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FY2012 ANNUAL REPORT Moving Forward... 2 V.I.EconomicDevelopmentAuthorityHeadquarters,St.Croix 33 4 5 Message from the Chief Executive Officer 6 As we face another year we look back with great appreciation for the accomplishments of the past. The Economic Development Authority with its member agencies has charted a course to assist our local businesses on the path to economic viability. I pause to express appreciation to all of the staff members for their team effort, dedication and hard work. Certainly without their commitment we could not have achieved the success we did. I would also like to thank Governor de Jongh, Lieutenant Governor Francis and the Board of Governors for their continued support without which our many achievements could not have been accomplished. We are committed to remain focus while we work toward economic sustainability. We will continue to build on the successes of prior years by aggressively working toward the enhancement of our marketing and strategic plan to promote economic growth for the Territory. While we continue to face many challenges caused by the global economic conditions, we remain steadfast in our outlook for the year ahead. Our quest to attract viable companies to invest in our Territory remains strong and we anticipate a vibrant fiscal year 2013. Sincerely, Percival E. Clouden Chief Executive Officer BOARDOFDIRECTORS AlbertBryan,Jr. CHAIRMAN NathanSimmonds VICECHAIRMAN LynnMillin-Maduro,Esq. SECRETARY RandolphAllen MEMBER JohnLewis MEMBER* JoséPenn MEMBER HenrySmith,Ph.D. MEMBER *serveduntilAugust2012 EXECUTIVESTAFF CHIEFEXECUTIVEOFFICER PercivalE.Clouden ASSISTANTCHIEFEXECUTIVEOFFICER/ CHIEF OPERATINGOFFICER JenniferNugent-Hill LEGALCOUNSEL,StaceyPlaskett,Esq.** PROJECTCOORDINATOR/HRDIRECTOR PaulJ.Arnold,Sr. DIRECTOR,LENDINGDIVISIONDianneDuinkerk DIRECTOR,APPLICATIONS(EDC)PaulFlemming,Ph.D.*** DIRECTOR,APPLICATIONS(EDC) MargaritaA.Benjamin+ DIRECTOR,COMPLIANCE(EDC) MargaritaA.Benjamin++ DIRECTOR,ADMINISTRATION&FINANCE ErnestHalliday DIRECTOR,ENTERPRISEZONECOMMISSION NadineMarchenaKean DIRECTOR,LEGISLATIVE&LEGALAFFAIRS FrederickHandleman SUPERINTENDENTofPARKS GeorgeSt.Rose **serveduntilApril2012 ***serveduntilJanuary2012 +servedinthiscapacitysinceFebruary2012 ++servedinthiscapacityuntil October 22, 2012 7 FY2012period: October1,2011-September30,2012 MISSIONSTATEMENT The Virgin Islands Economic Development Authority (VIEDA)strivestobeacustomerservicebasedorganization that creates positive public/private sector partnerships for the enhancement of economic growth and develop- ment by meeting the challenges of the global economy and serving the needs of the business community, while embracing our unique cultural heritage and preserving ourpristinenaturalenvironment. 8 TABLEOFCONTENTS VIRGINISLANDSECONOMICDEVELOPMENTAUTHORITY........10 ECONOMICDEVELOPMENTCOMMISSION ....................11 EDCAPPLICATIONSDIVISION ..............................12 EDCCOMPLIANCEDIVISION ...............................18 INDUSTRIALPARKDEVELOPMENTCORPORATION .............24 LENDINGDIVISION.......................................26 ENTERPRISEZONECOMMISSION...........................34 MARKETINGINITIATIVES..................................38 FINANCIALS ............................................47 9 FRONTCOVERPHOTO: TheWilfred“Bomba”AllickPort&TransshipmentCenter,“TheContainerport”,intheKrauseLagoon;andaviewofoilrefinery,HOVENSA,LLC,St.Croix BACKCOVERPHOTO:FrederikstedPier,St.Croix THEVIRGINISLANDSECONOMICDEVELOPMENTAUTHORITY The Virgin Islands Economic Development Authority (VIEDA) was created as a semi- autonomous government agency on February 1, 2001 to assume, integrate and unify the functions of the Government Development Bank (GDB), the Economic Development Commission (EDC), the Industrial Park Development Corporation (IPDC), the Small Business Development Agency (SBDA), and the Enterprise Zone Commission (EZC) under one executive board in order to achieve maximum efficiency, streamline operations, and develop comprehensive programs to promote and enhance the economic development of the Territory. The Authority accomplishes its mission by attracting multi-national investors to establish or relocate their businesses to the United States Virgin Islands and by providing financial assistance through its lending arm, namely the GDB and the SBDA, to emerging and established businesses in the Territory. The Authority is funded by the general fund, based on a budget request from the Governor and the VIEDA Board of Commissioners, which must ultimately be approved by the Legislature of the Virgin Islands. The powers of the Authority are exercised by a seven-member board which is comprised of three (3) members that are appointed by the Governor from among heads of cabinet-level executive departments or agencies, or from among the Governor’s executive staff; three (3) members who are not employees of the Government of the United States Virgin Islands and are appointed by the Governor with the advice and consent of the Legislature; and one (1) member appointed from the board or executive staff of the Government Employees’ Retirement System, the Virgin Islands Port Authority or the University of the Virgin Islands. TheYellowBreast,alsoknownas'theSugarBird'or'Bananaquit',istheofficialbirdoftheU.S.VirginIslands 10 THEECONOMICDEVELOPMENTCOMMISSION The Economic Development Commission (EDC) is charged with promoting the growth, development and diversification of the economy of the United States Virgin Islands by developing the human and economic resources of the Territory, preserving job opportunities for residents of the U.S. Virgin Islands, and promoting capital formation to support industrial development in the Territory. The EDC is comprised of the Applications Unit which is the first point of contact by a business seeking to apply for economic development benefits, and the Compliance Unit which monitors beneficiaries to ensure that they comply with the terms and conditions of their certificates and with other requirements of law. 11 MahoganyRunGolfCourse,St.Thomas The mission of the Applications Division, consistent with the Economic Development Commission (EDC) Program, is to facilitate the promotion of the growth, development, and diversification of the economy of the United States Virgin Islands by processing (evaluating, analyzing and preparing) application packages for submission to the V.I. Economic Development Authority’s (VIEDA) Governing Board of Directors (hereafter referred to as “The Board”) for consideration of a recommendation for the granting of economic development benefits. FISCALYEAR2012GOALS • Continue to work closely with local attorneys and accounting firms which normally introduce new businesses to the EDC. • Continue to provide mini-workshops to clients on the proper procedures for completing EDC applications which can facilitate the timely processing of applications and ultimately achieve the targeted 80-to-90 day processing time-line. • Increase applications to approximately thirty (30) per year • Increase the number of approved applications for benefits over the fiscal year 2011 level • Reduce the processing time from the receipt of applications for benefits to a decision by the EDC FISCALYEAR2012OBJECTIVES • Facilitate the timely processing of a completed application submitted