UVI RTPARK 2025 TESTIMONY - 1 of 8 Testimony Before the 36th Legislature of the U.S. Virgin Islands Committee on Budget, Appropriations, and Finance July 17, 2025 Opening Statement Good day Chairman Novelle E. Francis, Members of the Committee on Budget, Appropriations, and Finance, other Honorable Members of the 36th Legislature, and the viewing public. Thank you for the opportunity to provide an update on the progress and vision of the UVI Research and Technology Park (UVI RTPark). Since taking over on September 1, 2024, my vision has been simple – ensure the people of the Virgin Islands benefit significantly from the existence of the RTPark. As a result, we’ve been undergoing a strategic evolution. We have restructured our team, redefined our priorities, and launched new initiatives. At the heart of the RTPark’s strategy is a simple but powerful idea: when we align business attraction with intentional investments in education and workforce development, we can create a self-sustaining ecosystem that benefits the entire Virgin Islands. Figure 1: New UVI RTPark Vision The companies we attract to the Territory don’t just receive incentives, they contribute directly to programs that support our students, strengthen our university, and prepare our residents for meaningful careers in tech and innovation. Every initiative we’ve launched, from youth STEM programming to workforce preparedness, is part of a larger, interconnected system designed to grow our talent pipeline, diversify our economy, and position the Virgin Islands as a competitive hub for knowledge-based industries. UVI RTPARK 2025 TESTIMONY - 2 of 8 What follows is a closer look at how the RTPark is putting this vision into action and the intentional strategies we’re implementing to create lasting impact for Virgin Islanders. How the UVI RTPark Operates As an autonomous governmental instrumentality, we operate under a model similar to a private, mission-driven corporation. Like them, we are guided by a clear public purpose and sustain our operations through earned revenue, in our case, by negotiating terms with each company and collecting fees for participation in the RTPark’s tax incentive program. As a result, we are 100% self- sufficient. This is due to the foresight of the many contributors to Title 17 making the UVI RTPark not a burden on the General Fund. UVI RTPark Team, Revenue, and Expenses Our current team includes 15 full-time employees, supported by 6 core-team contractors who are fully integrated into project execution and daily operations. Among this group, more than half of our team are local Virgin Islanders, and roughly one third are graduates of the University of the Virgin Islands. Our team is paid through the revenue we generate from RTPark Client fees. In FY24 we generated roughly $9 million in revenue, and for the first eight months of FY25 we generated $6.5 million in revenue. For FY24, our total expenses amounted to $8.98 million. Of that, 40.8% was contributed directly to the University of the Virgin Islands, reflecting our deep institutional partnership and ongoing commitment to advancing higher education in the territory. The percentage of other major expenses is detailed in the pie charts below. On a percentage basis, we’re showing a significant decrease in Professional Services spend, which we plan to shift into supplies as we increase spending on STEM learning tools for our youth education initiatives. Figure 2: UVI RTPark Expenses in FY24 and FY25 UVI RTPARK 2025 TESTIMONY - 3 of 8 The UVI RTPark also generates supplemental revenue through rentals at the Accelerate VI Coworking Space and the Conference Room at our 64 West facility. While these earnings are modest compared to revenue from client fees, they provide valuable community impact. Nearly one-third of the 32 bookings at 64 West this year were donated to local nonprofits and government agencies for meetings, events, and programming. Clarifying Our Compliance Practices As indicated, client fees are the foundation of our revenue. These fees are mandatory and outlined in each Park Tenant Agreement (PTA), which is negotiated and unique to each client. The PTAs are enforced through a rigorous compliance process that not only ensures timely payment but also holds clients accountable to additional commitments, like local hiring and programmatic contributions, when applicable. Our compliance process does not mirror that of the Virgin Islands Economic Development Authority (VIEDA) because our agencies operate under different legislative mandates. Difference does not mean absence. Our compliance framework is built to support the RTPark’s hybrid public-private structure and its direct connection to the University of the Virgin Islands. Our Compliance Structure Includes: • Formal operating agreements with every client, outlining: o Management fees o Contributions to UVI o Internship and job creation benchmarks o In-kind and community engagement requirements o Reporting and documentation obligations • Active