G O V E R N M E N T O F T H E U N I T E D S T A T E S V I R G I N I S L A N D S MESSAGE FROM THE GOVERNOR The United States Virgin Islands remains committed to robust to economic development despite the challenges of the most recent hurricane season. Throughout FY 2018, we strategically executed plans that promoted the growth and diversification of our economy and revitalized distressed communities. We also strengthened our external marketing and communication initiatives to attract key investors to our Territory and to encourage and support local business. The Virgin Islands is able to provide competitive tax and other benefits not available elsewhere, making us one of the most business friendly jurisdictions under the U.S. flag. We also remain one of the most desirable and beautiful places in the world to live, visit and conduct business. We enjoy balmy weather year round, crystal blue waters, beautiful vistas, first class accommodations and welcoming populace. We continue to partner with the United States Treasury and Internal Revenue Service to enhance our economic development incentives and we enjoy all of the protections and regulations afforded by the U.S. Government. Although the Territory is primed for business activity, we have yet to meet our full potential. Extraordinary opportunities exist here in the finance, light manufacturing, marine, tourism, technology, construction and other sectors. As our recovery moves into full swing, we stand ready to welcome new business and new investment to our shores. We encourage you to be a part of this new wave of opportunities and remain determined to be the premiere destination for all who wish to flourish under favorable circumstances only the United States Virgin Islands can offer. We look forward to doing business with you! MESSAGE FROM THE LIEUTENANT GOVERNOR I am pleased to join the Virgin Islands Economic Development Authority (EDA) in presenting its Fiscal Year (FY) 2018 Annual Report. The 2018 Annual Report comprehensively dissects many facets of the Virgin Islands economy, and outlines the efforts that the EDA implements to reach its goals. I applaud the Governing Board and the entire team at the Economic Development Authority for producing this exceptional source for data and analysis of the Virgin Islands economy. As the U.S. Virgin Islands continues the quest for economic growth and development, this report will provide an overview of the Virgin Islands' economy as we continue in the recovery period in the aftermaths of Hurricane Irma and Hurricane Maria of September 2017. Despite those and other challenges, the Fiscal Year 2018 Annual Report highlights favorable outcomes in economic growth, capital improvement projects, and tax incentive programs, which translate into job creation. I am pleased to invite current and prospective stakeholders to utilize this Annual Report as an important guide for continued investments in the Virgin Islands economy within various and diverse industries. In the current climate of rebuilding, we recognize the enormous potential that exist between public and private sectors. Therefore, we continue to welcome all opportunities for investment and development in the Territory. Through the leadership expertise of the Economic Development Authority, we will continue to explore innovative ways to make the Virgin Islands a competitive market for potential investors and economic growth. Osbert E. Potter U.S. Virgin Islands VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY Email: info@usvieda.org • Website: www.usvieda.org ST. THOMAS-ST. JOHN DISTRICT 8000 Nisky Shopping Center Suite 620, 2nd Floor St. Thomas, U.S. Virgin Islands 00802 Telephone: 340-714-1700 ST. CROIX DISTRICT 116 King St. St Croix, U.S. Virgin Islands 00841 Telephone: 340-773-6499 FY 2018 VIEDA Annual Report Message from the Chairman of the Board............................................................. 4 Message from the Assistant Chief Executive Officer......................................... 5 VIEDA Board of Directors............................................................................................. 6 Management Team...........................................................................................................7 Mission Statement............................................................................................................8 OVERVIEW: VI Economic Development Authority............................................ 9 Virgin Islands Economic Development Commission......................................10 EDC Applications Division ...................................................................................10 EDC Compliance Division .....................................................................................20 Virgin Islands Economic Development Park Corporation .....................29 Economic Development Bank ............................................................................33 Enterprise Zone Commission .............................................................................39 External Marketing and Public Relations ......................................................45 Internal Marketing and Public Relations........................................................53 FINANCIALS - Summary .............................................................................................57 Staff of the VI Economic Development Authority ...........................................70 Cover Photos: (Clockwise): Enterprise Zone Commission Open House, St. Thomas; VIEDC Beneficiary United Electronic Industries Services, LLC, St. Thomas; Business2Business Event, St. Thomas; and the Wilfred "Bomba" Allick Port and Transshipment Center located in Krause Lagoon on St. Croix, is locally known as "The Containerport”. –“The Containerport” image by Photographer Don Hebert & provided courtesy of the Virgin Islands Port Authority; all other images by Semele A. C. George/VIEDA TABLE of CONTENTS VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 6 www.usvieda.org MESSAGE FROM THE CHAIRMAN OF THE BOARD For the 2018 Fiscal Year, October 1, 2017 to September 30, 2018, the United States Virgin Islands Economic Development Authority (VIEDA) has, with the local government, the federal government, its customers, partners, and the people of the Virgin Islands, participated in the Territory’s recovery from the devastating impact of the two Category 5 Hurricanes Irma and Maria in September 2017. I continue to be proud of the Authority’s management and staff, and the Governing Board’s efforts to meet its legislated mandate to improve our quality of life in collaboration with all stakeholders of the Territory. Strengthened relationships with local and federal partners in the aftermath of the hurricanes are proving to be the foundation for the comprehensive strategic planning necessary for economic development to truly improve our quality of life as we continue our recovery. The VIEDA has hired a Chief Executive Officer, who is an experienced economic developer, nationally and internationally. He is tasked with leading the Authority’s efforts in administering the Territory’s Economic Development Program to improve our economic wellbeing by helping to create an economic environment that uses the recovery from the hurricanes as an opportunity to truly improve our quality of life by addressing our workforce, educational, environmental, social, and healthcare issues strategically, and comprehensively, while creating resilience. José A. Penn José A. Penn Chairman VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 7 www.usvieda.org MESSAGE FROM THE ASSISTANT CHIEF EXECUTIVE OFFICER As I reflect upon FY 2018, I am reminded of the phrase from a quote by poet Maya Angelou, “…realize who you are, that you tower over your circumstances”. Throughout FY 2018, our residents and business community have risen to the occasion of towering over their circumstances. Together, we continued to make strides to rebuild our Territory’s infrastructure and economy following the merciless, devastating impact of Hurricanes Irma and Maria upon our shores. As we work together through our recovery, the U.S. Virgin Islands remains competitive for business investment opportunities, particularly through its economic development incentive program. This attraction has led to applications from businesses for USVI investment that will encourage a potential future economic impact of more than $200 million to be made in capital investments and the creation and retaining of a minimum of 575 jobs. We continue to also support our local small businesses through the federal program, the State Small Business Credit Initiative (SSBCI), offered by the U.S. Department of the Treasury and administered locally by the Economic Development Bank. And just as our small-business community is vital foundation for our economic recovery, revitalizing our neighborhoods still remains to be a significant part of economic development. Our enterprise zones – which were once vibrant neighborhoods - remained top of mind following the storms through the conducting a Rapid Infrastructure Assessment Survey of buildings within the enterprise zones through the work of the Enterprise Zone Commission. In the midst of rebounding economically from the storms, the U.S. Virgin Islands is still a destination that possesses a warm and welcoming populace surrounded by balmy weather; incomparable picturesque skies; and inviting, crystal clear blue waters. As we continue to work with our public and private sector partners to move our Territory forward, we continue to partner with the U.S. Department of the Treasury and the Internal Revenue Service as we enjoy the protections and regulations afforded by the U.S. Government. We encourage you to consider the U.S. Virgin Islands and be part of our continuous strides for future business investments that can make our infrastructure stronger and our economy more robust than ever. Wayne L. Biggs, Jr. Wayne L. Biggs, Jr. Assistant Chief Executive Officer VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 8 www.usvieda.org VIEDA BOARD OF DIRECTORS José A. Penn, Chairman Chief Financial Officer of Penns’ Apartment Rental, Inc.; Penns’ Jeep Rental, Inc. and Penns’ Trucking Services, Inc. (St. John Representative) Philip Payne, Vice Chairman Owner and CEO of Dyer & Payne, Inc. (St. Croix representative) Avery L. Lewis, Secretary 1 Elementary School Teacher, Ulla F. Muller Elementary School (St. Thomas Representative) Catherine Hendry, Esq., Board Member Commissioner of the Virgin Islands Department of Labor (Representative of the Governor's Cabinet) Juan Figueroa, Sr., Board Member Executive Director for the Virgin Islands Lottery (Representative of the Governor’s Cabinet) Haldane Davies, Ph.D., Board Member Vice President for Business Development and Innovation at the University of the Virgin Islands (Representative from the University of the Virgin Islands) Eugene Farrell, Board Member Eugene D. Farrell Chief of Staff Governor Kenneth E. Mapp Governor’s staff representative 1 Resigned on June 5, 2019 VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 9 www.usvieda.org MANAGEMENT TEAM Kamal I. Latham2 Chief Executive Officer Wayne L. Biggs, Jr.3 Assistant Chief Executive Officer Chief Operating Officer Tracy Lynch Bhola, Esq. General Counsel Humberto O’neal Project Coordinator Ernest Halliday Director of Administration & Finance Margarita A. Benjamin Director of Applications Economic Development Commission Claude S. M. Gerard Director of Compliance Economic Development Commission Monique T. Samuel4 Acting Director of Lending Economic Development Bank Nadine T. Marchena Kean Director Enterprise Zone Commission Mark Finch Park Superintendent Shanell Petersen5 Marketing Director MISSION STATEMENT 2 Served as Chief Executive Officer as of August 1, 2018. 