to the Applications Division for consideration • Provide training for staff through conferences, tradeshows and in-house resources • Reduce the backlog of pending applications for benefits that are awaiting a decision • Actively interact with clients and potential applicants through interviews and on-site visits to identify with their business models and requests • Continue to work collaboratively with other departments to shorten the application process • Continue to work closely with the Marketing Division to actively recruit new applicants through trade shows, conferences, and seminars sponsored by the agency FISCALYEAR2012ACCOMPLISHMENTS During this fiscal year, ten (10) public hearings were scheduled of which a total of 25 applicants delivered presentations on their business plan and the merits of the application. Of the 25 applications, 19 were received in FY 2012, and six (6) were pending from the prior year. EDCAPPLICATIONSDIVISION 12 EDCBeneficiaryTheWestinSt.JohnResort&Villas,St.John EDCBeneficiaryGoldCoastYachtsattheWilliamD.RoebuckIndustrialPark,St.Croix Eleven (11) decision meetings were held. At these meetings, the EDC Governing Board deliberated on a total of 24 applications. Of the applications reviewed, 22 were approved for a favorable recommendation to be submitted to the Governor, and two (2) were denied. At the end of the fiscal year, six (6) applications were pending to be heard at a Public Hearing, and nine (9) were pending a decision by the EDC Governing Board. During this period, 11 applicants elected to commence its EDC benefits. As a result, five (5) certificates were finalized for execution, and six (6) are in process. At the end of fiscal year 2012, 89 applicants that were approved from 2004 to fiscal year 2012 were pending election of dates to commence EDC benefits. • During this fiscal year, the staff continued to evaluate processes to include the application procedure in order to improve on further streamlining the application process. The Applications Division collaborated with the Assistant Chief Executive Officer and the VIEDA’s Marketing Consultant to actively recruit new applicants through trade shows, conferences, and agency-sponsored seminars. Staff members significantly worked on reducing the backlog of applications pending from FY 2011. • The staff of the Applications Division received training from EConsult on the revised Cost-Benefit Model with Application & Compliance Inputs and from BizVI Group, LLC, on the EDC online application. ONGOING PROJECTS/TASKS: • Complete review of processes, revise Standard Operating Procedures (SOP) based upon best practices and implement process changes • Review the EDC Online Application and make applicable changes to make it more user-friendly to facilitate the processing of applications • Develop an annual training schedule for staff members on analytical analysis and economic development disciplines. Windward Capital, LLC Alpine Securities U.S.V.I., LLC Sunshine Shopping Center Neltjeberg Bay Enterprises, LLC Vitelco - ILD Joint Venture Seven Seas Water Corporation AEG Services, LLC Ferrer Attraction Management Group Bellicose VI, Inc. Rx Ventures, LLC Dun Run Holdings, LLC L.S.L. Holdings, LLC Magic Ice (St. Thomas), Inc. Carambola Golf Club, LLC Integrity Life Finance, Inc. CBI Acquisition d/b/a Caneel Bay Resort Secret Harbor Beach Resorts Extension/Modification Modification/Transfer Extension New Extension New New New New New New New New New Transfer New Extension Extension IIA IIA III IIA III III IIA IIA III IIA IIA III IIA & III III III IIA II II Financial Management Investment Management Shopping Center Business Management Telecommunication Water Purification Management Consulting Management Consulting Tourist Attraction Financial Management Financial Management Golf Course Wholesale of gold Tourist Attraction Golf Course Financial Management Resort Resort Certificate in Progress Certificate Completed Denied by Governor Pending Decision Meeting Pending Governor’s Approval Pending Decision Meeting Pending Governor’s Approval Approved Pending Election Benefits Pending Decision Meeting Pending Governor’s Approval Approved Pending Election Benefits Certificate in Progress Denied by Governor Approved Pending Election Benefits Certificate Completed Certificate in Progress Pending Decision Meeting Pending Public Hearing APPLICATIONS RECEIVED DURING PRIOR FISCAL YEARS COMPANY NAME TYPE OF APPLICATION CATEGORY TYPE OF BUSINESS STATUS AS OF 9/30/12 APPLICATIONSRECEIVEDDURINGPRIORFISCALYEARS During 2012, there were a total of 18 applications open from prior years. Eight (8) of these applications were approved by the Governor of which three (3) are pending election of benefits, two (2) certificates of benefits were completed, three (3) certificates of benefits are in progress, and two (2) applications were denied by the Governor. At the end of this period, there were four (4) applications pending a decision meeting, one (1) is pending Public Hearing, and three (3) were favorably recommended by the Board and are pending the Governor’s approval. WestIndianCompanyLimited(WICO)inCharlotteAmalie,St.Thomas Full Moon Ventures, Inc. Black Diamond Holdings, LLLP Black Diamond Advisors, LLLP St. Thomas Craft & Logo, Inc. VI 4D, LLLP Financial Ballistics Trust Billy D’s Specialties Westin St. John Hotel Company, Inc. Bulk Petroleum Transport, LLC Subbase Drydock, Inc. United Electronic Industries Services Tree Limin’Extreme, LLC Lindenleaf Rosemallow, LLLP Yacht Haven USVI, LLC Ocwen Mortgage Servicing, Inc. STR Management, LLC Altisource Asset Management Corp. Kinsail Corporation Caribbean Cinemas of St. Croix, Inc. V.I. Analytics, LLC St. Croix Renaissance Group, LLLP Southern Trust Company, Inc. Asset Recovery Management, Inc. Small Business New New New New New Extension Extension New New New New New Transfer New New New New New New Extension New New IIA IIA IIA II III IIA II II II II II III IIA II & III IIA IIA IIA IIA III IIA III IIA IIA Business Management Business Management Business Management Manufacturer Recreational Facility Financial Management Manufacturer Hotel Maritime Transport Maritime Industry Manufacturer Recreational Facility Financial Management Marine Industry Financial Management Business Management Business Management Web-Based Recreational Facility Business Management Recreational Facility Data Based Financial Management Pending Decision Meeting Certificate in Progress Certificate in Progress Pending Decision Meeting On Hold On Hold Pending Public Hearing Pending Public Hearing On Hold Pending Governor’s Approval Certificate Completed Pending Decision Meeting Approved and Pending Election Approved Certificate in Progress Pending Governor’s Approval Approved and Pending Election Pending Governor’s Approval Pending Decision Meeting Pending Decision Meeting Pending Public Hearing Pending Public Hearing Pending Public Hearing APPLICATIONS RECEIVED IN FY 2012 COMPANY NAME TYPE OF APPLICATION CATEGORY TYPE OF BUSINESS STATUS AS OF 9/30/12 APPLICATIONSRECEIVEDINFY2012 During 2012, a total of 23 applications were filed. At the end of this period, six (6) applications were approved by the Governor of which two (2) are pending election of benefits and four (4) certificates of benefits were completed. Three (3) were favorably recommended by the Board and are pending the Governor’s