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Committed to Fostering Opportunities for Economic Growth in the U.S. Virgin Islands 2017 ANNUAL REPORT United States Virgin Islands Economic Development Authority 2 3 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org MESSAGE FROM THE GOVERNOR U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY Email: info@usvieda.org • Website: www.usvieda.org ST. THOMAS 8000 Nisky Shopping Center Suite 620, 2nd Floor St. Thomas, U.S. Virgin Islands 00802 Telephone: 340-714-1700 ST. CROIX 116 King St. St Croix, U.S. Virgin Islands 00841 Telephone: 340-773-6499 US Virgin Islands 4 5 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org The United States Virgin Islands OFFICE OF THE LIEUTENANT GOVERNOR CHARLOTTE AMALIE, ST. THOMAS, VIRGIN ISLANDS 00802 MESSAGE FROM THE LIEUTENANT GOVERNOR MESSAGE FROM CHAIRMAN OF THE BOARD ST. CROIX 116 King Street, Frederiksted, VI 00840 (340) 773-6499 FAX (340) 773-7701 ST.THOMAS 8000 Nisky Shopping Center, Suite 620, St. Thomas, VI 00802 (340) 714-1700 FAX (340) 777-1103 www.USVIEDA.org The United States Virgin Islands Economic Development Authority maintained its efforts to meet its legislated mandate of performing the economic development function for the United States Virgin Islands for the 2017 Fiscal Year. As evidenced by the Authority’s accomplishments highlighted in this Annual Report, the goal of being effective and productive in the administration of the Territory’s Economic Development Program was achieved, but this is always an ongoing effort. I am proud of the accomplishments of the entire Authority’s management and staff, and the Governing Board’s work to continue to improve our quality of life in collaboration with all stakeholders of the territory. The objective of economic development is to create jobs and wealth, and improve the quality of life for our people. The Territory’s Economic Development Program is a process performed by the Authority intended to enhance the economic well-being of the territory. It is therefore, my opinion, that despite all the accomplishments during the 2017 Fiscal Year, we must consider the process by which we collaborate with all stakeholders and partners within and outside the territory to manage the impact to our well-being due to Hurricanes Irma and Maria. As a territory, with the assistance of our federal partners and the private sector, we will continue to address the recovery of our home. We must work together to attain the quality of life we want. The economy necessary for that quality of life to be possible requires a comprehensive strategic plan with everyone engaged. The impacts of the 2017 hurricanes are not limited to the damages to our infrastructure and our homes. The emotional impact is taking a toll on our health that we must address if we are to have a good quality of life. Therefore the United States Virgin Islands Economic Development Authority’s 2018 Fiscal Budget, themed “Sowing The Seeds For Economic Prosperity” will be revised to address the new reality of the territory. The Authority will continue its efforts for improved internal operations, but it will also be working to be part of a recovery process that creates the foundation for an improved quality of life. Each year, we take pride in presenting the Virgin Islands Economic Development Authority’s (EDA) Annual Report, which serves as the official tool that depicts the current status of the Virgin Islands’ economy. Notwithstanding the catastrophic challenges the Virgin Islands faced in the last month of the territory’s fiscal year, this Fiscal Year 2017 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, the Virgin Islands is at a strategic position for private sector development and expansion. The public sector is also at a position of infrastructure redevelopment and expansion, which creates the atmosphere to attract or retain investors and stimulate our economy. We recognize the enormous potentials that exist when both sectors benefit from a thriving economy. Therefore, the executive and legislative branches of the Government of the Virgin Islands continue to explore and implement measures that seek to stimulate growth. The 2017 Annual Report comprehensively dissects many facets of the Virgin Islands economy, and also 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. If you are a potential or new investor, we welcome you. If you are an existing investor, we invite you to stay. In the Virgin Islands, there is always room for growth. . Osbert E. Potter José A. Penn José A. Penn Board Chairman 6 7 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Fiscal Year (“FY”) 2017 was a memorable one. On September 6, 2017, Hurricane Irma, one of the most powerful Category 5 Atlantic storms in a century, tore its way through the Territory, leaving mass destruction in its wake, particularly on St. Thomas and St. John. Two weeks later, as the U.S. Virgin Islands was still reeling from the effects of Irma and struggling to regain some sense of normalcy, Hurricane Maria, another Cat- egory 5 storm, struck on September 19, 2017, this time dealing a massive blow to St. Croix, which had been serving as a hub for Hurricane Irma recovery efforts. MESSAGE FROM THE ACTING CHIEF EXECUTIVE OFFICER 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 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 Governors’ 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 Farrell, Board Member Chief of Staff Governor Kenneth E. Mapp Governor’s staff representative  USVIEDA BOARD of DIRECTORS These devastating acts of nature destroyed much of the Territory’s infrastructure, including ports, both hospitals, and a number of schools. Many were left without homes, electricity, access to communications, and other basic necessities. The employment outlook in the Territory was impacted and a portion of the population relocated to the U.S. mainland. As a result, the storms’ aftermath greatly affected our economy, leaving the community to consid- er new strategies as the Territory rebuilds. To that end, the U.S. Virgin Islands Economic Development Authority (“USVIEDA”) intends to facilitate opportunities that would foster the economic recovery and growth of the USVI by building upon FY 2017 activities. Prior to the one-two punch of Hurricanes Irma and Maria, the USVIEDA continued its marketing efforts to attract new investors to the Territory. USVIEDA representatives promoted the tax incentives offered through the Virgin Islands Economic Development Commission (“VIEDC”) program at national and regional events. Advertisements were also placed in national publications that focus on high net worth investors, tax advisors and site selection consultants. With 2017 being the 45th anniversary of the VIEDC program, we leveraged the support of VIEDC practi- tioners and current beneficiaries by hosting Practitioners Forums in April 2017 and Beneficiary Summits in August 2017. At the Beneficiary Summits companies that served as VI Ambassadors to promote the VIEDC program and the Territory were recognized. Supporting our local small businesses is at the core of economic development, and in FY 2017, USVIEDA continued to do so. In addition to the loan programs offered by our Economic Development Bank (“EDB”), over $10M of State Small Business Credit Initiative (“SSBCI”) guarantee program funds provided financial support to small businesses. Our Enterprise Zone Commission (“EZC”) approved the Savanne-Downstreet Neighborhood Plan, allowing for tax exemption benefits to start in that community. Two EZC Business to Business events were hosted in FY 2017, pro- viding an easy avenue for manufacturers of local products to negotiate with retailers. As we look toward FY 2018 and beyond, the USVIEDA hopes to be a critical player in the recovery of the Territo- ry. We have partnered with the Small Business Development Center (“SBDC”) and the Small Business Association (“SBA”) to provide informational workshops to residents who need assistance with repairing their homes and busi- nesses. The International Economic Development Council (“IEDC”) has offered expert assistance with the econom- ic recovery process, and meetings between IEDC representatives and key government officials and stakeholders have been scheduled. Offering affordable rental space for business operations that is both modern and state-of-the- art is also key. While our industrial parks on both St. Thomas and St. Croix sustained hurricane damages, we hope to be moving forward with plans for an energy-efficiency retrofitting of the William D. Roebuck Industrial Park on St. Croix in the coming year. USVIEDA accomplished much and met the challenges of FY 2017 due to the hard work and contributions of our Governing Board of Directors, management and staff, and I look forward to working with this talented team in FY 2018. I would also like to thank our Honorable Governor Kenneth E. Mapp, the Honorable Lieutenant Governor Osbert E. Potter, and the members of the 32nd Legislature of the Virgin Islands for their support as we work together to build a stronger, more resilient economy. Wayne L. Biggs, Jr. Acting Chief Executive Officer U.S. Virgin Islands Economic Development Authority www.usvieda.org 8 9 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org USVIEDA MANAGEMENT TEAM Wayne L. Biggs, Jr. Acting Chief Executive Officer Tracy Lynch Bhola, Esq. General Counsel Ernest Halliday, CPA, CGMA Director of Administration & Finance Margarita A. Benjamin Director of Applications Economic Development Commission Claude S. M. Gerard Director of Compliance Economic Development Commission Sharmane A. Brookes Director of Lending Economic Development Bank Nadine T. Marchena Kean Director Enterprise Zone Commission Mark Finch Park Superintendent Virgin Islands Economic Development Park Corporation Humberto O’Neal Project Coordinator The U.S. Virgin Islands Economic Development Authority (USVIEDA) 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. MISSION STATEMENT Committed to Fostering Opportunities for Economic Growth in the U.S. Virgin Islands 10 11 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org FY 2017 USVIEDA Annual Report “Committed to Fostering Opportunities for Economic Growth in the U.S. Virgin Islands” USVI Economic Development Authority...........................................11 OVERVIEW: USVI Economic Development Commission (EDC).....13 EDC Applications Division ......................................................... 14 EDC Compliance Division ..........................................................30 USVI Economic Development Park Corporation .......................38 USVI Economic Development Bank ...........................................40 Enterprise Zone Commission ..................................................... 44 External Marketing and Public Relations ...................................49 Internal Marketing and Public Relations.....................................59 FINANCIALS - Summary .................................................................66 STAFF of the USVI Economic Development Authority ..................80 The U.S. Virgin Islands Economic Develop- ment Authority (USVIEDA) was created to “aid the Government in the performance of its duties to develop the economy of the Virgin Islands. It was created as a semi-autonomous government instrumentality on February 1, 2001 to assume, integrate and unify the functions of the Govern- ment Development Bank (GDB), the Economic Development Commission (EDC), the Industri- al Park Development Corporation (IPDC), the Small Business Development Agency (SBDA), and the Enterprise Zone Commission (EZC) un- der one executive board in order to achieve max- imum efficiency, streamline operations, and de- velop comprehensive programs to promote and enhance the economic development of the Ter- ritory.” In fiscal year 2014 through Virgin Islands legis- lation, 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 Eco- nomic Development Park Corporation (EDPC). Legislation was also enacted to include a com- mercial zone to be under the Enterprise Zone Commission. The Authority accomplishes its mission by 1) at- tracting multi-national investors to establish or relocate their businesses to the United States Vir- TABLE of CONTENTS gin Islands, 2) by providing financial assistance through its lending arm, namely the Economic Development Bank, to emerging and established small to medium-sized businesses in the Territo- ry, 3) offering space for lease to businesses at the economic development parks through the Vir- gin Islands Economic Development Park Corpo- ration, and 4) assisting Virgin Islands residents and business owners with rehabilitating their properties located in blighted and distressed ar- eas 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 USVIEDA 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 appointed by the Gover- nor from among officials of cabinet-level execu- tive 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 appoint- ed by the Governor with the advice and consent of the Legislature, and one (1) member appoint- ed from the board or executive staff of the Gov- ernment Employees’ Retirement System, the Virgin Islands