3 Served as Acting Chief Executive Officer May 8, 2015 to July 31, 2018. Mr. Biggs reverted back to his prior position as Assistant Chief Executive Officer/Chief Operating Officer of the VIEDA on August 1, 2018. 4 Sharmane Brookes, Director of Economic Development Bank, resigned as EDB Director of Lending on January 25, 2018. Monique T. Samuel is serving as Acting Director of Lending effective January 29, 2018. 5 Served as Marketing Director as of June 11, 2018 VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 10 www.usvieda.org MISSION STATEMENT The Virgin Islands Economic Development Authority (VIEDA) strives to be a customer service-based organization that creates positive/public private sector partnerships for the enhancement of economic growth and development by meeting the challenges of the global economy and serving the needs of the business community while embracing our unique cultural heritage and preserving our pristine natural environment. VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 11 www.usvieda.org OVERVIEW OF THE VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY Kamal I. Latham introduces himself to the VIEDA team members on August 3, 2018 during his first week as the new VIEDA CEO during a welcome gathering social event at the VIEDA office on St. Thomas. – Photo by Semele A.C. George/VIEDA The Virgin Islands Economic Development Authority (VIEDA) was created to “aid the Government in the performance of its du- ties to develop the economy of the Virgin Islands as a semi-au- tonomous government instrumentality on February 1, 2001 to assume, integrate and unify the functions of the Government De- velopment Bank (GDB), the Economic Development Commission (EDC), the Industrial Park Development Corporation (IPDC), the Small Business Development Agency (SBDA), and the Enterprise Zone Commission (EZC) under one executive board in order to achieve maximum efficiency, streamline operations, and develop comprehensive programs to promote and enhance the economic development of the Territory.” In fiscal year 2014 through Virgin Islands legislation, the GDB and the SBDA were merged to create the Economic Development Bank (EDB) in which the SBDA exists under the EDB. The IPDC was also changed to the Virgin Islands Economic Development Park Corporation (EDPC). Legislation also included a commercial zone to be under the Enterprise Zone Commission. The Authority accomplishes its mission by 1) attracting multi-national investors to establish or relocate their businesses to the United States Virgin Islands, 2) providing financial assistance through its lending arm, namely the Economic Devel- opment Bank, to emerging and established small to medium-sized businesses in the Territory, 3) offering space for lease to businesses at the economic development parks through the Virgin Islands Economic Development Park Corporation, 4) assisting Virgin Islands residents and business owners with rehabilitating their properties located in blighted and dis- tressed areas that were once vibrant economic centers of activity in the Territory. The Authority is funded by the general fund based on a budget request from the Governor and the VIEDA Board of Directors which must ultimately be approved by the Legislature of the Virgin Islands. The powers of the Authority are exercised in a seven-member board which consists of three (3) members that are appoint- ed by the Governor from among heads of cabinet-level executive departments or agencies or from among the Governor’s executive staff, three (3) members who are not employees of the Government of the United States Virgin Islands and are appointed by the Governor with the advice and consent of the Legislature, and one (1) member appointed from the board or executive staff of the Government Employees’ Retirement System, the Virgin Islands Port Authority or the University of the Virgin Islands. VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 12 www.usvieda.org VI ECONOMIC DEVELOPMENT COMMISSION APPLICATIONS REPORT APPLICATIONS RECEIVED During fiscal year (FY) 2018, the Virgin Islands Economic Development Commission (“VIEDC”) received a total of seven new applications; two extension applications; and three (3) extension/modification applications. A total of 13 applications were received during the fiscal year including one application under the Sustainable Tourism through Arts-based Revenue Stream Act, or S.T.A.R.S. Act Program. The statistics show that 12 VIEDC applications received for VIEDC tax incentives represent a potential future economic impact  of  a minimum of 575 jobs to be created/retained, $20,873,701 to be paid in wages and approximately $222,405,105 to be made in capital investments. These Applicants also represent the potential for the U.S. Virgin Islands to realize approximately $10.6 million in taxes over a five-year period. TABLE 1: VIEDC Applications Received NO. COMPANY NAME TYPE OF APPLICATION CATEGORY TYPE OF BUSINESS STATUS AS OF 09/30/2018 1. Cinnamon Bay Resort, LLC d/b/a Cinnamon Bay Resort & Campground New III Campground/ Recreational Approved 2. Tree Limin’ Extreme, LLC New III Tourist Attraction Approved 3. Spartan Products, LLC Extension / Modification II Manufacturer Withdrew 4. DiamondRock Frenchman’s Owner, Inc. Extension / Modification III Hotel Incomplete 5. Plessen Healthcare, LLC New III Healthcare Facility Incomplete 6. Tropico Management, LP Extension IV Business Management Incomplete 7. Yusuf Drinking Water, Inc. New II Manufacturer Incomplete 8. Rock City Brewing Company, LLC New II Manufacturer Incomplete 9. Carambola Golf Club, LLC Extension 6* III Recreational Facility Incomplete 10. Island Roads Corporation Extension/ Modification II Manufacturer Incomplete 11. YHG Hotel, LLC New III Hotel Incomplete 12. Thriving Charities New IV Financial Management, Consulting & Compliance Incomplete The seven new applicants represent approximately 95 jobs, more than $3.8 million in wages, approximately $44.3 million in investments and $197K in charitable contributions. Projected total taxes over a five-year period is approximately $1.8 million. 6 Application filed as "New" but applicant is actually an extension application pursuant to the Virgin Islands Rules and Regulations. VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 13 www.usvieda.org S.T.A.R.S. Act Application Received COMPANY NAME NAME OF PRODUCTION STATUS AS OF 09/30/2018 13. Silver Line Films, Inc. Dead Water Incomplete The one application received represents approximately eight jobs for residents, and more than $258K of expenditures in the Territory. APPLICATIONS PROCESSED VIEDC PUBLIC HEARING: During FY 2018, VIEDC application matters were held at six public hearings of which presentations were made by 11 applicants as follows: TABLE 2: VIEDC Public Hearings NO. NAME OF APPLICANT PUBLIC HEARING Description Island 1. Evolve USVI, LLC d/b/a The Fred 12/19/2017 Hotel St. Croix 2. Generation International Asset Management Company, LLC “GIAMCO”) 02/22/2018 International Financial Services St. Croix 3. Heavy Materials, LLC 02/22/2018 Manufacturer St. Thomas/ St. Croix 4. Cinnamon Bay Resort, LLC d/b/a Cinnamon Bay Resort & Campground 04/10/2018 Campground/Recreational St. John 5. Leatherback Brewing Company, LLC 04/10/2018 Brewery/Manufacturer St. Croix 6. Tree Limin’ Extreme, LLC 06/05/2018 Tourist Attraction St. Thomas 7. IGY/AYH St. Thomas Holdings d/b/a American Yacht Harbor 06/05/2018 Marina St. Thomas 8. DiamondRock Frenchman’s Owner, Inc. 08/07/2018 Hotel St. Thomas 9. Plessen Healthcare, LLC 08/07/2018 Healthcare Facility St. Croix 10. Yusuf Drinking Water, Inc. 08/07/2018 Manufacturer St. Croix 11. Alpine Group USVI, LLC 07/12/2018 Designated Services Business St. Thomas Jeff Finkle, CEcD, President and CEO International Economic Development Council, at the post Hurricanes Irma and Maria meeting with representatives from the VI Economic Development Authority, IEDC, Virgin Islands Senate and the St. Croix Chamber of Commerce in February 2018. - Photo by Semele A.C.George/VIEDA VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 14 www.usvieda.org During FY 2018, six decision meetings were held of which a total of 14 applications were presented to the VIEDC Governing Board for consideration. Thirteen applicants were approved of which four (4) were final and nine (9) were transmitted to the Governor for his consideration. One (1) application was denied. TABLE 3: VIEDC Decision Meeting Cases NO. NAME OF APPLICANT DECISION MEETING TYPE OF APPLICATION STATUS As of 09/18/2018 1. Greenleaf VI II, Inc. 11/16/2017 Modification Approved 2. Sugar Bay Club’s Resort Corp. 11/16/2017 Extension / Modification Approved 3. White Bay Global, Inc. f/k/a White Bay Group USVI, LLLP 11/16/2017 Extension / Modification Approved 4. St. Croix Renaissance Group, LLLP 11/30/2017 Extension Denied 5. Coral World (VI), Inc. 12/19/2017 Extension Approved 6. Tramway Properties, Inc. 12/19/2017 05/15/2018 Extension / Modification Approved Poll Vote Ratification 7. Cinnamon Bay Resort, LLC d/b/a Cinnamon Bay Resort & Campground* 05/15/2018 New Approved 8. Evolve USVI, LLC* 05/15/2018 New Approved 9. Heavy Materials, LLC* 05/15/2018 Extension / Modification Approved 10. Leatherback Brewing Company, LLC* 05/15/2018 New Approved 11. IGY/AYH St. Thomas Holdings, LLC* 07/05/2018 Modification/ Extension Approved/ Denied 12. Tree Limin Extreme, LLC* 07/05/2018 New Approved 13. Alpine Group USVI, LLC* 09/20/2018 Modification Approved 14. Generation International Asset Management* 09/20/2018 New (IFSE) Approved *No Governor Approval Required. 8 7 International Financial Services Entity 8 Act No. 8017 on the approval of VIEDC decisions by the Governor of the U.S. Virgin Islands was vetoed and subsequently overridden on December 21, 2017. This legislation repealed Section § 717a. Action by the Governor and the Commission, by removing the Governor’s consid- eration on “New” applicants. Subsequently, Act No. 8056 was overridden on June 14, 2018 which no longer requires the Governor’s approval on “ALL” VIEDC applications. VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 15 www.usvieda.org APPLICATIONS APPROVED BY THE GOVERNOR During FY 2018, 12 applications - of which three applications were filed in the previous fiscal year - were submitted to the Governor of the USVI (hereafter referred to as “the Governor”) for consideration. Eleven applications were approved by the Governor and one application was returned by the Governor for the Board’s reconsideration of language in a special provision relating to collective bargaining agreement. TABLE 4: VIEDC Applications Approved by the Governor NO. COMPANY NAME TYPE OF APPLICATION CATEGORY TYPE OF BUSINESS STATUS AS OF 09/30/2018 1. Secret Harbour Beach Associates, LLLP Modification III Hotel Approved 06/08/2018 2. Carambola ZipLine, LLC New III Recreational Facility Approved 05/02/2018 3. St. Croix Financial Center, Inc. Modification III Hotel / Marina Approved 02/07/2018 4. Gold Coast Yachts, Inc. Modification II Manufacturer of Yachts Approved 02/14/2018 5. Grapetree Shores, Inc. d/b/a Divi Carina Bay Resort Modification III Hotel Returned 03/19/2018 6. Greenleaf VI II, Inc. Modification IV Business Management Approved 05/02/2018 7. Air Ambulance Caribbean, Inc. d/b/a Aero MD New III Healthcare Approved 05/23/2018 8. Sugar Bay Club & Resort Extension / Modification II Hotel / Guesthouse Approved 06/13/2018 9. White Bay Global, Inc. Modification IV Business Management Approved 06/06/2018 10. Tramway Properties, Inc. Modification