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1 WAYNE BIGGS, JR. CHIEF EXECUTIVE OFFICER VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY TESTIMONY BEFORE THE COMMITTEE ON ECONOMIC DEVELOPMENT AND AGRICULTURE Status Update on the U.S. Virgin Islands Economic Development Authority JUNE 9, 2025 2 Senator Hubert L. Frederick, Chairman, Senator Angel L. Bolques, Jr., Vice Chairman, 1 Committee members, senators of the 36th Legislature, the legislative staff, the Virgin Islands 2 Economic Development Authority team, and the listening and viewing public. I am Wayne Biggs, 3 Jr., Chief Executive Officer of the U.S. Virgin Islands Economic Development Authority (hereafter 4 referred to as “USVIEDA” or “the Authority”); here with me today are Dwayne Benjamin, 5 Assistant Chief Executive Officer, Tracy Lynch Bhola, Esquire, General Counsel, Kelly Thompson 6 Webb, Chief Financial Officer, Nadine Marchena Kean, Managing Director of the Enterprise Zone 7 Commission, Mark Finch, Director, Physical Plant, Celina Morris, Director of Marketing, Kali 8 Richardson, Director of Human Resources, and Yolanda Bryan, Business Ambassador. 9 Management Team members not here with me today are Monique Samuel, Managing Director 10 of the Economic Development Bank for the United State Virgin Islands and Margarita Benjamin, 11 Managing Director of Economic Development. 12 13 I would like to thank the Committee Chair and members of the Committee of Economic 14 Development and Agriculture for inviting us to provide testimony on the overall status of the 15 USVIEDA. 16 17 Virgin Islands Economic Development Authority (USVIEDA) 18 The USVIEDA is the umbrella organization which assumes, integrates, and unifies the 19 functions of the following subsidiary entities: the Economic Development Bank (“EDB”), the 20 Economic Development Commission (“EDC”), the Enterprise Zone Commission (“EZC”), and the 21 Economic Development Park Corporation (“EDPC”). It is a semi-autonomous governmental 22 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 3 instrumentality responsible for the development, promotion and enhancement of the economy 23 of the U.S. Virgin Islands. 24 25 The Authority operates under one seven-member Governing Board (“Board”) in order to 26 achieve maximum efficiency of operation; to avoid duplication of services, positions, and 27 responsibilities; to reduce expenses of personnel, physical plant and operations; and to develop 28 comprehensive programs for the economic development of the U.S. Virgin Islands. The current 29 members of the Governing Board are: 30 31  Kevin Roriquez, Chairperson (Governor’s cabinet-level appointee); 32  Commissioner Gary Molloy, Ph.D., Vice-Chairperson (Governor’s cabinet-level 33 appointee); 34  José A. Penn, Secretary (private sector representative from St. John); 35  Anise Hodge, Member (Governor’s Virgin Islands Port Authority appointee); 36  Positive T. Nelson, Member (Governor’s cabinet-level appointee); and 37  Philip E. Payne, Member (private sector representative from St. Croix). 38 39 There is one Governing Board member position vacant, the private sector representative from 40 St. Thomas. 41 42 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 4 The Authority holds professional memberships with the National Association of 43 Development Organizations (“NADO”) and the International Economic Development Council 44 (“IEDC”) and. NADO is a membership association that represents the interests of regional 45 community and economic development practitioners. It advocates for federal policies and 46 programs that promote equitable community development, economic competitiveness, rural 47 development, economic mobility, and quality of place. NADO represents a national network of 48 more than 500 Regional Development Organizations. The IEDC is a membership organization 49 serving economic developers. It is the largest organization of its kind with more than 4,500 50 members. From public to private, rural to urban, and local to international, IEDC’s members are 51 engaged in the full range of economic development experiences. Its members are from a diverse 52 variety of settings including local, state, provincial, and federal governments, public-private 53 partnerships, chambers of commerce, universities, and a variety of other institutions. 54 55 USVIEDA promotes the development and diversification of the Territorial economy and 56 creates opportunities for the gainful employment of residents. It also promotes access to capital, 57 contributes to the development of the educational system, and preserves the environment, 58 beauty, and natural resources of the Territory. We are a customer service-based organization 59 that creates positive public/private sector and public/public sector partnerships to promote 60 economic growth, meet the challenges of the global economy and serve the needs of the 61 business community, while embracing our unique heritage and preserving our pristine natural 62 environment. 