approval. Of the remaining (14) applications, one (1) transfer application was approved by the Board, five (5) applications are pending Decision Meetings, five (5) are pending public hearing, and three (3) applications were placed on hold at the request of the applicant. TheGallowsBayDock,Christiansted,St.Croix Susan Ferrari ASPire Financial Services ATS Defense, Inc. West Indies Bay Co. Elsworth Jones RT Unlimited Security Tibbar Energy USVI LLC Keith Poimboeuf Robert Gibson Greater Chinese Chamber of Commerce Polaris Engineering Deloitte & Touche Better World Telelecom CruiseCam International, Inc. Mobile Data Trust, LLC BCG, VI Frank Kleuschrodt Epic Kayaks Green Power Biomass Plant Commercial Broker (Retailers, Restaurateurs, and Entertainment Facilities) Record Keeping for Retirement Plans Manufacturing and Assembly Fragrance Manufacturer Service Business Security Services, Analysis & Watchman, Guard and Patrol Services Renewable Energy Development Real Estate Accounting Firm Clean Energy Propane Gas Facility Accounting Voice & Data Service Provider Manufacturing Manufacturing Construction Company Camera Surveillance, Manufacturing and Services Outdoor Recreation - Kayak Biomass Power Plant St. Thomas, USVI Florida Florida St. Thomas, USVI St. Croix, USVI St. Croix, USVI St. Croix, USVI Puerto Rico Florida Houston, TX Lake Charles, LA St. Croix, USVI Reston, VA California California St. Thomas, USVI St. Croix, USVI Charleston, SC Virginia INQUIRIES FROM POTENTIAL INVESTORS DURING FY 2012 COMPANY NAME TYPE OF BUSINESS ORIGIN INQUIRIESFROMPOTENTIALINVESTORSDURINGFY2012 The Applications Division actively interacted with clients and potential applicants through interviews and on-site visits to identify with their business models. Several key prospects are as follows: 11 3 1 7 60 1,888,379 10,393,300 23 10 0 13 256 16,070,868 46,946,884 20 11 2 7 236 6,517,410 93,076,000 Table 1: Economic Development Commission - FY Historical Application Information # of Apps Received # of Apps Approved # of AppsTabled or Denied Apps Pending Job Opportunities Approx. Wages of New Apps Minimum Potential Investment of New Apps FY2010 FY2011 FY2012 11 23 20 Economic Development Commission - FY Historical Application Information Number of Applications Received FY2010 FY2011 FY2012 16 17 60 256 236 Economic Development Commission - FY Historical Application Information Job Opportunities FY2010 FY2011 FY2012 10,393,300 46,946,884 93,076,000 Economic Development Commission - FY Historical Application Information Minimum Potential Investment of New Applications FY2010 FY2011 FY2012 18 The mission of the EDC’s Compliance Division is to ensure the integrity of the Economic Development Commission’s Program and to assist the beneficiaries in meeting the requirements outlined in the Economic Development Commission’s Laws, Rules & Regulations and Certificate of Benefits. VISION To enhance the program by improving the process and management function; implement a periodic assessment of the program’s effectiveness; create comprehensive policies and standards; conduct regularly scheduled field monitoring and auditing; use technology to achieve automation to accurately and consistently track reporting and streamline the data entry process; to efficiently manage compliance investigations, and maintain and retain records; ensure compliance through annual staff and stakeholders training and education programs; and implement a hotline, or other reporting system to answer questions and respond to complaints from stakeholders. FISCALYEAR2012GOALS • Enhance the Cost-Benefit Model into an electronic application that reports on macro data • Continue to review and update compliance audit procedures and processes • Continue to educate Beneficiaries, Suppliers, and the public regarding the EDC program’s requirements and changes FISCALYEAR2012OBJECTIVES • Complete the next phase to enhance the cost-benefit model for electronic module with macro data • Increase compliance reviews and site visits by 20 percent • Develop internal electronic compliance case management system • Reinstitute the annual conferences on Compliance and for Eligible Suppliers and Consultant Conferences • Update the website to include certificates, and other EDC program information ACCOMPLISHMENTS ASOFSEPTEMBER30,2012 ORIENTATIONS During this fiscal year, five (5) Certificates of Benefits were executed. This division conducted a total of five (5) orientations as of September 30, 2012. Of the five (5) certificates, one (1) was issued to a new applicant, with three (3) modifications and one (1) to transfer benefits. The new certificate issued represents employment of 10 full-time employees, annual wages of approximately $398,500, investments of approximately $800,000, and annual contributions of $50,000. EDCCOMPLIANCEDIVISION EDCBeneficiaryConcordiaCampGrounds,St.John BENEFICIARY PETITION Atlantic Industries, Inc. Celtic Therapeutics Management, LLLP Hudson Management Group, Ltd. St. Croix Dairy Products, Inc. Financial Trust Company 567 SGB, LLC Intrepid Investments, LLC Mega Management Advisors, LLC Golden Eagle Financial, LLLP Americas Management Services, LLLP Trust Asset Management, LLP Horizon Fuel & Financial Management, LLLP Millennium Management VI LLLP Heavy Materials, LLC Suspension Employment Waiver Termination Suspension Suspension Extension of Employment Deadline Extension to meet Charitable Contribution Employment Waiver Termination Termination Termination Termination Termination Scholarship Waiver An orientation was also provided to an existing beneficiary, RC Hotel (Virgin Islands), Inc., as part of its training for new staff. As of September 30, 2012, there were 81 active companies under the EDC Program. PETITIONSTOTHEBOARD In FY 2012, a total of 13 petitions from beneficiaries were presented before the Board for deliberation: three (3) requested extensions or waivers of employment, one (1) petitioned for an extension of time to fulfill requirements for charitable contributions, three (3) petitioned the Board for a suspension of their benefits, and six (6) petitions were submitted for a termination of their benefits. TABLE2:BeneficiariesandPetitionsinFY2012 19 TABLE1:CertificatesofBenefitsIssuedinFY2012 Professional Holding Company VI, LLC St. Croix Renaissance Group, LLLP Carambola Golf Club, LLC United Electronic Industries Services, LLC US Viking LLC (Modification)* (Modification)* (Transfer) (New) (Modification)* DSB - Business Consultant, Investment Banking Eco - Industrial Park, Utility Production Recreation Facility - Golf Course Manufacturer - Electronic Assemblies DSB - Economic and Management Consulting BENEFICIARIES INDUSTRY RESOLUTIONS A total of four (4) compliance cases were presented to the Board for deliberation on non- compliance matters. Four (4) cases were assessed penalties totaling $329,432.61, two of which are pending resolution. Allquest Mortgage Capital nka Allquest Financial Services CBI Acquisition LLC d/b/a Caneel Bay TAG Virgin Islands LLC Tropex, Inc. Investment, employment, and special conditions violations Procurement Violation Full-time employment & contribution violations Contribution Violation Assessed Penalty of $217,278.61 (Pending) Assessed Penalty of $64,947 (Paid) Assessed Penalty of $45,007 (Pending) Assessed Penalty of $2,200 (Paid) COMPLIANCE REPORTS RESOLUTIONS as of September 