III Recreational Facility Approved 05/25/2018 11. Grapetree Shores, Inc. d/b/a Divi Carina Bay Resort Modification III Hotel Approved 06/06/2018 12. Coral World (V.I.), Inc. Extension III Recreational Facility Approved 06/06/2018 (Left to right): Mitchell Neaves, UVI vice president of Institutional Advancement; VIEDA Chairman José A. Penn; Jason Charles, chief of External Affairs at Alpine Securities; University of the Virgin Islands’ President David Hall and Ernest Halliday, VIEDA director of Administration and Finance, gather for a check presentation at the VIEDA office on St. Thomas. Check presentation made by Mr. Charles on behalf of Alpine Securities to University of the Virgin Islands President Hall on February 12, 2018. This check represented scholarships to benefit three University of the Virgin Islands students. Alpine Securities is a Beneficiary of the VIEDC Tax Incentive Program. - Photo by Dale Morton/University of the Virgin Islands VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 16 www.usvieda.org PETITIONS During FY 2018, a total of nine petitions were presented to the Board for consideration. The VIEDC voted favorably to 1) amend the commencement date in its grant of benefits recommended to Aero MD and Evolve USVI, LLC; 2) reconsider Tramway Properties and approve the grant of a one-time 10-year extension and the additional five years for capital investments made; 3) notify GIAMCO of its interpretation of the term of tax incentive benefits under the IFSE Program, specifically that GIAMCO is eligible for 10 years pursuant to Title 9 and not 30 years pursuant to Title 29 VIEDC Program; 4) reconsider Grapetree Shores, Inc.’s application; and 5) amend Leatherback Brewery’s charitable contribution. The VIEDC Board denied three petitions for reconsideration. TABLE 5: FY 2018 Petitions Received NO. NAME OF APPLICANT DECISION MEETING DATES TYPE OF PETITION STATUS as of 9/30/2018 1. Air Ambulance Caribbean, Inc. d/b/a Aero MD 11/30/2017 Reconsideration of Commencement Date Approved 2. Tramway Properties 12/19/2017 Reconsideration Approved 3. Generation International Asset Management Company, LLC “GIAMCO” 03/08/2018 Eligibility of term of tax incentive benefits Approve notice to Applicant re: interpretation 4. Grapetree Shores, Inc. d/b/a Divi Carina Bay Resort 05/15/2018 Reconsideration Approved 5. St. Croix Renaissance Group, LLLP 05/15/2018 Reconsideration Denied 6. Sugar Bay Club & Resort, Corp. 05/15/2018 Reconsideration Denied 7. Tutu Park Mall, Ltd. 05/15/2018 Reconsideration Denied 8. Leatherback Brewing Company, LLC 07/05/2018 Reconsideration of charitable contribution Approved 9. Evolve USVI, LLC 09/20/2018 Capital investment extension Approved (Left to right): Wayne L. Biggs, Jr., VIEDA Assistant Chief Executive Officer; Jeff Finkle, President & CEO, International Economic Development Council; and José A. Penn, VIEDA Board Chairman, gather following a post Hurricanes Irma and Maria meeting with representatives from the VI Economic Development Authority, IEDC, Virgin Islands Senate and the St. Croix Chamber of Commerce on February 8, 2018. Hurricanes Irma and Maria devastated the U.S. Virgin Islands, and other locations, in September 2017. - Photo by Semele A. C. George/VIEDA VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 17 www.usvieda.org CERTIFICATES During FY 2018, a total of 19 certificates were drafted of which ten were executed (five (5) – new; one (1) – transfer; one (1) – extension; three (3) – modification) and nine (9) – extensions/modifications) were in process at the end of the fiscal year. Based upon the commitments made by Beneficiaries, of the 19 certificates processed to date, the Territory will realize new and continued employment at a minimum of 905 full-time employees, and approximately $99,861,036 in capital investments, and $750,000 in charitable contributions annually.  It is also estimated that the Territory will potentially generate direct taxes over a five-year period of more than $16.3 million should the business operations materialize as projected.  TABLE 6: VIEDC Certificates of Benefits NO. COMPANY NAME TYPE OF APPLICATION STATUS As of 9/30/2018 1. Goddard Catering Group St. Thomas, Inc. Extension 12/12/2017 2. Westin St. John Hotel Company, Inc. and its wholly owned subsidiaries WVC St. John and Westin Vacation Management Company Extension / Modification 08/31/2018 3. OSON VI, LLC Modification 03/09/2018 4. White Bay Group USVI, LLLP Transfer 01/16/2018 5. Global Medchoices Group, LLC New In Process 6. Castle Medical Holding, Inc. New In Process 7. Margaritaville Vacation Club by Wyndham Extension / Modification In Process 8. CBI Acquisitions, LLC d/b/a Caneel Bay Resort Extension / Modification 09/04/2018 9. ProTouch Communications, LLC New 02/21/2018 10. Greenleaf VI II, Inc. Modification 06/26/2018 11. St. Croix Financial Center, Inc. Extension / Modification 08/01/2018 12. Cinnamon Bay Resort New In Process 13. Leatherback Brewing Company, LLC New In Process 14. Gold Coast Yachts, Inc. Modification 05/25/2018 15. Grapetree Shores, Inc. d/b/a Divi Carina Bay Resort Extension/Modification In Process 16. Tramway Properties, Inc. Extension/Modification In Process 17. Coral World (V.I.), Inc. Extension/Modification In Process 18. Secret Harbour Beach Associates, LLLP Extension/Modification In Process 19. AEROMD New 09/26/2018 VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 18 www.usvieda.org FISCAL YEARS HISTORICAL DATA Table 7: Economic Development Commission – FY Historical Application Information FY 2016 FY 2017 FY 20189 No. of Apps Received 18 13 12 No. of Apps Approved 3 2 2 No. of Apps Tabled or Denied 0 1 0 No. of Apps Tranfer to RT Park 0 0 0 No. of Apps Pending 15 10 8 No. of Apps Withdrew 0 0 1 Job Opportunities 807 571 575 Approx. Wages of Apps $29,664,420.66 $20,425,708 $20,873,701 Minimum Potential of Apps $109,205,777 $24,689,910 $222,405,105 PENDING APPLICATIONS 2017 2018 No. of Prior Applications Pending Beginning Fiscal Year 27 19 Current Year Applications Received 13 13 Applications Withdrawn 0 -1 TOTAL APPLICATIONS PENDING 40 30 No. of Prior Applications Processed (Approved-12; Denied-1; Tabled-0) 17 13 No. of Current Year Applications Processed (2-Approved; 0- Denied) 4 2 Balance at End of Year 19 15 9 Seven - New Applicants; three - extensions/modifications, one - extension, 0 - transfer of tax incentive benefits VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 19 www.usvieda.org INQUIRIES FROM POTENTIAL INVESTORS During FY 2018, the Application Division responded to 21 inquiries for general information and/or request for information on the VIEDC Program. Meetings were held with six potential investors with strong interest in doing business within the Territory. TABLE 8: VIEDC Business Inquiries NO. TYPE OF BUSINESS LOCATION 1. Palm Tree Grower & Specialist Texas 2. General Inquiry Boston 3. Marketing/Advertisement St. Croix 4. General Inquiry Spain 5. Watch Industry Florida 6. Manufacturing Housing Development United States 7. Pharmacy Compounding Manufacturing Virginia 8. Environmental Remediation New Jersey 9. Water Transportation California 10. Real Estate Investment Georgia 11. Elemental Architecture California 12. Manufacturer Virginia 13. Accounting & Tax Services Florida 14. Manufacturer St. Thomas 15. Jeweler St. Thomas 16. ThunderBall Films Florida 17. Hotel Resort Development U.S. Virgin Islands 18. Online Job Seeking Puerto Rico 19. Software Business Ohio 20. Small Business U.S. Virgin Islands 21. International Consulting and Management Business U.S. Virgin Islands VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 20 www.usvieda.org ELIGIBLE VIRGIN ISLANDS SUPPLIER PROGRAM During FY 2018, a total of 14 Eligible VI Supplier applications were processed. Of the 14, nine were approved; three were denied; and one was closed. One applicant remained pending at the end of the fiscal year. TABLE 9: VIEDC Eligible VI Suppliers NO. DATE RECEIVED COMPANY BUSINESS LOCATION STATUS 1. 10/26/2017 Elan Solutions, Inc. St. Thomas Denied 11/22/2017 2. 12/6/2017 Housekeeper Pro, LLC St. Thomas Approved 12/19/2017 3. 12/14/2017 Atlantic Supply, LLC St. Thomas Approved 1/18/2018 4. 1/12/2018 M. Kogan Consulting, Inc. St. Thomas Denied 1/12/2018 5. 1/23/2018 Soul Creations St. Thomas Approved 04/30/2018 6. 1/23/2018 Design Lab Architects, LLC St. Thomas Approved 1/26/2018 7. 2/8/2018 Dennis R. Sheraw & Associates, Inc. St. Croix Approved 3/2/2018 8. 2/16/2018 Dudley, Topper & Feuerzeig, LLP St. Thomas Closed/Ineligible 9. 4/9/2018 In House Maintenance & Management Service St. Thomas Approved 4/30/2018 10. 4/20/2018 Save On Islands, LLC St. Thomas Approved 6/11/2018 11. 5/22/2018 Caribbean Risk Group, LLC St. Thomas Approved 7/27/2018 12. 6/22/2018 Falken USVI, LLC St. Thomas Denied 7/27/2018 13. 6/29/2018 AK Chandling & Supplies, LLC St. Croix Approved 7/27/2018 14. 8/27/2018 Foltyn Carpentry, LLC St. Croix Pending ELIGIBLE SUPPLIERS FY 2016 FY 2017 FY 2018 Received 19 22 14 Approved 12 17 9 Denied 1 3 3 Pending 3 0 1 Withdrawn/Closed 3 2 1 VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 21 www.usvieda.org 25 20 15 10 5 0 FY 2016 FY 2017 ELIGIBLE SUPPLIERS FY 2018 Received Approved Denied Pending Withdrawn COMMUNITY OUTREACH PROGRAMS, INFORMATIONAL AND OTHER MARKETING INITIATIVES: During the fiscal year, VIEDC participated at the following four (4) events: • The VIEDA, in collaboration with the Federal Emergency Management Agency (FEMA), U.S. Small Business Administration (U.S. SBA), Virgin Islands Small Business Development Center (VI SBDC) and the St. Croix Chamber of Commerce hosted an information session of federal and disaster contracting procedures to assist our small-business community in hopes of securing contracts. VIEDC Director Margarita A. Benjamin delivered a presentation on Eligible Virgin Islands Supplier Program the conference on November 20, 2017 at the VI Cardiac Center on St. Croix. • VIEDC application staff assisted and provided information on VIEDC Small Business and Eligible VI Supplier programs at the Enterprise Zone Commission 4th Annual Business-to-Business event held on March 20, 2018. • Application staff participated on April 25, 2018 at the VIEDA, EZC Open House to share tax incentive program information with enterprise zone residents, local businesses; and U.S. Virgin Islands Community • Director Benjamin presented on changes in the Economic Development Program Law and online application initiative on the approval of VIEDC decisions by the Governor of the U.S. Virgin Islands at the VIEDC 2018 Practitioners’ Forum and Beneficiary Summit on August 14, 2018 at The Ritz-Carlton St. Thomas and August 16, 2018 at The Palms at Pelican Cove on St. Croix, USVI. VIEDC ONLINE ELECTRONIC APPLICATION PROGRAM Staff members continued to work on the development of the VIEDC Online Electronic Application for the VIEDC Tax Incentive Program with representatives from WizeHive and other stakeholders. Due to delays caused by Hurricanes Irma and Maria, the timeline was extended for completion by the end of FY 2019. VIEDA CEO Kamal I. Latham (far right) leads the Economic Strategic Planning Meeting discussion at the VIEDA office with community stakeholders on St. Thomas, USVI on September 17, 2018. – Photo by Semele A. C. George/VIEDA VIEDA CEO Kamal I. Latham leads the Economic Strategic Planning Meeting discussion at the VIEDA office with community stakeholders on St. Croix, USVI on September 19, 2018. – Photo by Shanell Petersen/VIEDA VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 22 www.usvieda.org VI ECONOMIC DEVELOPMENT COMMISSION COMPLIANCE REPORT This report reflects the activities of the Virgin Islands Economic