63 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 5 64 Under the direction of the governing board and hard work of our USVIEDA team, the 65 Authority has engaged in long-range planning and the execution of activities with the aim of 66 stimulating and sustaining the Territory’s economy. Through its four main pillars: the Economic 67 Development Bank, the Economic Development Commission, the Enterprise Zone Commission, 68 and the Economic Development Park Corporation, the Authority has facilitated investment 69 opportunities, thereby leading to job creation and retention, as well as assisted our clients with 70 bringing their dreams of entrepreneurship and business growth to fruition. 71 72 In order for our programs to continue making the maximum impact, the importance of 73 promotion and marketing cannot be underestimated. The Authority uses and will continue to 74 use a variety of media to inform both the local community and external potential investors about 75 our programs and services. 76 77 Our Marketing Department continues to amplify the Authority’s visibility through ongoing 78 public relations efforts, including radio and video interviews, press releases, newspaper 79 advertisements, and social media posts. We launched a local advertising campaign through print 80 and television, and we will continue to use social media and our website as tools to quickly spread 81 the word about upcoming meetings, activities, and other general information. We hosted 82 outreach activities to make it convenient for our stakeholders to meet and interact with us, such 83 as the State Small Business Credit Initiative (SSBCI) workshops, the Enterprise Zone Commission 84 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 6 Open House, and an Open House during the annual St. Croix Agriculture and Food Fair. We 85 participated in the following conferences through either attendance and/or sponsorship: 86 uncorrelated Puerto Rico (alternative investments conference, March 30, 2025 – April 1, 2025, 87 San Juan, PR), ALIS CALA (Caribbean and Latin American Hotel Industry Summit, April 29, 2025 - 88 May 1, 2025, Coral Gables, FL) and SelectUSA Summit (USA International Investment Summit, 89 May 11–14, 2025, National Harbor, MD). We will also be participating at NABHOOD 90 (International African American Hotel Ownership & Investment Summit & Trade Show, July 23- 91 25, 2025, Hyatt Regency Miami. Miami, FL ) and potentially for the first time at the American 92 Medical Device Summit (Medical Device Manufacturers Summit, October 27-28, 2025, Chicago, 93 IL). 94 95 We currently have a staffing level of 48 full-time employees. Twenty-seven (27) 96 employees are assigned to work out of our St. Thomas office located in Nisky Shopping Center, 97 16 employees are assigned to work out of our Frederiksted office on St. Croix and four (4) 98 employees are assigned to work out of the William D. Roebuck Industrial Park on St. Croix. There 99 are currently eight (8) vacant positions within the USVIEDA. 100 101 Economic Development Bank (EDB) 102 Our Economic Development Bank (“EDB”) is administering the State Small Business Credit 103 Initiative (“SSBCI”) Program, which provides loan guarantees for small businesses. The Territory 104 received an SSBCI allotment of $57.865 million from the U.S. Department of Treasury. The first 105 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 7 tranche of $18.9 million was received in February 2023. A total of $8.998 million has been 106 expended or committed. Additionally, there are several new loan requests totaling 107 approximately $13.719 million in the pipeline. Since its inception in October 2011, the SSBCI loan 108 guarantees have the potential to create 99 new jobs and retained 94 jobs in the Territory. Among 109 some of the industries that have benefited from the SSBCI program in the Territory are Health, 110 Marine, Tourism, Construction, Social Services, Hospitality, Aviation, and Environmental. 111 112 In the EDB’s other lending activities, the Governing Board and the Authority’s Internal 113 Credit Committee approved $705,000 in new loans through the first six (6) months of Fiscal Year 114 2025 (“FY 2025”) which created 22 new jobs and retained 13 jobs in the Territory. The EDB 115 continues to assist our small business community by partnering with sister government agencies 116 such as the University of the Virgin Islands Small Business Development Center (SBDC), the Virgin 117 Islands Housing Finance Authority VIHFA), and the Virgin Islands Energy Office (“VIEO”). 