Port Authority or the University of the Virgin Islands. THE U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY Cover Photo: Austin "Babe" Monsanto Terminal, St. Thomas, U.S. Virgin Islands Page 11 Photo: Austin "Babe" Monsanto Terminal, St. Thomas, U.S. Virgin Islands 12 13 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org VIRGIN ISLANDS ECONOMIC DEVELOPMENT COMMISSION The Virgin Islands Economic Development Commission (VIEDC) was created by Virgin Islands legislation and is charged with the promotion of the growth, development, and diver- sification of the economy in the United States Virgin Islands by 1) developing the human and economic resources of the Territory, 2) preserving job opportunities for residents of the U.S. Virgin Islands, and 3) promoting capital formation to support economic development in the Territory. The VIEDC consists of two entities, the Applications Division and the Compliance Division. The Applications Division is the first point of contact for a business that seeks to apply for economic development benefits. Economic development benefits are “various tax exemptions and tax subsidies for which any person, member of a partnership, partnership or corporation” is granted according to Virgin Islands law. In exchange, businesses that receive economic de- velopment benefits are to create job opportunities and generate tax revenues in the U.S. Virgin Islands. The Applications Division also oversees the VIEDC Small Business Program and the VIEDC Eligible Suppliers Program. The second point of contact for businesses is the Compli- ance Division. The Compliance Division monitors beneficiaries (business applicants that are approved to participate in the VIEDC Economic Development Tax Incentive Program) to ensure that they comply with the terms and conditions of their certificates and other requirements of the law. In this context, certificates are contracts a business has with the Virgin Islands government as a participant of the VIEDC Economic Development Tax Incentive Program. “We stand ready to welcome new business and new investment to our shores.” - Governor Kenneth E. Mapp OVERVIEW Wilfred “Bomba” Allick Port and Transshipment Center (“The Containerport”) on St. Croix, U.S. Virgin Islands –Courtesy of Virgin Islands Port Authority/Photo by Don Hebert 14 15 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org VIRGIN ISLANDS ECONOMIC DEVELOPMENT COMMISSION “Committed to Business Investment” TABLE 1: VIEDC Applications Received in Fiscal Year 2017 NO. COMPANY NAME TYPE OF APPLICATION CATEGORY TYPE OF BUSINESS 1. Yacht Haven USVI, LLC Extension / Modification / Transfer II & III Marina Facilities / Lease and Upland Facilities 2. DASREP, LLC New III Petroleum Merchant Wholesalers 3. Organa Brands, LLC New II Manufacturer of vape pens 4. ProTouch Communications, LLC New IV Business Management 5. Heavy Materials, LLC Extension / Modification II Manufacturer of aggregates and sand 6. Sugar Bay Club and Resort Corp. Extension III Hotel 7. Castle Harlan, Inc. New IV Financial Services 8. Emerald Beach Corporation Extension / Modification III Hotel 9. Marriott Ownership Resorts (St. Thomas), Inc. Extension / Modification III Timeshare 10. Evolve USVI, LLC New III Hotel 11. Alpine Group USVI, LLC Modification IV Business Management 12. Lawrence Moskowitz CLD Ltd. New IV Financial Services 13. Leatherback Brewing Company, LLC New II Brewery The mission of the Applications Division, consis- tent with the Economic Development Commis- sion (EDC) Program, is to facilitate the promotion of the growth, development, and diversification of the economy of the United States Virgin Is- lands by processing (evaluating, analyzing and preparing) application packages for submission to the Governing Board of Directors (hereafter referred to as “The Board”) of the USVI Econom- ic Development Authority (USVIEDA) for con- sideration of a recommendation to the Governor of the U.S. Virgin Islands to grant economic de- velopment benefits to eligible applicants. Applications Received During fiscal year (FY) 2017, the Virgin Islands Economic Development Commission (“VIEDC”) received a total of 13 applications pertaining to certificates of tax incentive benefits: seven (7) new applications, one (1) for an extension of tax incentives, one (1) for a modification of tax in- centives, three (3) for extension and modifica- tion of tax incentives, and one (1) application for an extension, modification and transfer of tax in- centive benefits. The statistics show that the 13 applications1 re- ceived represent a potential future economic impact of a minimum of 571 jobs to be created, over $20,425,708 to be paid in wages, and over $24,689,910 to be made in capital investments. These Applicants also represent the potential for the U.S. Virgin Islands to realize approximately $16,475,245 in taxes over a five-year period. 1 Seven new applications represent 88 jobs, $3.5 million in wages, $5.1 million in investments and $277,450 in charitable contributions. Projected total taxes over a five-year period is approximately $3.8 million. “We must work together to attain the quality of life we want.” –USVIEDA Board Chairman José A. Penn VIEDC APPLICATIONS FY 2017 VIEDC Applications Received Governor- Approved Applications Eligible V.I. Suppliers VIEDC-Approved Applications Potential Jobs to be Created To be made in Capital Investments 13 571 $24.7 13 17 APPLICATIONS 16 17 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Applications Processed in Fiscal Year 2017 VIEDC Public Hearings on Applications: During FY 2017, the VIEDC held eight public hearings on applications regarding certificates of tax incentive benefits of which presentations were made by the following 22 applicants: TABLE 2: VIEDC Public Hearings NO. NAME OF APPLICANT PUBLIC HEARING DATE DESCRIPTION BUSINESS LOCATION 1. JH Capital (VI), Inc. 10-13-2016 Financial Service St. Thomas 2. Legacy VI Development Consulting, LLLP 10-13-2016 Financial Service St. Thomas 3. Sterisil International, LLC 10-13-2016 Manufacturer of dental water disinfecting products St. Croix 4. OSON VI, LLC 10-13-2016 12-22-2016 Financial Service St. Thomas 5. RC Hotel (Virgin Islands), Inc. 10-13-2016 Hotel St. Thomas 6. Carambola Zipline, LLC 12-08-2016 Recreational Facility St. Croix 7. DASREP, LLC 12-08-2016 Petroleum merchant wholesalers St. Thomas 8. Organa Brands, LLC 12-08-2016 Manufacturer of vape pens St. Croix 9. Tramway Properties, Inc. 12-08-2016 Recreational Facility St. Thomas 10. Fintrac, Inc. 12-22-2016 Business Management St. Thomas 11. Castle Harlan, Inc. 02-09-2017 Financial Service St. Thomas 12. Margaritaville Vacation Club by Wyndham, Inc. 02-09-2017 Timeshare Resort St. Thomas 13. ProTouch Communication, LLC 02-09-2017 Business Management St. Croix 14. CBI Acquisitions, LLC d/b/a Caneel Bay Resort 04-06-2017 Hotel St. John 15. Sugar Bay Club and Resort Corp. 04-06-2017 Hotel St. Thomas 16. White Bay Group USVI, LLLP 04-06-2017 08-10-2017 Financial Service St. Thomas 17. Coral World (V.I.), Inc. 06-08-2017 Marine Park Recreational Facility St. Thomas 18. Grapetree Shores, Inc. d/b/a Divi Carina Bay Resort 06-08-2017 Hotel St. Croix 19. St. Croix Financial Center, Inc. 06-08-2017 Hotel / Marina St. Croix VIEDC APPLICATIONS DIVISION, cont. NO. NAME OF APPLICANT PUBLIC HEARING DATE DESCRIPTION BUSINESS LOCATION 20. St. Croix Renaissance Group, LLLP 06-08-2017 Eco-Industrial Park St. Croix 21. Gold Coast Yachts, Inc. 07-06-2017 Manufacturer of yachts St. Croix 22. Greenleaf VI II, Inc. 08-10-2017 Business Management St. Croix VIEDC Decision Meetings: During FY 2017, 11 decision meetings were held of which 23 applications pertaining to certificate of tax incentive benefits were presented to the VIEDC Governing Board for consideration. Nineteen applicants were approved with a favorable recommendation to be submitted to the Governor of the U.S. Virgin Islands, and two (2) were denied (1- New, 1- Extension). In addition, four (4) of the appli- cants for extension and/or modification that included requests for additional incentives for additional investments made in new construction, infrastructure or refurbishment were denied the additional incentives. TABLE 3: Status of VIEDC Decision Meeting Cases NO. NAME OF APPLICANT DECISION MEETING DATE TYPE OF APPLICATIONS STATUS as of 9/30/2017 1. RC Hotel (Virgin Islands), Inc. 10-18-2016 Extension / Modification Additional Investment Approved Denied 2. Spartan Concrete Products, LLC 10-18-2016 Transfer Approved 3. Territory East Asset Management, LLC 10-18-2016 Extension Approved 4. Legacy VI Development Consulting, LLLP 10-27-2016 11-10-2016 Resubmission / New Tabled Approved 5. Sterisil International, LLC 10-27-2016 11-22-2016 New Tabled Approved 6. AAC – Air Ambulance Caribbean, Inc. d/b/a AeroMD 01-12-2017 03-09-2017 06-08-2017 New Reconsideration Reconsideration Denied Approved Approved 7. Carambola Zip Line, LLC 01-12-2017 06-08-2017 New Reconsideration Approved Approved 8. DASREP, LLC 01-12-2017 03-09-2017 New Reconsideration Denied (Postponed) 9. Fintrac, Inc. 01-12-2017 Modification Approved 10. Organa Brands, LLC 01-12-2017 New Approved 11. OSON VI, LLC 01-12-2017 Modification Extension Approved Denied 12. Secret Harbour Beach Associates, LLLP 01-12-2017 06-08-2017 Extension Extension Tabled Approved 13. Tramway Properties, Inc. 01-12-2017 Extension / Modification Additional Investment Approved Denied 18 19 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org NO. NAME OF APPLICANT DECISION MEETING DATE TYPE OF APPLICATIONS STATUS as of 9/30/2017 14. Margaritaville Vacation Club by Wyndham, Inc. 03-09-2017 Modification Approved 15. ProTouch Communication, LLC 03-09-2017 New Approved 16. CBI Acquisitions, LLC d/b/a Caneel Bay Resort 04-06-2017 Extension/Modification Approved 17. White Bay Group USVI, LLLP 04-06-2017 Transfer Approved 18. Grapetree Shores, Inc. d/b/a Divi Carina Bay Resort 07-20-2017 Extension/Modification Additional investment Approved Denied 19. St. Croix Financial Center, Inc. 07-20-2017 Extension/Modification Approved 20. St. Croix Renaissance Group, LLLP 07-20-2017 Extension Tabled 21. Coral World (V.I.), Inc. 07-20-2017 Extension/Modification Tabled 22. Gold Coast Yachts, Inc. 08-10-2017 Modification Additional investment Approved Denied 23. Tutu Park, Ltd. 08-10-2017 Extension/Modification Denied TABLE 4: VIEDC Applications submitted for Governor’s Consideration COMPANY NAME TYPE OF APPLICATION CATEGORY TYPE OF BUSINESS STATUS AS OF 09/30/2017 1. Carambola Golf Club, LLC Extension / Modification III Golf Course 10/21/2016 Denied 2. Impact Technologies VI, Inc. New IV Financial Services 10/21/2016 Approved 3. Plessen Healthcare, LLC New III Health Facility 10/21/2016 Denied 4. Valance Co., Inc. Extension IV Business Management 11/19/2016 Approved 5. RC Hotels (VI) Inc. Extension / Modification III Hotel 11/30/2016 Approved 6. Liberty Medical Development, LLC New III Healthcare Facility 01/13/2017 Approved 7. Territory East Asset Manage- ment Extension / Modification IV Business Management 01/23/2017 Approved 8. Legacy VI Development Consulting, LLLP New / Resubmission IV Financial Service 03/02/2017 Approved 9. Sterisil International, LLC New II & III Manufacturer of dental water disinfecting products 03/02/2017 Approved 10. Fintrac, Inc. Extension IV Business Management 03/22/2017 Approved 11. OSON VI, LLC Extension / Modification IV Financial Service 04/25/2017 Approved 12. Organa Brands, LLC New II Manufacturer of vape pens 03/29/2017 Approved 13. ProTouch Communications, LLC New IV Business Management 06/09/2017 Approved 14. Margaritaville Vacation Club by Wyndham, Inc. Modification III Timeshare Resort 07/24/2017 Approved 15. CBI Acquisitions, LLC d/b/a Caneel Bay Resort Extension / Modification III Hotel/Resort 07/24/2017 Approved 16. Secret Harbour Extension III Hotel Pending 17. Carambola ZipLine, LLC New III Recreational Facility Pending 18. St. Croix Financial Center, Inc. Extension / Modification III Hotel / Marina Pending VIEDC APPLICATIONS DIVISION, cont. Status of VIEDC Decision Meeting Cases, cont. Applications Submitted For Governor’s Consideration During FY 2017, 18 applications pertaining to tax incentive benefits of which four (4) applications were filed in the previous fiscal year, were submitted to the Governor of the USVI for consider- ation. Thirteen (13) applications were approved, two (2) were denied, and three (3) applications are pending consideration by the Governor at the close of the fiscal year. Rich Difede of Gold Coast Yachts on St. Croix (second from the left), accepts a Certificate of Appreciation from the VIEDC at the VIEDC Practitioner’s Forum and Afterhours Meet and Greet on St. Croix for being an ambassador of the VIEDC Tax Incentive Program.  Mr. Difede is congratulated by USVIEDA Acting CEO Wayne L. Biggs, Jr. (far left); VIEDC Direc- tor of Applications Margarita A. Benjamin;  and USVIEDA Board member Eugene Farrell.  –Photo by Celina D. Morris/USVIEDA 20 21 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Petitions During FY 2017, fifteen (15) petitions were presented to the Board for consideration. The VIEDC approved 14 petitions of which three (3) were requests for admission of partner; one (1) was for a trust admittance; three (3) were submitted for correction(s) to Certificate of Tax Incentives; one (1) was a request for an extension to commence incentives; one (1) was a request to amend its char- itable contribution; one (1) was a request for additional time to submit information; four (4) were administrative corrections. The VIEDC denied one (1) petition requesting a waiver of its sharehold- er’s information. TABLE 5: Petitions Received NO. NAME OF APPLICANT DECISION MEETING DATES TYPE OF PETITION STATUS as of 9/30/2017 1. RPP Advisors, LLC 10-18-2016 01-12-2017 02-09-2017 Partner admittance Partner admittance correction Partner admittance Approved Approved Approved 2. Salt Pond Holdings, LLC 10-18-2016 Partner admittance Approved 3. Vitelco – ILD Joint Venture 10-18-2016 Correction to Certificate Approved 4. Subbase Drydock, Inc. 10-18-2016 Correction to Certificate Approved 5. Grapetree Shores, Inc. d/b/a Divi Carina Bay Resort 11-22-2016 Correction to Certificate Approved 6. Spectrum Engineering, Inc. 11-22-2016 Extension to commence incentives Approved 7. Denali Asset Management, LLP 01-12-2017 Trust admittance Approved 8. JH Capital (VI), Inc. 02-09-2017 Charitable amendment Approved 9. Carambola ZipLine, LLC 03-09-2017 Time to submit additional information Approved 10. Tramway Properties, Inc. 03-09-2017 Correction to Grant or Denial Approved 11. Fintrac Inc. 03-09-2017 Correction to Grant or Denial Approved 12. ProTouch Communications, LLC 06-08-2017 Correction to Grant or Denial Approved 13. Margaritaville Vacation Club by Wyndham, Inc. 06-08-2017 Administrative correction Approved 14. 183 Media, LLC 08-10-2017 Partner admittance Approved 15. Castle Harlan, Inc. 08-10-2017 Waiver of Shareholder Information Denied VIEDC APPLICATIONS DIVISION, cont. (Left to Right) Lt. Governor Osbert Potter addresses attendees of the VIEDC Practitioner’s Forum and Beneficiary Summit, alongside USVIEDA Acting CEO Wayne L. Biggs, Jr.; on St. Croix at The Buccaneer Hotel on April 20, 2017. –Photo by Celina D. Morris/USVIEDA “We recognize the enormous potentials that exist when both sectors (public and private) benefit from a thriving economy.” - Lt. Governor Osbert Potter 22 23 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Certificates of Tax Incentive Benefits: A total of 23 Beneficiaries certificates were drafted of which 14 were executed to date: 10 new Certificates of Tax Incentive Benefits, one extension, two modifications, and four extension and modification. Of the 23 certificates, based upon the commitments made, the Territory will realize new and continued employment at a minimum of 1,074 full-time employees, and approximate- ly $116,045,387 in capital investments, and $1,626,500 in annual charitable contributions.  It is also estimated that the Territory will potentially generate direct taxes over a five-year period of more than $24.1 million should the business operations materialize as projected.  TABLE 6: VIEDC Certificates of Tax Incentive Benefits NO. COMPANY NAME TYPE OF APPLICATION STATUS as of 9/30/2017 1. PBG Corporation dba Phantasea Tropical Botanical Garden New 10/26/2016 2. Goddard Catering Group St. Thomas, Inc. Extension Pending Beneficiary Acceptance 3. Prosperitas Investment Management, LLLP New 02/10/2017 4, CD Paradise Holdings, LLLP New 02/10/2017 5. Alpha Mortgage Advisors, Inc. New 11/10/2016 6. Perpetual Motion Management, LLC New 10/24/2016 7. Caribbean Cinemas of St. Croix, Inc. New 01/20/2017 8. Westin St. John Hotel Company, Inc., and its wholly-owned subsidiaries WVC St. John and Westin Vacation Management Company Extension / Modification Pending Beneficiary Acceptance 9. Liberty Medical Development, LLC New 06/02/2017 10. RC Hotels (Virgin Islands), Inc. Extension / Modification 06/16/2017 11. Valance Co., Inc. Extension / Modification 06/08/2017 12. Territory East Asset Management, LLC Extension / Modification 05/05/2017 13. Impact Technologies VI, Inc. New 06/02/2017 14. Amalie Global, Inc. New 03/29/2017 15. Fintrac, Inc. Modification 06/12/2017 16. Sterisil International, LLC New 06/08/2017 17. OSON VI, LLC Modification In Process 18. Organa Brands, LLC New Withheld by Applicant 19. White Bay Group USVI, LLLP Transfer In Process 20. Global Medchoices Group, LLC New In Process 21. Castle Medical Holding, Inc. New In Process 22. Margaritaville Vacation Club by Wyndham Extension / Modification In Process 23. CBI Acquisitions, LLC d/b/a Caneel Bay Resort Extension / Modification In Process VIEDC APPLICATIONS DIVISION, cont. (Left to Right): Paul Doumeng, general manager of Bolongo Bay; and Richard J. Doumeng, manag- ing director of Bolongo Bay and president of Harborside Corporation, join Catherine Hendry, Esq., USVIEDA board member; and Avery L. Lewis, USVIEDA board secretary; at the 2017 VIEDC Prac- titioner’s Forum and Beneficiary Summit. -Photo by Celina D. Morris/USVIEDA 24 25 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Fiscal Year Historical Data TABLE 7: Economic Development Commission – FY Historical Application Information APPLICATIONS FY 2015 FY 2016 FY 2017 Period Ending 09/30/2017 # Received 23 18 132 # Approved 7 3 2 # Denied 1 0 1 # Transfer to RT Park 1 0 0 # Pending 14 15 10 Job Opportunities 132 807 571 Approx. Wages of Apps. $8,645,450 $29,664,421 $20,425,708 Minimum Potential Investment of Apps. $18,223,600 $10,920,577 $24,689,910 2 - Seven New Applications, 8 Modifications, extension and or transfer of tax incentive benefits 0 5 10 15 20 25 FY 2015 FY 2016 FY 2017 APPLICATION HISTORICAL DATA # of Apps Received # of Apps Approved # of Apps Denied # of Apps Transfer to RT Park # of Apps Pending VIEDC APPLICATIONS DIVISION, cont. Application Historical Data 0 200 400 600 800 1000 2015 2016 2017 Job Opportunities 0 5 10 15 20 25 2015 2016 2017 APPLICATIONS RECEIVED - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2015 2016 2017 Approximate Total Wages 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 2015 2016 2017 Minimum Capital Investment Job Opportunities New Applications Received 26 27 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Inquiries from Potential Investors During FY 2017, the Application Unit responded to 50 inquiries for general information and/ or request for information on the VIEDC Tax Incentive Program. *Meetings were held with 12 potential investors with a strong interest in doing business within the territory. TABLE 8: VIEDC Business Inquiries NO. TYPE OF BUSINESS LOCATION 1. Financial Business Columbia 2. Medical Tourism Florida 3. Resort St. John, USVI 4. Rum Distillery Florida 5. Real Estate California 6. Medical Consulting Call Center Florida 7. Asphalt Production St. Thomas, USVI 8. Hedge Fund St. Thomas, USVI 9. Contractual Services St. Croix, USVI 10. Consulting/Construction Charlotte, NC 11. Business and Management Consultant (Food Produc- tion, Renewable Energy, Agriculture, etc.) Canada 12. Brewery/Manufacturer St. Croix, USVI 13. Financial Services Business (Mergers & Acquisitions, Real Estate, Asset Management, etc.) Tucker, GA 14. Software Company Florida 15. Financial Business Colorado 16. Hotel &Real Estate Development St. Thomas, UVSI 17. Jewelry Manufacturing St. Thomas, USVI 18. Energy Ruthven, ON 19. Construction St. Thomas, USVI 20. Manufacturer of Organic Products St. Croix, USVI 21. Environmental Services St. Thomas, USVI NO. TYPE OF BUSINESS LOCATION 22. Real Estate St. Thomas, USVI 23. Film Production St. Thomas, USVI 24. Industrial Appliances Tennessee 25. Food Processing Business Venezuela 26. Energy Installation Business Maryland 27. Hotel St. Croix, USVI 28. Designated Services Business Cincinnati, Ohio 29. Submarine Business St. Thomas, USVI 30. Electrical Plants Propane Generation St. Croix, USVI 31. Finance/Banking Virginia 32. Call Center Florida 33. Ice Cream Manufacturing St. Thomas, USVI 34. Hospitality/Bed & Breakfast Missouri 35. Marine Sanitation St. Thomas, USVI 36. Broker & Sales California 37. Call Center Texas 38. Dairy/Juice Plant Facility St. Croix, USVI 39. Recycling Industry Puerto Rico & US 40. Software New Jersey 41. Management & Real Estate Development Services Miami, FL 42. Manufacturing Orthotics St. Croix, USVI 43. Risk Management/Business Development Washington, DC 44. Power Generation Project Development Pittsburg, PA 45. Wines & Spirits Dallas, TX 46. Hotel St. Croix, USVI 47. Brewery St. Croix, USVI 48. Manufacturing New York, NY 49. Machinery New York 50. Call Center St. Croix, USVI VIEDC APPLICATIONS DIVISION, cont. TABLE 8: VIEDC Business Inquiries, cont. 28 29 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Eligible Suppliers Program A total of 22 Eligible Supplier applications were processed from October 1, 2016 to September 30, 2017. Of the 22, eighteen (18) were approved, three (3) were denied and one (1) is pending action. TABLE 9: VIEDC Eligible Suppliers - Application Status NO. DATE APPLICATION RECEIVED NAME OF COMPANY BUSINESS LOCATION STATUS as of 9/30/2017 1. 10/12/2016 Atlantic Maintenance & Trucking Services, Inc. St. Croix Approved 2. 10/12/2016 Kim Warrell dba All American Concierge St. Thomas Approved 3. 10/24/2016 Island Analytics & Marketing, LLC St. Thomas Denied 4. 11/2/2016 Synergy Fitness & Wellness Center St. Thomas Approved 5. 11/14/2016 Reach Communication LLC St. Croix Approved 6. 11/1/2016 Keirsten Peterson dba Sampson House St. Croix Approved 7. 12/5/2016 Olympic Rent-A-Car St. Croix Approved 8. 12/16/2016 Sunshine Shopping Center, Inc. St. Croix Approved 9. 1/19/2017 Eleven Construction, LLC St. Croix Approved 10. 2/8/2017 KSBW, LLC d/b/a Blue Mountain Water St. Croix Approved 11. 3/22/2017 Pat Construction/P.G. Electric, LLC St. Croix Approved 12. 4/10/2017 Cutting Edge Construction, Inc. St. John Approved 13. 5/12/2017 Air Ambulance, Inc. dba AERO MD St. Thomas Approved 14. 5/25/2017 Michelle R. Maccio dba Maccio Financial St. John Approved 15. 6/5/2017 Independent Sea Tours, LLC St. Thomas Approved 16. 6/6/2017 Elan Solutions, Inc. St. Thomas Denied 17. 7/10/2017 Tropitech Solutions, LLC St. Croix Approved 18. 7/27/2017 Robert Kassner dba Above & Below Marine Services St. Thomas Approved 19. 8/9/2017 The Allanonyx Group, LLC dba Edge 2 Edge Landscaping St. John Approved 20. 8/14/2017 Raquel John-Baptiste dba RJB Bookkeeping St. Thomas Approved 21. 8/17/2017 St. Clair Edison Goodwin, Mark B. Goodwin dba ABS Printing St. Croix Pending 22. 9/26/2017 Century Wealth Advisors, LLC St. Thomas Denied VIEDC APPLICATIONS DIVISION, cont. Other Applications Division Activities • April 19 & 20, 2017 - VIEDC Practitioners Forum & Meet & Greet • May 27-28, 2017 – Participation in Agricultural Fair or Agrifest 2017 • May 30, 2017 – Participation in Women’s’ Empowerment Conference • August 29 & 31, 2017 – VIEDC Beneficiary Summit & 45th VIEDC Anniversary 0 5 10 15 20 25 30 35 40 FY 15 FY 16 FY 17 Received Approved Denied Pending Withdrawn/ Closed ELIGIBLE SUPPLIERS Eligible Suppliers 31 USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org The purpose of the VIEDC Compliance Divi- sion is to promote compliance with Economic Development Program Law, Rules and Regula- tions, and the beneficiary’s certificate of bene- fits. This entity provides two services: 1) audit (assurance services) and 2) compliance (ethics) which supports the vision of making compliance under this program commonplace. The VIEDC Compliance Division ensures the integrity of the VIEDC Economic Development Tax Incen- tive Program through a compliance review pro- cess and reports its findings to the VIEDC Board. Funds derived from any assessed penalties for non-compliance with program requirements by a beneficiary may be used to support education, workforce development, and training programs within the Territory. The integrity of the VIEDC Economic Develop- ment Tax Incentive Program is of great value and importance, more so as we continue to serve in the best interest of the U.S. Virgin Islands, its residents and business community. Through the work of VIEDC Compliance Division staff, the activities of beneficiaries under the VIEDC Eco- nomic Development Tax Incentive Program are not only monitored to help ensure our beneficia- ries comply with the requirements of this pro- gram, but it is an opportunity to build relation- ships with our beneficiaries who are considered to be our partners for economic development within our Territory. This report is based on 67 active Beneficiaries receiving Virgin Islands Economic Develop- ment Commission Benefits through the VIEDC Economic Development Tax Incentive Program in the U.S. Virgin Islands. VIEDC COMPLIANCE DIVISION Compliance Reviews: The Division of Compliance completed 30 compliance reports within fiscal year FY 2017. Twenty-two (22) in the St. Thomas-St. John District and eight (8) in the St. Croix District. TABLE10: Compliance Reviews NO. BENEFICIARY DISTRICT 1. Fintrac, Inc. St. Thomas-St John 2. Virgin Islands Paving, Inc. St. Croix 3. Master Capital Management, LLC St. Croix 4. MCS, LLLP St. Thomas-St. John 5. White Bay Group USVI, LLLP St. Thomas-St. John 6. Margaritaville Vacation Club by Wyndham, Inc. St. Thomas-St. John 7. Feddersen Design, LLC St. Thomas-St. John 8. CBI Acquisitions, LLC St. Thomas-St. John 