Development Commission’s Compliance Division during fiscal year 2018. During this period, there were 66 beneficiaries of which 59 were actively conducting business and seven (7) tax incentive certificate were on suspension. Compliance Reviews: The Division of Compliance completed 19 compliance reports within fiscal year (FY) 2018; 12 in the St. Thomas- St. John District, and seven (7) in the St. Croix District. NO. BENEFICIARY COMPLIANCE PERIOD FINDINGS DATE COMPLETED ISLAND 1. Westin St. John Hotel Company, Inc. 1/1/2012- 12/31/2013 Non- Compliance 11/7/2017 St. Thomas 2. MCS, LLLP 1/1/2016- 10/31/2016 Full Compliance 11/7/2017 St. Thomas 3. Westin St. John Hotel Company, Inc 1/1/2014- 12/31/2015 Non- Compliance 11/9/2017 St. Thomas 4. Atlantic Industries, Inc. 01/01/2015- 12/31/2016 Non Compliance 11/30/2017 St. Croix 5. Tecoma Asset Management, LLC 01/01/2016- 12/31/2016 Full- Compliance 12/12/2017 St. Thomas 6. Tropico Management, LP 01/01/2013- 12/31/2015 Full Compliance 2/26/2018 St. Croix 7. Roncan, Inc. dba Sand Castle on the Beach 01/01/2007- 12/31/2015 Non- Compliance 1/8/2018 St. Croix 8. Spartan Products, LLC 12/01/2006- 12/31/2016 Non- Compliance 3/26/2018 St. Croix 9. DIAM Management, Inc. 01/01/2013- 12/31/2015 Non- Compliance 4/17/2018 St. Croix 10. DiamondRock Frenchman's Owner, Inc. 01/01/2013- 12/31/2014 Non- Compliance 4/20/2018 St. Thomas 11. DiamondRock Frenchman's Owner, Inc. 01/01/2015- 12/31/2016 Non- Compliance 4/26/2018 St. Thomas 12. Alpine Group USVI, LLC 03/02/2008- 12/31/2015 Non- Compliance 5/16/2018 St. Thomas 13. GCI Management, LLC 01/01/2011- 12/31/2016 Unable to Determine Full Compliance 6/8/2018 St. Croix VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 23 www.usvieda.org Certificates Executed: During FY 2018, 11 executed Certificates were transmitted to the Compliance Unit. Seven (7) Certificates were executed for Beneficiaries located in the St. Thomas-St. John District, and four (4) in the St. Croix District. NO. BENEFICIARY TYPE OF CERTIFICATE CERTIFICATE EXECUTION DATE ISLAND 1. Goddard Catering Group (St. Thomas), Inc. 2nd Modification/ 2nd Extension 12/12/2017 St. Thomas 2. White Bay Global, Inc. Transfer 1/16/2018 St. Thomas 3. ProTouch Communications, LLC New 2/21/2018 St. Croix 4. OSON VI, LLC Modification 3/9/2018 St. Thomas 5. Gold Coast Yachts, Inc. Modification 5/25/2018 St. Croix 6. Greenleaf VI II, Inc. Modification 6/26/2018 St. Croix 7. St. Croix Financial Center, Inc. Extension/Modification 8/1/2018 St. Croix 8. Westin St. John Hotel Company, Inc. and its wholly-owned Subsidiaries WVC St. John and Westin Vacation Management Company 3rd Extended/2nd Modified 8/31/2018 St. John 9. Westin St. John Hotel Company, Inc. and its Wholly owned Subsidiaries WVC St. John and Westin Vacation Management Company 4th Extended/ 3rd Modified 8/31/2018 St. John 10. CBI Acquisitions, LLC d/b/a Caneel Bay Resort Extension/Modification 9/4/2018 St. John 11. Air Ambulance Caribbean, Inc. d/b/a AeroMD New 9/26/2018 St. Thomas NO. BENEFICIARY COMPLIANCE PERIOD FINDINGS DATE COMPLETED ISLAND 14. Heavy Materials, LLC 01/01/2016- 05/31/2017 Non- Compliance 6/25/2018 St. Thomas 15. MORI Ownership Resorts (St. Thomas), Inc. 01/01/2003- 12/31/2013 Non- Compliance 6/28/2018 St. Thomas 16. Salt Pond Holdings, LLC 12/01/2012- 12/31/2016 Non- Compliance 7/13/2018 St. Croix 17. Galtere, Inc. 01/01/2014- 12/31/2016 Unable to Determine Full Compliance 8/3/2018 St. Thomas 18. Harborside Corporation dba Bolongo Bay Beach Resort 06/01/2013- 12/31/2015 Non- Compliance 8/24/2018 St. Thomas 19. Dun-Run Holdings, LLC aka Mahogany Run Golf Course 04/14/2011- 11/6/2014 Non- Compliance 9/12/2018 St. Thomas VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 24 www.usvieda.org Certificate Orientations: During FY 2018, six (6) Compliance Orientations were conducted: two (2) orientations were conducted in the St. Thomas-St. John District, and four (4) in the St. Croix District. NO. BENEFICIARY ORIENTATION DATE ISLAND 1. Sterisil International, LLC 12/14/2017 St. Croix 2. Fintrac, Inc. 2/20/2018 St. Thomas 3. Goddard Catering Group (St. Thomas), Inc. 2/27/2018 St. Thomas 4. ProTouch Communications, LLC 5/2/2018 St. Croix 5. Gold Coast Yachts, Inc. 9/7/2018 St. Croix 6. St. Croix Financial Center, Inc. 9/11/2018 St. Croix VIEDC Director of Compliance Claude S. M. Gerard welcomes attendees of the 2018 VIEDC Practitioners’ Forum and Beneficiary Summit held on St. Thomas, USVI, on August 14, 2018. VIEDA Assistant CEO Wayne L. Biggs, Jr. in the background. - Photo by Semele A.C. George/VIEDA VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 25 www.usvieda.org Site Visits: During FY 2018, 25 site visits were conducted: 18 site visits were conducted in the St. Thomas-St. John District, and seven (7) in the St. Croix District. NO. BENEFICIARY SITE VISIT DATE ISLAND 1. STR Management, LLC 10/12/2017 St. Thomas 2. Emerald Beach Corporation (Attorney’s Office) 10/12/2017 St. Thomas 3. Perpetual Motion Management, LLC 10/12/2017 St. Thomas 4. CBI Acquisitions, LLC d/b/a Caneel Bay Resort(Attorney’s Office) 10/12/2017 St. John 5. Fintrac, Inc. 10/12/2017 St. Thomas 6. International Capital & Management Company, LLC 10/12/2017 St. Thomas 7. Alpha Mortgage Advisors, Inc. 10/12/2017 St. Thomas 8. Real Impact Corporation 10/12/2017 St. Thomas 9. White Bay Management, LLLP 10/26/2017 St. Thomas 10. Alpine Group USVI, LLC 10/26/2017 St. Thomas 11. Harborside Corporation d/b/a Bolongo Bay Beach Resort 10/26/2017 St. Thomas 12. Auven Therapeutics Management, LLLP 10/26/2017 St. Thomas 13. OSON VI, LLC 10/26/2017 St. Thomas 14. CBI Acquisitions, LLC d/b/a Caneel Bay Resort 11/13/2017 St. John 15. RPP Advisors, LLC 11/13/2017 St. John 16. Sterisil International, LLC 12/14/2017 St. Croix 17. Tropico Management, LP 1/18/2018 St. Croix 18. Carambola Northwest, LLC 2/6/2018 St. Croix 19. DIAM Management, LLC 3/21/2018 St. Croix 20. GCI Management, LLC 6/1/2018 St. Croix 21. Salt Pond Holdings, LLC 6/13/2018 St. Croix 22. CD Paradise Holdings, LLC 8/22/2018 St. Thomas 23. Prosperitas Management, LLLP 8/22/2018 St. Thomas 24. Grapetree Shores, Inc. d/b/a Divi Carina Bay Resort 8/26/2018 St. Croix 25. Southern Trust Company, Inc. 9/28/2018 St. Thomas VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 26 www.usvieda.org Board Actions- Public Hearing: During FY 2018, 20 petitions were heard at public hearing to the VIEDC Governing Board for deliberation: 14 in the St. Thomas-St. John District, and six (6) in the St. Croix District. NO. BENEFICIARY TYPE OF PETITION BOARD MEETING DATE ISLAND 1. Gateway Global Management, LLC Temporary Employment Waiver 12/19/2017 St. Thomas 2. Tecoma Asset Management, LLC Employment Waiver 1/25/2018 St. Thomas 3. Professional Holding Company VI, LLC Employment/Charitable Contribution Waiver 1/25/2018 St. Croix 4. 183 Media, LLC Employment Waiver 2/22/2018 St. Thomas 5. DiamondRock Frenchman’s Owner d/b/a Frenchman’s Reef and Morning Star Employment/Standard Condition Waiver 2/22/2018 St. Thomas 6. STR Management, LLC Employment Waiver 2/22/2018 St. Thomas 7. Emerald Beach Corporation Employment Waiver 2/22/2018 St. Thomas 8. Margaritaville Vacation Club by Wyndham, Inc. Full-Time Employment Waiver 3/8/2018 St. Thomas 9. Harborside Corporation d/b/a Bolongo Bay Resort Full-Time Employment Waiver 4/10/2018 St. Thomas 10. RC Hotels (Virgin Islands), Inc. Full-Time Employment Waiver 4/10/2018 St. Thomas 11. Carambola Northwest, LLC Employment Waiver 6/5/2018 St. Croix 12. Kazi Management St. Croix, LLC Employment Waiver 6/5/2018 St. Croix 13. Sterisil International, LLC Waiver of Cash Charitable Contribution to In-Kind 6/5/2018 St. Croix 14. Tuthill Corporation Employment Waiver 6/5/2018 St. Croix 15. International Capital Management Company Employment Waiver 6/5/2018 St. Thomas 16. 183 Media, LLC Employment Waiver 7/12/2018 St. Thomas 17. Grapetree Shores, Inc. d/b/a Divi Carina Bay Resort Employment Waiver 7/12/2018 St. Croix 18. JH Capital (VI), Inc. Temporary Suspension of Benefits 7/12/2018 St. Thomas 19. Impact Technologies VI, Inc Employment and Special Condition Waiver 7/12/2018 St. Thomas 20. Tecoma Asset Management, LLC Suspension of Benefits 8/7/2018 St.Thomas VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 27 www.usvieda.org Board Actions- Decision Meeting: During FY 2018, 40 petitions/reports were prepared for presentation to the VIEDC Governing Board for deliberation: 31 in the St. Thomas-St. John District, and nine (9) in the St. Croix District. NO. BENEFICIARY TYPE OF PETITION/ ACTION BOARD MEETING DATE BOARD DECISION ISLAND 1. Dowson Holdings Company, Inc. d/b/a Carib Beach Resort Close File 11/16/2017 Approved St. Thomas 2. Heavy Materials, LLC Resolution of Non-Compliance 11/16/2017 Approved St. Thomas 3. IGY-AYH ST. Thomas Holdings, LLC Reconsideration 11/16/2017 Denied St. Thomas 4. Liberty Medical Development, LLC Extension of Capital Investment, Employment & Tax Incentives 11/16/2017 Approved St. Croix 5. Magic Ice (St. Thomas), Inc. Resolution of Non-Compliance/ Termination of Benefits 11/16/2017 Motion withdrawn/ Tabled St. Thomas 6. SubBase DryDock, Inc. Suspension of Benefits 11/16/2017 Approved St. Thomas 7. Yacht Haven USVI, LLC Resolution of Non- Compliance 11/16/2017 Approved St. Thomas 8. Alpha Mortgage Advisors, Inc. Extension to meet Full-Time Employment and Capital Investment 11/30/2017 Approved St. Thomas 9. Amalie Global, Inc. Extension of Retro Active Reports, Charitable Contribution, Training Program, Capital Investment, and Employment 11/30/2017 Approved St. Thomas 10. MCS, LLP Close File 11/30/2017 Approved St. Thomas 11. 183 Media, LLC Full-Time Employment waiver 11/30/2017 Approved St. Thomas 12. CI USVI, LLC Vacate Show Cause Order 12/192017 Approved St. Thomas 13. Gateway Global Management, LLC Temporary Employment Waiver 12/19/2017 Approved St. Thomas VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 28 www.usvieda.org NO. BENEFICIARY TYPE OF PETITION/ ACTION BOARD MEETING DATE BOARD DECISION ISLAND 14. Impact Technologies VI, Inc. Charitable Contribution Extension 2/22/2018 Approved St. Thomas 15. Professional Holding Company VI, LLC Employment/ Charitable Contribution Waiver 2/22/2018 Denied St. Croix 16. St. Thomas Healthcare Management, Inc. Resolution of Non- Compliance 2/22/2018 Approved St. Thomas 17. Tecoma Asset Management, LLC Employment Waiver 2/22/2018 Approved St. Thomas 18. Concordia Campgrounds, Inc. Administrative Action Report 2/22/2018 Approved St. John 19. Yacht Haven USVI, LLC Administrative Action Report 2/22/2018 Approved St. Thomas 20. 183 Media, LLC Employment Waiver 2/22/2018 Approved St. Thomas 21. DiamondRock Frenchman’s Owner d/b/a Frenchman’s Reef and Morning Star Marriot Beach Resort Employment and Standard Condition Waiver 2/22/2018 Approved St. Thomas 22. STR Management, LLC Employment Waiver 2/22/2018 Approved St Thomas 23. Emerald Beach Corporation Employment Waiver 2/22/2018 Approved St. Thomas 24. Margaritaville Vacation Club by Wyndham, Inc. Full-Time Employment Waiver 3/8/2018 Approved St. Thomas 25. Pelican Cove Investments, LLC Resolution of Non- Compliance 3/8/2018 Approved St. Croix 26 St. Croix Renaissance Group, LLP Resolution of Non- Compliance 3/8/2018 Approved St. Croix 27. Harborside Corporation d/b/a Bolongo Bay Resort Full-Time Employment Waiver 5/15/2018 Approved St. Thomas 28. Pelican Cove Investments, LLC Reconsideration 5/15/2018 Denied St. Thomas 29. RC Hotels (Virgin Islands), Inc. Full-Time Employment Waiver 5/15/2018 Approved St. Thomas NO. BENEFICIARY TYPE OF PETITION/ ACTION BOARD MEETING DATE BOARD DECISION ISLAND 14. Impact Technologies VI, Inc. Charitable Contribution Extension 2/22/2018 Approved St. Thomas 15. Professional Holding Company VI, LLC Employment/ Charitable Contribution Waiver 2/22/2018 Denied St. Croix 16. St. Thomas Healthcare Management, Inc. Resolution of Non- Compliance 2/22/2018 Approved St. Thomas 17. Tecoma Asset Management, LLC Employment Waiver 2/22/2018 Approved St. Thomas 18. Concordia Campgrounds, Inc. Administrative Action Report 2/22/2018 Approved St. John 19. Yacht Haven USVI, LLC Administrative Action Report 2/22/2018 Approved St. Thomas 20. 