's only five percent and ten percent by the time they start charging the big contractors packing up to leave thank you so much as the chair point of information uh thank Thank you very much, Senator Vialli. Assistant Commissioner, do you have a response? Senator Francis, thank you. Once again, all agreements are not the same. They all have different business models. DiEM Hospitality is running operation straight. They do not plan to sublease. The other business models, Accent, do plan to sublease. 2:19:12 It's stated in the development plan. For submarine-based warehouses, they plan to sublease. It's stated in the business plan. Commercial investments do not plan to sublease. There's a provision in there in case they decide to sublease in part or in whole. We protect the government of the Virgin Islands. So this body, or the previous legislature, gave us the authority to negotiate because previously the sublease fees were at 35%. Everyone said that it was prohibitive for development. This body gave the Department of Property and Procurement the power to negotiate. We have negotiated. We have renegotiated. And here we are. so that's basically it but i i welcome and appreciate the discourse it's good to learn it helps me learn more uh thank you very much assistant commissioner next the chair will recognize another clifford joseph you recognize for your five minutes thank you mr q good morning to the testifiers good morning to the listening public and listening and viewing public first question well first of all i can write along as far as consistency there is no 2:21:29 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 18 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) consistency in these lease i think i have a problem with individual renting for one year and you're coming in front of this body and you can't give us a solid number where they spend telling us tens and thousands of dollars that doesn't add up to none to me I think a hard figure is what we needed to hear. If somebody said you spend X amount of dollars and we're going from now one year to 30 years, hey, we're saying to our offsprings and outside of the U.S. borderline, I live on the mainland, come home. Come home when everything began or already taken away for 30, 60 years or 40, 50 years. So if you come home, all you could do is work for every individual. No other entrepreneurship will be left for most folks left here in the Buenos Aires. But to all the leases, if these lists were so clear today, how soon is the construction that we're talking about? Rhonda D'Souza, Accent Property Management. My team and I, we are ready to start the very next day. 2:23:29 So you got work on... Say again? The next, Mr. Rick. Okay, let somebody else answer the same question before I ask the next question. Hi, Pastor Swanee, DM Hospitality. We as well have already prepared a plan for mobilization and reviewing what we want to do, how we want to do the commissary kitchen and the office space upstairs. 2:24:09 But our key factor will be getting started ASAP. With summer coming up, we'd like to get the bulk of the work done in the summer and be ready for season. Thank you. Thank you, Mr. Rivet. Enrique Rodriguez, we're ready to start tomorrow. We have to submit permits. Remember, we're in the coastal zone management area, so we're going to be delayed by that process. But it's a natural process, and we're ready to move forward. 2:24:40 Okay. All right. Okay. And the hurricane · okay. I know we're in a hurricane-stricken or in a hurricane belt. So, these buildings are already in poor condition, so what's the impact to ensure that the government does not inherit another set of dilapidated buildings at the end of these lists? 2:25:14 MR. Enrique Rodriguez, we are required to provide insurance to cover the construction of whatever it is we build, and we're going to build significant investment. We're north of $7 million in what we're going to do. No one's even half of what half of that in terms of the investments that I've heard so far. And plus the DMV location is complicated by the fact that we're going to most likely have to do pilings into the property. We'll probably increase the cost so uh you know we're doing a very significant investment and that's why each lease is different because the amount in investment that is being put into these properties and at what point you you you expect your project will break even that's a good question we're looking at north of year 17 right now with the current paradigms and the current costs of the of of the dollar that we'd have to lend and that's just breaking even well okay okay um um going back to And for the young lady that spoke already, Ms. D'Souza, at what point do you guys think about breaking even? 2:25:47 Breaking even, as far as all the expense and everything that we plan on doing, maybe within maybe 10, 15 years. Again, we plan to invest over $3 million, so we'll have significant insurance to cover any damages. We will rebuild these buildings durable to sustain a hurricane, just to protect our assets and to protect the government assets as well. Okay, good. 2:27:27 Okay, this question is for the assistant for Mr. Vincent Richards. You testified earlier when it came to these lease that the government is at last right now in collection. So, do you think these revenues are going to help us kind of even up that we are going to be collecting? Vincent Richards from the Department of Property and Becurement. Senator, I think that's a very good question. In the last few months, the Department of Property and Procurement has transferred some of its portfolio to other entities of the GVI to support development, specifically in the sub-base area. There is a specific loss that the Department of Property and Procurement expects to realize because of that, of revenue specifically for those transfers um we are i've been giving my marching orders by my boss to basically make sure we replace those uh those revenues so when we're here in the next few months for budget time that we are filling that gap but filling that delta so um every little bit helps uh the department of property and procurement is directly funded from the uh business and and commercial fund where these rents go into. And we have a slew, I believe we have about 40 different leases that we're working on right now to bring before this body in the next few months to continue to spur economic activity and to continue to plug the hole that we recently realized, and then also to just continue to grow our rent roll as well. 2:28:05 So what about getting government agencies back in government buildings? Once we have government agencies that are funded, they have first preference to use any facility that we do have. Some of these properties, specific properties, or one of them in particular, the one for DM hospitality, there was a government agency in there. 2:29:49 But ADA, inability to meet ADA compliance, parking, the buildings are of an older design. And then based on restrictions, you cannot change them architecturally without even much more significant investment. So basically, some of these properties, the best thing to do is just basically repurpose them to an entity that makes it much more feasible. Thank you for your response. Thank you, Mr. Chair, for the time. 2:30:17 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 19 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) Thank you very much, Senator Clifford Joseph. Before we go on, Senator Ray Fonseca, you recognize your point of information? Yes, thank you, Mr. Chair. I wanted to follow up on a question that was asked by the majority leader and also alluded to by the freshman senator from St. John, wherein we are discussing the DMV. The freshman senator from St. Thomas. Sorry, sorry. The DMV was renting property where the GVI owns the land. The Bureau of Motor Vehicle, do you know how much they're paying? 