9. Grapetree Shores, Inc. d/b/a Divi Carina Bay Resort St. Croix 10. St. Croix Financial Center, Inc. St. Croix 11. Concodia Campgrounds, Inc. St. Thomas-St. John 12. Subbase Drydock, Inc. St. Thomas-St. John 13. Tecoma Asset Management, LLC St. Thomas-St. John 14. IGY-AYH St. Thomas Holdings, LLC St. Thomas-St. John 15. IGY-AYH St. Thomas Holdings, LLC St. Thomas-St. John 16. Coral World, Inc. St. Thomas-St. John 17. Coral World, Inc. St. Thomas-St. John 18. Gold Coast Yachts, Inc. St. Croix 19. Greenleaf VI, Inc. St. Croix 20. Dowson Holding Company, Inc. St. Thomas-St. John 21. Yacht Haven USVI, LLC St. Thomas-St. John 22. Caribbean Reservations, Inc. St. Thomas-St John 23. Pelican Cove Investments, LLC St. Croix 24. Heavy Materials, LLC St. Thomas-St. John 25. HealthQuest, LLC St. Croix 26. St. Thomas Healthcare Management, Inc. St. Thomas-St. John 27. Westin St. John Hotel Company, Inc. St. Thomas-St. John 28. Westin St. John Hotel Company, Inc. St. Thomas-St. John 29. MCS, LLLP St. Thomas-St. John 30. Cornerstone Strategies, LP St. Thomas-St John Note: Two compliance reviews were conducted for IGY-AYH St. Thomas Holdings, LLC, Coral World, Inc., and Westin St. John Hotel Company, Inc., based on an overlap in their certificates of benefits. COMPLIANCE 30 USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org 32 33 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Certificates Issued/Orientations: During FY 2017, eleven (11) certificates were received, processed and executed. Seven (7) certificates were executed in the St. Thomas-St. John District and four (4) in the St. Croix District. TABLE 11: Certificates Issued/Orientations NO. BENEFICIARY DISTRICT DATE 1. Tropico Management, LP St. Croix 1-20-2017 2. PBG Corporation d/b/a/ Phantasea Tropical Botanical Garden St. Thomas-St. John 5-15-2017 3. Alpha Mortgage Advisors Inc. St. Thomas-St. John 2-15-2017 4. Perpetual Motion Management, LLC St. Thomas-St. John 2-27-2017 5. CD Paradise Holdings, LLLP St. Thomas-St. John 4-11-2017 6. Prosperitas Investment Management, LLLP St. Thomas-St. John 4-11-2017 7. Caribbean Cinema of St. Croix, Inc. St. Croix 5-19-2017 8. Amalie Global, Inc. St. Thomas- St. John 8-8-2017 9. Territory East Asset Management, LLC St. Croix 6-16-2017 10. Valance Co. St. Croix 9-18-2017 11. Impact technologies VI, Inc. St. Thomas-St John 7-21-2017 Site Visits During FY 2017, 18 site visits were conducted; 15 in the St. Thomas-St. John District and three (3) in the St. Croix District. TABLE 12: Site Visits NO. BENEFICIARY DISTRICT DATE 1. Westin St. John Hotel Company, Inc. St. Thomas-St. John 10-25-2016 2. Gateway Global Management, LLC St. Thomas-St. John 10-26-2016 3. MCS, LLLP St. Thomas-St. John 10-26-2016 4. Margaritaville Vacation Club by Wyndham, Inc. St. Thomas-St. John 11-2-2016 5. IGY-AYH St. Thomas Holdings, LLC St. Thomas-St. John 1-11-2017 6. CBI Acquisitions, LLC St. Thomas-St. John 1-27-2017 7. IGY-AYH St. Thomas Holdings, LLC St. Thomas-St. John 2-27-2017 8. Subbase Drydock, Inc. St. Thomas-St. John 3-8-2017 9. Coral World VI, Inc. St. Thomas-St. John 3-10-2017 10. Coral World VI, Inc. St. Thomas-St. John 3-22-2017 11. Tecoma Asset Management, LLC St. Thomas-St. John 3-30-2017 12. Margaritaville Vacation Club by Wyndham, Inc. St. Thomas-St. John 4-25-2017 13. Greenleaf VI II, Inc. St. Croix 5-8-2017 14. Heavy Materials, LLC St. Thomas-St. John 5-12-2017 15. Atlantic Industries, Inc. St. Croix 6-19-2017 16. United Electronic Industries Services, Inc. St. Thomas-St. John 6-19-2017 17. Harborside Corporation d/b/a Bolongo Bay Resort St. Thomas-St. John 7-12-2017 18. Caribbean Reservations, Inc. St. Croix 7-20-2017 VIEDC COMPLIANCE, cont. Site Visits 18 34 35 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Board Actions: During FY 2017, 32 petitions / reports were prepared for presentation to the VIEDC Governing Board for deliberation; 23 in the St. Thomas-St. John District and nine (9) in the St. Croix District. TABLE 13: Board Actions NO. BENEFICIARY DISTRICT 1. JH Capital VI, Inc. St. Thomas-St. John 2. OSON VI, LLC St Thomas-St. John 3. JH Capital VI, Inc. St. Thomas-St. John 4. OSON VI, LLC St. Thomas-St. John 5. Tramway, a VI Joint Venture St. Thomas-St. John 6. American Management Solutions, LLC St. Croix 7. CI USVI, LLC St. Thomas-St. John 8. Diam Management, Inc. St. Croix 9. Hampden Watch Company, Inc. St. Croix 10. St. Croix Renaissance Group, LLLP St. Croix 11. Cornerstone Strategies, LP St. Thomas-St. John 12. Flying Fish Group, LLC St. Croix 13. CI USVI, LLC St. Thomas-St. John 14. Feddersen Design, LLC St. Thomas-St. John 15. White Bay Group USVI, LLLP St. Thomas-St. John 16. Tramway a VI Joint Venture St. Thomas-St. John 17. CBI Acquisitions, LLC St. Thomas-St. John 18. Healthquest, Inc. St. Croix 19. St. Croix Renaissance Group, LLLP St. Croix 20. Grapetree Shores, Inc. St. Croix 21. White Bay Group USVI, LLLP St. Thomas-St. John 22. Auven Therapeutics Management, LLLP St. Thomas-St. John 23. Real Impact Corporation St. Thomas-St. John 24. White Bay Group USVI, LLLP St. Thomas-St. John 25. Healthquest, LLC St. Croix VIEDC COMPLIANCE, cont. NO. BENEFICIARY DISTRICT 26. Real Impact Corporation St. Thomas-St. John 27. White Bay Group USVI, LLLP St. Thomas-St. John 28. Healthquest, LLC St Thomas-St. John 29. Auven Therapeutics Management, LLLP St. Thomas-St. John 30. Concordia Campgrounds, Inc. St. Thomas-St. John 31. IGY-AYH St. Thomas Holdings, LLC St. Thomas-St. John 32. SubBase DryDock, Inc. St. Thomas-St. John USVI Lt. Governor Osbert Potter (center), joins Wayne L. Biggs, Jr. USVIEDA Acting Chief Executive Offi- cer (left); and Andrew Clutz, USVIEDA marketing consultant at the 2017 VIEDC Practitioner's Forum and AfterHours Meet & Greet. This event was held at Frenchman's Reef and Morning Star Marriott Beach Resort on St. Thomas, USVI on April 19. -Photo by Celina D. Morris/USVIEDA The 2017 VIEDC Practitioner's Forum and After- Hours Meet & Greet at Frenchman's Reef and Morn- ing Star Marriott Beach Resort on St. Thomas, USVI. -Photo by Celina D. Morris/USVIEDA Petitions/Reports for Board Actions 36 37 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org VIEDC COMPLIANCE, cont. Petitions/Reports for Board Actions - VIEDC Division of Compliance Collections: In FY 2017, the Division of Compliance collected fees and settlements in the total amount of $895.387.66. TABLE 14: Fee Collections and Settlement Applications NO. ACCOUNT COLLECTION 1. Activation Fees $ 21,000.00 2. Annual Compliance Fees 524,900.00 3. Non-Compliance Fees 141,522.00 4. Late-Reporting Fees 2,965.66 5. Settlement Agreements 205,000.00 Total $ 895,387.66 Other Compliance Division Activities: • October 3, 2016: Latoya Martin hired as a VIEDC Compliance officer. • November 7, 2016: Vanessa Fahie hired as a contract VIEDC Compliance officer. • November 14, 2016: Kimberlee Smith hired as a VIEDC Compliance officer. • November 16, 2016: Attended, and presented at the USVIEDA Board Retreat. During this period the Compliance Division ramped up the “fast track” (expedited compliance process) • April 19 and 20, 2017: Held Practitioners Forums and Afterhours Meet and Greet on St. Thomas and St. Croix, respectively. • Commence planning for the VIEDC Beneficiary Summit and 45th Anniversary Event sched- uled for August 29th and September 1, 2017 in St. Thomas and St. Croix respectively. • Continued review of the VIEDC Compliance Handbook. • Received proposal from consultant regarding the completion of the Division of Compliance Database. • August 30 through 31, 2017: Beneficiary Summits held on St. Thomas at Sugar Bay Resort and Spa and at Carambola Beach Resort on St. Croix, respectively. Collected in Compliance Fees $524,900 “The USVIEDA intends to facilitate opportunities that would foster the economic recovery and growth of the USVI” - USVIEDA Acting CEO Wayne L. Biggs, Jr. 39 USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org VIRGIN ISLANDS DEVELOPMENT PARK CORPORATION “Committed to Providing Affordable Workspaces” The Virgin Islands Economic Development Park Corporation (EDPC), formerly known as the In- dustrial Park Development Corporation (IPDC), 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 Au- thority. 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 Vir- gin Islands Industrial Park on St. Thomas. The EDPC is solely funded by rental income generat- ed from the tenants of the industrial parks. WILLIAM D. ROEBUCK INDUSTRIAL PARK The William D. Roebuck Industrial Park, located on St. Croix between the historic towns of Chris- tiansted and Frederiksted, is the largest of the two individual parks. Situated on approximate- ly 24 acres of property owned by the Virgin Is- lands Port Authority, this park consists of four adjacent buildings totaling 158,000 square feet of commercial space. As of the end of fiscal year 2017, 80 percent of the industrial park is occu- pied by a variety of public and private entities. Two tenants are beneficiaries of the U.S. Virgin Islands Economic Development Program that is administered in the U.S. Virgin Islands by the Economic Development Commission: Ocwen Mortgage Servicing Co. and Gold Coast Yachts. Other entities, which is a mix of local and feder- al government agencies and private businesses, also occupying space at this park include: Virgin Islands Next Generation Network (ViNGN), the V.I. Economic Development Park Corporation (EDPC), the Federal Emergency Management Administration (FEMA), the Virgin Islands Bu- reau of Corrections and the V.I. Department of Sports Parks and Recreation, Leatherback Brew- ing Co., and Farmpod. 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 im- provement projects for the park such as the En- ergy Retrofit Project, the Micro-grid Project, the Building No.1 Parking Lot Paving Project and the Park Entrance Renovation Project. VIRGIN ISLANDS INDUSTRIAL PARK The Virgin Islands Industrial Park on St. Thom- as, which consists of 20,000 square feet of com- mercial 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. At the end of fiscal year 2017, 100 per- cent of the total commercial space at the park remained occupied by four businesses: Unit- ed Electronics Industrial Services, LLC (UEIS); Billy D’s Tees, Ergenics, Inc. and Alliance Data Services. Upcoming Projects: We are also looking forward to upcoming capital improvement projects for the park on St. Thom- as such as the Landscaping & Front Beautifica- tion Project, the Micro-grid project and the Park Entrance Renovation Project. In addition to the aforementioned properties, the EDPC also owns the building that houses the USVIEDA’s headquarters on St. Croix, which is located at No. 4 King Street in Frederiksted. The building is known as the Old Flemming Building that was purchased in 2002. We have completed 50 percent of the planned beautification projects for the Frederiksted offices which include, but are not limited to, repainting the building’s ex- terior and an expectancy to continue to do so as funds are available. 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 insur- ance partners and FEMA, the EDPC is looking forward to making necessary repairs as well as making the facilities more hurricane resistant. DEVELOPMENT PARK 38 USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org 0% 10% 20% 30% 40% 50% 60% 70% 80% FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Occupancy 59% 65% 61% 49% 80% Vacancy 41% 35% 39% 51% 20% VI Economic Development Park Corpora5on William D. Roebuck Industrial Park St. Croix VI Economic Development Park Corporation William D. Roebuck Industrial Park St. Croix 0% 20% 40% 60% 80% 100% FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Occupancy 50% 53% 75% 100% 100% Vacancy 50% 47% 25% 0% 0% VI Economic Development Park Corpora5on Virgin Islands Industrial Park St. Thomas VI Economic Development Park Corporation Virgin Islands Industrial Park St. Thomas 41 USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org “Committed to Supporting Our Small and Medium-size Businesses” The Economic Development Bank (EDB) serves to provide business loans and offer technical and managerial assistance to small and medium- sized local businesses to enhance employment opportunities and economic growth in the U.S. Virgin Islands. The EDB also assists small- business owners by referring them to the Virgin Islands Small Business Development Center (V.I. SBDC), which provides business counseling, coaching, and instructions on how to prepare business plans. Loan Payments In fiscal year (FY) 2016, loan payments totaled $975,816.31. At the close of the FY on September 30, 2017, the EDB collected loan payments totaling $1,347,688.23. The FY 2017 payments increased by 38 percent, or $371,871.92, over FY 2016. The improvement in collections is due to increased collection efforts and the utilization of 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 loan delinquency rate. Through our partnership with the Virgin Islands Housing Finance Authority, the EDB continues to administer a revolving line of credit which is currently being used to support the construction and subsequent sale of six homes on St. Croix. The sixth home has been constructed and is pending certification and sale. Loan Transactions As of September 30, 2017, loan transactions totaled $875,000 compared to $1,625,762 in FY 2016. While over 159 inquiries regarding financing were received from potential and existing business owners, the majority of businesses remain in the initial stages of business planning. Also, EDB’s focus in 2017 The USVIEDA hosts a State Small Business Credit Initiative (SSBCI) Conference via tele-video on April 21, 2017 in the William D. Roebuck Industrial Park Conference Room on St. Croix above, VI. This tele-video conference was held between St. Croix and the USVIEDA conference room on St. Thomas. –Submitted photo was on managing the delinquencies, which has yielded good results thus far. Loan Delinquencies During 2017, the EDB staff concentrated their efforts on loan restructuring, modifications, and reclassifications which contributed to the significant reduction in the loan delinquency rate in 2017 to 47.0 percent when compared to the rate of 77.0 percent in 2016. The EDB staff continues to aggressively collect on delinquent loans with the strong support of external legal counsel and collection agencies. Also during FY 2017, the EDB staff successfully realized on real estate collateral and exercised its first priority position over business assets in support of delinquent debt. 