118 119 Another area the EDB Team benefits the Territory is its administration of the VI Slice 120 Program. VI Slice is a territorial gap financing program for first-time homeowners that need 121 financing assistance to purchase or construct a home. As of March 31, 2025, VI Slice received 74 122 applications for gap financing totaling approximately $7.4 million with primary lender financing 123 of $22.9 million. USVIEDA has approved 54 applications for $5.2 million in gap financing for 124 primary lender financing of $16.2 million and closed 47 applications resulting in disbursement of 125 $4.7 million in gap financing for primary lender financing of $14.35 million. Three (3) applications 126 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 8 were withdrawn, five (5) applications were declined – two (2) by the primary lender and three 127 (3) were determined ineligible by EDB, and 12 were pending supplemental information from the 128 primary lender. 129 130 The EDB Team is also assisting the VIEO their Solar Plus Financing Pilot Program (SPFPP). 131 The EDB Team is doing the “back-office” work such as reviewing the documentation, requesting 132 the title searches, preparing the legal documents, requesting disbursement of funds from our 133 Administration & Finance Department, and administration of the loan after closing. 134 135 The EDB Team is taking advantage of available technology to streamline processing by 136 developing an online application. Applicants can submit their loan applications online, which are 137 stored on a database. This allows the EDB Team to have better access to track, analyze, and make 138 recommendations of loan applications. 139 140 141 Economic Development Commission (EDC) 142 We recognize that our Virgin Islands Economic Development Commission (“EDC”) 143 program plays a pivotal role in channeling investment dollars into the Territory. In order for the 144 program to be effective, both arms within the EDC, the Applications Unit and Compliance Unit, 145 must function as efficiently as possible within the constraints of legal statutes. Currently, our 146 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 9 application processing time from completed application to Governing Board decision averages 147 around 60 days from completed application to Governing Board decision. 148 149 The EDC Applications Team has taken full advantage of available technology to streamline 150 its process by developing and implementing an online application. Potential investors can submit 151 their applications online, which is stored on a database. This allows EDC Applications Team to 152 have better access to track, analyze, and report data, and causing them to be more efficient and 153 effective. 154 155 It should be noted that in the first six (6) months of FY 2025, seven (7) new applications 156 were presented at Public Hearing, and eight (8) applications for the EDC program have been 157 decisioned. All eight (8) applications are for new entities. Seven (7) applications were approved, 158 and one (1) application was denied. The approved applications represent potential future 159 economic impact to the Territory of over $388,000 to be made in capital investment, a minimum 160 of 51 jobs to be created, and over $3.06 million to be paid out in wages. Over a five-year period, 161 the Territory may also realize approximately $2.5 million in tax revenues based on projections 162 from these applications. 163 164 Nineteen (19) Certificates of benefits are in various stages this fiscal year, of which four 165 (4) were executed. All these Beneficiaries’ Certificates are for new applicants. Of the remaining 166 15, three (3) are pending election, seven (7) were sent for Beneficiary review, and five (5) 167 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 10 certificates for Beneficiaries who elected commencement are in process. Additionally, seven 168 (7) request to amend Beneficiaries’ Certificates were received. 169 170 The Team Applications Team also processes the Hotel Development Act (HDA) and 171 Sustainable Tourism Through Arts-Based Revenue Streams (STARS) application on behalf of EDA. 172 The Applications Unit reviews and approves the Eligible Supplier applications. 