2:30:59 Do you know about the lease? How much are they paying? Do you know that? Repeat that question, Senator. The Bureau of Motor Vehicle is now in the mall, right? Yes. What is their lease? What's their agreement out there? I do not recall off the top of my head, but I do have... I can't get you that before the end of the day. Okay, thank you. i don't want to go long i wanted to may finish no you can answer on the chair i want to you see this is prime property and they're mentioning that they're in a flood zone but everybody in the virgin islands know pueblo is right next on what do what do we do to go in pueblo we don't walk up a ramp to get into pueblo so why couldn't the government build a ramp and stay in the property that they have it's just a food for thought thank you mr president for the time thank you very much senator Fonseca senator college-a-joseph you had a point of information yes mr. chairman I have examined the leases and only in one least that I see the phrase relative to the construction period will not be available or extended because of force majeure it's not in the clause for DMV DM hospitality LLC it's not in the clause in the contract and the lease rather for commercial investment LLC nor it is in it for the accent property management. It is there for the submarine base warehouse LLC. Why is that? Why don't we have that language uniformly in these contracts, these leases rather? That's a very good question, Senator. All the leases may arrive here at the same time, but they honestly don't start discussions at the same time one two the GVI has a standard template which we 2:31:40 present to our potential lessees and it's up to the lessees to basically request terms that are that are in their benefit and for for the GVI to then consider whether or not they're gonna make adjustments or not so that's the best answer I can give you okay thank you but I think it should have that in there especially for the construction it's not in it's not in there it's not uniformly in the other through three and they are going to be doing construction information construction work as well it needs to be included in in this contract in these leases rather um for these three entities duly noted senator thank you very much a point of information senator avery lewis Yes, thank you. Mr. Richard, you alluded to something a while ago. You talked about your rent role. And from the time I got in this position, every time you come before us, I ask this question. where are we with your outstanding uh you have some tenants have have been donkey as outstanding in payments where are we with those especially in the sub-base area where we because i haven't heard seen you go to court or hey you you know response nothing yet about about these properties you want to answer senator yeah please senator um the department of property procurement continues to make headways in this collection um i've said on the floor before during finance hearings um interference is what stops us from sometimes going the full mile to do what we have to do and to be honest with you many a times a lot of the interference comes from this very building as well to stop us from doing what we need to do so i'll leave that there i'll be happy to talk to you anybody else offline but we are always prepared to collect and do what we have to do but interference particularly from this building stops us let me put it on the record let me put it on the record nobody in this building should stop the interference of people dealing with their 2:33:42 obligations you have a lease you should pay your rent let me let me make that clear i have never called so i go make this one i've never called to interfere in anything you have a lease parent and and you know the three co-equal branches of government there's another one with address matters like this call the court thank you very much mr richards and colleagues thank you sir lois senovelli recognize your point of information thank you so much mr cheer i i don't believe it believe it's fear for Mr. Richards to try to put down their indecision or inability to make sure that legally binding lease are paid and collected by property and procurement and this body. This body don't sign anybody in property and procurement paycheck, nor does it run that particular division. It's all you need to do is do your job. Don't show innuendos that this body call you asking you for individuals not to pay that's total hogwash do what you're supposed to do and stop trying to pass the buck you ask a direct question answer the question directly and the answer for the question directly is that you're not doing what you're supposed to do when it comes to collecting outstanding payments to the government of the virgin islands is on pmp not on the legislature thank you so much mr chair mr chair for this it's a cheerful responsibility and the legislature to ensure that individuals continue to pay what they agree to pay, so that we can make sure that revenues continue to come into the coffers of this government to provide services to this community. 2:35:51 Assistant Commissioner Richards, do you recognize? Duly noted, respectfully, Senator Viola, duly noted, respectfully. Mr. Chair, Senator Viola, the Department of Property Procurement diligently is collecting. Matter of fact, we have surpassed our budget projections for collections and at a later date or when we come before this body for our budget here in the next few months, we will be able to show this body what we are doing for collections and have our feet held to the fire so thank you very much thank you very much for that and if there is any senator calling you then let's point them out let's call out who is calling to say that individuals are not responsible paying their their share of revenues into the coffers 2:37:30 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 20 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) of the government senator Joseph you Do you recognize your point of information? This question is for the Assistant Commissioner Richards. As far as these large companies coming in to lay down the material between the schools and the hospitals, are you already having a conversation with these companies as well are you relying on these these these lists that you're getting draft up right now to be the person talking to these other individual senator um senator good question um we are talking to a lot of people um but again the individuals that are here they have not they didn't start the conversation last week, last month or last year when these contracts were signed. These individuals that are here have been hounding, pestering me for some for six months, some for a better part of a year to get it done. I know that there is a building of demand in the market but these individuals that are here right now um didn't just start um last last month or you know some of them started us late last year as well so um that's the best answer i can give you i i'm clear on your answer as far as being the individual here today i don't expect that they just came to you last year but because you more than one of them had at least over a year so clearly they've been speaking to you longer than a year so um my question is again are you having conversation with any of these larger entities that would be taking care of the schools and hospital for where they're going to be the department is not in communication with any 2:38:42 major contractor right now i mean we've had inquiries from their agents or consultants But directly, no. We're not in any negotiation or discussions right now, Senator. Thank you for your response. Thank you. Thank you, Senator Vialli. Thank you so much, Mr. Chair. Just to be fair to Mr. Richards, to be fair. Because I said one side of the story, but the next side, no Senator should be calling profit and procurement. And what he's saying is factually true. I know that they do receive phone calls, but they need to block it out. No senator should be calling to interfere in the duties of PMP in the collection of monies owed to this government. So I say one, I got to say two, because what he did say is factual, but it needs to stop. 2:40:32 So thank you so much. Thank you, Mr. Chair. Thank you very much, Senator Viale. Before we go to the bill's sponsor, I just want to say that I commend all of the individuals that's before us today. your small business continue to be the engine that runs our economy and your small business ownership in the Virgin Islands is like no other business you know it takes grit it takes resilience and it takes faith entrepreneurs here and dealing with a normal overhead they face high energy costs shipping premiums