internal monitoring of all client obligations to ensure compliance • Direct engagement with each UVI RTPark client and their advisors, including their legal, accounting, and tax professionals, to ensure that all contractual and statutory obligations are clearly understood, properly documented, and fully met • Corrective measures available for non-compliance, including enforcement and removal from the program if necessary We recently lost a lead (potential UVI RTPark Client) that was considering relocating to the U.S. Virgin Islands. Their decision was based, in part, on misinformed public comments made on the Senate Floor and the uncertainty about the future of the USVI’s economic development programs. Not only was this a missed business opportunity, but it’s also a loss of investment, direct benefits to UVI students, STEM programming, and potential jobs. UVI RTPARK 2025 TESTIMONY - 4 of 8 Business Attraction in FY25 This fiscal year, we have activated five new clients across sectors ranging from artificial intelligence and blockchain technologies, to Department of Defense contracting, and we anticipate at least three additional client activations before the end of the fiscal year. Figure 3: RTPark Business Attraction Results FY17 - FY25 While the pipeline continues to grow, client retention remains a priority. In FY25, we had one formal exit, with two exits in the process. These exits were driven by a need to relocate due to family obligations, frequent power outages, and medical circumstances that involve treatments that cannot be performed within our local healthcare system. These transitions reflect the human realities that occasionally influence participation in our program. Understanding the Importance of the RTPark to UVI As I mentioned previously, the companies we attract to the Territory don’t just receive incentives; they contribute directly to both the RTPark and the University of the Virgin Islands. Historically, Park Tenant Agreements, our contractual agreement with each client, offered two key avenues for funding and collaboration with UVI: • Tier I - Annual Scholarships and/or Internships • Tier II - Programmatic Commitments: Contributions (financial and in-kind) that provide direct support for strategic projects identified by UVI’s leadership. Through this model, the RTPark contributed over $14M in funding to UVI over the past 8 years, including over $3 Million (accrual basis) last fiscal year. These funds were used for internships, scholarships, and other contributions to the advancement of the University, including within key areas such as STEM, research development, entrepreneurship, and innovation. In addition, RTPark companies engage with UVI faculty, offer IT support and operational assistance, and contribute to special projects that enhance the university’s mission. UVI RTPARK 2025 TESTIMONY - 5 of 8 Below I’ve included a breakdown of Tier I and Tier II payments from RTPark Clients to UVI from fiscal year 2017 through 2024. Figure 4: RTPark’s Historic Contributions to UVI The RTPark Student Success and Innovation Program With both UVI and the RTPark under new leadership, we have evolved Tier I and Tier II commitments into the RTPark Student Success and Innovation Program. This Program gives UVI more flexibility in how it utilizes client commitments and serves as a strategic partnership platform between RTPark clients and the university. It also enables clients to contribute directly to key areas that have been identified by UVI’s President and the UVI Student Government Association. Community Advancement Initiatives To further our impact, this fiscal year, we rolled out a series of initiatives aimed at advancing STEM education and workforce development across the territory. Youth STEM Enrichment Video: https://youtu.be/V-t9axFsk6g?si=TpKMPqUPdXJHwNRD Youth STEM After-School Program In January 2025, we launched our pilot Youth STEM Enrichment After-School Program, a flagship initiative designed to lay the foundation for long-term STEM engagement across the Territory. The program was strategically introduced at Eulalie Rivera K–8 on St. Croix, Lockhart K–8 on St. Thomas, and Julius E. Sprauve K–8 on St. John to assess implementation across our three unique island communities. A total of 94 students participated in the pilot, 28 from St. Croix, 18 from St. Thomas, and 48 from St. John. We plan to scale this to all VIDE K-8 schools this Fall. UVI RTPARK 2025 TESTIMONY - 6 of 8 STEAM Days To extend our impact to even younger learners, we hosted our first Territory-Wide STEAM Day on March 14, Pi Day, where we engaged Pre-K and Kindergarten students in playful, interactive learning. The event welcomed 161 students from 8 schools across St. Croix for a vibrant day of science, technology, engineering, art, and math activities designed to inspire wonder from the very start of their academic journey. Youth STEM Summer Camp We built on the success of our after-school program and launched our first-ever free Youth STEM Summer Camp at