173 174 The second arm of our EDC Program, the Compliance Team, ensures that current EDC 175 beneficiaries adhere to the requirements of their certificates as dictated by law. To improve 176 operations, the Compliance Unit has hired additional Compliance Officers, contracted 177 Compliance Contractors, and is in the process of finalizing its online Compliance Reporting Portal 178 to assist beneficiaries with their reporting responsibilities. The Compliance Reporting Portal will 179 allow the Compliance Team to have better access to track and analyze data when compiling their 180 annual beneficiary compliance reviews/reports. 181 182 Enterprise Zone Commission (EZC) 183 One aspect of economic development that cannot be overlooked is the revitalization of 184 the community’s neighborhoods. Through our Enterprise Zone Commission (“EZC”), the USVIEDA 185 offers programs to assist with the revitalization of once vibrant neighborhoods that have become 186 distressed. There are four (4) designated enterprise zones in the Territory: Christiansted and 187 Frederiksted on the island of St. Croix, and Savanne-Downstreet and Garden Street-Upstreet on 188 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 11 the island of St. Thomas. In the very near future, the EZC will be making recommendations to the 189 Governor to expand the Frederiksted Enterprise Zone on St. Croix and the Savanne-Downstreet 190 Enterprise Zone on St. Thomas to cove small pocket areas contingent to both current zones that 191 are also in need of revitalization, and recommendations to create a Commercial Zone in Cruz Bay 192 St. John, and Charlotte Amalie, St. Thomas as recently approved by the EZC Governing Board.. 193 194 The two (2) programs offered to revitalize each Enterprise Zone (“Zone”) are (1) the Tax 195 Credit Program and (2) the Plan Program. The Tax Credit Program provides nonrenewable tax 196 credits for a period of 10 years for activities within the Zone as specified in the EZC statute. The 197 Plan Program provides nonrenewable tax benefits for a period of five years for eligible activities 198 based on the town plan adopted by the EZC for the respective Zone. 199 200 Two (2) additional programs within the EZC, the Rejuvenation Program to rehabilitate 201 buildings and the Board-Up Program for abandoned buildings, continue to impact these 202 communities. Thus far this fiscal year, the EZC has completed six (6) Rejuvenation Projects, and 203 no Board-Up Projects. 204 205 The EZC Team also manages the South Shore Trade Zone (“SSTZ”) on St. Croix. It has 206 mapped the SSTZ and is working closely with the Virgin Islands Port Authority (“VIPA”) to market 207 and develop the VIPA infrastructure within the trade zone. There has been increased inquiries 208 and interest in the SSTZ as a result of the Trump/Vance administration’s tariff policies. 209 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 12 210 In addition to revitalizing the Territory’s distressed neighborhoods and managing the 211 SSTZ, the EZC provides opportunities for the small business community through its annual 212 Business-to-Business (B2B) Event held jointly on St. Thomas and St. Croix which brings small 213 manufacturers and retail business owners together, its product export program administered 214 through a State Trade Expansion Program (STEP) grant from the United States Small Business 215 Administration (SBA) which showcases manufacturers of remarkable products made in the 216 Territory to outside markets, and its “Made in the USVI” pop-up shop hosted in collaboration 217 with the Virgin Islands Council on the Arts that provides a retail venue where residents and 218 tourists can purchase a variety of local artwork and books and locally manufactured products. 219 220 Further, the EZC Team conducted its annual estate planning conference which was a 221 multimedia event that garnered exposure to approximately 2000 individuals. The EZC Team 222 continues to work with lawyers and families to resolve estate planning issues throughout the 223 Territory. 224 225 The EZC continues to diligently work towards establishing the Agro-Processing facilities 226 on both islands. Agro and Food Innovation Center will be located in the Frederiksted Enterprise 227 Zone on St. Croix. The EDA has entered into a contract to purchase the Padilla Building at 53A&B 228 King Street, Frederiksted to house the Agro and Food Innovation Center and anticipates closing 229 on the building later this month. EZC has secured $2.0 million funding from Virgin Islands 230 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 13 Legislature for this facility. The Agro and Food Technology Center will be located in the Savanne- 231 Downstreet Enterprise Zone on St. Thomas. The EDA is awaiting a long-term lease from the Virgin 232 Islands Department of Property and Procurement for the former Marcelli School facility to house 233 Agro and Food Technology Center. 