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 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, the U.S. 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, to be administered by the EDB, an entity of the U.S. Virgin Islands Economic Development Authority (USVIEDA). 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 economic needs of the territory, three (3) specific loan programs were selected: Collateral Support Program; Credit The USVIEDA hosts a State Small Business Credit Initiative Conference (SSBCI) via tele-video on April 21, 2017 in the USVI Economic Development Authority Conference Room on St. Thomas above, VI . This tele-video conference was held between St. Thomas and the William D. Roebuck Industrial Park Conference room on St. Croix. -Photo by Celina D. Morris/USVIEDA DEVELOPMENT BANK 40 USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org ECONOMIC DEVELOPMENT BANK 42 43 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org 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. Banks participating in the SSBCI include Merchants Commercial Bank, First Bank, Bank of Nova Scotia, and Banco Popular de Puerto Rico. As of September 30, 2017, the USVIEDA approved 38 loans to the participating banks for a total SSBCI guarantee support of $11,130,292 of which a total amount of $10,256,697 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 of $10,256,697 have the potential of creating 185 jobs and retaining 414 jobs. The jobs that represent a broad cross- sector of industry types, and the core of the U.S. Virgin Islands economy include health, tourism, hospitality, construction, and retail. SSBCI participating banks in turn approved approximately $25,411,390 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 $2,971,214 remains available for the lenders to use. Post-Disaster Relief Revolving Loan Fund The USVIEDA ended its contract with the U.S. Economic Development Administration in June 2017 concerning the Post-Disaster Relief Revolving Loan Fund. The contract sought to assist small-business owners whose businesses were affected by Tropical Storms Otto and Tomas in 2010. The contract was not consummated until three years after the storms and efforts to identify and qualify businesses proved fruitless. Sun Power Energy Loan Program Phase II – Virgin Islands Energy Office (VIEO), as partner Discussions are well underway to implement the second phase of this program. A memorandum of understanding, processes, and procedures is being finalized. The implementation of Phase II with the VIEO office is anticipated during FY 2018. There are 489 loans remaining out of 818 loans with a combined balance of $243,323 to be paid off from Phase I. DEVELOPMENT BANK, cont. Cusa Holloway, incubator program manager (far left), talks with Kinza Gottlieb (center) and Leida Isaac about programs and services offered by the USVIEDA at the USVIEDA booth table during the 2017 Women Striving for Success, Inc. Conference This conference was held on July 21, 2017 at Frenchman’s Reef and Morning Star Marriott Beach Resort on St. Thomas, USVI. -Photo by Celina D. Morris/USVIEDA Other Development Bank Activities • Staff training in customer service, financial and managerial accounting, the use of Portfol software program, and SSBCI webinars • SSBCI conference held locally for all lenders, representatives from the U.S. Small Business Administration (U.S. SBA), V.I. Small Business Development Center, and the U.S. Department of Agriculture. James Clark, CFA, assistant secretary for Banking and Finance from the Office of Legislative Affairs; and Jeffrey Stout, director of the State Small Business Credit Initiative from the Treasury in Washington, DC; were the guest speakers at this conference. • Ongoing visits to small businesses within the community (St. Croix, St. Thomas and St. John) • Participation in the St. Croix Agricultural Fair and Women’s Empowerment Conference on St. Thomas • Participation in the annual Small Business Week activities in partnership with the V.I. SBDC • Conducted monthly presentations at V.I. SBDC centers on St. Thomas and St. Croix in an effort to maintain and increase public awareness about the programs and services at the EDB • Began outreach initiatives to clients and the public after the impact of Hurricanes Irma and Maria in September 2017 by canvassing (door-to-door) through the business community with the Incubator Program Manager, Public Affairs Specialist from the U.S. Small Business Administration (U.S. SBA), and the representatives of the Federal Emergency Management Administration (FEMA). The EDB also organized a meeting with these representatives to reach both residential and business community members to inform them about the services that are available via EDB, FEMA, U.S. SBA, USDA, U.S. Economic Development Administration (U.S. EDA) and the V.I. SBDC. The EDB staff also participated in several speaking engagements with Virgin Islands Department of Property and Procurement on obtaining disaster-related contracts. These seminars included representatives from the USVIEDA (EDC and EDB), FEMA, U.S. SBA, and the V.I. SBDC. Potential Jobs to be Created 185 Potential Jobs to be Retained 414 $10.1M Committed or Expended in SSBCI Funds Increase in Loan Payments 38% Reduction in Loan Deliquencies 30% in Loan Collections $1.3M Economic Development Bank SSBCI Program Economic Development Bank Loan Programs 44 45 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org A TRANSITIONAL - TRANSFORMATIVE YEAR “Committed to Community Development” A core mandate of the Enterprise Zone Program is to provide the necessary means to assist local communities, their residents, and the private sector in creating the proper economic and social environment to induce the investment of private resources in productive business enterprises located in severely distressed enterprise zones and to provide jobs for the residents of such areas. ENTERPRISE ZONE COMMISSION and fulfill those needs by utilizing our unique cultural currency. Neighborhood and Community Plans In fiscal year 2017, the most long-term transformative activity in this pillar has been the commencement of the implementation of the Neighborhood and Community Plans of the Enterprise Zones. The Commission is part of the team that has worked to forge the collaboration between Denmark’s BYFO (Association of Owners of Historic Houses in Denmark) and the People of the U.S. Virgin Three options for the restoration of the Academy of Architecture & Cultural Heritage $20M Transformative Anchor Revitalization Islands. The intent of this project is for BYFO to donate $20 million to revitalize two sites located in the enterprise zones of Christiansted on St. Croix and Garden Street-Upstreet on St. Thomas. The Christiansted Community Plan seeks to transform Christiansted into a college town and the donation of $10 million will revitalize the Old Barracks Yard on Hospital Street in Christiansted to become the home of the Academy of Architecture, Building Crafts and Cultural Heritage. In the Garden Street-Upstreet Enterprise Zone, it is anticipated that $10 million will be used to create 10 Revitalization Projects a School of the Arts and Conservation and a National Museum and Cultural Center on the footprint of the buildings from the J. Antonio Jarvis School to the old Apollo Theater site on Hospital Gade on St. Thomas. Both of these anchor projects have been identified as the catalyst for positive community development in their respective zones. Tax Benefits Program: Savanne-Downstreet Neighborhood Plan To offer every economic development tool that is available, the Commission has approved the final community plan of the Commission, the Savanne-Downstreet Neighborhood Plan, which triggered the start of the tax exemption benefits for that community. 0 10 20 30 40 50 60 2000 2010 2014 Poverty on the Decline 2000-2014 ez total vi Over the past 18 years of its existence, the Enterprise Zone Commission (hereafter “the Commission”) has experienced significant changes to its administrative and functional processes to accomplish the goals of its mandate. We have established community stakeholders, studied best practices for revitalization, created specific programs that are targeted towards resolving our challenges, developed plans based on the community charrettes, determined the Commission’s benchmarks for self-evaluation and monitored our progress along the way. Although it is not immediately evident in our communities today, we have improved from the Commission’s early beginnings. The 2000 U.S. Census indicated that in our most distressed neighborhood, 54.9 percent of people were living below the level of poverty, and according to the 2010 U.S. Census, reports indicated a reduction to 40.5 percent. This is a key indicator of poverty on the decline; however, there are others such as crime, educational level, unemployment and building starts. There is a clear improvement, but there is still a long way to go. In April 2014, the Commission adopted a five-year Strategic Plan for the Commission. It has provided guidance on focus and programming. Within the Strategic Plan, there are three pillars: Offerings & Opportunities, Readiness and Resilience, and Innovation and Enterprise. Pillar I: Offerings & Opportunities This pillar directs the Commission’s team to identify the strengths and needs of each enterprise zone in the U.S. Virgin Islands and assist in identifying the potential opportunities to use those strengths ENTERPRISE ZONE 46 47 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Scrape, Paint and Rejuvenate & Board-up Programs One of the enterprise zones’ strengths is the existing historic and well-built infrastructure. With a little care, these structures can continue to be occupied as homes or be used for commercial activities. The Commission received grants and donations to Revitalize; Scrape, Paint and Rejuvenate; or Board up buildings throughout the enterprise zones. In the last fiscal year, the EZC began and/or completed 10 projects within the enterprise zones. Although these projects only represent a $132,000 in direct investment into the community, there is definitely a multiplier effect in others that involves community members cleaning and fixing their own properties and buildings that were previously distressed and are now being fully occupied. Rapid Damage Assessment Survey Issues of ownership, occupancy and the physical status of buildings are always changing. In order to clearly identify our enterprise zone weaknesses, surveys of an area in an enterprise zone are taken at least every three years. Due to the impact of Hurricanes Irma and Maria in September 2017, both Category 5 storms, a special Rapid Damage Assessment Survey was taken and the preliminary results revealed several noted points. With the exception of one edifice, none of the buildings that were boarded or revitalized by the EZC were damaged by the storms. The Frederiksted Enterprise Zone, which has the most building vacancies amongst the enterprise zones, received the most damage. And although the survey was a 250 Moderately to Severely Damaged Buildings ENTERPRISE ZONE COMMISSION, cont. quick assessment, it appears that much of the repairs needed to fix the buildings exceeded the financial means of the people who occupy those buildings. Pillar II: Readiness and Resilience The Strategic Plan also places an emphasis on Readiness and Resilience within the enterprise zones which mandates that the EZC team seeks to strengthen the zone’s readiness for social and economic challenges, and natural and man- made disasters; and ensure the community’s ability to rebound quickly. 