30, 2012 BENEFICIARY NON-COMPLIANCE FINDING RESOLUTION 20 American Management Solutions Alpha Broadcasting Corporation James River Capital Corporation Plantation View, Inc. Professional Holding Company VI, LLC Atlantic Industries, Inc. Mega Management Advisors, LLC Secret Harbour Beach Resorts Associates The March Group, LLC Trust Asset Management LLP Virgin Islands Telephone Corporation AVisco, LP Virgin Islands Paving, Inc. Columbus Landing, LLC Valance, Inc. COMPLIANCE REPORTS COMPLETED as of September 30, 2012 COMPLIANCEREVIEWS As of September 30, 2012, 15 compliance reports were completed as reflected below. Of the completed reports, six (6) beneficiaries were found to be in full compliance with their certificates of benefits. Additionally, four (4) reviews were being finalized with draft reports submitted for the Director’s review. Seventeen (17) reviews of compliance reports were actively in progress at the end of fiscal year 2012. Aggregate, Inc. BD Specialties d/b/a Billy Dees Special Tees Bellavista Properties, Inc. Communication Technology, Inc. (Comtek) Four Winds Plaza Corporation Gemini Design, Inc. Global Capital Advisors, LLC Healthquest, LLC Palms Court Harborview, Inc. Hudson Management Group, LTD Kazi Management VI, LLC Smooth Kreationz, LLC St. Croix Renaissance Group, LLLP St. Thomas Plastic Bottle Manufacturer, Inc. Tropico Management, LP Westin St. John Hotel Company, Inc Yacht Haven USVI, LLC COMPLIANCE REPORTS in PROGRESS as of September 30, 2012 567 SGB, LLC AVIsco, LP Clearwater Consulting Concepts, LLLP Investment, Full-time Employment & special conditions Full-time Employment Full-time Employment, Procurement & Reporting Requirement, Special Condition, Deliberately reported false information Governor Decision Pending Resolution Pending Final Settlement Pending BENEFICIARY FINDINGS STATUS SHOWCAUSEMATTERS Three (3) beneficiaries appeared before the EDC Governing Board to show cause why their benefits should not be suspended, modified, or revoked. 21 Mega Management Advisors, LLC Columbus Landing, LLC GEM Manufacturing, LLC Kazi Management VI, LLC Coral World, Inc. 567 SGB, LLC Kiskidee, Inc. Smooth Kreationz, LLC St. Croix Renaissance Group, LLLP RC Hotel (Virgin Islands) Inc. Tropical Plastic Corporation The March Group LLLP Valance Company Inc. Caribbean Inflatable Boats & Life Rafts AVisco, LP Vitelco St. Thomas Plastic Bottle Manufacturer, Inc. International Capital & Management Co. Alpine Securities, USVI LLC Kazi Management St. Croix, LLC SITE VISITS as of September 30, 2012 SITEVISITS A total of 20 site visits were conducted within the fiscal year. Kilroy’s Inc. David Follman d/b/a Follman Construction SWJ Corporation d/b/a Schooner Bay Market Place Solar Systems Johanny Magrass d/b/a Quisqueya Enterprises Antilles Gas Corporation Geek Emporium, Inc. d/b/a Reliable Network Solutions Jeremy Henkel d/b/a Blue Water Construction Steven Cooper & Associates, P.C. Gary Lee Felton Virgin Global Technology, Inc. Joseph Hylton, Jr. Joe Hylton Construction Managers, Inc. Merchants Market of St. Croix, Inc. Inove Asset Management, LLC Supply Resources, Inc. Anally Farms On Time Distribution, LLC VI Regulated Waste Management, Inc. Caribbean Petroleum, Inc. James Adams Electrical, LLC All Rounder Systems, LLC Jeannette Davila Great Lakes Insurance (VI), LLC Dry Cleaning, Laundry Pickup & Delivery Services Construction Contractor Grocery and Food Provider/Catering Services Solar Electrical Panels, Water Heaters, Pool Pumps, Energy Components Installation & Repair Services Bookkeeping, Tax & Secretarial Services Liquefied Propane Gas Computer Supplies, Equipment and Technical Support Services Drywall & Sheetrock Installation/Contractor Services Tax and Certified Public Accounting Services Photography & Digital Printing Services Telecommunications equipment; Design, Installation and Support Services Architectural Services General Construction and Construction Management Services Food Distributor Business and Management Consulting Services Medical Laboratory & Cleaning Supplies Wholesale Retail of Fresh & Frozen Foods Paper/Cleaning Products Waste Management, Residential/Commercial Trash Remover, Bio-Medical/Hazardous & Non-Hazardous Waste Removal/Disposal Services Fuel Distribution Electrical Construction Contractor Real Estate Insurance BUSINESSES CERTIFIED AS ELIGIBLE VIRGIN ISLANDS SUPPLIERS IN FY 2012 APPLICANTS TYPE OF BUSINESS ELIGIBLEV.I.SUPPLIERS Thirty-five (35) applications were filed. Of the 35 applications, 24 were approved, three (3) were denied, and eight (8) incomplete applications were pending additional information to be processed. As of September 30, 2012, a total of 304 businesses are certified as Eligible Virgin Islands Suppliers. 12 5 7 9 4 5 COMPLIANCE REPORTS Completed Compliance Non-Compliance FY2011 15 6 9 FY2012 FY2010 22 11 8 5 0 12 14 CERTIFICATES Executed Orientation FY2011 FY2012 FY2010 COMPARISONTOPRIORYEARSTATISTICS FORPERIODENDINGSeptember30th 28 27 4 0 28 25 3 0 ELIGIBLE SUPPLIERS Received Approved Denied Pending FY2011 35 24 3 8 FY2012 FY2010 Austin"Babe"MonsantoMarineFacility,CrownBay,St.Thomas 24 The Industrial Park Development (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 V.I. Economic Development Authority. Presently, there are two industrial parks that fall under the auspices of the IPDC, the William D. Roebuck Industrial Park and the St. Thomas Industrial Park. WILLIAM D. ROEBUCK INDUSTRIAL PARK On St. Croix, the William D. Roebuck Industrial Park is located between Christiansted and Frederiksted, the historic towns on the island of St. Croix. It is the largest of the two industrial parks. This park, situated within four adjoining buildings, consists of 148,160 square feet of commercial space of which 69,400 square feet is currently occupied by three (3) beneficiaries of the Economic Development Commission’s tax incentive program, one of which includes Gold Coast Yachts. This business, which manufactures boats, including catamaran yachts, has been in existence for more than 25 years. At the end of FY 2012, 47 percent of this park’s space was occupied. ST. THOMAS INDUSTRIAL PARK Mounted on a lush hillside just outside of the bustling town of Charlotte Amalie - the capital of the U.S. Virgin Islands - the St. Thomas Industrial Park is located at a site that overlooks the Crown Bay Marina Center in Subbase and the Cyril E. King Airport. In FY 2012, this 20,000 square feet area of commercial space was occupied by two (2) EDC companies including one of the most recent occupants, United Electronic Industries Services, LLC, (UEIS). UEIS manufactures and tests electronic assemblies that are tailored to the automotive, aerospace, military, medical and semiconductor industries. The IPDC, which is solely funded by rental income, has occupancy levels in both parks that are expected to increase since the U.S. Department of Commerce has lifted occupancy restrictions that limited the option of leasing of park space only to companies under the EDC program. This space can now be leased on the open market to maximize its level of occupancy. As a result, the VIEDA expects to receive several inquiries from prospective clients. In addition to the two aforementioned properties, the IPDC also owns the building that houses the VIEDA’s headquarters on St. Croix, which is located at No. 116 King Street in Frederiksted. That