limited access to capital workforce shortages and constant threats of hurricane and supply disruption yet they're open their doors every single day to employ people and keep our economy going so I commend all of you again for your small business ownership as well as your zeal and zest to continue here and you know while we offer big opportunities to big businesses and big establishment equally all small business should be recognized and you have a seat at the table and I'm hoping that that's what this discussion will be today at this time I'll recognize Senator Hamilton Potter bill sponsor for his five minutes information for some yeah let me get a point point information before you mr. chair point information before the president goes I think thank you mr. chair you know I also wanted to just put forward in terms of mr. 2:41:26 Daswani, your group, we have had these other future business owners here prior, and we looked at certain things, and we were here. So now where you come in today is why we are actually looking at, well, for me, looking at these leases in a different light. So it isn't pointing out we have a specific, I don't have an issue with them, But because of this being the second or third time, we were specifically looking at things and looking at these leases in a different light. So it puts us in that perspective, at least for me. I can speak on my behalf as to what we were doing, looking at these leases now. So we don't want anybody to figure that is, oh, well, you know, I speak for myself. I don't want anybody to figure, well, hey, I am against or I'm for or I have these issues. As I am saying it, as I see it, we are looking at these things more in tune with looking at how our government properties are and what we are listening for. Thank you for the time, Mr. Chair. 2:43:03 Mr. Thank you very much, Senator DeGraff. Senator Potter, Senator President, you recognize for your five minutes. Senator Potter Potter Thank you. Thank you very much, Mr. Chair. Good afternoon, colleagues. A special good afternoon to the testifiers who are before us today. My first question is to Assistant Commissioner Richards. I wanted to get a sense, Assistant Commissioner, what specific concerns, if you could in a concise manner, just for the people of the Virgin Islands, just for the edification of the people of the Virgin Islands, what specific concerns did the committee raise at the first hearing and how exactly were they addressed in the revised lease? and I'm talking about the first three, not Mr. Daswani. Good question, Senator Potter. 2:44:10 The department had, in our negotiation, we had step increases in terms of the percentages for the subleasing fees. It was inconsistent between the three individuals that had, had. So we went back and we took a look at that. We reduced the time to which we get to the 30% allowable by the law. We reduced that. They looked at their numbers again, their projections again, and came back with a middle ground. Quite frankly, I thank the for the leverage that they gave us to go back and make some adjustments. I believe on one of the lease agreements with submarine-based warehouses, the 2:45:03 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 21 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) agreement initially was for like $1,000 per month for multiple properties. We then went back and we negotiated again and we increased, we tripled the amount on that. From $1,000 to $3,000? From $1,000 to $3,000 we tripled it. The construction period, I believe we reduced that as well. So we put some additional constraints or requested a shorter construction period. I mean, the language is written in such a manner that if they finish early, they start paying the higher rate early. So we had given them a little bit more cushion for their, given a little bit more runway space to be able to get to the point where they're operational. They're generating cash flow to be able to pay rent. But I'm getting a couple of dings here or questions about that period now. so and i take that in in stride i mean the discourse is good all it does is make us go back again and look at the policy and look at the the the structure in future agreements so in your expert opinion because you're the subject matter expert here we're getting from a cost benefit analysis in your expert opinion at gvi regarding all the leases that before that are before us today we are getting the biggest bang or the best bang for our buck so to speak we we feel that way we feel that way i mean you know we we tend to operate like the the property belongs to us it belongs to the people of virgin islands the ones that are here and the ones are unborn and and and and we we structure all of our agreements that we may not we may not pick the fruits today but in 10 20 30 years when the properties revert our children and our grandchildren our great-grandchildren will be able to then release the properly or use them for a government facility they choose to to then you know because they've been they've been improved i wanted to ask you a quick question you mentioned about the revitalization of downtown charlotte molly which is applaudable it's commendable i wanted to get a sense from the perspective of property 2:46:11 and procurement and not just limiting to to charlotte amali do you wait for an entrepreneur with vision and ideas to come in and say assistant commissioner roberts i see this vacant derelict building in downtown charlotte amali and i see something i have a vision beyond this i see beyond the rubble, I would like to sit with you to negotiate how we can enter into a win-win situation so that we can revitalize this facility. Is that something that you do or is there a process where there is like an RFP that goes out? You know, property and procurement, the government of the Virgin Islands is seeking developers who have the skill set and the track record of doing these types of developments this is our vision this is where we would like to go and we put out the rfp to get the a broad array of interested i don't know if they exist but a broad array of interested developer developers to pursue a particular development how how does that work from the perspective of uh property and procurement so you know the department and myself and my team specifically. We look at properties from a 15,000-foot perspective. We look at maps, and there's a commercial corridor. Let's use St. Thomas as an example. There's a commercial corridor that stretches from the Waiko dock, comes around to downtown, and then it goes down the sub-bays. What the Virgin Islands Port Authority has just done is a major catalyst. It's going to be a major catalyst for everything else. It connects the pieces. So now, airport, 2:48:27 Crown Bay, downtown, all the way up to the Waiko dock. Every piece of real estate that's available both in the government sector and the private sector are in play there's one company here that has made a major investment downtown and they bought a bunch of damaged or derelict properties with some functional and some are not functional and they're now investing their capital in making those viable and not only they're doing retail that goes from eight to five they're doing housing because they realize now with the projects that are coming in for for redevelopment for for the recovery they're going to need housing and they're developing housing spaces on the second floor now that ties into now their opportunity to make money or generate money for their tenants is not eight to five it's now eight to twelve midnight or later so you know that's why i said to you and i commit to you that the department of property procurement will be right back here next month with additional properties that the government owns in the downtown area that individuals are interested in making seven ten twelve million dollar investment in to to be part of the revitalization and tying in you know tying into uh the the the not just revitalization of downtown but also the economic activity driven by the uh driven by the recovery projects Warehouse spaces, one more. Please, one more. The department and the government just acquired the island block. That's over 100,000 square feet of warehouse space. So that's coming offline as education moves into that facility. The