. 
 
 
 
 
 
 
 
 
 
 
Testimony of 
Vincent Richards 
Assistant Commissioner of the 
Department of Property and Procurement 
On behalf of 
Lisa M. Alejandro 
Commissioner of the Department of Property & Procurement 
 
On 
 
Lease Agreements between the Department of Property and Procurement on behalf of the 
Government of the Virgin Islands and Tropical Marine, Inc. and Charles M. Kim V.I. 
Foundation, Inc. d/b/a Virgin Islands Museum of Art 
 
Before 
 
 
Committee on Budget, Appropriations, and Finance 
 
 
 
 
March 18, 2025 
 
 
 
Earle B. Ottley Legislative Chambers 
ST. THOMAS, U.S. VIRGIN ISLANDS 
 
 
 
 
 
 
 
~ 2 ~ 
 
Good morning, Committee Chair Novelle E. Francis, Jr, Vice-Chair Marvin A. Blyden, Jr., 
Committee members, Honorable Senators, Non-Committee members, Central and Legislative 
Staff, fellow testifiers, visitors present in the chambers, and members of the viewing and listening 
audience. 
 
I am Vincent Richards, Assistant Commissioner of the Virgin Islands Department of Property and 
Procurement. I am testifying today on behalf of Commissioner, Lisa M. Alejandro, to support the 
proposed Lease Agreements in the St. Thomas/St. John District before this Committee for 
consideration. Today, DPP respectfully requests this Committee’s, and ultimately the full Senate’s 
approval of the Lease Agreements between the Government of the Virgin Islands and Tropical 
Marine, Inc. (hereafter “Tropical Marine” – Bill No. 36-0028) and Charles M. Kim V.I. 
Foundation, Inc. d/b/a Virgin Islands Museum of Art (hereafter “Charles M. Kim” – Bill No. 36-
0040). 
These Lease Agreements all require legislative approval in accordance with 31 V.I.C. § 205 (c). 
Their terms all commence on the first (1st) day of the month following the approval of the Governor 
and Legislature of the Virgin Islands. The rent payable under one of these leases shall be adjusted 
annually, including any renewal term, in accordance with the Consumer Price Index (CPI) increase 
established by the U.S. Department of Labor, Bureau of Labor Statistics. These Agreements 
require a minimum of One Million Dollars and Zero Cents ($1,000,000.00) for all limits of 
general liability coverage. 
 
As the Premises owner, DPP will be required to approve all permits and licenses required for the 
development of the premises. These potential Lessees have provided the applicable documentation 
to support the processing of their respective Lease Agreements with the GVI, including any 
respective Business License and Certificates of Good Standing. 
 
 
I. 
Bill No. 36-0028 (Tropical Marine, Inc.) 
 
The Lease Agreement between Tropical Marine and the GVI acting through the DPP is for Parcel 
No. 37-1 Estate Nadir, No. 2 Red Hook Quarter, St. Thomas, United States Virgin Islands, 
consisting of 20,908.8 U.S. sq. ft. or 0.48 U.S. acre(s) of land more-or-less, and a portion of 
unsurveyed Estate Nadir, No. 2 Red Hook Quarter, St. Thomas U.S. Virgin Islands, consisting of 
7,083 U.S. sq. ft. or 0.163 U.S. acre(s) of land more-or-less. The properties will be used for the 
operation of a retail shop, commercial spaces, marine engine repair shop, the import and sale of 
goods, parking lot, and for other related purposes.  
 
The term of this agreement is fifty (50) years and provides for two (2) additional terms of ten (10) 
years. The annual rent will be Thirty Thousand Dollars and Zero Cents ($30,000.00) payable 
in equal monthly installments of Two Thousand Five Hundred Dollars and Zero Cents 
 
~ 3 ~ 
 
($2,500.00) during the term of this Lease. A Construction Period of twenty-four (24) months has 
been granted to the Lessee.  
 
Tropical Marine has been the Lessee of the premises since November 2005. They have consistently 
kept their account in good standing. Tropical Marine has made significant investment on both the 
upland and submerged property beautifying the premises by creating a lighted and secure parking 
area. The Ruan family are role models in the local marine & boating business. 
 