10 Gentlemen of EntrepreNow EntrepreNow Program Community develop-ment makes a difference. Perhaps the best example of this, although its benefits cannot be easily quantified, is the EntrepreNow program. This six-week entrepreneurship program, a collaboration among the US Virgin Islands Economic Development Authority, the Virgin Islands Office of the Public Defender, and the non-profit organization Youth Arise, Inc., seeks to provide opportunities for young men from our communities to think about their professional future and to equip them with the skills sets to accomplish their professional goals. During this program, we also spent time discussing life skills with these young men to ensure success in their pursuit of achieving their personal goals. This year, ten students graduated from the EntrepreNow Program: five on St. Thomas (bottom photo, left to right): Jamari Gardner, Carlos Arno, Wayne Burke, Hector Sankitts, Jr.; and Jevante Terrell, and five on St. Croix (top photo left to right) - Kevon Barclette, Jevon Thomas, Claudius Abraham, Jr., Shirmoy O’Garro and Kyri Hughes. We will continue to track these young men throughout the school year and beyond. We have already seen success and transformation in the personal lives of some of these young men in relation to their readiness to overcome the social and economic challenges that they will encounter. Technical Assistance Grant Food resilience is critical area to communities that are subject to disasters…meaning everyone. Perhaps the most significant grant is the Commission’s application for a Technical Assistance grant that provides funds to determine the feasibility of establishing food processing plants in the Territory. This is being done by the Commission as part of the effort to increase our abilities in the area of food resilience. This year, the Commission received a grant to investigate the feasibility of a food processing plant that could be the catalyst for community development of a zone like Frederiksted which seeks to incentivize the culinary industry. Or Savanne-Downstreet in which the community has ideas to incentivize producers and retailers of VI cultural products. 48 49 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Pillar III: Innovation and Enterprise The final pillar of the plan is to encourage the Commission’s team to focus on Innovation and Enterprise to encourage, motivate and incentivize business activity through the use of every available economic development tool to assist in the development, growth and support of entrepreneurial and enterprising efforts. B2B Event: Small businesses are critical to the positive growth of the enterprise zones The cultivation and nurturing of these businesses have become benchmarks for the success of the Commission. In order to help these businesses grow, we have focused on product manufacturers in the U.S. Virgin Islands. In this fiscal year, we hosted two Business-to-Business events where we brought together manufacturers and potential retailers in a closed-door event. This fosters direct wholesale activity and encourages our manufacturers to expand their reach. It has been extremely successful, and there is a waiting list for more of these functions. Despite the devastating impact of Hurricanes Irma and Maria in September 2017 - the last month of the USVI’s fiscal year - where approximately 11 percent of the buildings within the St. Thomas enterprise zones and 36 percent of the buildings in the St. Croix enterprise zones had significant damage, the Commission had a very productive year. This Commission received over $450,000 in grants in comparison to $37,000 that was received in the previous fiscal year. These ENTERPRISE ZONE COMMISSION, cont. grants are necessary to assist in rehabilitating buildings and nurturing small businesses within the enterprise zones. Ten revitalization projects are in progress or were completed within fiscal year 2017. In the first quarter of fiscal year 2018, the EZC plans to apply for $5.1 million from the U.S. Department of the Interior and other agencies for other projects. Program Compliance Reports Although the Commission’s focus has been on the expansion of small businesses, construction projects, and youth development initiatives; it is also focusing on the compliance requirements of the program. The EZC completed a total of 40 compliance reports which represents an increase of 265 percent from FY2016. This is attributed to the increase of education and the monitoring of the program. Finally, the Commission did receive four applications in this fiscal year with a projected economic output of $13,303,920 in direct, indirect and induced investments in our communities. The Enterprise Zone Commission continues to provide the necessary means to assist the people and businesses of the enterprise zones in the U.S. Virgin Islands. We have achieved some goals, and in fiscal year 2018 we will redouble our efforts to improve the community even more. Marketing and Public Relations works to promote the important programs and activities delivered by the USVIEDA. Our role is to communicate the USVIEDA value proposition to two distinct audiences: the local community, and VIEDC prospects outside of the Territory. Local Marketing activities promote a wide range of USVIEDA services offered to Virgin Islands residents and businesses to support critical growth of local economy. We also communicate the benefits and positive impact of the VIEDC program to community stakeholders. External Marketing activities promote the Virgin Islands Economic Development Commission Program (VIEDC) to attract external (U.S. and international) corporate investment into the Territory. In short, Marketing and Public Relations provides customized promotional support to each division within the USVIEDA. Marketing Mix Our goal is to position the U.S. Virgin Islands as the best location for businesses in which to invest and grow, whether they are local, national or international businesses. We deploy a range of marketing activities to communicate our value proposition for those at home and abroad through our marketing mix of activities. EXTERNAL MARKETING & PUBLIC RELATIONS Enterprise Zone Commission $450,000 More than $450,000 Received in Grants EXTERNAL MARKETING Communications 50 51 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Product Development – Development or improve­ment of products and services to attract investment and create jobs. Lead Generation – Research, identification and outreach to target companies in relevant industry sectors to introduce and sell the USVI business location solution and secure invest- ment into the Territory. Ambassadors — Leverage the Territory’s key inves- tors as well as business and government leaders to sell the USVI as an ideal investment location through a variety of promotional activities. Events – Participate in a variety of local and state- side events to build awareness of the USVIEDA offering through hosting, sponsorship, speaking and attendance activities to communicate our solutions. Communications – Creation of USVI sales messages that flow through a mix of media channels including: public relations, print, radio, television, digital advertising, social media, email marketing, news releases, website, brochures, and publications. Client Care – Provide first-class business support for prospective investors, existing VIEDC investors and all USVIEDA local clients. External Marketing Activities Despite the loss of key staff during the year, Marketing aimed to maintain the momentum it had built in 2016 with a focus on a set of clear, key objectives that had been set. Our objectives for the year included: • Build a stronger, more proactive marketing organization within the USVIEDA • Fine-tune our marketing programs to drive more return on investment • Increase local awareness of the benefits of USVIEDA programs focused on indigenous businesses • Employ performance measurement and metrics tracking to evaluate programs/ activities • Grow contacts and relationships in the strategic advisory segments such as tax, legal, financial, real estate, etc. • Convert more of the existing prospect and project base into active investments through increased support and multiple levels of communications • Leverage and master an increased number of marketing channels to build awareness about the VIEDC program • Build on the partnership approach with the Virgin Islands Senate, V.I. Department of Tourism, Research and Technology Park, VIEDC Ambassadors, service providers etc. to identify and secure investment across the Territory Product Development The USVIEDA continued to work on the development and enhancement of investment product offerings for the USVI. The primary objective is to develop products and services that will attract more corporate investment into the Territory. Work on these new initiatives is generally in partnership with other government agencies such as the V.I. Department of Tourism; the V.I. Legislature; Lt. Governor’s Office; and the Division of Banking, Insurance and Financial Regulation. During the year, these efforts focused EXTERNAL MARKETING & PR, cont. on the following initiatives: • Film Production – Sustainable Tourism and Arts-Based Revenue Stream (S.T.A.R.S.) Act rules and regulations in partnership with the V.I. Department of Tourism • Hotel/Resort Development – legal amendments • St. Croix Free Trade Zone – fact finding • International Financial Services Entities VIEDC Investment Lead Generation Investment lead generation remained a top priority for attracting corporate investment into the USVI through participation in the VIEDC program. Investment lead generation encompasses a series of activities which include: 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. Below is a summary of the key business sectors that the USVIEDA targeted during the year. During the year, we also screened approximately 10,000 companies across the key sectors identified above. This is done based on a series of programed algorithms to identify companies that have a strong potential for expansion. We communicated with and qualified more than 8,500 companies to determine their interest in the USVI. The communications outreach included introductions to the USVI and the VIEDC program as well as information about our presence at industry events listed in the next section of this report. The objective of this activity is to qualify companies with an interest in the VIEDC program, and begin to build a client relationship focused on a specific investment project. VIEDC Target Business Sectors 52 53 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org VIEDC Investment Promotion Pipeline EXTERNAL MARKETING & PR, cont. VIEDC Beneficiary Summit– St. Thomas & St. Croix – August 2017 Two local events were organized for VIEDC investors and their service provider partners to update them on the VIEDC program as well as USVIEDA activities. This was also an opportunity to celebrate the 45th anniversary of the VIEDC program and recognize key VIEDC companies for their support. External Events Promoting the VIEDC Program Private Wealth - Latin America & Caribbean Forum – Miami, FL – October 2016 The USVIEDA participated in this conference focused on high net worth advisors and money man- agers. The event attracted over 200 key advisors and provided an excellent venue for introducing the VIEDC program. Marketing will expand its presence in 2017 with a sponsorship and exhibit booth. CCAA Caribbean Finance Meeting – Washington, DC – October 2016 This meeting was attended by over 100 key finance advisors and government representatives from around the Caribbean. One of the key themes was foreign direct investment and the challenges many Caribbean nations face due to U.S. government regulations. This places the USVI in a unique and enviable position to attract investment. Network 2017 – Miami, FL – January 2017 The USVIEDA participated in this conference focused on asset management and hedge fund money managers. The event attracted over 400 key advisors and provided an excellent venue for introducing the VIEDC program. Marketing will expand its presence in 2017 with a sponsorship and exhibit booth. Jane Townsend (third person from the right), sales administrator of United Electronic Industries Services (UEIS), accepts a Certificate of Appreciation from the VIEDC for being recognized as an ambassador of the VIEDC Tax Incentive Program.  Ms. Townsend is congratulated (from left to right) by VIEDC Director of Compliance Claude S.M. Gerard; USVIEDA Acting CEO Wayne L. Biggs, Jr.; VIEDC Director of Applications Margarita A. Benjamin; and USVIEDA Board members Eugene Farrell and Haldane Davies, Phd.    –Photo by Celina D. Morris/USVIEDA 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 USVIEDA to showcase and promote the advantages of the Territory directly to our target sectors, companies and business advisors. The USVIEDA 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 sets of VIEDC local meeting events during the year. VIEDC Practitioners Forum – St. Thomas & St. Croix – April 2017 Two events were organized for the local tax attorney and accounting firms on St. Croix and St. Thomas to update them on VIEDC operational procedures and solicit feedback on the program and areas for improvement. In addition, a meet & greet reception was held with local stakeholders from both the public and private sector. 