Port Authority has removed now about 60,000 square feet of warehouse space from sub-bays. That's going to be going towards that project. the gvi and other developers now are scrambling to find warehouse spaces and there's a demand and we're doing everything that we can do to work with developers to to replace that 160 200 000 square feet some warehouses are under construction but before they've even scratched 2:50:31 the dirt they already rented them so we understand that there's a demand so i'm sorry for taking up No problem, my time was called. Mr. Chair, if I may just clarify, I asked you specifically whether or not there is a vision that the government has for vacant properties in, let's say, downtown Charlotte, Amali, right? And if there is a vision, whether you actively put out an RFP or put something out there saying this is what we are seeking because this is our vision for downtown Charlotte Amalia. Or is it a more individualized process where persons who may be passing or driving by may happen to see something and get an idea in their head and then they have to come down to property and procure? my thinking is that 2:52:50 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 22 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) there it should be the opposite way should be other way around where there should be a vision that has been established and the government of the virgin islands try to solicit developers who can achieve this overall vision that we have established for the territory i'm not gonna abuse my time anymore thank you very much for your flexibility mr chair if you care to respond on the chair's time thank you very much if i may mr chair you you may send apart i think your idea is very good i think i think it's right on target i think it's very forward-looking um has it has a gv does the gvi have a master plan the answer is no um does he does the gvi look at other people's master plan absolutely yes the one for port the port authority developed in sub bays i look at it on a regular basis and and and and work off of it uh the ones that i see on the websites for the local developer downtown i see what they're doing i see where they are and i see where they want to go so that as well and then the department has done rfps for properties in the past but believe it or not the gvi has so few buildable property in play and the demand is so great. That's why I say within the next few months, with all the leases that we have that we're working on currently, by the end of this calendar year, we're going to have little to nothing left that's developable. And that's one of the reasons why the GVI has spent $40 million in the last two years acquiring new properties, because one is cheaper to acquire and faster but our inventory is limited when you take out the ones that are zone R for residential and you take out the ones that are zone A for agriculture as well. 2:54:59 The portfolio literally reduces. Thank you very much Assistant Commissioner and again I think that this discussion is certainly ripe and necessary. We keep having this discussion in regards to having a city planner we have had charrettes after charrettes about what we want you know our tongues to look like we have had a comprehensive land and water use plan and we still continue to do things in silo and it's so critical and important that we're really just just having a plan moving forward you know we talk about vision 2040 and all this these plans that we have put forth you know but are we having a total and comprehensive discussion in regard to what our tongues will look like you know moving forward and i i think that that's what i'm hearing here in this discussion today and i'm hoping that at some point you know we could really realize that um because there's a lot that's going on here in st croix we certainly have the hospital street project um that's going on there the extension of the boardwalk uh you know similarly they have you know discussion about what's happening there so we we really need to have a comprehensive discussion a think tank and really bring all of this discussion regarding the charrettes and everything into one full um point of information mr chairman point of information senator avery lois thank you mr chairman uh mr richards uh you know in the past i've you know speaking with veteran colleagues in here you know it's noted that when the lease come before it says either it's just for ratification yeah or All the negotiations happen on your end. 2:55:48 One of the things I'd like to see included, even in negotiations, maybe this may be a stretch, would be to see some kind of charitable contributions, either to, you know, youth sports. There's one with the, I can't bring the name now, Pash may be able to help me with the Challenge Children, with the Special Olympics, and so forth. You know, things like that, Little League, some of the academic stuff, academic stuff anything with education and sports related for our children maybe a little negotiation in there some somewhere along the line some mandatory charitable contribution to support them the girl scouts you know you know they they're reviving they're coming alive the boy scouts you know along the line our children and you know our special needs children and our children with was our youth let's support that thank you if i may mr chair you may respond um senator lewis thank you very much um i think good idea um if you use a term mandatory then it's gonna have to be legislated on your side i don't want to be taking the court so um but but duly noted all right at this time um what i'm gonna do is allow for a 30 second wrap-up and then we'll take a short recess to discuss the four measures that's before us uh so we could start off uh certainly with miss um perez fredinan 30 second wrap-up yes sir um julie perez fredinan commercial investments i am deeply honored um and hope that you all will will be in my favor get a little closer to the device there miss fardina 2:57:26 could you hear me senator we could barely hear you get a little closer to the device yeah i'm having a little technical difficulties there i am deeply honored and hope that you all will grant me the release in order to conduct my business and to create make my dream come true which will benefit myself my grandchildren and also the people of the virgin islands i thank you for your time girl uh mr souza Rhonda D'Souza, on behalf of Accent Property Management, I would like to thank you, Chairman, Senator Novel Francis, Vice Chair, Senator Blighton, community members and non-community members for testifying before you again in support of Bill 36.0199. 2:59:22 Like I said, we are ready. And I sincerely ask for your support in this bill again. Thank you. Thank you very much, Mr. Rodriguez. Enrique Rodriguez on behalf of Submarine Base Warehouse, Senator Francis, I would like to thank you and all committee members and all senators present for this opportunity to come before you again on this lease. I am looking forward to being part of the fabric of Subbase and invest in the future of our community. Thank you. Thank you very much. Mr. Daswani. Pastor Daswani, DM Hospitality. 3:00:17 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 23 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) I actually did not expect this kind of Q&A, but I am very impressed with what you, this body does for the vi for the people of the vi you are doing your part due diligence asking questions uh i'm i'm honestly blown away at the end of the day my project is a little bit different than the other projects we want to make sure the vi the food the local pates our industry is forwarded to all the tourism, to the hotel guests, to the people who are just visiting from St. John, St. Croix. You know, we just want to be helpful by accommodating this. So thank you, and more importantly, I hope you vote in favor of this lease. Happy to have any questions offline no problem at all thank you thank you very much assistant commissioner riches you want to run this out mr. chair members of the committee thank you thank you very much I appreciate it I appreciate the opportunity I appreciate the discourse this isn't this isn't this isn't my first rodeo it motivates me I makes me better I don't take it personal and I'm happy that I'm the one I'm the lightning rod here and not any of these developers. The community pays attention. 