structure, known as the Old Flemming Building, was purchased in 2002. INDUSTRIALPARKDEVELOPMENTCORPORATION WilliamD.RoebuckIndustrialPark,St.Croix VI INDUSTRIAL PARK DEVELOPMENT CORPORATION - WILLIAM D. ROEBUCK INDUSTRIAL PARK VACANCY/OCCUPANCY (%) FOR FISCAL YEARS: 2009, 2010, 2011, 2012 VACANCY/OCCUPANCY (%) FOR FISCAL YEARS: 2009, 2010, 2011, 2012 VI INDUSTRIAL PARK DEVELOPMENT CORPORATION - ST. THOMAS INDUSTRIAL PARK TheVirginIslandsIndustrialPark,St.Thomas 26 VIEDALENDINGDIVISION GOVERNMENTDEVELOPMENTBANK(GDB) The Government Development Bank (GDB) of the U.S. Virgin Islands was created by legislation in 1978 “to aid the insular government in the performance of its duties to develop the economies of the United States Virgin Islands,” but it was not until 1997 that the GDB was actually funded, staffed and began its operations. Since that year, the GDB has provided access to capital for small and medium-sized businesses in the Territory. COMPONENTSOFGDB The GDB’s primary funding components include its Intermediary Relending Program (IRP Loan), a component of the U.S. Department of Agriculture; the Micro-Credit Loan Program (MICRO Loan); the Farmers and Fishermen Loan Program; the Transportation Loan Program; the Economic Development Loan Program and the new State Small Business Credit Initiative (SSBCI) Program. The current IRP loan portfolio consists of 11 loans valued at approximately $538,671, the Micro- Credit loan portfolio consists of 150 loans valued at approximately $2,676,390, the Farmers and Fishermen loan portfolio consists of 67 loans valued at approximately $247,728, and the Economic Development Loan Program consists of 22 loans valued at approximately $3,357,983. STATESMALLBUSINESSCREDITINITIATIVE(SSBCI) • In FY 2011, the U.S. Department of the Treasury approved a grant request of $13.1 million for the U.S. Virgin Islands as a participating state under the SSBCI program. The SSBCI was signed into law by President Barack Obama under the Small Business Jobs Act of 2010. The SSBCI will provide one dollar to every $10 loaned to small businesses through local lending institutions, resulting in $131 million in loans throughout the Territory. The U.S. Virgin Islands Economic Development Authority was designated by Governor John P. de Jongh, Jr., as the agency to administer the SSBCI Program in the Territory. • The approved state programs are the Collateral Support Program; the Credit Guarantee Program; and the Payment, Surety, and Performance Bond Program. 27 • To promote the SSBCI program, the Lending Division engaged in several outreach activities in the Territory. The Lending Division introduced the SSBCI program to existing and potential small business owners through local speaking engagements and presentations in partnership with the Chamber of Commerce, Disadvantaged Business Enterprise (DBE) and other local organizations; site visits; radio and television interviews; and local news articles. • During the first 11 months since the inception of the SSBCI Program, the VIEDA provided $289,662 enhancements to local banks on behalf of local business owners. The Lending Division will continue to encourage additional local banks to participate in the SSBCI program while encouraging local eligible small businesses to apply. LOANFINANCING The overall picture for the GDB was reflective of the negative impact the distressed economic decline has had on our Territory, with a 55 percent decrease in the dollar value of the loans approved. Also, the sudden and unexpected closure of the oil refinery on St. Croix, HOVENSA, LLC, added to the negative impact as some business owners were forced to close their operations due to a decline in revenue and major increases in operating costs which had a detrimental effect on their bottom lines. During FY 2012, the Lending Division processed 26 loan packages for financing under the GDB/SBDA loan programs, a 19 percent decrease compared to FY 2011. Of this amount, 23 applications were approved and three (3) were declined. By the end of the fiscal year, the total loans processed amounted to $1,516,824, a decrease of $1,894,134, or 56 percent, over the previous fiscal year. Along with the factors mentioned above, this can also be attributed to a decrease in the dollar amounts of the loans reviewed. The St. Croix district funded $656,400 to support six (6) loans, and the St. Thomas-St. John district funded the remaining $588,424 for 17 loans. The three (3) declined loans from the St. Croix district amounted to $272,000. 2008 APPLICATIONS 2009 2010 2011 2012 $1,152.3 DOLLAR AMOUNT $1,047.5 $1,329.5 $2,758.9 $1,244.8 LOANS APPROVED PER FISCAL YEAR 28 29 OTHERPROGRAMS Tour Bus Leasing Program. This program was established in FY 2009 to enhance St. Croix’s potential as a competitive cruise-ship destination. This program was utilized by two tour bus operators. At the close of the fiscal year, a total of 26 buses were being leased by the two operators. During FY 2012, the leases matured and the option to purchase the buses was extended to the operators. However, by the end of FY 2012 no offers to purchase were made and new tour bus operators were being sought to move forward with the Tour Bus Leasing program. Bonding Surety Program. In its third year of assisting small and medium-sized contractors in obtaining bid, performance and payment bonds, this program reported a total of three (3) bonds valued at $999,763 which supported contracts amounting to 100 percent of the contract amounts. Virgin Islands Energy Loan Rebate Program. Commencing in the second quarter of FY 2010, for a two-year period, the Virgin Islands Energy Loan Rebate Program reflected a total of 863 loans for a total value of $2,183,991 at the end of FY 2012 compared to 410 loans amounting to $1,024,782 during the previous year. This program was created to provide financing for the purchase and installation of solar water heaters to home owners and small business owners. In March 2012, the final loans under the Sun Power Loan Program were approved. FISCALYEAR2012ACCOMPLISHMENTS In FY 2012, with a 55 percent decrease in the dollar value of the loans approved, the overall picture for the GDB - one of two entities of the VIEDA’s Lending Division - reflected the impact the economic decline has had on our Territory. However, despite this decrease, the sudden closure of the oil refinery on St. Croix, Hovensa, LLC; a decrease in revenue; and major increases in operating costs that led to local business closures; the Lending Division continued to focus on helping small businesses in the Territory through “Approved State Programs” under the State Small Business Credit Initiative (SSBCI). AWARD In FY 2012, the GDB received the Financial Advocate of the Year Award from the U.S. Virgin Islands Small Business Development Center (SBDC) during Small Business Week in the Territory in May 2012. OTHERACCOMPLISHMENTSINFY2012: • Successfully applied for and was awarded SSBCI funds to assist small businesses in the Territory • Increased collections by 14 percent • Developed and implemented the use of coupon books for borrowers to manage timely loan payments • Recommenced the distribution of monthly billing statements to borrowers • Recommenced the distribution of monthly delinquency notices to delinquent borrowers • Approved Lending Division’s Procedural Manual