54 55 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Cayman Alternative Investment Summit – Cayman Islands – February 2017 This investment summit was the second in a se- ries of asset management conferences that the USVIEDA committed to attending in 2017. We attended the summit with over 300 attendees and held introductory meetings. Time was also spent benchmarking the investment that has been made by the Cayman government into fi- nancial services infrastructure which now hosts over 10,000 investment funds and a developed services and administration ecosystem. GAIM Ops Conference Cayman Islands – April 2017 This was the third asset management event in the series, and the USVIEDA was a sponsor and exhibitor at the conference that hosted 400 at- tendees from the financial services sector. New and follow-up meetings were held during the event. EXTERNAL MARKETING & PR, cont. SelectUSA Investment Summit Washington, DC – June 2017 The USVIEDA participated in the SelectUSA Investment Summit for a third year as an ex- hibitor. The summit which is attended by over 2,000 international investors, many senior fed- eral officials, and almost every state economic development agency in the U.S. is a key forum to meet with prospect investors and sell the advantages of the USVI. American Bar Association Tax Section Austin TX – September 2017 The USVIEDA sponsored the annual ABA Tax Section meeting which brought together ap- proximately 1,500 of the nation’s leading tax attorneys. As part of the sponsorship, we hosted a breakfast presentation on the VIEDC program and the benefits of operating in the USVI. In ad- dition, we maintained an exhibit booth for three days at the event. 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 advertising creative it developed in 2016. Placements were made in several publications across key VIEDC target segments during the year. • Elite Traveler in January – focused on the private jet/high net worth targets • St. Thomas/St. John Tourist Map – focused on visiting business prospects Picture: (L to R) Wayne L. Biggs, Jr., Acting CEO; and Andrew Clutz, Marketing Consultant, attend the SelectUSA Summit in Washington, DC. –Submitted Photo • Caribbean Tourism Organization – Caribbean Tourism & Hospitality Guide – hotel investment focus • Site Selection Magazine – focused on corporate investors and site selection investors • Business View Caribbean – in cooperation with VINGN and Government House - focused on businesses with an interest in the Caribbean • Major League Baseball All Star Program – focused on business attendees • WTJX Channel 12 – three placements focused on the local audience Marketing Communications 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. • Site Selection Magazine - hosted executive editor and secured an article • CTO – Caribbean Tourism & Hospitality Guide - placed hotel investment content in the bi-annual guide • Business View Caribbean - placed investment promotion information in the digital publication in partnership with Government House and VINGN • Economic Round Table Business Forum Show – participated in the radio show as part of the CCAA Caribbean Economic Forum • GAIM Ops Forum program - placed VIEDC marketing content in the event program VIEDC advertising series promoting the 90% tax exemption Selection of VIEDC advertising placement covers 56 57 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org • Select USA Summit – placed VIEDC marketing content in the event program • American Bar Association Tax Section Summit – placed VIEDC marketing content in the event program • Annual Reports – assisted in coordinating, editing and publishing content for the entity annual reports. Wrote content for External Marketing & PR • Twitter – delivered periodic twitter posts 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 • Investment Promotion Public Relations - Marketing hired a PR firm to focus on U.S.-based promotion in September to initiate new PR campaign in 2018 Marketing Materials 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: • Key VIEDC marketing documents have been translated into Spanish for Latin American prospects • Fact sheets were developed for the Economic Development Park, St. Croix Renaissance Park and the Economic Development Commission • A series of promotional videos were produced for both the local and external • Produced a new brochure called, “An Introduction to the U.S. Virgin Islands: America’s Business Paradise” – which provides key demographics and facts about the Territory Ambassadors The Ambassadors program continues 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 USVIEDA in identifying new prospects and selling the USVI either directly or at events. Investment Success Anticipated impact over the next 5 years employment 88 employees, payroll $4.5 million annually, total investment $19.2 million, total charitable contribution $646,000, total direct and indirect taxes paid $16.8 million. NO. COMPANY NAME TYPE OF APPLICATION CATEGORY TYPE OF BUSINESS 1. PBG Corporation dba Phantasea Tropical Botanical Garden New  Category III Small Business Tourism 2. Prosperitas Investment Management, LLLP New Category IV Financial Services 3. CD Paradise Holdings, LLLP New  Category IV Financial Services 4. Alpha Mortgage Advisors, Inc. New  Category IV Business Management 5. Perpetual Motion Management, LLC New  Category IV Business Management 6. Caribbean Cinemas of St. Croix, Inc. New  Category III Recreation Facility EXTERNAL MARKETING & PR, cont. Brad Lenhart, chief operating officer of Denali Funds, (second from the left) accepts a Certificate of Appreciation from the VIEDC from the VIEDC at the VIEDC Practitioner’s Forum and Afterhours Meet and Greet on St. Croix.  Denali Funds was recognized for being an ambassador of the VIEDC Tax Incentive Program.  Mr. Lenhart is congratulated by USVIEDA Acting CEO Wayne L. Biggs, Jr. (far left); VIEDC Director of Applications Margarita A. Benjamin, and  USVIEDA Board member Eugene Farrell.     –Photo by Celina D. Morris/USVIEDA 58 59 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org NO. COMPANY NAME TYPE OF APPLICATION CATEGORY TYPE OF BUSINESS 7. Liberty Medical Development, LLC New Category III Healthcare Facility 8. Impact Technologies VI, Inc. New  Category IV Financial Services 9. Amalie Global, Inc. New  Category IV Financial Services 10. Sterisil International, LLC New Category II Manufacturer of dental water disinfecting products 11. Global Medchoices Group, LLC New  Category IV Business Management 12. Castle Medical Holding, Inc. New  Category IV Business Management FY 2018 Projected External Marketing Events Below is a list of selected marketing events planned for fiscal year 2018. • Private Wealth- Latin America & Caribbean – Miami, FL – October 2017 • Ft. Lauderdale International Boat Show – Ft. Lauderdale, FL – November 2017 • Economix – New Orleans, LA – December 2017 • Network 2017 – Miami, FL – January 2018 • Puerto Rico Investment Summit – San Juan PR – February 2018 • Cayman Alternative Investment Summit – Cayman Islands – February 2018 • Sea Trade – Ft. Lauderdale, FL – March 2018 • American Bar Association – Washington, DC – May 2018 • Select USA Summit – Washington, DC – June 2018 • International Economic Development Council Annual Meeting – Atlanta, GA – September 2018 • Global Asset Management Conference – Bermuda – September 2018 EXTERNAL MARKETING & PR, cont. INTERNAL MARKETING & PUBLIC RELATIONS MARKETING USVI Airport Advertisements: Proposed the advertisement contract with Clear Channel Airports to promote the USVI Economic Development Tax Incentive Program at the Cyril E. King Airport on St. Thomas and the Henry E. Rohlsen Airport on St. Croix. • According to a Nielsen study, a comprehen- sive consumer marketing study conduct- ed in October 2015 and commissioned by Clear Channel Outdoor Americas, “nearly 60 percent of business and leisure travelers believe that advertising in airports is an in- dicator of high-quality brands and products. And more than three-quarters of business and leisure travelers also indicated that they notice airport digital ads with over one-third of travelers surveyed confirming they have visited a website or used an app to find out more about a product or service they saw advertised inside an airport”. • According to the USVI Annual Tourism In- dicators from the Bureau of Economic Re- search (Air Visitor Arrivals Report), more than 790,000 visitors traveled by air to the USVI in 2016. Several of these visitors to the USVI work for major companies globally, some of whom are site selection consultants and corporate deci- sion makers for these companies that have the potential to become participants of the USVI’s Economic Development Tax Incentive Program. USVIEDA Website: According to Google Analytics Reports for the pe- riod of October 2016 to August 2017, the USVIE- DA website received a total of 27,644 new users from across a maximum of 80 countries. Local Print Advertisements: Print ads were placed in local newspapers in- cluding the Virgin Islands Daily News, St. Croix Avis, and the VI Source to promote the following USVIEDA outreach activities and programs: • USVIEDA Open House held during Agrifest 2017 hosted by the Enterprise Zone Com- mission • Enterprise Zone Commission Open House held during the Virgin Islands Carnival Food Fair on St. Thomas at a local small business, E’s Garden Teahouse and Things. This business, located within the enterprise zone of Garden Street, is also a client of the Economic Development Bank. • Post-Disaster Relief Revolving Loan Pro- gram at the Economic Development Bank • Community viewing and voting of the Sa- vanne-Downstreet Community Plan con- ducted by the Enterprise Zone Commission Local Radio Advertisements: Radio ads were broadcasted on local radio sta- tions including WSTA 1340AM; WVWI AM 1000; WDLV 107.9FM; WSTX 97.0AM; WJKC Isle 95, WVVI 93.5FM, WMNG 104.9FM, Latino 98.3FM, WVIQ Sunny 99.5FM; and WDHP 1620AM to pro- mote USVIEDA outreach activities and programs, INTERNAL MARKETING 60 61 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org including: • Announcement of the USVIEDA as a Neighborhood Champion of Small Busi- ness Saturday (SBS), the Shop Small Ini- tiative in collaboration with SBS founder American Express • Viewing and voting of Savanne-Down- street Community Plan • Live paid broadcast on WSTA 1340AM of the USVIEDA Open House at Agrifest 2017 on St. Croix • Live paid broadcast on WSTA 1340AM of the USVIEDA Open House at E’s Garden Teahouse and Things during Virgin Is- lands Carnival Food Fair on St. Thomas • Broadcasted on WSTA 1340AM, a local ra- dio station on St. Thomas, this feature is a “fun and entertaining short-form radio feature showcasing the moment of inspi- ration of successful entrepreneurs”. • This feature also highlights entrepreneur stories that inform the general public about the innovative minds that pursued patents for inventions that proved to be ev- eryday, lucrative solutions to challenges. Email Marketing: This marketing activity assisted in the targeted promotion of USVIEDA activities held in fiscal year 2017. Banner Design: Designed a new local USVIEDA hanging banner which had its inaugural display at the USVIEDA exhibitor booth during Agrifest 2017, an annual agricultural event held on St. Croix. This banner concisely displayed the benefits of the USVIEDA programs as solutions to the challenges experi- enced by USVI businesses and residents. Public Relations Public relations activities continue to remain an integral part of not only shaping how an organi- zation is perceived; but helps to build relation- ships and maintain connections with the public while keeping the local community informed about an organization’s initiatives. Media Mentions Success In fiscal year 2017, a total of at least 32 news stories and pre-event announcements combined INTERNAL MARKETING & PR, cont. were published and televised as a result of 16 news releases and media advisories from the USVIEDA. The news releases were also posted onto the USVIEDA’s website. These news releas- es and media advisories contributed to several local positive media mentions in print and elec- tronic mediums. Newspaper Stories • 27 positive media mentions published as articles in local and regional newspapers • 3 pre-event announcements • Published in local newspapers: St. Croix Avis, VI Source, and the VI Consortium • Published in regional online newspaper: Caribbean News Now! Television News Stories • 2 positive news stories broadcasted on CBS TV2: Business2Business Event – St. Thomas and St. Croix, USVI This event was hosted by the Enterprise Zone Commission in October 2016 at the USVIEDA office on St. Thomas and at the William D. Roebuck Industrial Park on St. Croix. This story was aired on CBS TV2 on October 31, 2016. 