our HQ on St. Croix and at the UVI XIIID Research & Strategy Innovation Center on St. Thomas. The camp enrolled 122 students, 64 from St. Croix and 58 from the St. Thomas/St. John District and was delivered by a team of 18 trained Virgin Islanders, including coordinators and facilitators from each island. This experience not only empowered students but also provided valuable workforce opportunities for emerging Virgin Islands talent, reinforcing the park’s commitment to investing in local capacity and future leadership. By reinvesting client fees into programs that empower Virgin Islanders from an early age, we’re cultivating the next generation of innovators, problem-solvers, and leaders. Workforce Development To build a resilient and future-ready economy, we must also invest in Virgin Islanders at pivotal career moments, whether they’re preparing to enter the workforce for the first time or seeking opportunities to advance their career. Professional Pathways Program Video: https://youtu.be/iYYl317MvE8?si=JzPLhYr_qVFhAlHB UVI RTPark Professional Pathways Program (PPP) To bridge the gap between academic learning and career readiness for University of the Virgin Islands (UVI) students, we launched the Professional Pathways Program (PPP) in February of this year. The program delivered 12 weeks of intensive training on business etiquette, generative AI, resume building, and communication. Participants received individualized coaching through mock interviews and presentations, supported by the Skillsoft platform and facilitators on both campuses. Each of the 20 students accepted into the inaugural cohort received a $500 monthly stipend, and 17 successfully completed the program. Following the instructional phase, students entered a formal internship placement process with RTPark Clients. UVI RTPARK 2025 TESTIMONY - 7 of 8 Solar Farm and Renewable Energy Learning As part of the workforce development strategy, the RTPark collaborated with UVI to launch the SPARK Initiative to address two critical needs at once: strengthening workforce capacity in renewable energy infrastructure and enhancing energy resilience on St. Croix. The initiative includes a major expansion of the RTPark's energy infrastructure, a new 423 kW ground-mounted solar farm funded through a $1.1 million FEMA Mitigation 406 grant. In partnership with the University of the Virgin Islands’ Caribbean Green Technology Center, the project will also feature a dedicated solar teaching array, an advanced educational platform that provides UVI Renewable Energy Technology students and WAPA trainees with hands-on experience in solar energy production, system maintenance, and monitoring. Entrepreneurship Programming The RTPark is also focused on nurturing entrepreneurship by providing local founders with the tools, networks, and resources they need to turn ideas into thriving businesses that create jobs, build wealth, and drive innovation right here in the Virgin Islands. Since the Fall of 2019 we have consistently launched and innovated the AccelerateVI and Idea Incubator (formerly Pre-AVI) programs. AccelerateVI is a three-month accelerator program dedicated to supporting entrepreneurs who are building innovative technology solutions. The program provides early-stage companies with the resources, mentorship, and structure needed to grow and scale their businesses globally. Since its inception, the program's graduates have raised over $5 million in funding and generated more than $10 million in revenue. Closing Reflections To conclude, the vision of the RTPark is a self-sustaining cycle where business attraction fuels community investment, workforce development, and economic diversification. One of the things I value most about the RTPark is that it gives us the rare opportunity to think long- term. So much of government and community work focuses on making it through the next crisis. As a self-sustaining organization, the RTPark gives the Virgin Islands the freedom to think boldly, act strategically, and invest in a future driven by innovation and opportunity, not survival. The real results of what we’re doing today, in STEM, workforce development, and economic diversification, won’t be visible tomorrow or next year. But in ten years, we’ll know if we stayed the course and made the right moves. And we’re tracking that progress every step of the way. It is my hope that this comprehensive testimony clarifies that the UVI RTPark isn’t just a tax incentive program, it is a catalyst for innovation, economic diversification, and youth empowerment. We look forward to continuing this work in collaboration with the Legislature, UVI, GVI, and our community partners. UVI RTPARK 2025 TESTIMONY - 8 of 8 Thank you for your continued support and the opportunity to testify today. Respectfully submitted, Eric Sonnier Executive Director UVI Research and Technology Park APPENDIX The University of the Virgin Islands Research and Technology Park Corp. Eric Sonnier Eric Sonnier Executive Director Executive Director, UVI