3:01:07 I mean, I'm here getting inundated by text messages, local and from off-island. People are paying attention, but they're paying attention because there's, you know, the VI is on the move. And I, you know, I just look forward to getting back to work and getting better at what we do and just move forward incrementally, step by step, day by day. So I'd like to thank my staff at the entire Department of Property and Becurement. I'd like to thank my team in the property division that works with me, our legal folks in particular. You know, they make it look easy, even though it doesn't feel easy sometimes. But I'd just like to say thank you to each and every one of you with all your questions. 3:02:41 You know, I appreciate every single one of them. I have some information to get to some of you. And I have some amendments for us to consider in future agreements, force majeure. also you know we just yesterday Commissioner and I were meeting about improving the process and making the process more transparent for the public just yesterday morning we met for almost an hour discussing this and you know I have some homework for her that I have to deliver before the end of the week so I just like to say thank you we hear you and we appreciate every one of you. We understand that you're all representatives of all the entire population, and you're looking out for who's here now and who's there to come. So I look forward to continue working with each and every single one of you. Thank you very much. 3:03:35 Thank you very much, and again, good luck to all of the testifiers. We'll be discussing this matter during the recess, and we'll be voting on this when we come back on the other side the Committee of Budget Appropriations and Finance stands in recess at this time Thank you. Thank you. Thank you. Thank you. We'll be right back. Thank you. Thank you. We'll be right back. Thank you. We'll be right back. Thank you. We'll be right back. Thank you. Thank you. Thank you. We'll be right back. Thank you. We'll be right back. Thank you. Thank you. We'll be right back. Thank you. Thank you. Thank you. Thank you. Thank you. We'll be right back. Thank you. Thank you. We'll be right back. Thank you. We'll be right back. Thank you. Thank you. Thank you. We'll be right back. We'll be right back. We'll be right back. Thank you. Thank you. Thank you. 3:04:35 Thank you. I love you. We'll be right back. [3 such phrases repeated 31 times · standby audio before the proceeding, transcribed by the recogniser as speech] 3:25:46 Thank you. of recess and back on record of course we are about to move into block number two but before we do that we're the considering the measures have been to see fight to in block number one which is bill number thirty six that's zero one nine nine bill number thirty six zero two zero four bill number thirty six zero two zero five and bill number six that's zero two three seven um at this time what i'll do is go ahead and read block two into the record and while i wait my colleagues back in the chambers we'll go ahead and read the list of items in block number two Madam Clerk, please call up items in Block No. 2. 3:41:16 Block 2, Bill No. 36-0198, an act amending Act No. 1935 by redesigning the funding source for several entities. We're not hearing you at this end, Madam Clerk. One second. Media? You may proceed, go ahead. Block 2, Bill 36-0198, an act amending act number 1935 by redesigning the funding source for several entities and correcting a typographical error and amending act number 1945 by inserting and striking appropriations, sponsored by Senator Kurt A. Bailey. 3:42:43 Bill number 36-0219, an act amending Title 22, Virgin Islands Code, Chapter 31, relating to the Virgin Islands producer and Adjuster Licensing Act by modifying renewal provisions for insurance producer license. Sponsored by Senator Milton E. Potter by request of the governor. Invited testifier, Glendina Matthew, Esquire, Director, Division of Banking, Insurance and Financial Regulation. 3:43:54 Bill number 36-0221, and act amending Title 20 Virgin Islands Code, Part 2, Chapter 43, Subchapter 1, Section 493, relating to alcohol consumption and to establish the Impaired Driving and Highway Sobriety Checkpoint Program Safety Fund. Invited testifiers, Honorable Kevin G. McCurdy, Commissioner, VI Department of Finance, and Honorable Maria Brooks, Commissioner, VI Police Department. This ends the reading of today's agenda, Mr. Chair. 3:44:30 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 24 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) Thank you very much, Madam Clerk, for introduction of block items in block number two. At this time, do I hear a motion in regards to the items in block number one? Motion, amendment? Thank you, Mr. Chair, Mr. Chair, I move amendment number 36.671 to bill number 36.0199 offered by Senator Milken-Potter, bill number 36.0199 is amended as follows, strike the first three whereas clauses and insert the following. Whereas on December 11, 2025, the government on the Virgin Islands, acting through a commission of the Virgin Islands, Department of Property and Procurement, an accent property management LLC entered into a lease agreement for person number one, two, three, Sub-8, St. Thomas Virgin Islands, consisting of 39,240 U.S. square feet. 3:45:13 One second, there's a motion. One second, a motion, Senator Viale, recognize your motion mr. chair mr. chair i move for the waiving of the reading of amendment number 36 at 671 i so move motion probably made by senator vale seconded by senator frederick Hearing no objection. So moved. So honored. So moved. So moved. Yes, second. Second. So moved by Senator Blyden. Seconded by Senator Frederick. Hearing no objection, so ordered. 3:46:18 Let the Blyden recognize your motion at this time. Thank you. Mr. Chair, I move that Bill No. 36-0199, an act approving a list of agreement between the Government and the Virgin Islands, acting through the Commissioner of the Department of Property and Procurement, and ACM Property Management, LLC, for pausing numbers 1-2-3 and 1-2-9, Sub-8, Southside Quarter, St. Thomas, to develop the premises to operate, establish, and manage a slate of subtenants pursuant to an approved development plan be voted on favorably in this committee and forward to the committee of rules and judiciary as amended for further conservation i so move second motion properly made by senator blyton seconded by senator de graf senator veille hearing no objection roll call senator marvin a blyton senator blyton yay senator duane m de graf yes senator de graf yay senator ray fonseca yay senator fonseca yay senator novel e francis jr yay senator francis jr yay senator hubert l frederick yes Senator Frederick? Yay. Senator Maurice C. James? Senator James? Absent. Senator Kurt A. Valey? Yes. Senator Valey? Yay. Mr. Chair, six yay, one absent. 3:47:02 Thank you very much, Madam Clerk. Bill number 36-0199, an act approving the lease agreement between the government of the Virgin Islands, acting through the Commission of the Department at Property and Procurement and Accent Property Management LLC for Parcels No. 123 and 129 Subbase Southside Quarters in Thomas to develop the premises to operate, establish, and manage a slate of subtenants pursuant to approve a development plan as amended has been approved by the Committee of Budget Appropriations and Finance and will be sent forward to the Rules and Judiciary Committee for further consideration. 3:48:40 amendment senator uh blighting you recognize your amendment thank you mr chairman of amendment number three six six six nine to bill number three six zero two zero four offered by senator milton e powder bill number three six zero two zero four page one is a minute as follows one page one line 10 strike 500 and insert 1000 and strike 24 and insert 12. 2 page 1 line 11 strike 4,000 and insert 5,000 and 3 strike 48,000 wherever wherever it appears and insert 60,000. I so move. Second. Motion properly made by Senator Blyden seconded by Senator VLA. Aaron, no objection. So ordered. 