2017 EntrepreNow Graduation Cere- mony – St. Thomas and St. Croix, USVI Hosted by the Enterprise Zone Com- mission, this graduation ceremony took place in August 2017. This is the second year the EntrepreNow program was held in the USVI. Highlights from the graduation ceremony on St. Thom- as were aired on CBS TV2 on August 7, 2017. VI Access Channel To inform local audiences who were unable to attend or participate in USVIEDA outreach activ- ities, the USVIEDA also engaged the services of the VI government Access Channel to highlight some of these events which were broadcasted on rotation on Channels 6 and 10 in the USVI. Radio Interviews Secured Recognizing that “Americans spend 87 percent of their AM/FM radio listening by tuning in to their three favorite stations” (2017 Nielsen Total Audience Report, 2nd quarter). AM/FM radio “still reaches 93% of U.S. adults”. The USVIE- DA continued to secure and schedule radio in- terviews on local radio programs for USVIEDA representatives to inform the general public or tar- geted audiences about their respective local events and initiatives, or their client success stories: • “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 Wil- liams” radio show on 1620AM WDHP • “In Da Morning with Sheldon Turn- bull” radio show on WDLV 107.9FM • “The Morning Mix with Liston Davis” radio show on WVWI AM 1000 USVIEDA: Focus on the Marketplace Ra- dio Show: The USVIEDA conducted an in- terview in October 2016 on WSTA 1340AM during its radio program, “USVIEDA: Focus on the Marketplace”, with U.S. Virgin Island- er Mr. Alison “Allie” Petrus, business owner of Petrus Gas and Petrus Plaza, and franchi- see of Sbarros and Subway. Mr. Petrus is also an Economic Development SSBCI client. USVIEDA staff members Senior Maintenance Worker Ed- ward Berry; VI Economic Development Commission Di- rector of Applications, Margarita A. Benjamin; Economic Development Bank Loan Officer and SSBCI Coordinator, Diane DaCosta; Enterprise Zone Commission Director, Nadine T. Marchena Kean; Enterprise Zone Specialist Ra- heem Smith; Executive Assistant to the Acting CEO Celina Morris; EDB Director of Lending Sharmane Brookes; and Park Superintendent Mark Finch take time for a break to enjoy Agrifest after providing the event’s attendees with information about USVIEDA programs and services. -submitted photo 62 63 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org News Stories: USVIEDA Topics Covered by Local Media State Small Business Credit Initiative (SSB- CI) Program – October 2016 – St. Thomas and St. Croix, USVI • In October 2011, the USVI was awarded $13.1 million from the U.S. Department of the Treasury as a participating state under the SS- BCI program, a program that was established by the Small Business Jobs Act of 2010 to help local, small businesses get access to funding through local banks participating in the SSB- CI program. • The U.S. Department of the Treasury award- ed $4.4 million, the final disbursement of three one-third increments of funding under the SSBCI Program in the USVI. The Honor- able Kenneth E. Mapp, Governor of the USVI, designated the USVIEDA to administer this SSBCI program in the Territory. INTERNAL MARKETING & PR, cont. USVIEDA Public Hearings and Governing Board Decision Meetings – October 2016 through August 2017 – St. Thomas and St. Croix, USVI Business2Business Event – October 2016 – St. Thomas and St. Croix, USVI • Hosted by the Enterprise Zone Commis- sion, this event was designed exclusively to help local, private-sector buyers who were interested in meeting with local small man- ufacturers to potentially purchase and sell their products at their stores. • Local private-sector buyers had the oppor- tunity to network, foster relationships and meet one-on-one with 16 small manufactur- ers in the Territory and learn about their lo- cal products. The small manufacturers pro- vided product explanations and displayed samples of their products at the event. • The B2B Event was held by video-confer- ence feed between the USVIEDA office on St. Thomas and the conference room at the William D. Roebuck Industrial Park on St. Croix. This is the second time this event was hosted by the Enterprise Zone Commission. Small Business Saturday: Shop Small Initia- tive in partnership with SBS founder Ameri- can Express: USVIEDA as a SBS Neighborhood Champion - November 2016 – St. Thomas and St. Croix, USVI • Spearheaded by the Economic Development Bank, the USVIEDA joined the nationwide effort to inspire communities to shop at their local, small businesses on Small Busi- ness Saturday on November 26, 2016, one of the busiest shopping weekends of the year. The USVIEDA joined this movement in fis- cal year 2017 by becoming a Neighborhood Champion of Small Business Saturday. (second person from the right) Linda Bailey, owner of Harmony Bath & Body, Inc., talks about her product line with Aleshia Shorter, the director of Finance and Accounting at the Frenchmans Reef and Morning Star Marriott Beach Resort on St.Thomas, during the second Business2Business Event on Wednesday, October 26, 2016 at the USVIEDA office on St. Thomas. The B2B Event was hosted by the Enterprise Zone Commission. –Photo by Semele A.C. George/USVIEDA Kris Bharwani (right) of Sun n Sand Beachwear, serve two tourists as they shop at his store on St. Thomas, USVI, on No- vember 26, 2016 during Small Business Saturday weekend. -Photo by Semele A.C. George/USVIEDA • Small Business Saturday, which is held on the Saturday after Thanksgiving, was founded in 2010 by the American Express Company (commonly known as “American Express”), to expose small businesses to po- tential customers during one of the year’s biggest shopping weekends. This move- ment also encourages individuals across the country to support local, small businesses as they contribute to the economy’s growth. USVIEDA, V.I. Department of Planning and Natural Resources Seek to Help Local Small Manufacturers find Locations for their busi- ness – March 2017 – St. Thomas, USVI • The USVIEDA, in partnership with the Vir- gin Islands Department of Planning and Natural Resources (VI DPNR), sought local, licensed small manufacturers in various in- dustries to help them secure local locations so they can sell their products in the Territo- ry and abroad. 64 65 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Viewing and voting of the Savanne-Down- street Community Town Plan – December 2016 - St. Thomas, USVI • Residents of the Savanne-Downstreet enter- prise zone and the general public viewed and selected from among proposed commu- nity plans that were developed to help re- vitalize the neighborhoods of Savanne and Downstreet on St. Thomas, USVI. Enterprise Zone Open House at Agrifest 2017 – April 2017 – St. Croix, USVI • The Enterprise Zone Commission hosted an Open House, with the participation of oth- er USVIEDA entities, during Agrifest 2017 on St. Croix, one of the largest agricultural events in the Caribbean. The USVIEDA was also a sponsor of Agrifest 2017 as it contin- ued to also inform and connect with the lo- cal community and inform visitors about its programs and services through cultural, fun and engaging community events. EntrepreNow - August 2017 – St. Thomas and St. Croix, USVI • The brainchild of the Enterprise Zone Com- mission, EntrepreNow was designed this year to assist the Territory’s young men ages 14-19 years old in learning how to set personal and career goals, build self-confi- dence, resolve conflict, prepare a resumé, conduct a job search, create and implement a business plan, and other life skills. • Originally established in July 2016, Entre- preNow was held for a second year in part- nership with the Office of the Territorial Public Defender of the USVI and the local non-profit organization Youth Arise, Inc., as a six-week summer program designed to en- courage the Territory’s youth to think about becoming entrepreneurs as they prepare for their personal and professional lives after high school. VIEDC Summit and 45th Anniversary Event – August 2017 - St. Thomas and St. Croix, USVI • Hosted by the Virgin Islands Economic De- velopment Commission, this summit pro- vided attendees on St. Thomas and St. Croix with an opportunity to receive an overview and updates about the VIEDC Economic Development Tax Incentive Program. The VIEDC Summit also highlighted the history of this program, its impact on the Territory, and how businesses that are receiving tax exemptions under this program have con- tributed to the economic development of the USVI during the program’s 45-year his- tory. • Representatives from local government agencies also engaged in discussions about their programs and services that affect the operations of businesses that participate in the VIEDC Economic Development Tax In- centive Program. INTERNAL MARKETING & PR, cont. 10 Local Sponsorships Re-Proposed for the USVIEDA To help enhance the quality of life and economic development through sports, entertainment, empow- erment seminars, cultural events, and small business support activities 1. Paradise Jam Tournament 2. Crucian Christmas Festival on St. Croix 3. Miracle on Main Street (hosted by St. Thomas-St. John Chamber of Commerce) 4. Agrifest 2017 on St. Croix 5. Virgin Islands Carnival on St. Thomas (Specific Event: Carnival Food Fair) 6. Taste of St. Croix 7. Ultimate Flavors of the Islands (hosted by Banco Popular de Puerto Rico) 8. Virgin Islands Small Business Week with VI Small Business Development Center 9. St. John Festival (Fourth of July Celebration) 10. Women’s Empowerment Conference hosted by Women Striving For Success, Inc. The proposal of sponsorships included the maximum sponsorship amount per sponsor- ship, the month of the event, the website of the host organization, and highlights on the benefits to the USVI community by support- ing each respective sponsorship. While external marketing and communica- tions initiatives continue to be strategically launched to attract key investors to the USVI, the USVIEDA looks forward to promoting its programs and services for local residents and business owners so that they can receive as- sistance for business growth and developing their community. St. John Ferry Dock 66 67 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org UNITED STATES ECONOMIC DEVELOPMENT AUTHORITY FINANCIAL SUMMARY 67 Cinnamon Bay on St. John, U.S. Virgin Islands 68 69 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org 68 69 70 71 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org 70 71 72 73 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org 72 73 74 75 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org 74 75 76 77 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org 76 77 78 79 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org 78 79 80 81 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Period of October 1, 2016 – September 30, 2017 ADMINISTRATION Executive STX USVIEDA Acting Chief Executive Officer Wayne L. Biggs, Jr. STX USVIEDA Client Care Coordinator Steven P. Steele STX USVIEDA Project Coordinator Humberto O’Neal STT USVIEDA Executive Assistant to the CEO Celina D. Morris STT USVIEDA Marketing and Public Relations Specialist Semele A.C. George STT USVIEDA Administrative Assistant Ja’Nelle Forbes STX USVIEDA Administrative Assistant Michelle Gaskin Accounting STT USVIEDA Director of Administration & Finance Ernest Halliday, CPA, CGMA STT USVIEDA Senior Accountant Maritza E. Hernandez STT USVIEDA Budget and Financial Analyst Kelly V. Thompson-Webbe STT USVIEDA Accountant II Jana Cammie STT USVIEDA Accountant I Regina Powell STT USVIEDA Accountant II K’Nisha Gumbs STT USVIEDA Custodial Worker Francillia Williams STT USVIEDA Messenger/Service Worker Cuthbert Charlemagne Human Resources STX USVIEDA Human Resources Manager Wendy Wheeler, MBA, CPM STT USVIEDA Human Resources Specialist Shirley J. Jones-Peters FY 2017 U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY STAFF USVIEDA STAFF Legal STX USVIEDA General Counsel Tracy Lynch Bhola, Esq. STT USVIEDA Paralegal/Investigative Analyst Tanya S. Hill, CP STX USVIEDA Paralegal/Investigative Analyst Lisa Mitchell-Harris USVIEDA Board STT USVIEDA Board Liaison Carol V. Chapman USVIEDA 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 Kimberly Smith STX EDC Compliance Officer I Jahnella Harvey 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 Smith STX EZC Enterprise Zone Specialist I Iyanna Jones, MBA STT EZC Enterprise Zone Programs & Grants Compliance Officer I Shaylah Anthony 82 83 USVI Economic Development Authority FY 2017 Annual Report USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org www.usvieda.org Economic Development Bank (formerly the Small Business Development Agency and the Government Development Bank) STT 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 Loan Officer / SSBCI Coordinator Diane A. DaCosta 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 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 USVIEDA = United States Virgin Islands Economic Development Authority FY 2017 U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY STAFF, cont. Crown Bay Cargo Port on St. Thomas, U.S. Virgin Islands 84 USVI Economic Development Authority FY 2017 Annual Report www.usvieda.org U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY Email: info@usvieda.org • Website: www.usvieda.org ST. THOMAS 8000 Nisky Shopping Center Suite 620, 2nd Floor St. Thomas, U.S. Virgin Islands 00802 Telephone: 340-714-1700 ST. CROIX 116 King St. St Croix, U.S. Virgin Islands 00841 Telephone: 340-773-6499 Back Cover Photo: Container ships in the waterfront harbor on St. Thomas, U.S. Virgin Islands