RTPark , UVI RTPark 1 NEW RTPARK VISION Attract Companies STEAM Enrichment Attend UVI Profesional Pathways Program Internships Employment USE CLIENT FUNDS PROMOTE WORKFORCE SPARK EXCITEMENT DEVELOP WORKFORCE 2 TRAIN WORKFORCE GUIDE STUDENTS UVI RESEARCH & TECHNOLOGY PARK Organizational Chart Eric Sonnier Executive Director FACILITY OPERATIONS Sydney Paul Marketing Shanya Hanley Workforce Matt Beadle Business Attraction Siobhan Cioppa Client Activation Kelly Pugh Client Relations Ayshell Grant Marketing Amanda Spann Entrepreneurship Khyra Thomas People Operations COMMUNITY ADVANCEMENT BUSINESS DEVELOPMENT MARKETING Shanice Wilson EA Marie Perkins STEM Education Alfonso Rodriguez Community Advancement John Harrison Finance Bonnie Harrison Compliance Naisha Monelle Facility Operations Kedisha Charles AVICS Shaynoah Bedford IT FINANCE & COMPLIANCE Malachi Peterson Strategic Initiatives & Compliance Torhera Durand Deputy to Exec Dir. Janubia Sweeney AVICS Aminah Saleem Special Assistant 3 Malachi Peterson Strategic Initiatives & Compliance Associate Kelly Pugh Client Relations Manager Eric Sonnier Executive Director Aminah Saleem Special Assistant to the Executive Director John Harrison Director of Finance Matt Beadle Associate Director of Business Attraction Siobhan Cioppa Director of Client Activation Sydney Paul Director of Marketing Naisha Monelle-Joseph Facility Operations Manager Alfonso Rodriguez Jr. Director of Community Advancement Kedisha Charles Senior Associate - AVICS Shanice Wilson Executive Assistant Torhera Durand Deputy to the Executive Director Shanya Hanley Senior Associate - Community Advancement 1 7 Ayshell. H. Grant Senior Marketing Associate Khyra Thomas Senior People Operations Manager Marie Perkins STEM Education Program Manager Bonnie Harrison Director of Compliance MEET THE TEAM = From Virgin Islands = UVI Graduate Legend 4 1 7 MEET THE TEAM Click to Play UVI RTPark Team Video! https://youtu.be/JKbP3nO2XrE 5 UVI 13D Research and Strategy Innovation Center A state-of-the-art facility located on the Orville E. Kean Campus of the University of the Virgin Islands on St. Thomas. Headquartered in St. Croix, we operate across the USVI, offering soft landing spaces that provide a professional environment to launch and grow companies in the region. These spaces also foster collaboration, networking, and engagement with the vibrant local tech ecosystem. A dynamic coworking space located on St. Croix which includes key card access, high-speed WiFi, and access to conference rooms for its members. 64 West (RTPark HQ) Serving as the RTPark headquarters located on the Albert A. Sheen Campus of the University of the Virgin Islands on St. Croix. Accelerate VI Coworking Space St. Croix St. Thomas St. John 6 WHERE TO FIND THE RTPARK St. Croix Consulting and Investment 26 Specialized Software Development 15 Healthcare and Medical Services and Technologies 9 Financial Services and Technologies 7 Internet Advertising and E- Commerce 6 Telecommunications / Infrastructure 6 Sustainability Solutions 1 16 St. Thomas St. John 50 4 7 WHERE TO FIND RTPARK CLIENTS Clients listed on website. RTPARK CLIENT SECTORS Series of Interviews Application (2 Parts) Introduction Negotiate Term Sheet Background Check Tax & Sourcing Analysis 8 Prospective clients are introduced to the RTPark through outreach, referrals, or inbound inquiries and receive an overview of the program’s mission, benefits, and eligibility requirements. Both parties develop and agree on a term sheet (MOA) outlining incentives, commitments, and compliance obligations. The company submits a formal application detailing its business model, financials, and proposed commitment to the USVI and UVI. RTPark staff conducts interviews to assess mission alignment, industry fit, and the company’s ability to fulfill program expectations. A due diligence review is performed on the company and its principals to ensure regulatory and reputational integrity. Clients work with their tax attorney and the RTPark verifies the company’s income structure to confirm eligibility under Title 17 for tax incentive benefits. PROCESS TO BECOME A RTPARK CLIENT Compliance Onboarding Park Tenant Agreement (PTA) The company signs a formal agreement called the Park Tenant Agreement that governs its participation in the RTPark program. The company is onboarded into the RTPark’s compliance system, with guidance on reporting, contributions, and ongoing requirements. 02 01 03 04 05 06 08 07 A Park Tenant Agreement (PTA) is a legally-binding agreement between the RTPark and an approved business (RTPark Client) that outlines the terms of participation in the RTPark program. 