 
 
II. 
Bill No. 36-0040 (Charles M. Kim V.I. Foundation, Inc. d/b/a Virgin Islands 
Museum of Art) 
 
The proposed Lease Agreement between Charles M. Kim and the GVI acting through the DPP is 
for a portion of Lot No. 48b Norre Gade, Kings Quarter, St. Thomas, Virgin Islands, consisting of 
a multi-story building of 12,300 U.S. sq. ft. residing on 10,000 U.S. sq. ft. or 0.229 U.S. acre(s) of 
improved property more-or-less. The Lessee will use the premises to demolish, renovate, and/or 
rebuild a historical-looking, substantially similar, but not identical, replica of the existing building, 
which complements the historic district of not less than 7,500 square feet of interior, and not 
including any tower or lookout-type structure. Lessee shall permit use of the Premises for the 
operation of museums, galleries, and exhibition, for community and civic purposes, studios, and 
production of art, culture, and historical materials and associated office and/retail use and other 
related purposes. 
 
The subject building was originally constructed in 1914 by Hamburg-America Shipping Lines and 
served as their administrative office in Charlotte Amalie, St. Thomas. It later housed U.S. federal 
agencies, including the U.S. Customs, Immigration and Naturalization Service, the U.S. Marshal 
Service, and the U.S. District Court. More recently, the building was home to the 19th, 20th, and 
21st Legislatures of the Virgin Islands. 
After numerous walkthroughs and assessments from multiple structural engineers, it has been 
concluded that the building has reached the end of its lifecycle. The building is the first building 
of its kind in the US Virgin Islands, but unfortunately was originally constructed using “beach 
sand,” which has led to the corrosion of the rebar, causing severe spalling of the concrete. As a 
result, the building is now considered structurally unsound and unfit for occupancy. 
During renovation of a nearby building, DPP had the subject building wrapped in a meshed fabric 
to improve its visual aesthetics and, more importantly, to mitigate potential hazards and liabilities. 
The term of this proposed lease agreement is 99 years, with two (2) additional renewal options. 
The annual rent will be $1,200.00 during the term of the lease A Construction Period of sixty (60) 
months has been granted to the Lessee. The project is currently estimated to cost well over Five 
 
~ 4 ~ 
 
Million Dollars ($5,000,000.00). The proposed lease agreement requires the Lessee to place Five 
Million Dollars ($5,000,000.00) in cash in escrow as a Performance Bond before beginning 
demolition. Upon completion of demolition, the escrowed funds will be released by Lessee, and 
the contractor will obtain a $5,000,000.00 performance bond in favor of the GVI as security for 
the Lessee’s obligation and performance of the construction.  
 
This proposed lease agreement will support an ongoing revitalization of the historic downtown 
Charlotte Amalie and will be a catalyst for further similar redevelopment projects. The 
rehabilitation of this property will also positively impact the property value of surrounding 
properties -increasing the GVI property tax role. This agreement will also remove one more 
derelict property from the GVI inventory of real estate.  
This proposed lease agreement represents a once-in-a-lifetime opportunity. The development of 
the new structure will provide immense benefits to the community. The project is a “win-win” for 
the people of the Virgin Islands, and we respectfully seek this Committee's support. 
___________________________________________________________________________ 
As the custodian of all GVI-owned properties, the Department of Property & Procurement remains 
committed to developing mutually beneficial partnerships that unlock the true value of GVI owned 
properties. Commissioner Lisa M. Alejandro is dedicated to fostering agreements that benefit both 
the government and the community at large. 
These lease agreements will (1) assist a locally owned family business in expanding and improving 
its operation in the boating industry in the St. Thomas/St. John District, and (2) assist a local non-
profit to rehabilitate an iconic piece of Virgin Islands' history while creating a much-needed venue 
for both locals and visitors. These investments individually and together demonstrate two families’ 
multi-generational commitment to the territory, and will contribute significantly to the long-term 
expansion of the Virgin Islands’ economy. Furthermore, at the end of the lease terms, the properties 
will be returned to the GVI in much-improved conditions. 
DPP respectfully requests that the Committee on Budget, Appropriations, and Finance vote in 
favor of these Lease Agreements. 
Thank you for your consideration. I am available to answer any questions the Committee may have 
regarding the proposed Lease Agreements.