3:49:16 Motion. Motion. Senator Blaney, recognize your motion. Thank you, Mr. Chair. Mr. Chair, I move that bill number 36.0204, an act approving a multi-year lease agreement between the government and the Virgin Islands, acting through its commissioner of the Department of Property and Procurement and Commercial Investments, LLC, for parcel portion number three zero suburban base number six south side quarter st thomas virgin islands for a logistics storage warehouse and other related purposes be voted on favorably in this committee and forwarded to the committee of rules and judiciary for further consideration action as amended i so move second second motion properly made by senator blyton seconded by Senator Fonseca, I think I heard Senator DeGraff. Roll call. 3:50:09 Senator Marvin A. Blyden? Yes. Senator Blyden? Yes. Senator Dwayne M. DeGraff? Yes. Senator DeGraff? Yes. Senator Ray Fonseca? Yes. Senator Fonseca? Yes. Senator Novell E. Francis Jr. Yes. Senator Francis Jr. Yay. Senator Hubert L. Frederick? Yes. Senator Frederick? Yay. Senator Maurice C. James? Senator James? Absent. Senator Kurt A. Vele? Not voting. Senator Vele? Not voting. Mr. Chair, five yay, one absent, one not voting. very well thank you uh bill number 36.0204 an act approving a multi-year lease agreement between the government of the virginals acting through his commissioner department of property and procurement and commercial investment llc for parcels number 30 submarine base number six south side quarters and thomas versions for a logistics storage warehouse and other related purposes as amended has been approved by the committee of budget appropriations and finance and be sent forward to the rules and judiciary committee for further consideration and vetting motion motion senator blight do you recognize your motion thank you mr chair mr chair move amendment number three six six six eight to bill number three six zero two zero four five offered by Senator Milton E. Potter. Bill No. 36.0205 is amended as follows. 3:51:04 A. Strike the first three whereas clauses and insert the following. Whereas, on December 11, 2025, the government of the Virgin Islands, acting through the Commissioner of the Virgin Islands, Department of Property and Procurement, and Submarine Base White House LLC entered into the lease agreement for policy No. 12 and 12 is Submarine Base, Crong 3:52:52 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 25 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) Bay Field, number six outside. I second, Senator. I hear motion. Senator Viale, you recognize your motion? Thank you, Mr. Chair. Mr. Chair, I move to waive the reading of amendment number 36. That's 668. I so move. Second. Motion properly made by Senator Viale for a waiving of the reading. Seconded by Senator Fonseca. Hearing no objection. So ordered. Motion. I so move. So moved. So moved, housed by Senator Blyden, seconded by Senator Frederick, hearing no objection. So ordered. Motion. Senator Blyden, you recognize your motion. Thank you, Mr. Chair. Mr. Chair, move bill number 36-0205, as amended, an act approving a lease agreement between government of the Virgin Islands, acting through the Commission of the Department of Property and Procurement and Submarine Base Warehouse LLC for parcel number 12 and 12 East Submarine Base, Crown Bay Landfill, number 6 South Side Quarter, St. Thomas and 145 Consolidated Crown Bay Fill, Submarine Base, number 6 South Side Quarter, St. Thomas, for the purpose of bulk storage establishing a slate of subtenants on the premises, parking and other permittative purposes, be voted on favorably in this committee and forward it to the committee of rules and judiciary for forest conservation i so move i voted no motion properly made by senator viola i mean senator blyton hearing no second 3:53:19 motion motion fails bill number 36.0205 and act approving the lease agreement between the the government of the virgin islands acting through the commission of department of property and procurement and submarine base warehouse llc for parcels number 12 and 12a submarine base crown bay hill for No. 6 Southside Quarters St. Thomas and 145 Consolidated Crown Bay Hill Submarine Base No. 6 Southside Quarters St. Thomas for the purpose of bulk storage, establishing a slate of sub-tenants on the premises, parking and other permitted purposes will be held in the Committee of Budget Appropriations and Finance at this time. 3:55:04 Motion? Motion. Senator Blyton, you recognize your motion? Thank you, Mr. Chair. Mr. Chair, I move that Bill No. 36.0237 and act approving a lease agreement between the government of the Virgin Islands, acting through the Commissioner of the Department of Property and Procurement and DM Hospitality, LLC, to operate a food and beverage management company and other related purposes, be voted on favorably in this committee, and forward it to the Committee of Rules and Judiciary for further consideration. I shall move. Second. 3:55:55 Motion properly made by Senator Blyden, seconded by Senator Fonseca. Senator Viale, did I hear you say? Senator DeGraff? Yeah, second. Seconded by Senator DeGraff. Hearing objection, roll call. Senator Marvin A. Blyden? Senator Blyden, yay. Senator Duane M. DeGraff? Yes. 3:56:27 Senator DeGraff, yay. Senator Ray Fonseca? Yay. Senator Fonseca, yay. Yay. Senator Novelli Francis Jr. Yay. Senator Francis Jr. Yay. Senator Hubert L. Frederick. Yes. Senator Frederick. Yay. Senator Maurice C. James. Senator James, absent. Senator Kurt A. Vele. Yes. 3:56:53 Senator Vele. Yay. Mr. Chair, six yay. one absent thank you very much madam clerk bill number 36 that's zero two three seven and I could prove in a multi-year lease agreement between the government reversals acting through the Commission of Department of Property and Procurement and DM Hospitality LLC for parcel number two C crystal gotta Queen's quarters and Thomas consistent of a two-story building and a portion of parcel number three crystal garter insisting of a two-story building to operate a food and beverage management company with a bakery and delhi a jewelry business management company and other related purposes have been approved by the committee of budget appropriations and finance and will be sent forward to the rules and judiciary committee for credit consideration and vetting motion thank you motion motion thank you mr chair thank you mr chair mr chair i move the bill number three six as zero two zero four five and act approving a lease agreement between the government of the virgin islands acting through the commission of the department of property and procurement and submarine base warehouse llc for parcel number 12 and 12 is submarine base combi field number six of south side quarters in timothy and 145 consolidated from Crong Bayfield Submarine Base No. 6 Side Quarter, St. Thomas, for the purpose of bulk storage, establishing a slate of subtenants to the premises, parking, and other permitted purposes, be held in this committee for further consideration and action. I so move. Second. 3:57:22 Second. Motion properly made by, I had already determined that based on the no second, that the bill remains within the committee, however, based on your motion, seconded by Senator Blyden, seconded by Senator Fonseca, hearing no objection, it will be so ordered. Again bill number 36.0205 remains in the committee of budget appropriations and finance until the call of the chair. We have the members of Block No. 2 present, and of course we'll go to them at this time for recognition before we ask the bill sponsors. Let's go with the bill sponsors at this time. 3:59:10 Who speaks to Bill No. 36-0198? 