9 PARK TENANT AGREEMENT (PTA) OVERVIEW Terms: Term of Agreement (typically 15 years) RTPark Ownership Percentage Financial Commitments to RTPark Tier I Commitments to UVI Tier II Commitments to UVI Other Strategic Commitments Other Items Covered: Eligibility and Scope of Activities Tax Incentives Offered Reporting and Compliance Requirements Termination Clauses Amendment and Renewal Provisions Programmatic Compliance Financial Compliance Review of Park Tenant Agreement (PTA) Client Onboarding and Support Compliance Monitoring Ongoing Communication 10 RTPARK (PTA) COMPLIANCE OVERVIEW PTA is reviewed to identify financial and programmatic compliance requirements specific to each client. Each client receives an onboarding meeting to walk through the compliance process and address any questions. Client payments are tracked through automated accounting, with timely invoicing, payment confirmations, and remittance of any UVI-related funds. Clients are provided with a secure folder containing all required templates, legal references, and submission tools to ensure timely uploads. Annual compliance status is tracked and updated as documentation is submitted. Regular meetings are held to review compliance status and support client understanding and performance. We have begun implementing diverse strategies to attract clients who create jobs and increase the RTPark’s impact on the territory. Pursue Companies that Create Jobs Diversify Lead Sources Improve RTPark Technical Assistance 11 BUSINESS ATTRACTION STRATEGY Business Attraction results from FY17 - FY24. FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25* # New Clients 0 2 4 6 8 10 12 14 11 6 10 13 8 4 3 1 8 12 CLIENT GROWTH *Projected = Leadership Change Client contributions to UVI - Internships and/or Scholarships Start at $15,000 - increase stepwise as revenue hits certain levels Client contributions to programmatic areas of UVI i.e. Computer Science Start at $20,000 - increase stepwise as revenue increases Can be offset by certain, mutually agreed upon in-kind contributions Tier II Tier I 13 TIER I & TIER II UVI COMMITMENTS Since fiscal year 2017, RTPark clients have contributed over $14.3 million (cash basis) to UVI through Tier I and Tier II commitments. Tier I Tier II 2017 2018 2019 2020 2021 2022 2023 2024 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $86,000 $168,550 $522,500 $247,100 $741,128 $394,230 $902,327 $566,941 $988,500 $920,571 $1,351,644 $1,702,997 $1,570,500 $1,595,000 $1,269,839 $1,400,860 14 HISTORIC CONTRIBUTIONS TO UVI: TIER I AND TIER II COMMITMENTS After-School STEM Enrichment Program STEM Summer Camps Potential Partnership with VIDE The RTPark has implemented After-School STEM Enrichment Programs, STEM Summer Camps, and partnerships with VIDE to expand hands-on learning opportunities for students in the USVI. 15 YOUTH STEM ENRICHMENT Youth STEM RTPark client fees help launch local entrepreneurs, fund youth STEM initiatives, and foster a thriving tech ecosystem. Together, we’re building opportunities and shaping the future of our community. 16 To strengthen the local workforce, we believe it is essential to build a comprehensive workforce database, attract companies with clear hiring plans, and develop targeted training programs that align with industry needs, ensuring career pathways and economic growth in the USVI. Build workforce database Increase internship placements Develop training programs 17 WORKFORCE DEVELOPMENT PROFESSIONAL PATHWAYS PROGRAM 18 Advance Technology Transfer Promote Innovative Solutions Through partnerships with UVI, community organizations, and our clients (many of whom are experts in their fields), we can promote innovative solutions for some of the Virgin Islands’ biggest problems: energy, food security, healthcare, and education. Entrepreneurship Programming 19 INNOVATIVE SOLUTIONS S.P.A.R.K is a collaborative effort between the UVI RTPark, the Caribbean Green Technology Center, and the University of the Virgin Islands. The goal of this initiative is to build a more resilient energy future, and prepare the local workforce for careers in advanced energy technologies. Sustainable Practices Advancement & Renewable Knowledge Initiative This project includes a 423kW ground-mounted solar farm to offset the Research and Technology Park's reliance on the grid and a dedicated teaching array that will provide UVI Renewable Energy Technology students with hands-on training experiences in solar energy production and system monitoring. UVI RTPark Solar Farm and Teaching Array Led by UVI, this project will conduct ASHRAE Level 2 energy audits and install energy monitoring systems across 40 campus buildings to reduce the University's utility costs, lower its carbon footprint, and promote sustainable resource use. Resilient UVI Project This program supports UVI’s new AAS degree in Renewable Energy Technology by placing student interns at the RTPark, where they will monitor the building’s energy usage, benchmark performance against industry standards, and recommend improvements to enhance energy efficiency and management. Living Lab-Resilient Buildings Workforce Development Program 20 21 THE UNIVERSITY OF THE VIRGIN ISLANDS RESEARCH AND TECHNOLOGY PARK THANK YOU! THANK YOU! EMAIL ADDRESS eric.sonnier@uvirtpark.net PHONE NUMBER (340) 474-0922 PHYSICAL ADDRESS 64 West Palm Drive, Kingshill, VI 00850