FarmingIndustry-U.S.VirginIslands 30 VIEDALENDINGDIVISION SMALLBUSINESSDEVELOPMENTAGENCY(SBDA) The Small Business Development Agency (SBDA) was originally created by legislation in 1969. Since its inception, the SBDA has been one of the catalysts in developing the economy of the U.S. Virgin Islands through its lending programs. This agency currently has the following six (6) loan programs in its lending portfolio: the Small Business Development Agency Direct Loan Program, the Farmers and Fishermen Loan Program, the Frederiksted Loan Program, the Economic Development Administration Loan Programs 3801 and 3804, which are components of the U.S. Economic Development Administration (EDA); the Transportation Loan Program, which was introduced in FY 2010; and the State Trade and Export Promotion Program (STEP). STATETRADEANDEXPORTPROMOTIONPROGRAM(STEP) The State Trade and Export Promotion program, or STEP, which was added to the SBDA’s loan portfolio, is made possible through a $489,646 grant awarded by the U.S. Small Business Administration which simply seeks to help increase exports from the U.S. by 40 percent within the next five (5) years. This three- year pilot program authorized by the Small Business Jobs Act of 2010 is designed to help small businesses grow by increasing their export activities and raising the value of the products exported from the United States. The U.S. Virgin Islands STEP program had its share of challenges in the first year since funds were not released. However, we identified companies as per the grant that had the potential to increase exports, provided export-related training and established stronger partnerships with groups such as the Export- Import Bank, or Ex-Im Bank, and the Department of Commerce. Our website was also translated into 32 languages to increase our accessibility to international trading partners. A total of 20 companies were involved in the program’s first year. The funds that were not received initially were part of a “carry-over” request that was submitted so that we can use the funds in fiscal year 2013. 2008 2009 2010 2011 2012 $837.3 (PURPLE) $555.0 $1,128.5 $2,352.9 $1,142.0 $315.0 $492.5 $201.0 $406.0 $102.8 SBDALOANPORTFOLIO Presently, the entire SBDA loan portfolio is comprised of 199 loans valued at approximately $5,787,266. The SBDA Direct Loan portfolio consists of 177 loans valued at approximately $5,234,456. The Frederiksted Loan portfolio consists of eight (8) loans valued at approximately $117,290; the EDA 3801 loan portfolio consists of six (6) loans valued at approximately $299,479; and the EDA 3804 loan portfolio consists of eight (8) loans valued at approximately $135,982. The above graph depicts loans approved under the GDB and SBDA Loan Programs for both St. Croix and St. Thomas/St. John districts. TheLoredonL.Boynes,Sr.,DockinCruzBay,St.John 32 2008 2009 2010 2011 2012 $859.1 $928.2 $793.7 $897.7 $1,022.6 COLLECTIONS Total collections increased by approximately 14 percent, from $897,648 during FY 2011 to $1,022,605 in FY 2012. This increase was attributed in part to: • the assistance of two independent collection agencies, one per district, that have been assigned accounts that were delinquent for more than 151 days; • the Lending Division’s implementation of issuing monthly billing statements and delinquency letters to borrowers contributed to the increased collections; and • the VIEDA’s pursuit of legal action through its legal counsel via litigation against delinquent borrowers by the filing of “Actions for Debt” and/or “Actions for Debt and Foreclosure.” The above chart depicts the total collections received for all the GDB and SBDA loan programs from FY 2008 to FY 2012. FISCALYEAR2013OBJECTIVES • Propose legislation to merge the GDB and SBDA into one banking unit under the Lending Division • Reduce and maintain the total loan delinquency rate to less than 25 percent by implementing various collection methods and initiatives • Increase available sources of lending funds through the U.S. Department of Commerce, U.S. Department of Agriculture, and U.S. Small Business Administration • Network with businesses and other government agencies to promote loan programs through a series of workshops, print, and electronic media • Partner with local banks to aggressively market the SSBCI Loan Program through their branches and the media • Implement an online loan application • Update the website in a timely manner with current loan product information • Provide professional development training for staff through workshops and seminars FishingIndustry-U.S.VirginIslands 33 Five years ago, we reported that the Enterprise Zone legislation was perhaps the least known economic development tool in the Territory. At that time there were three zones, three Enterprise Zone beneficiaries, one employee, and no grants to fund special programs. Today, there are four zones, 28 Enterprise Zone beneficiaries, and four employees. The Enterprise Zone Commission has also been awarded $400,000 in grants over the five-year period. In 2007, the Enterprise Zone Commission adopted a Strategic Plan that created a foundation that provided guidance regarding key issues with a focus on the attempt to revitalize our distressed neighborhoods and communities. The focal areas included community aesthetics, public safety and crime prevention, infrastructure, housing and neighborhood development, education, entrepreneurship and job training, business development and plan implementation. Although there were several successes in fiscal year 2012 such as the commencement of the second phase of the Scrape, Paint and Rejuvenate program to fulfill the community aesthetics goal, the most successful of the projects undertaken were in the following areas: ENTERPRISEZONECOMMISSION Performance-Based, Results-Driven. The Enterprise Zone Legislation was enacted on September 14, 1999 through Act No. 6294. It mandates that the designated blighted and severely distressed areas in the U.S. Virgin Islands that were once socially and economically vibrant communities would be revitalized. The legislation provides for tax incentives and economic development program benefits clear and free of regulatory barriers to economic growth. Importantly, the law calls for collaboration amongst government, private and non- profit organizations to accomplish the envisioned outcome. 