183 Media, LLC Employment Waiver 2/22/2018 Approved St. Thomas 21. DiamondRock Frenchman’s Owner d/b/a Frenchman’s Reef and Morning Star Marriot Beach Resort Employment and Standard Condition Waiver 2/22/2018 Approved St. Thomas 22. STR Management, LLC Employment Waiver 2/22/2018 Approved St Thomas 23. Emerald Beach Corporation Employment Waiver 2/22/2018 Approved St. Thomas 24. Margaritaville Vacation Club by Wyndham, Inc. Full-Time Employment Waiver 3/8/2018 Approved St. Thomas 25. Pelican Cove Investments, LLC Resolution of Non- Compliance 3/8/2018 Approved St. Croix 26 St. Croix Renaissance Group, LLP Resolution of Non- Compliance 3/8/2018 Approved St. Croix 27. Harborside Corporation d/b/a Bolongo Bay Resort Full-Time Employment Waiver 5/15/2018 Approved St. Thomas 28. Pelican Cove Investments, LLC Reconsideration 5/15/2018 Denied St. Thomas 29. RC Hotels (Virgin Islands), Inc. Full-Time Employment Waiver 5/15/2018 Approved St. Thomas VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 29 www.usvieda.org NO. BENEFICIARY TYPE OF PETITION/ ACTION BOARD MEETING DATE BOARD DECISION ISLAND 30. Yacht Haven USVI, LLC Reconsideration 5/15/2018 Approved St. Thomas 31. Alpha Mortgage Advisors, Inc. Redirect Capital Investment 6/21/2018 Approved St. Thomas 32. Carambola Northwest, LLC Employment Waiver 6/21/2018 Approved St. Thomas 33. International Ca[ital Management Company Employment Waiver 6/21/2018 Approved St. Thomas 34. Kazi Management St. Croix, LLC Employment Waiver 6/21/2018 Approved St. Croix 35. Sterisil International, LLC Waiver of Cash Charitable Contribution in Kind 6/21/2018 Approved St. Croix 36. Tuthill Corporation Employment Waiver 6/21/2018 Approved St. Croix 37. Westin St. John Hotel Company, Inc. Resolution of Non- Compliance 7/5/2018 Tabled St. John 38. Alpine Group USVI, LLC Resolution of Non- Compliance 7/5/2018 Approved St. Thomas 39. Westin St. John Hotel Company, Inc. Resolution of Non- Compliance 7/5/2018 Motion Amended & Approved St. John 40. DiamondRock Frenchman's Owner, Inc. Resolution of Non- Compliance 8/7/2018 Approved St. Thomas VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 30 www.usvieda.org VIEDC Division of Compliance Collections: In FY 2018, a total of $735,295.00 in fees and fines was invoiced to VIEDC Beneficiaries, and the Division of Compliance collected fees and fines in the total amount of $755,526.97. No. ACCOUNTS FEES INVOICED/FEES COLLECTION 1. Activation Fees $ 11,500.00 $ 9,000.00 2. Annual Compliance Fees $ 414,500.00 $ 397,500.00 3. Non Compliance Fees $ 309,295.00 $ 347,795.97 4. Late Reporting Fees $ 0.00 $ 1,231.00 TOTALS $ 735,295.00 $ 755,526.97 VIEDA CEO Kamal I. Latham and the VIEDC team congratulate VIEDC Beneficiary Sterisil International, Inc., on their recognition as an ambassador of the VIEDC Economic Development Tax Incentive Program at the 2018 Economic Development Practitioners Forum on St. Croix, USVI. Forum held on August 16, 2018. -Photo by Shanell Petersen/VIEDA VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 31 www.usvieda.org V.I. ECONOMIC DEVELOPMENT PARK CORPORATION “Providing Affordable Workspaces” The Virgin Islands Economic Development Park Corporation (“EDPC”), formerly known as the Industrial Park Development Corporation (IDPC), is chartered as a public corporation to acquire and operate industrial parks in the U.S. Virgin Islands and to complement the activities of the U.S. Virgin Islands Economic Development Au­thority. Presently, there are two industrial parks that fall under the auspices of the EDPC, the William D. Roebuck Industrial Park on St. Croix and the Vir­gin Islands Industrial Park on St. Thomas. The EDPC is solely funded by rental income generat­ed from the tenants of the industrial parks. William D. Roebuck Industrial Park on St. Croix, USVI -Photo by Lee Lashley WILLIAM D. ROEBUCK INDUSTRIAL PARK The William D. Roebuck Industrial Park, locat­ed on St. Croix between the historic towns of Christiansted and Frederiksted, is the larger of the two individual parks. Situated on approxi­mately 24 acres of property owned by the Vir­gin Islands Port Authority, this park consists of four adjacent buildings totaling approximately 158,000 square feet of commercial space. As of the end of fis­cal year 2018, 100 percent of the industrial park VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 32 www.usvieda.org was occu­pied by a variety of public and private entities. Three tenants are beneficiaries of the U.S. Virgin Islands Economic Development Program that is administered in the Territory by the Virgin Islands Economic Development Commission (“VIEDC”): Gold Coast Yachts Inc., Leatherback Brew­ing Company LLC, and Ocwen Mortgage Servicing Inc. Other entities, which are a combination of local and feder­al government agencies and private businesses, also occupying space at this park include: the Virgin Islands Bu­reau of Corrections (BOC), the Economic Development Bank Business Incubator (EDB), the Virgin Islands Department of Sports Parks and Recreation (SP&R), the Virgin Islands Next Generation Network (ViNGN), the Federal Emergency Management Administration (FEMA), AECOM Caribe LLC, and FarmPod LLC. We are excited about the interest shown by many different companies who are looking into mov­ing into this park. Upcoming Projects: We are also excited about upcom­ing capital improvement projects for the park such as Reconstruction/ Renovation of all Hurricane Damaged Structures, the Energy Retrofit Project, the Micro-grid Project, the Building No.1 Parking Lot Paving the Landscap­ing, Signage & Beautification Proj­ect, Project, and the Park Entrance Renovation Project. VIEDA CEO Kamal I. Latham discussed the VIEDA programs and services in an interview on September 22, 2018 on the USVI radio program, "Just Us", on 90.0FM Caribbean Superstation. Interview conducted by Atanya Springette and Dr. Leonard Richardson on St. Thomas, USVI. -Photos by Semele A.C. George/VIEDA VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 33 www.usvieda.org Virgin Islands Industrial Park on St. Thomas, USVI -Photo by Lee Lashley VIRGIN ISLANDS INDUSTRIAL PARK The Virgin Islands Industrial Park on St. Thomas, which con­sists of 20,000 square feet of commercial space, is located on a lush hillside just outside the bustling town of Charlotte Amalie and in the vicinity towards the Cyril E. King Airport. Currently, only 15,000 square feet of commercial space is available for lease. The remaining 5,000 square feet of commercial space needs to be reconstructed from Hurricane Irma-related damage. At the end of fiscal year 2018, 67 percent of the total available commercial space at the park remained occupied by four businesses: Alliance Data Services LLC, B.D. Specialty Inc. d/b/a Billy D’s Special Tees, Glass 2000 Inc., and United Elec­tronics Industrial Services LLC (“UEIS”). UEIS is currently the only tenant that is a beneficiary of the U.S. Virgin Islands Economic Development Program that is administered in the Territory by the VIEDC. Upcoming Projects: We are also looking forward to upcoming capital improvement projects for the park on St. Thomas such as Reconstruction/Renovation of all Hurricane-Damaged Structures, the Landscap­ing & Front Beautification Proj­ect, the Micro-grid project and the Park Entrance Renovation Project. VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 34 www.usvieda.org THE FLEMING BUILDING In addition to the aforemen­tioned properties, the EDPC also owns the historical building that houses the VIEDA’s head­quarters on St. Croix which is located at No. 4 King Street in Frederiksted. The building is known as the Fleming Building that was purchased in 2002. The building sustained some cosmetic damages as a result of Hurricane Maria, and we look forward to repairing the building to its historical glory with the assistance of insurance proceeds and FEMA funds during the coming year. With the destruction caused by two Category 5 hurricanes to the Territory in the latter half of the fiscal year 2017, the EDPC is faced with many challenges after sustaining damages to the park’s facilities in September 2017. Despite some setbacks and with the assistance of our insurance partners and FEMA, the EDPC is looking forward to making necessary repairs as well as making the facilities more hurricane resistant. VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 35 www.usvieda.org ECONOMIC DEVELOPMENT BANK The Economic Development Bank (EDB) serves to provide loans, and offer technical and managerial assistance to small and medium-sized local businesses to enhance employment opportunities and economic growth. The assistance provided to small-business owners is in conjunction with the Virgin Islands Small Business Development Center (VI SBDC), which provides business counseling, coaching, and instructions on how to prepare business plans. Loan Payments In fiscal year (FY) 2018, loan payments totaled $550,086.82. Thus far in FY 2019, the EDB has collected loan payments totaling $304,719.22. The FY 2019 payment trajectory is anticipated to show a 22.72 percent increase or $125,000.00 over FY 2018. The improvement in collections is due to increased collection efforts and utilizing innovative methods such as loan restructuring, loan modifications, and loan deferments to make it easier for borrowers to meet their loan obligations and at the same time help to reduce the delinquency rate. Loan Delinquencies The delinquency rate is 1.4 percent. During FY 2018, the EDB staff concentrated their efforts on loan restructuring, modifications, and reclassifications which contributed to the significant reduction in delinquency rate when compared 24.5 percent in 2018. The EDB staff continues to aggressively collect on delinquent loans with the strong support of external legal counsel and collection agencies. The EDB staff continues to realize on real estate collateral and exercised its first priority position over business assets in support of delinquent debt. Loan Transactions As of March 31, 2019, loan transactions total $927,307 compared to nil in FY 2018 while over 75 inquiries were received from potential and existing business owners regarding financing. To date the EDB’s focus in 2019 is on managing the delinquencies with good results thus far. State Small Business Credit Initiative (SSBCI) Guarantee Program On September 27, 2010, President Barack Obama signed into law the Small Business Jobs Act of 2010 to help increase the availability of credit for small businesses. This Act created the State Small Business Credit Initiative (SSBCI) and appropriated $1.5 billion dollars to be used by the U.S. Department of the Treasury (“The Treasury”) to provide direct support to states for use in programs designed to increase access to credit for small businesses and small manufacturers. Pursuant to the Act, the Treasury allocated funds to 47 states along with its territories and the District of Columbia. Based on the allocation agreement dated October 4, 2011, the U.S. Virgin Islands was awarded $13,168,350, as a participating state, administered by the Economic Development Bank (EDB) a component of the Virgin Islands Economic Development Authority (VIEDA). These funds were disbursed in three (3) increments