1 9 8 and I can prove in a lease agreement act amending act number 1935 by redesigning the funding source for several entities and correcting a typographical error and amending act number 1945 by inserting and striking appropriations recognize I do I speak to the bed mr. chair I was just trying to with the last motion to 3:59:59 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 26 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) make sure that what we did in fact was what we should have done I'm trying to think if there was no second did the bill in fact die and do we need to have a motion to reconsider in order to hold it I know that originally you said that the bill was still in committee but if it does if a lack of a second and I'll actually your council does the bill actually die and we just need to do a motion for reconsideration and then hold it in committee or was the motion made by Senator Blyden valid well we had two motions right the one that didn't receive the second and then certainly it was a subsequent motion made by Senator Blyden to remain within the committee after the first motion yes what happens after after you receive no second is a bill considered dead or is a bill considered still in committee when you didn't when you don't receive a second what it remains within the committee but we could get legal counsel to to verify that we'll call legal counsel to to the chambers in the meantime we'll go ahead and proceed with the presentation of the bill and then we'll get some clarity as soon as legal counsel gets here thank you so much just to make sure we're doing the right thing and we we have the bill in committee bill number 36 at 0198 colleagues is really a cleanup bill that's why we did not request for anyone to testify it It goes back to the Budget Act, number 1945, and we do know that there was an interpretation by the governor that the source that we were utilizing to fund the Humane Society and the Animal Shelter, that that source was not available, so those items were reinserted back in the budget, just put in the funding source back to where it has always been, which is the general fund. And there was also some typographical issues that we had to deal with, IAE, changing some of the language, and also Department of Education and some amongst. But it is literally just looking at the overall budget bill and correcting small mistakes that we saw in reference to organizations and making sure that the programs that fell under the Epstein monies are in fact going to be funded. So they're backing the budget bill like they have been every single year for the last 18 years to be funded. And I think it's very important that we make sure that the Humane Society and the Animal Shelters and the Spray and User Program, that we fund those additional entities. Thank you so much, Mr. Chair. 4:01:44 Thank you very much, Senator Bailey. again we don't have any testifiers in that particular measure because it's just really a cleanup bill to address you know some typographicals as well as some other languages and there is an amendment that will be offered at some point you want to speak to the amendment as well that will be offered in regards to that yes the amendment will be coming so we'll more likely vote on this bill towards the end of the agenda when we get the amendment and the amendment is to deal with $600,000 that is necessary to keep the individuals in DP and R that work in the permit division to make sure that they remain employed. There were some issues with federal funding and the lapse in the grant expiring and making sure that all those of the individuals are again fully employed. So amendment will be coming that is offered by the chair that will correct that particular incident. The amendment that you have right now and next amendment is coming okay because we're really making sure that we clean up the language and it's inserted directly in the budget because we do know that we don't bring amendments that are just out there general fund so it's going to be inserted in the budget is being worked out now so I'm asking for the support and this is to make sure that DP and our employees in the permit division continue to remain on the job I think the monies are going to expire the end of March mr. chair at the end of March so it's important for us to pass this now uh get it done and then we'll be able to vote on it at the next session which is in march and make sure those those employees stay on board so we can keep the development and um approval of permits or disapproval a constant flow through dpnr thank you so much mr chair uh thank you very much senator vla uh and the next bill under consideration today is bill Bill number 36.0219, an act amended Title 22, Virgin Islands Code, Chapter 31 relating 4:03:11 to the Virgin Islands Producer and Adjuster Licensing Act by modifying renewal provision for insurance, producers, licenses, and Senator Potter, you recognize for presentation of that bill at this time. Thank you very much, Mr. Chair. Mr. Chair, colleagues, I'm pleased to introduce Bill Number 36-0219 by request of the Governor. The bill amends the Virgin Islands Producer and Adjuster Licensing Act to modernize renewal provisions for insurance producer licenses. The bill makes several important changes to Title 22, Virgin Islands Code, Chapter 31. Significantly, it transitions individual insurance producer licenses from annual renewals to biannual two-year renewal cycle, with expiration dates tied to the licensee's birth month. Business entity licenses will continue to renew annually on December 31st. The bill also clarifies that licenses cannot be renewed without proof of satisfactory compliance with continuing education requirements. These changes will reduce administrative burdens on both individual licensees and the Division of Banking, Insurance, and Financial Regulation, while maintaining regulatory oversight and consumer protection. The Commission of Insurance is directed to implement the biannual licensing system beginning on January 1st, 2026. I respectfully ask for your favorable consideration and support for this measure. Thank you very much, Mr. Chair. 4:05:08 Thank you very much, Senator Potter, for presentation on Bill Number 36-0219. At this time, we go to Attorney Glendina Matthew, Director of the Division of Banking and Insurance and Financial Regulations for our testimony. Good day, Committee Chairman Honorable Novell E. Francis Jr., Honorable members of the 36th Legislature of the Virgin Islands Committee on Budget, Appropriations and Finance, and members of the viewing and listening audience. I am Attorney 4:06:56 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 27 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) Glendina Matthew, Director of the Division of Banking, Insurance and Financial Regulation within the Office of Lieutenant Governor and Commissioner of Insurance, the Honorable Tregenza A. Roach, Esquire. Also in the St. Thomas Chamber is Assistant Director Magdalene Perk. I respectfully appear before you today to testify on Bill number 36-0219, an act amending Title 22, Virgin Islands Code, Chapter 31, relating to the Virgin Islands Producer and Adjuster Licensing Act by modifying renewal provisions for insurance producer licenses. The Division strongly supports this bill with one recommended modification in the implementation date cited in Section 2 of Bill No. 36.0219. 4:07:43 Specifically, the Division requests that the implementation date set forth in Section 2 be revised from January 1, 2026 to October 1, 2026. The renewal period for current calendar year has already begun and next renewal period will commence October 1st, 2026. Revising the implementation date will ensure a smooth transition and avoid disruption to the existing renewal cycle. 4:08:27 To provide some context I will provide a brief overview on the BI producer and Adjuster Licensing Act and discuss bill number 36-0219 which amends Act number 7964. Act number 7964 which was codified on February 19 2017 in chapter 31 of title 22 of the Virgin Islands Code the Virgin Island producer and Adjuster Licensing Act. Sets forward the licensing requirements for producers formerly known as insurance agents, brokers, solicitors, adjusters and managing general agents. Specifically the Act governs a qualification and procedures for the licensing of insurance producers, adjusters and managing general agents and simplifies and organizes some statutory language to improve efficiency, permits the use of new technology, and reduces costs associated with issuing and renewing insurance licensing. In addition, the Act creates a new regulatory environment which allows other states and territories to recognize the Virgin Islands insurance producer license in the same manner as other the jurisdiction, thereby allowing for reciprocity between the Virgin Islands and other states and territories. Specifically included in a produce and adjust the licensing act are the following provisions. One, a 20-hour of pre-licensing courses of study. Two, a