234 235 Economic Development Park Corporation (EDPC) 236 The fourth pillar of the Authority is the Economic Development Park Corporation 237 (“EDPC”), which operates two (2) economic parks in the Territory — the Virgin Islands Industrial 238 Park on St. Thomas and the William D. Roebuck Industrial Park on St. Croix (collectively known as 239 “the Parks”). I am happy to report that both the Parks are at 100% occupancy. 240 241 Capital improvements are in various phases at both Parks to offer attractive and secure 242 facilities to current and potential tenants at competitive rates. Phase I, the repair of Hurricanes 243 Irma and Maria damages to three (3) bays and the entrance gate area, at the Virgin Islands 244 Industrial Park was completed earlier this fiscal year. We anticipate that Phase II, the building of 245 our new 10,000 square foot office will commence before the end of the 2025 calendar year. The 246 hurricane repairs to William D. Roebuck Industrial Park are still being negotiated with the Federal 247 Emergency Management Agency (“FEMA”) after several modifications, revisions, and reviews. 248 We anticipated FEMA’s final project approval during the 4th quarter of FY 2025. 249 250 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 14 We are also in the process of developing a much-anticipated micro grid to service all the 251 tenants in the William D. Roebuck Industrial Park on St. Croix. We are currently working with a 252 firm that is designing the micro grid and is assisting us with identifying and securing financing to 253 build the grid. We are also working with our sister agency, the Virgin Islands Energy Office, to 254 seek and secure grants and other funding sources to finally make this project a reality. 255 256 Further, we are working with our Grant Writer to identify grants to build an additional 257 two (2) 40,000 square feet building facilities within the William D. Roebuck Industrial Park. The 258 expansion of the park is eminent to assisting the growth of assembly and manufacturing activity 259 on St. Croix. The EDPC fields calls daily from business seeking commercial space and/or a SSTZ 260 location to conduct its business operations. 261 262 In addition to the two (2) economic parks, the EDPC also owns our main office building, 263 known as the Fleming Building, located at 4 King Street, Frederiksted. Bids were recently received 264 for the repairs to the facility. It is anticipated that repair work will commence during Q4 FY 2025. 265 We are looking forward to restoring this building as a beacon of historical charm that is a 266 quintessential iconic symbol in Frederiksted. 267 268 MISCELLANEOUS 269 In other areas of operations, (1) the Authority’s overall financial health continues to 270 remain stable pending timely allotments, (2) the Authority has no pending federal or regulatory 271 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 15 requirements that must be met within this fiscal year, and (3) the Authority has earned an 272 unqualified audit opinion from its external auditors for 13 consecutive years through FY 2022. 273 Based on our external auditor’s preliminary Fiscal Year 2023 audit report, we anticipate another 274 unmodified audit. We also expect this trend to continue into Fiscal Year 2024 and FY 2025 as we 275 remain fiscally prudent while continually seeking ways to improve our day-to-day operations, 276 becoming more efficient while remaining effective. 277 278 In addition to our annual government appropriation of $6.6M, VIEDA currently manages 279 over $85M in federal grants — signaling a strong pipeline of secured funding to support future 280 program delivery and drive ongoing economic development initiatives. These grants support key 281 areas such as business expansion, entrepreneurship, job creation, and long-term wealth-building 282 across the Territory, positioning the Authority to deliver sustained impact and opportunity for 283 Virgin Islands residents. 284 285 Based on our external auditor’s preliminary Fiscal Year 2023 audit report, we anticipate 286 another unmodified audit. We expect this trend to continue into Fiscal Year 2024 and FY 2025 as 287 we continually seek ways to improve our day-to-day operations, becoming more efficient while 288 remaining effective. 289 290 Wayne Biggs, Jr. Chief Executive Officer, VIEDA Monday, June 9, 2025 16 I thank you for the opportunity to provide this status update on the Virgin Islands 291 Economic Development Authority to the Committee on Economic Development and Agriculture. 292 My team is available to answer any questions you may have related to my testimony. 293