as follows: $4,345,556 (33 percent); $4,345,555 (33 percent); and $4,477,239 (34 percent). Based on the VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 36 www.usvieda.org economic needs of the Territory, three (3) specific loan programs were selected: Collateral Support Program; Credit Guarantee Program; and the Payment, Surety, and Performance Bond Program. A fourth disbursement of $59,561 was received in January 2017. This amount represented the U.S. Virgin Islands’ apportioned allotment of residual funds from states and/or territories. This was a result of timely reporting and usage of funds by the EDB. Participating banks include Merchants Commercial Bank, First Bank Puerto Rico, Bank of Nova Scotia, and Banco Popular de Puerto Rico. As of September 30, 2018, the Virgin Islands Economic Development Authority has approved 38 loans to the participating banks for a total SSBCI guarantee support of $11,100,292 of which a total amount of $10,226,697 has been committed and/or expended. The difference of $873,595 represents requests which were withdrawn after approval. The financing using the committed and/or expended funds $10,226,697 has the potential to create 203 jobs and retain 462 jobs. The jobs that represent a broad cross-sector of industry types, and the core of the U.S. Virgin Islands economy, to include, health, tourism, hospitality, construction, and retail. Participating banks in turn approved approximately $27,040,539.75 to businesses in the Territory. This program has been successful to date as it allows for increased revenues to the Territory’s local treasury from taxes and increased economic activity. An amount of $2,605,414 remains available for the participating lenders to use. Currently, there are four requests in the pipeline totaling $1,057,500. VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 37 www.usvieda.org Accomplishments: State Small Business Credit Initiative (SSBCI) Program • The EDB Board approved a total of $325,000 in SSBCI guarantee support for the first quarter of FY2019 • Total SSBCI guarantee support $11,425,292; bank loans $27,690,540; jobs created 209; jobs retained 469 • Pending SSBCI guarantee request in the pipeline for $37,500 for a loan of $75,000 which will retain five (5) jobs The SSBCI program’s success since inception in October 2011 is detailed below. BANK TOTAL NUMBER OF LOANS TOTAL AMOUNT OF BANK LOANS TOTAL SSBCI SUPPORT TOTAL NEW JOBS CREATED TOTAL JOBS RETAINED Banco Popular de Puerto Rico  - STT 5 $2,693,000 $712,325 22 25 Banco Popular de Puerto Rico  - STX 4 $1,012,500 $160,000 23 87 Bank of Nova Scotia – STT 4 $646,390 $181,000 4 18 Bank of Nova Scotia - STX 1 $100,000 $50,000 4 2 First Bank de Puerto Rico - STT 12 $12,175,650 $4,636,367 97 250 First Bank de Puerto Rico - STX 5 $1,587,000 $724,300 23 19 Merchants Commercial Bank - STT 8 $8,626,000 $4,281,300 26 68 Merchants Commercial Bank - STX 1 $850,000 $680,000 10 0 TOTAL 40 $27,690,540 $11,425,292 209 469 Key: STT – St. Thomas STX – St. Croix Total loans approved to date – SSBCI loan program: PROGRAM TYPE TOTAL NUMBER OF LOANS TOTAL AMT. OF BANK LOANS TOTAL SSBCI SUPPORT TOTAL NEW JOBS CREATED TOTAL JOBS RETAINED Collateral Support Program (CSP) 17 $3,883,890 $1,499,300 71 200 Credit Guarantee Program (CGP) 22 $ 23,544,000 $9,847,197 138 259 Payment, Surety, and Performance Bond Program 1 $ 262,650 $ 78,795 0 10 TOTAL 40 $27,690,540 $11,425,292 209 469 VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 38 www.usvieda.org USVI attendees gather for the Minority Business Development Agency’s Small Business Recovery & Growth Event on May 3, 2018 at the University of the Virgin Islands’ Administration and Conference Center on St. Thomas, USVI. – Photo by Semele A. C. George/VIEDA Sun Power Energy Loan Program Phase II – Virgin Islands Energy Office, as partner Discussions are well underway to implement the second phase of this program. Memorandum of understanding, processes, procedures are being finalized. Implementation of phase II is anticipated by the third quarter of fiscal year 2019. There are 384 of loans remaining (out of 818) with a combined balance of $122,861 to be paid off from Phase I. Other Activities during FY 2018 • Staff training in customer service; and Portfol • Ongoing visits to small businesses within the community (St. Croix/St. Thomas/St. John) • Participation in the St. Croix Agricultural Fair • Conducted presentations with VI SBDC, U.S. Small Business Administration (U.S. SBA), and Minority Business Development Agency (MBDA) in an effort to maintain and increase public awareness of EDB’s products and services • Attended presentations held by VI SBDC, U.S. SBA, or other private organizations within the community VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 39 www.usvieda.org Total loans approved to date – by district: St. Thomas/St. John District INDUSTRY TYPE BANK LOAN AMOUNT SSBCI SUPPORT AMOUNT JOBS CREATED JOBS RETAINED Health $6,005,000 $2,103,325 44 62 Tourism $3,165,000 $1,166,000 8 15 Construction $312,650 $83,795 0 19 Social Services $20,000 $2,000 0 26 Hospitality $1,096,390 $164,000 3 13 Retail/Supermarket $7,452,000 $3,024,372 82 204 Aviation $4,450,000 $2,447,500 3 0 Freight $1,190,000 $595,000 5 15 Marine $450,000 $225,000 4 7 TOTAL $24,141,040 $9,810,992 149 361 St.  Croix District INDUSTRY TYPE BANK LOAN AMOUNT SSBCI SUPPORT AMOUNT JOBS CREATED JOBS RETAINED Health $1,476,000 $740,000 16 75 Environmental $150,000 $15,000 0 16 Technology $126,500 $54,000 3 2 Food $200,000 $20,000 10 10 Retail/Restaurant $160,000 $76,000 8 2 Tourism $867,000 $433,500 17 0 Laundromat $270,000 $135,000 4 0 Jewelry $100,000 $40,800 0 3 Grocery $200,000 $100,000 2 0 TOTAL $3,549,500 $1,614,300 60 108 An amount of $2,605,414 remains available for the participating lenders to use as guarantees.  Currently, there are three (3) requests in the pipeline totaling $882,500.  There are other deals in participating banks pipelines that are under review, which should reduce the remaining amount significantly. We hope to receive a request for support from Banco Popular for an Enterprise Zone Commission client for $175,000. VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 40 www.usvieda.org The Emancipation Park (Buddhoe Park) on St. Croix VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 41 www.usvieda.org ENTERPRISE ZONE COMMISSION Sowing the seeds for economic prosperity Having worked for the last five years with 1) preparing the enterprise zones for sustained revitalization and growth through town and neighborhood plan creation, 2) training staff and community members, 3) developing programming and strengthening of collaborative partnerships with public, private and nonprofit stakeholders, the Enterprise Zone Commission (EZC) was charged with the FY 2018 mandate of sowing the seeds for economic prosperity in the U.S. Virgin Islands. Poised to implement the approved town and neighborhood plans, this fiscal year began during the aftermath of the worst natural disasters that affected the Territory perhaps since 1867. In that year, the Territory experienced a hurricane, an earthquake and a tsunami within 20 days of each other. The 2017 hurricanes caused significant delays in construction and renovation projects due to the initial slow pace of insurance pay outs, limited amount of contractors to meet consumer demand, and ultimately the extremely clogged supply chain of the much needed construction materials and tools to the Territory to complete jobs. The graph illustrates the major decline of VI Building permits issued during the months. As a standard rule construction permits are usually followed by an occupancy permit within seven months. It is to be noted that this graph not only includes private but public sector projects. Even with these challenges, there were successes in implementing activities within the EZC Five-Year Strategic Plan, which include the following plan pillars for USVI neighborhood revitalization: Offerings and Opportunities. This pillar seeks to identify, and assist in improving USVI community assets. These assets include the Stakeholder nonprofit organizations, the built infrastructure and the people that live, work and play in that community. In fiscal year 2018, the EZC focused on stakeholders and the infrastructure. • Understanding the community’s needs, the EZC held its annual stakeholder conference in collaboration with the U.S. Small Business Administration and the Federal Emergency VI Building Permits Issued VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 42 www.usvieda.org Management Agency in the first quarter of FY 2018. The goal was to provide resources directly to our stakeholders, along with immediate, accurate answers to critical issues for residents of their communities during the aftermath of the hurricanes. This clarity strengthened the stakeholder organizations’ ability to assist their community. • In order to remain current with the status of properties located in the enterprise zones, the EZC surveyed over 1,020 properties in the zone. One of the fiscal year 2018 survey findings was that even though there was significant hurricane damaged in the enterprise zones, by the summer 2018, six percent of the buildings within these towns and neighborhoods had the potential to be fully occupied/operational with assistance from the EZC Rejuvenation Program (formerly known as the Scrape, Paint & Rejuvenate Program). Additionally, for every rejuvenated building that was completed, there was a positive multiplier effect on other nearby buildings. The EZC completed two rejuvenation projects scheduled prior to the hurricane. In attempts to receive bids for eight additional buildings, contractors were not available due to the amount of hurricane reconstruction work being completed. Over the last five years, the EZC surveyed each zone 2-3 times averaging 950 properties each time, met annually and accomplished common goals on a continuous basis. The EZC also completed the town and neighborhood plans and completed six buildings with complete rejuvenations. The EZC met, or exceeded, the benchmarks 50 percent of the time with the balance of benchmarks not being complete due to the lack of funding. RAPID INFRASTRUCTURE ASSESSMENT after Hurricanes Irma & Maria VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 43 www.usvieda.org Readiness & Resilience. This pillar seeks to prepare the residents of the enterprise zones to be prepared for man-made and natural disasters. This would include a personal disaster like the death of a family member to a community-wide event like an earthquake. In fiscal year 2018, the EZC focused on writing and implementing grants in the Resilience program and implementing the EntrepreNow program. • Within the first quarter of the fiscal year, identified and applied for $5 million in grants. Received and started the implementation of a technical assistant grant from the U.S. Department of the Interior to determine the feasibility of a food- processing plant in the Territory. The EZC entered in a contract with the University of the Virgin Islands to complete the study. • Graduated six and continue to track 30 Gentlemen of EntrepreNow. This program, a collaboration between the Office of the Public Defender, the non-profit organization Youth Arise, and the EZC seeks to guide young men (ages 15-19) in writing a business plan and improving on their life skills. Thus far, the success rate is over 93 percent with Gentlemen of EntrepreNow continuing and excelling in school, and then going on to colleges or entering the workforce with solid job opportunities. Over the last five years, the EZC held eight estate planning conferences, filling the room to