standardized examination requirement. Three, national criminal record check with fingerprinting for 24 hours of 4:08:59 continuing education coursework requirement every two years as a condition of licensure the act is in the act includes provision with clearly identifies violations which can result in the refusal non-renewal suspension or or replication of a license, as well as a provision which increases the possible penalty for a violation to not less than 250 and not more than 10,000, depending on the severity of the offense. The Act also allows the Virgin Islands to participate in the National Association of insurance commissioners NEIC online system including the NIPR the national insurance producer registry and state-based system SBS platform these systems streamline the licensing process reduce submissions and improve regulatory efficiency both systems are operational in the territory bill number 36.0219 seeks to align the two-year continuing education requirement with the licensure period for individual insurance producers. The bill accomplishes this by eliminating the current one-year licensure term for individual insurance producer and replacing it with a two-year licensure term. The focus of this bill is to streamline the licensure process for individual insurance producers who are already required to complete continuing education on a two-year cycle. The continuing education provision was implemented in the Virgin Islands in January 2024. Accordingly, adopting a 4:10:56 two-year licensure term creates consistency, reduces administrative burden, and aligns the territory with national standards. The following reflects licensure periods among states and territory one-year licenses there's two jurisdiction the Virgin Islands as well as Guam two-year licensure period 45 states have two-year licensure period three-year licensure period Iowa Massachusetts and Nevada and perpetual licenses are can be held in Florida Maine Michigan North Carolina and Virginia chairman Francis and honorable members of the committee this concludes my testimony I am available to respond to any questions the committee may have on behalf of the division of banking insurance and financial regulation thank you oh thank you very much attorney Glendina Matthews for your testimony next we don't have anyone else testify this metric thank you um we'll recognize the uh bill sponsor and bill number 36.0221 and act amendment title 20 versions code part 2 chapter 43 sub chapter 1 section 493 relating to the alcohol consumption and establish the impaired driving and highway sobriety checkpoint program safety fund uh senator uh fonseca you recognize for presentation of this bill very well it seemed like senator fonseca might be out of the room at this time 4:12:52 uh hello good day um mr chair um yeah he stepped out okay very well we could go ahead and take care of some housekeeping we have uh first of all madam clerk can you please read senator maurice james um excuse letter into the record and then we'll hear from attorney charlene rogers in regards to the question um of legal opinion that legal um clarification that we wanted from legal Council. Madam Clerk. 4:14:45 One minute, sir. yeah very well while we wait on the madam clerk for that correspondence we'll go ahead and recognize attorney charlene rogers um madam legal counsel are you clear on the questions that have been asked and prepared to respond at this time or you would like the question to be um asking it it's not on Good afternoon, everyone. Mr. President, 4:15:25 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 28 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) I believe I understand the question that is before the body. I believe the question is, was it necessary to have the motion to hold the building committee? And the answer is no. The original motion was to vote upon the bill favorably, which failed for a lack of a second. The motion failed, not the bill. So the bill automatically was held in committee by virtue of the motion not getting a second. So in essence, it wasn't necessary to have the second motion to hold the bill in committee because when the motion failed for lack of a second, the bill was automatically held in committee. Very well. Thank you. Thank you. That provides some clarity. And initially, that's what I thought because, of course, I went ahead and just put on record that a bill will be held in committee subsequent to the no second there at this time. So we're clear on that, Madam Legal Counsel. Thank you for bringing some clarity to that issue. Madam Clerk, are you prepared at this time to read Senator Maurice James' letter into the record? No, sir. 4:16:57 I'm not prepared as yet, sir. Okay. Okay. All right. So, Ms. Senator Fonseca, are you recognized for presentation on Bill Number 360-221? Yes. Thank you. Thank you, Mr. Chair. And good afternoon to all the viewing and listening audience, my colleagues, and invited testifiers. Colleagues, I rise today to introduce Bill Bill number 360221, legislation that amends Title 20 of the Virgin Ounce Code relating to alcohol-impaired driving, and that establishes the Impaired Driving and Highway Sobriety Checkpoint Program Safety Fund. 4:17:23 This bill builds upon my previous commercial driver's bill number 360123, which was signed into the law as act number 904 in November. This act lowered the permissible blood alcohol content for commercial motor vehicle operators from point zero eight that prior legislation strengthened our laws by increasing penalties and fines 4:18:14 People named in this transcript SUSPECTED, and a finding aid only. Names were matched by machine against the spellings used across all 426 of our transcripts, and the title is the one used in the room. Being named here is NOT evidence that a person attended or spoke · only that the name was said. Speech recognition mishears names, so a spelling may be wrong even where no alternative is offered. 18x Senator Marvin Blyden heard in this transcript as: Blyden, Blyton, Marvin A. Blyden, Marvin A. Blyton, Marvin E. Blyden 15x Senator Milton E. Potter heard in this transcript as: Hamilton Potter, Milton Potter, Potter 15x Senator Ray Fonseca heard in this transcript as: Fonseca 14x Senator Hubert Frederick heard in this transcript as: Frederick, Hubert L. Frederick 14x Senator Novelle Francis heard in this transcript as: Francis, Francis Jr, Honorable Novell E. Francis Jr., Hubert Francis, Novel E. Francis Jr, Novel Francis 13x Senator Dwayne DeGraff heard in this transcript as: DeGraff, DeGraph, Duane M. DeGraff, Dwayne Graff, Dwayne M. DeGraff, Dwayne M. DeGraph 11x Senator Marise C. James the surname alone also matches: Javan James; Giovanni James Sr heard in this transcript as: James, Maurice C. James, Maurice James, Maurice James' 10x Senator Kurt Vialet heard in this transcript as: Kirk Viale, Kurt A. Valey, Kurt Viallet, Valey, Viale 6x Senator Kurt A. Vele heard in this transcript as: Vele 4x Senator Carla Joseph heard in this transcript as: Carla J. Joseph 3x Senator Kurt Viola heard in this transcript as: Viola 2x Senator Avery Lewis 2x Senator Clifford Joseph 2x Senator Collar J. Joseph the surname alone also matches: Carla Joseph; Clifford Joseph Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 29 of 30 Legislature USVI · Committee on Budget, Appropriations and Finance (Copy) heard in this transcript as: Collage Joseph 2x Senator Franklin D. Johnson heard in this transcript as: Franklin Johnson 2x Senator Kurt VLA heard in this transcript as: VLA 2x Senator Marvin A. Blighton heard in this transcript as: Blighton Bills and acts referred to Matched by number against our own acts corpus. The number is what the recognition heard, so it may be wrong; where it resolved, the title is the one the Legislature gave the act. Act 7964 Act 7964 · An Act repealing and reenacting title 22 Virgin Islands Code chapter 31 to enact the ·Virgin Islands Producer and Adjuster Licensing Act· Referred to but not found in our acts corpus: Bill 36-0199, Bill 36-0204, Bill 36-0237, Bill 36-0205, Bill 36-0219, Bill 36-0198, Bill 36-0221, Bill 36-0123 Machine transcript · UNVERIFIED. Verify every quotation against the recording. Speakers are not identified. VI Update · usvipublicrecords.com · public record, no rights asserted (CC0 1.0) 30 of 30