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COMMITTEE ON BUDGET, APPROPRIATIONS AND FINANCE 09/06/2023-REPORTED OUT TO THE COMMITTEE ON RULES AND JUDICIARY BILL NO. 35-0067 Thirty-Fifth Legislature of the Virgin Islands April 4, 2023 An Act approving and the lease agreement between the Government of the Virgin Islands, acting through its Commissioner of the Department of Property and Procurement, and Inter Island Auto Group, LLC d/b/a VIP Quick Lube for Improved Parcel No. 70 Submarine Base, No. 6A Southside Quarter, St. Thomas, Virgin Islands, to be used as a new and used car dealership, repair shop, importer of goods, retail shops, store, and for other related purposes PROPOSED BY: Senator Novelle E. Francis, Jr. WHEREAS, on November 17, 2022, Managing Member, Pablo H. Padro, executed the 1 lease agreement between the Government of the Virgin Islands and Inter Island Auto Group, 2 LLC d/b/a VIP Quick Lube; and 3 WHEREAS, on December 1, 2022, the Commissioner of the Department of Property 4 and Procurement executed the lease agreement between the Government of the Virgin Islands 5 and Inter Island Auto Group, LLC d/b/a VIP Quick Lube; and 6 WHEREAS, on January 28, 2023, the Governor of the Virgin Islands approved the lease 7 agreement between the Government of the Virgin Islands and the Inter Island Auto Group, LLC 8 d/b/a VIP Quick Lube; and 9 WHEREAS, Inter Islands Auto Group, LLC d/b/a VIP Quick Lube will be leasing 10 Improved Parcel No. 70 Submarine Base, No. 6A Southside Quarter, St. Thomas, Virgin 11 2 Islands, consisting of approximately 21,462.45 U.S. square feet or .4927 U.S. acres of land, 1 more or less, with a mixed material structure consisting of approximately 7,920 U.S. square 2 feet, to operate a new and used car dealership, repair shops, importer of goods, retail shops, 3 store, and for other related purposes; for an initial rental term of 20 years, with an option to 4 renew for two consecutive 10-year terms, at an annual rent of $72,000, commencing on the 5 forty-ninth month of the lease, payable in monthly installments of $6,000; 6 WHEREAS, for months one through twenty-four, Inter Island Auto Group, LLC d/b/a 7 VIP Quick Lube will pay a monthly rent of $3,000 and for months twenty-five through forty- 8 eight, Inter Island Auto Group, LLC d/b/a VIP Quick Lube will pay a monthly rent of $4,000; 9 and 10 WHEREAS, title 31 Virgin Islands Code, chapter 21, section 205, subsection (c) 11 provides that in addition to the Governor’s approval of any lease, the Legislature of the Virgin 12 Islands must approve all leases exceeding a term of one year; Now, Therefore, 13 Be it enacted by the Legislature of the Virgin Islands: 14 SECTION 1. Pursuant to title 31 Virgin Islands Code, section 205, subsection (c), the 15 Legislature of the Virgin Islands approves the lease agreement between the Government of the 16 Virgin Islands, acting through its Commissioner of the Virgin Islands Department of Property 17 and Procurement, and Inter Island Auto Group, LLC d/b/a VIP Quick Lube for Improved Parcel 18 No. 70 Submarine Base, No. 6A Southside Quarter, St. Thomas, Virgin Islands, consisting of 19 approximately 21,462.45 U.S. square feet or .4927 U.S. acres of land, more or less, with a 20 mixed material structure consisting of approximately 7,920 U.S. square feet, as shown on 21 O.L.G. File No. D3-420-T91, to operate a new and used car dealership, repair shop, importer 22 of goods, retail shops, store, and for other related purposes. The initial term of the lease 23 agreement is for 20 years, with an option to renew for two consecutive 10-year terms. Months 24 3 one through forty-eight of the lease agreement will be the construction period and Inter Islands 1 Auto Group, LLC d/b/a VIP Quick Lube will pay $3,000 per month rent during months one 2 through twenty-four and $4,000 per month rent for months twenty-five through forty-eight. 3 From month forty-nine, Inter Island Auto Group, LLC d/b/a VIP Quick Lube will pay an annual 4 rent of $72,000, payable in monthly installments of $6,000. Rent will be adjusted based on the 5 Consumer Price Index and as specifically provided in article 3.03 of the lease agreement, but 6 no adjustment will be more than three percent over any preceding year. 7 BILL SUMMARY 8 This bill approves the lease between the Government of the Virgin Islands and Inter 9 Island Auto Group, LLC d/b/a VIP Quick Lube. 10 DRAFTER’S NOTE 11 As noted in the lease agreement and in the December 8, 2022, letter from the Solicitor 12 General of the Government of the Virgin Islands to the Governor of the Virgin Islands, 13 Improved Parcel No. 70 Submarine Base, No. 6A Southside Quarter, St. Thomas, Virgin 14 Islands, is zoned W-2 (Waterfront – Industrial). However, the uses permitted under the lease 15 agreement, the operation of a new and used car dealership, repair shop, importer of goods, retail 16 shops, store, and for other related purposes, are not permitted uses under the W-2 zoning 17 designation. The W-2 zoning designation as it pertains to automobiles, only permits the 18 following: parking lots – commercial, storage (live) fleet parking, and wrecking yards, 19 (storage). Accordingly, to comply with 28 V.I.C, § 224(a), that is to permit the desired uses as 20 per the lease agreement, the property either must be rezoned or be granted a use variance in 21 accordance with 28 V.I.C. § 238 or 28 V.I. C. § 238a, respectively. 22 BR23-0343/March 29, 2023/SLR 23