34 Rehabilitatedresidentialproperty,St.Croix(BEFORE+AFTER) 35 PUBLICSAFETY&CRIMEPREVENTION The Abandoned Building Board-Up Program was completed with a total of 11 buildings boarded up in the St. Thomas-St. John district. The Savanne Abandoned Building Board-Up Program entailed the boarding up of abandoned buildings in the community. This was necessary to avoid squatting, the use of oft-time wooden buildings for storage, the sale of illicit drugs, and other opportunities for criminal activities. The Enterprise Zone Commission worked with a task force of government agencies to include the Virgin Islands Police Department, Virgin Islands Fire Department, Virgin Islands Health Department, and the Historical Preservation Committee to identify and assess the buildings that were in the most need of being boarded up. In total, the Enterprise Zone Commission completed 11 buildings throughout the district after identifying them as havens that can accelerate criminal activities in the neighborhoods where they existed. INFRASTRUCTURE,HOUSINGANDNEIGHBORHOODDEVELOPMENT In fiscal year 2012, Governor John P. deJongh, Jr., through Executive Order No. 456-2012, expanded the designated enterprise zones. This expansion now provides opportunities for more businesses and residents to take advantage of the credits offered to fix their buildings. The designated enterprise zones now include Christiansted, a larger area of Frederiksted, Savanne & Downstreet and Garden Street & Upstreet. EXPANDEDZONES Upstreet&GardenStreet Backstreet,Savanne&Downstreet 36 A&N Holdings II, LLC Kalima Center, Inc. Larry R. Witkop Orneth La Corbiniere Bhawandeen Persad, Inc. Morymac, LLC Chelsnia Rental, LLP Tropical Cleaners & Lauderers Gary Thomas d/b/a Flower Dan BLBJ Property Management, LLC Law Offices of Michael Sanford Andrew Simpson, P.C. Laundry Time, LLC Bryan’s Marine Service, LLC Joseph Baker USVI Management Corp. Olivia H. Henry Samuel T. & Rosemary Grey Chelsnia Rental, LLP Diane M. Russell Juanita Fergus Blackbird Properties, LLC Victoria House, Inc. George W. Cannon Dvergsten Company, LTD.** Theo’s Gourmet Caribbean Foods** Candeya & Kelvin Browne** Edwina J. Marsh Anthony Ayer, Owner Dr. Cheryl Wade, Director Larry & Linda Witkop, Owners Orneth La Corbiniere, Owner B. Persad, President Felice Quigley, Esq., Manager Elvis D. Victor, Owner Kris Bhola, Owner Gary Thomas, Owner Bernice Kight, Owner Michael Sanford, Esq., President Andrew Simpson, Owner Hubert Frederick, Owner Carlyle Bryan, Owner Joseph Baker, Owner Sid Kalmans, Owner Olivia Henry, Owner Samuel T. & Rosemary Grey, Owner Elvis D. Victor, Owner Diane Russell, Owner Juanita Fergus, Owner Patricia Kay Boulware Miller, Owner Norma Glenn, President George W. Cannon, Jr., Owner Christina Louton, Secretary-Treasurer Leslie & Simonica Gumbs, Owner Candeya & Kelvin Browne, Owner Edwina J. Marsh, Owner #13 Strand Street, Frederiksted #54 King Street, Christiansted No.21 Regjerrings Gade, Savanne 16 & 17 King Street, Christiansted 22 Gamle Gade, Savanne 9B Prince Street, Christiansted 20-20A Market Street, Christiansted 16-17 King Cross Street, Christiansted 33C King Street, Christiansted #10A East Street, Christiansted 14ABA Church Street, Christiansted 14-AB Church Street, Christiansted 1AB & 1BB Estate Mount Welcome, Plot#2 5AB Hospital Street, Christiansted 42AB Company Street, Christiansted 44A Queen Cross Street, Christiansted 23B Hospital Street, Frederiksted 19A East Street, Christiansted 21B Queen Street, Christiansted 49 Hospital Street, Frederiksted 19B-20 Strand Street, Christiansted 14A-14C Strand Street, Frederiksted #7, 8A & 8B Strand Street, Frederiksted #71 Queen Street, Frederiksted Dronningens Gade #63, Savanne 67 King Street, Frederiksted Jigget Gut Gade #2B, Savanne Nye Gade #3, Garden Street BUSINESS DEVELOPMENT COMPANY NAME LOCATION CONTACT BUSINESSDEVELOPMENT In fiscal year 2012, the Enterprise Zone Commission instituted the Beneficiary Care Program. This program formalized the staff’s practice of regularly checking on existing beneficiaries and providing that extra assistance especially for businesses that may have been having difficulty during the recession. Our goal was simply to be of service. We had a total of eight (8) applications of which six (6) applications were approved. Businesses such as the Dvergsten Company (an office space), Victoria House, Inc. (a commercial rental property), and Theo’s Gourmet Caribbean Foods (a restaurant and manufacturer of seasonings and sauces) were amongst this year’s business concerns. PLANIMPLEMENTATION Title 29 of the Virgin Islands Code provides for benefits to incentivize revitalization of the town based on the town plans. The Virgin Islands Economic Development Authority adopted the Enterprise Zone Commission’s five-year strategic plan which specifies that the staff would endeavor to work with EZ stakeholders to develop town plans for each neighborhood/community. In fiscal year 2012, the Enterprise Zone Commission focused on completing the Frederiksted Collaborative Town Plan. It is anticipated that the plan will be adopted by the first quarter of 2013. 37 38 In fiscal year 2012, the VIEDA continued to be guided by the Marketing and Strategic Plan focusing on both local and external markets for its various marketing initiatives. The VIEDA also worked in collaboration with its global lead generation firm to target and attract potential international businesses into the Territory for their participation in the EDC program. FY2012 OBJECTIVES • Re-evaluate the VIEDA’s marketing plan and adjust implementation strategies • Identify and conduct comprehensive marketing outreach strategies to emerging industry sectors to increase the pool of EDC applicants • Continue to diversify EDC advertisement outlets and rebranding mechanisms to attract new industries • Increase awareness of the various services and benefits offered by the VIEDA’s Economic Development Program in order to reach a larger clientele FY2012 ACCOMPLISHMENTS • Developed a local television show, “VIEDA: Focus on the VI Marketplace”, to promote the VIEDA’s programs and services. This show also informs viewers about the Authority’s current initiatives to help create jobs locally and boost the Virgin Islands’ economy. This show also highlighted some of the VIEDA’s clients who shared their stories of entrepreneurship. • Facilitated website updates, monitored web contents and the posting of news releases • Conducted “Boots on the Ground” local, educational, and promotional activities to educate our local community on the VIEDA’s programs. It involved speaking engagements and appearances on various radio talk shows • Presented USVI sales presentation at various summits and conferences MARKETINGINITIATIVES The Marketing and Public Relations Unit promotes the five (5) entities of the V.I. Economic Development Authority (VIEDA) and the activities and events that contribute to the enhancement of economic development in the U.S. Virgin Islands. This unit is also responsible for assisting the VIEDA in educating local residents and investors about the economic development programs available through the Authority to spur economic growth. RumIndustry-St.Croix,U.S.VirginIslands 39 • Developed and conducted a targeted marketing approach for potential EDC applicants • Contacted over 2,000 companies to sell the benefits of the USVI and the EDC Beneficiary program • Managed a portfolio of 60 active investment projects of businesses that are considering the USVI for establishment. FY2012 HIGHLIGHTS EXTERNALMARKETINGEFFORTS Through selected conferences and missions abroad in fiscal year 2012, the VIEDA continued to seek pre- qualified potential beneficiaries within targeted industries for the EDC program. Cruise Ship convention and exhibition in Miami, FL In March 2012, the VIEDA Team participated in the 2012 Cruise Shipping Miami convention and exhibition, also known as Seatrade, and met with key officials in the cruise ship industry. This global exhibition and conference attracted almost 11,000 attendees at the convention. Investment leads continue to be cultivated. Caribbean Hotel and Resort Investment Summit (CHRIS) in Miami, FL In May 2012, VIEDA officials participated in the “Caribbean Hotel and Resort Investment Summit” (CHRIS) as workshop leaders of the subject session entitled “How The Public and Private Sector Can Best Work