capacity in both districts; applied for $5 million grants; boarded up 10 buildings. The EZC team met and exceeded all the benchmarks in this pillar. Enterprise Zone Specialist Raheem Smith describes a dis-repaired structure on Bunker Hill in Savanne on St. Thomas, USVI, to EZC summer interns on July 24, 2018. Savanne is an enterprise zone. -Photo by Shanell Petersen/VIEDA VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 44 www.usvieda.org Innovation & Enterprise. The goal of this pillar is to surround the businesses of the enterprise zone with every possible tool to create opportunities for these businesses to be multi-generational businesses thereby increasing the stability of the communities they serve. In fiscal year 2018, the EZC focused on the incentive and VI 12 programs. • Started marketing the program through public speaking engagements at organizations such as Rotary Club, radio interviews, and during open house events. Met with small groups of families for each neighborhood to explain how the benefits worked. Processed applications for tax benefits which represented over $3.68 million in direct investment. • Worked with over 40 companies to assist them in expanding their exporting capabilities. Twelve manufacturers participated in the NY Now tradeshow, the largest wholesale retail/gift tradeshow in the U.S. This initiative was accomplished through the State Trade Expansion Program (STEP) grant from the U.S. Small Business Administration. • In the first quarter of fiscal year 2018, the EZC already applied for $5.1 million in grants from federal and local government agencies. A Savanne rejuvenation project on St. Thomas, USVI, completed right after the impact of Hurricanes Irma & Maria on the Territory. - Photo submitted by the Enterprise Zone Commission. VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 45 www.usvieda.org Enterprise Zone Specialist Raheem Smith (right) describes the VIEDA programs and services to an Open House attendee at the Enterprise Zone Commission’s Open House on April 25, 2018. This annual Open House was held at E’s Garden Teahouse & Things, a small business in the enterprise zone of Garden Street on St. Thomas, USVI. - Photo by Semele A. C. George/VIEDA USVI small-manufacturing entrepreneurs gather with VIEDA staff members to prepare for another day of networking and showcasing their USVI-made products at NY NOW Summer 2018 trade show in New York City. This trade show was held from August 12-15, 2018 in New York City. – Photo by Shanell Petersen/VIEDA VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 46 www.usvieda.org Over the last five years, the EZC approved 20 applications for tax benefits which represent $14,500,000 in direct, indirect and induced investment in the USVI economy. The EZC also provided export assistance to over 60 companies and created the “Made In the USVI” brand. VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 47 www.usvieda.org MARKETING AND PUBLIC RELATIONS INITIATIVES External Marketing and Public Relations OVERVIEW During FY 2018, the marketing team focused on delivering a full program of local and external marketing programs. In addition, a new marketing director position was developed and approved by the VIEDA Board of Directors. The new Director of Marketing was hired during the spring and on boarded during the summer of 2018 adding a critical asset to the marketing function within the VIEDA. EXTERNAL MARKETING ACTIVITIES (INVESTMENT PROMOTION) Based on existing sector and market targets, we planned and implemented a mix of marketing activities for the year to raise awareness of the U.S. Virgin Islands and the EDC program with target investors and drive contact and relationship building with an aim to qualify as many corporate investment prospects as possible. Marketing Mix PR COMMUNICATIONS VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 48 www.usvieda.org Product Development The VIEDA has been working on new sector initiatives with other public and private sector partners over the last few years. Below is a short summary of the key projects with suggested next steps. Financial Services Build a complete financial services strategy around the related programs and legislation. • Review Captive Insurance and International Financial Services Entities opportunities and update regulatory and marketing strategy accordingly • Develop a marketing strategy to plug into each segment and sell the advantages of the USVI as a hybrid offshore/onshore Maritime Initiative There is an opportunity to attract more maritime-related investment into the Territory • The VIEDA currently has 4-5 maritime related projects that require expertise in this area Free Trade Zone Legislation is currently being introduced to create a Free Trade Zone (FTZ) on St Croix as a division of the VIEDA • The assets of the Renaissance Park, Airport, Industrial Park and Container Port offer an exceptional multi-model location for manufacturing and transshipment • The introduction of a free trade zone status will add exceptional value to this cluster Film – Sustainable Tourism Through Arts-Based Revenue Stream (S.T.A.R.S.) Act Progress was made on this initiative - VIEDA and Tourism attended the SXSW Conference in together to promote the USVI • Develop a communications piece on the offering that will be a brochure as well as inserted onto web site and in communications • Additional events were identified – Cineposium and AFCI Locations • Working with Tourism on a marketing plan going forward Hotel Development Act Awaiting rules & regulations to develop new marketing collateral and targeting. • There is an opportunity to push for new development in the wake of the storms • Agree on strategy with Tourism VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 49 www.usvieda.org VIEDC Investment Lead Generation Investment lead generation remained a top priority for attracting corporate investment into the USVI through participation in the Economic Development Commission Tax Incentive Program. Investment lead generation encompasses a series of activities which included: research, identifying companies, qualifying companies, and contacting and building relationships with companies that have the potential to expand or relocate to the U.S. Virgin Islands. Based on the agreed target sectors, Marketing leverages a portfolio of corporate databases and information services to identify and track the right companies for the USVI. In addition, a network of business analysts in the Americas and Europe qualify and contact the companies. Investment leads are delivered to the VIEDA marketing team for follow-up. ANNUAL STATISTICS • Each year, we also respond to several hundred inbound inquiries via the website and telephone. These queries yield approximately 10 investment opportunities during the period. Marketing Events/Meetings Marketing events and business-to-business meetings provide an excellent opportunity for the VIEDA to showcase and sell the advantages of the Territory directly to our target sectors, companies and business advisors. The VIEDA organizes and attends a mix of events and conferences focused on the target industry sectors, tax and site selection advisors, and the Caribbean trade and investment market. In addition to the external events listed below, Marketing assisted in organizing two VIEDC local meeting events during the year. VIEDC Beneficiary Summit– St. Thomas & St. Croix – August 2018 Two local events were organized for VIEDC investors and their service provider partners to update them on the VIEDC program as well as VIEDA activities. • 10,000 reviewed • 7,500 emailed • 2,000 qualified • 1,200 calls • 200 projects • 30 project leads VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 50 www.usvieda.org External Events Promoting the VIEDC Program Industry events are an important part of our marketing mix. Each year, the VIEDA attends various industry and inward investment events to promote the VI as an attractive investment location. VIEDA events provide an opportunity to tailor the event to promote the VI and own the day. Ft. Lauderdale International Boat Show - Ft. Lauderdale, FL – October 2017 High net-worth business owners Economix – New Orleans – December 2017 Site selectors American Bar Association May Tax Meeting – Washington DC – May 2018 Tax advisors SelectUSA Summit - Washington DC – June 2018 US and International companies, site selection advisors, government officials and Foreign Commercial Services American Bar Association Latin America Tax Planning Strategies – Miami, FL – June 2018 Tax advisors Communications Marketing worked to expand its communications approach by expanding activities in advertising, social media and public relations. Below is a summary of the key marketing communications programs for the year. Advertising Marketing continued to leverage its existing print advertising creative and developed new digital ad content. Placements were made in the following channels. • Multiview Digital – one-year multi publication digital campaign with event geo placement for four events • Money Matters Radio – three-month New England advertising and interview campaign on the Money Matters radio program hosted by Barry Armstrong • Site Selection Magazine – two placements – July and September – publication targeting global corporate executives involved in site selection decisions as well as key advisory groups • Event Programs – placement in event programs such as American Bar Association and SelectUSA VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 51 www.usvieda.org Digital Media Creative Content VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 52 www.usvieda.org Media Relations External marketing communications continued to ramp up during the year with a variety of placements across sectors. The focus is to place more positive stories about the USVI and its solutions for businesses. Below is a summary of the activities for the year. Secured over $276,614.23+ in estimated editorial impact across 34 media placements. These include three tier one publication such as NPR, 23 local and regional publications, such as the Miami Herald, and eight (8) trade outlets, such as fDi Magazine. • 34 media placements in 3 tier one outlets—NPR, MSN Money, and International Business Times 3 • 23 local and regional publications including Sun-Sentinel, St. Augustine Record, McClatchy DC, and the Miami Herald. • 38 national and international trade outlets including fDi Magazine, Trade and Industry Development, and Petroleum Review UK • Pitched media attending the following trade shows: • Private Wealth Latam & Caribbean – October 17-18, 2018 • Ft. Lauderdale Boat Show – November 4-5, 2017 • Economix 2017 – December 5-6, 2017 • Network 2018 – January 22-24, 2018 • American Bar Association May Meeting – May 10-12, 2018 • American Bar Association Tax Planning Latin America – June 13-15, 2018 • SelectUSA Summit – June 20-22, 2018 Garnered interview opportunities with journalists from publications including: • The Wall Street Journal • Sun-Sentinel • NPR • fDi Magazine • Bloomberg News • Miami Herald Wayne L. Biggs, Jr., VIEDA CEO, (right) is interviewed on Money Matters Radio by host Barry Armstrong. - Submitted Photo VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 53 www.usvieda.org Marketing Materials & Digital Current and fresh marketing materials remain an important element of our work. We continued to update and develop new marketing materials for print and digital distribution. Below is a summary of the key items developed during the year: • 2017 Annual Report – coordinated, wrote, edited and published content for the annual reports • Twitter – delivered periodic Twitter posts (24) about business initiatives in the USVI and worked to secure additional followers • Website - produced updates to the website with a focus on more current material with pictures, graphics and video • Promotional Videos - A second series of promotional videos were produced for both the local and external PROMOTIONAL VIDEOS EXAMPLES VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 54 www.usvieda.org Ambassadors The Ambassadors Program continued to make strides. This is based on strong support from long-existing ambassadors and the continued recruiting of new partners whether they are VIEDC beneficiaries, government officials, VI service providers and key business people eligible to assist in promoting the USVI as a prime investment location. Ambassadors assist the VIEDA in identifying new prospects and selling the USVI either directly or at events. Ambassadors were deployed for media interviews, and speaking engagements at marketing events. In addition, they supported prospect investor visits to the Territory by meeting with them and providing beneficiary perspective of the USVI. Sunil Mohanani, (right), owner of Get Charmed Chalet D’or Sandals For Your Neck, describes his jewelry creations to Denise C. Donadelle, VIEDA Economic Development Bank loan officer, at the Enterprise Zone Commissions’ 2018 Business2Business Event on St. Thomas, USVI. This event was held at the VIEDA office on March 20, 2018. –Photo by Semele A. C. George/VIEDA VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 55 www.usvieda.org Internal Marketing And Public Relations Report MARKETING: Advertising Radio: To promote VIEDA outreach activities and programs, local radio ads were broadcasted on local radio stations including WSTA 1340AM; WVWI AM 1000; WDLV 107.9FM; WSTX 97.0AM; WJKC Isle 95, WDHP 1620AM: • Live broadcast on WSTA 1340AM of the VIEDA Open House at Agrifest 2018 on St. Croix • Live remote and paid broadcast on WSTA 1340AM of the 2018 VIEDA Open House at E’s Garden Teahouse and Things during Virgin Islands Carnival Food Fair on St. Thomas Marketing Materials & Digital Digital Media Creative Content: Airport Advertisements: The VIEDA continued its desire to promote the VI Economic Development Commission’s Tax Incentive Programs for businesses to attract business development for the U.S. Virgin Islands. However, due to the impact of Hurricanes Irma and Maria on the airport’s infrastructure, these advertisements were temporarily on pause until the further instructions for the VIEDA to resume this promotion at the airports. Other internal marketing initiatives are reflected in the FY 2018 External Marketing Report. PUBLIC RELATIONS: Media Relations: • 29 News Releases • Eight calendar event announcements • 17 media placements (locally and regionally) — St. Croix Avis, Virgin Islands Daily News, and The Source; and regional online publication Caribbean News Now Highlighted News Stories: • “F’sted boutique hotel seeks EDC tax breaks” – St. Croix Avis - December 20, 2017 • “EDA receives funding for study on food processing plant” – The Source - January 30, 2018 • “EDC Extends Benefits for Gold Coast Yachts”, Virgin Islands Daily News, Monday, February 26, 2018 • “Three UVI Students to Benefit from Alpine Securities Scholarships”, VI Source, Tuesday, February 13, 2018 • “Three UVI students to Benefit from Alpine Securities Scholarships”, VI Consortium, February 13, 2018 VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 56 www.usvieda.org • “Alpine Securities Sponsors 15000 in Scholarships at UVI”, Virgin Islands Daily News, February 12, 2018 • “EDA sees decrease in delinquent business loans” - St. Croix Avis - March 2, 2018 • “Economic Development Bank Has 30 percent Reduction in Business Loan Delinquency Rate for 2017” , March 1, 2018 • “VIEDA approves over $11 million in loan guarantees to help local small businesses”, VI Source, March 8, 2018 • “USVI Economic Development Bank reports 30 percent reduction in business loan delinquency”, Caribbean News Now!, March 6, 2018 • “Open House Opens Enterprise Zones to Community”, VI Source, June 7, 2018 • “EDC beneficiaries ask for waivers in wake of hurricanes”, Virgin Islands Daily News - June 6, 2018 • “Carambola, ICMC Ask for Reduced EDC Employment Quota”, The Source, June 5, 2018 • “Companies for bottled water, health services seek EDC tax breaks”, The St. Croix Avis, August 8, 2018 • “Marriott seeks greater tax benefits”. August 8, 2018 • “Plessen Healthcare gets full support from Luis CEO” - August 8, 2018 • “Yusuf Drinking Water Requests EDC Benefits to Manufacture Bottled Water on St. Croix”, VI Consortium, August 8, 2018 Janice Marie Penn, owner of JMarie Artistry, describes her products to fellow entrepreneur Sunil Mohanani of Get Charmed Chalet D’or Sandals For Your Neck at the at the Enterprise Zone Commissions’ 2018 Business2Business Event on St. Thomas, USVI at the VIEDA office on March 20, 2018 –Photo by Semele A. C. George/VIEDA VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 57 www.usvieda.org Radio Interviews Secured: Nielsen has released its Total Audience Report for Q2 2017. The analysis included a spotlight on AM/FM radio consumption. Most of radio’s consumption happens out of the home while listeners are working or shopping. Nielsen found that listeners with full-time employment are heavier radio users than unemployed listeners, tuning in for an average of 2.5 hours more each week. As a result, VIEDA continued to secure radio interviews on local radio programs for VIEDA representatives to inform the general public or targeted audiences about their respective local initiatives: • “The Morning Show with Addie Ottley” radio show on WSTA 1340AM • “The Community Digest with Abdul Ali” radio show on WSTX 97.0AM • “VI in the Morning with St. Clair Williams” radio show on 1620AM WDHP • “In Da Morning with Sheldon Turnbull” radio show on WDLV 107.9FM • “The Morning Mix with Liston Davis” radio show on WVWI AM 1000 SPONSORSHIPS: Radio Feature on WSTA 1340AM: “Why Didn’t I Think of That”. This radio feature highlights entrepreneur stories that inform the general public about the innovative minds that pursued patents for inventions that proved to be everyday lucrative solutions. Crucian Christmas Festival on St. Croix, Virgin Islands Carnival on St. Thomas, and St. John Festival (Fourth of July Celebration) through WTJX Channel 12 A Taste of St. Croix 2018 Women’s Empowerment Conference hosted by Women Striving For Success, Inc. Attendees of the 2018 Women’s Empowerment Conference gather at the VIEDA’s booth to learn about VIEDA programs and services on July 28, 2018. The VIEDA was also a sponsor of this event hosted by the Women Striving for Success, Inc. –Photo by Semele A. C. George/VIEDA VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 58 www.usvieda.org FINANCIALS Virgin Islands Economic Development Authority Consolidated Financial Statements Fiscal Year Ended September 30, 2018 VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 59 www.usvieda.org VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 60 www.usvieda.org VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 61 www.usvieda.org VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 62 www.usvieda.org VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 63 www.usvieda.org VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 64 www.usvieda.org VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 65 www.usvieda.org VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 66 www.usvieda.org VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 67 www.usvieda.org VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 68 www.usvieda.org VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 69 www.usvieda.org VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 70 www.usvieda.org VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 71 www.usvieda.org VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 72 www.usvieda.org FY 2018 STAFF OF THE VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY Period of October 1, 2017 – September 30, 2018 ADMINISTRATION Executive STX VIEDA Chief Executive Officer Kamal I. Latham STX VIEDA Assistant Chief Executive Officer/COO Wayne L. Biggs, Jr. STX VIEDA Project Coordinator Humberto O’Neal STT VIEDA Executive Assistant to the CEO Celina D. Morris STT VIEDA Administrative Assistant Ja’Nelle Forbes STX VIEDA Administrative Assistant Michelle Gaskin Accounting STT VIEDA Director of Administration & Finance Ernest Halliday, CPA, CGMA STT VIEDA Budget and Financial Analyst Kelly V. Thompson-Webbe STT VIEDA Senior Accountant Maritza E. Hernandez STT VIEDA Accountant II Jana Cammie STT VIEDA Accountant I Regina Powell STT VIEDA Accountant II K’Nisha Gumbs STT VIEDA Custodial Worker Francillia Williams STT VIEDA Messenger/Service Worker Cuthbert Charlemagne Human Resources STX VIEDA Human Resources Manager Wendy Wheeler, MBA, CPM STT VIEDA Human Resources Specialist Shirley J. Jones-Peters Legal STX VIEDA General Counsel Tracy Lynch Bhola, Esq. STT VIEDA Paralegal/Investigative Analyst Tanya S. Hill, CP STX VIEDA Paralegal/Investigative Analyst Lisa Mitchell-Harris STX VIEDA Paralegal/Investigative Analyst Neisha Christopher-Christian Marketing STT VIEDA Director of Marketing Shanell Petersen STT VIEDA Marketing and Public Relations Specialist Semele A.C. George VIEDA Board STT VIEDA Board Liaison Carol V. Chapman VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 73 www.usvieda.org VIEDA ENTITIES Economic Development Commission - Applications STT EDC Director of Applications Margarita A. Benjamin STX EDC Applications Analyst II Esther M. Joseph STT EDC Applications Analyst I Sasha Garnett STX EDC Document Specialist LaShanna McBean de Chabert Economic Development Commission - Compliance STX EDC Director of Compliance Claude S.M. Gerard STT EDC Senior Compliance Officer Joy Penn STX EDC Lead Compliance Officer Ayanna T. Romney STT EDC Compliance Officer II Sandra Bess STT EDC Compliance Officer II Kyle C. Thomas STX EDC Compliance Officer I Jahnella Harvey10 STX EDC Compliance Officer I Latoya Martin Enterprise Zone Commission STT EZC Director of Enterprise Zone Commission Nadine T. Marchena Kean STT EZC Enterprise Zone Specialist II Raheem Smith11 STX EZC Enterprise Zone Specialist I Iyanna Jones, MBA STT EZC Enterprise Zone Programs & Grants Compliance Officer I Shaylah Anthony Economic Development Bank (formerly the Small Business Development Agency and the Government Development Bank) STX EDB Director of Lending Sharmane A. Brookes STX EDB Senior Loan Officer Monique T. Samuel STT EDB Loan / Collection Officer Denise C. Donadelle STX EDB Small Business Counseling Specialist Pablo R. Vega STT EDB Loan Assistant Charlene Gerard Joseph STT EDB Loan Assistant Shatima Charleswell STT EDB Receptionist Jeraldine Eason STX EDB Receptionist Gloria Fredericks 10 2018 VIEDA Employee of the Year, St. Croix 11 2018 VIEDA Employee of the Year, St. Thomas VI ECONOMIC DEVELOPMENT AUTHORITY - FY 2018 Annual Report 74 www.usvieda.org EDB Disaster Small-Midsized Enterprises Incubation Program STX DSME Incubator Program Manager Cusa Holloway STX DSME Administrative Assistant Lisa Ann C. James Virgin Islands Economic Development Park Corporation (formerly known as the Industrial Park Development Corporation) STX EDP Park Superintendent Mark Finch STX EDP Senior Maintenance Worker Edward Berry STX EDP Maintenance Worker II Athanasius Obieus STX EDP Maintenance Worker I Ethelbert Lesmond KEY STT = St. Thomas STX = St. Croix VIEDA = Virgin Islands Economic Development Authority Downtown Charlotte Amalie and overlook of the waterfront on Veterans Drive on St. Thomas, U. S. Virgin Islands.