Together To Grow The Hotel and Tourism Industry ? Best Practices and Today’s Realities”. With the V.I. Legislature’s enactment of the Hotel Development Finance Act in FY 2012, the VIEDA targeted businesses in the hotel industry at CHRIS. CHRIS represents the Caribbean’s most important hotel and tourism investment conference. Investment leads continue to be cultivated. EDCBeneficiaryOcwenMortgageServicing,Co.andAltisourceAssetManagementCo.headquarters,St.Croix 2012 Latin America Trade Mission in Panama VIEDA officials participated in this delegation with economic development officials from Southern states. The purpose of this mission was to strengthen ties with Latin America. According to the Southern Governor’s Association, the American South is deemed as the fastest growing region in the U.S., and it exports a wide range of products to countries in Latin America. Investment leads continue to be cultivated. Southern Governors Association Annual Meeting in Puerto Rico In August 2012, the VIEDA’s marketing consultant participated in the USVI delegation for the Southern Governors Association Annual meeting in Puerto Rico. The purpose of the mission was to maintain relations with our key partner states in the Southern region as well as develop connections with company contacts to attract new businesses to the Territory. London Investment Mission Summary In May 2012, some members of the VIEDA’s management and Board travelled to London to meet with corporate decision makers from British companies that have plans for business expansion in the Caribbean. These companies represent industries that are within the VIEDA’s target sectors. The key objective of the investment mission was to meet with officials and companies with an interest and ability to expand into the U.S. Virgin Islands, and to present the benefits of establishing an operation in the Territory. In addition, the VIEDA sought to develop productive long-term business relationships that will ensure that more companies invest in the Territory and create positive economic activity. This would include jobs, benefits, tax revenue, new business for local companies, products and services, and contributions to community initiatives. The London investment mission was comprised of two key activities, both of which focused on meeting companies and promoting the benefits of doing business in the U.S. Virgin Islands. One-to-one company meetings were held in the London area, and the marketing event was hosted by a large London-based law firm which provided a forum for VIEDA officials to promote the benefits of doing business in the U.S. Virgin Islands. The London investment mission was successful in generating the following results in relation to the established objectives: • Seven (7) business-to-business meetings with companies interested in investing in the USVI • Twenty-five (25) companies attended the investment presentation to learn more about the advantages of doing business in the USVI • Four (4) active investment projects secured for the VIEDA to engage • Three (3) medium-term projects to cultivate • One company official visited the Territory to assess the offering • More than 1,300 companies contacted to introduce the USVI for investment The mission represents just the beginning of a proactive marketing approach by the VIEDA that will continue through fiscal year 2013. With additional investment missions in the U.S. and Europe, and of course continued follow-up in London, the VIEDA aims to capture investment opportunities as they develop from the large marketing pipeline that has been created as a result of this initiative. 40 BigBen,HousesofParliament,London: www.London-GB.com 41 42 Other Activities: • With the closure of St. Croix’s oil refinery, HOVENSA, in FY 2012, the VIEDA team focused on exploring transshipment opportunities at this site by engaging in discussions with leaders in container terminal operations. • The VIEDA team met with the Board of Directors of Silicon Valley-based TechAmerica, a technology industry leader, summarizing the advantages of doing business in the Territory. • The VIEDA team also met with more than 55 hedge fund managers on St. Croix at a seminar sponsored by a local hedge fund company on St. Croix INTERNALMARKETINGEFFORTS In FY 2012, aggressive efforts to promote the VIEDA’s programs to the Territory’s potential and existing entrepreneurs in the U.S. Virgin Islands are reflected in outreach activities and events. These activities were hosted by the VIEDA or held in partnership with other local agencies and organizations. Local Outreach Activities: • The VIEDA hosted a “Made In the USVI Showcase” on St. Thomas to promote local products and services of local small businesses during the Christmas holiday season. These small businesses were potential participants of the State Trade and Export Promotion Program, or STEP. • In FY 2012, the VIEDA hosted an Open House during the annual U.S. Virgin Islands Carnival Food Fair on St. Thomas. • The VIEDA also participated in St. Croix’s Annual Agrifest • During FY 2012, the VIEDA co-hosted two “Business After Hours” events with the St. Thomas-St. John and St. Croix Chamber of Commerce. These events, which attracted several existing and potential business owners locally, fostered several networking opportunities between the VIEDA and the community. The VIEDA also continued to promote its programs and activities through its website, press releases, print and radio advertisements, brochures and radio interviews. USVI-EDC Ambassadors Program The VIEDA launched a new initiative called the “USVI-EDC Ambassadors Program,” which is geared towards attracting more investment to the Territory. The program will leverage relationships with current key beneficiaries of the tax-incentive program administered by the V.I. Economic Development Commission (VIEDC). The program will also leverage stakeholders within and outside of the Territory in selling the U.S. Virgin Islands as the best location in the Caribbean for business opportunities. This concept of the Ambassador program includes the development of a series of relevant marketing propositions and case studies, marketing events, and business-to-business meetings delivered jointly by the USVI-EDC Ambassadors and the VIEDC staff. Additionally, the VIEDC Team will launch a new marketing concept known as the “Concierge Program.” This program will be an addition to our targeted marketing support efforts. The concierge initiative is expected to be implemented in FY 2013. 71,70'ChamonixbyEDCBeneficiaryGoldCoastYachts 43 FY2012STAFFOFTHEVIRGINISLANDSECONOMICDEVELOPMENTAUTHORITY Executive STT EDA ChiefExecutiveOfficer PercivalE.Clouden STX EDA AssistantCEO/ChiefOperatingOfficer JenniferNugent-Hill STT EDA AdministrativeAssistant Ja’NelleForbes STT EDA AdministrativeAssistant TamraGraham STX EDA AdministrativeOfficer LaRieshaBrowne STT EDA ChiefofStaff AverriciaD.Williams STT EDA MarketingandPublicRelationsSpecialist SemeleA.C.George Accounting STT EDA DirectorofAdmin.&Finance ErnestHalliday STT EDA Accountant MaritzaE.Hernandez STT EDA BudgetandFinancialAnalyst KellyThompson-Webbe STT EDA AccountantII LovelleIndustrious STT EDA AccountantI JanaCammie STT EDA CustodialWorker FrancilliaWilliams HumanResources STX EDA ProjectCoordinator/HRDirector PaulJ.Arnold,Sr. STT EDA HumanResourcesSpecialist ShirleyJ.Peters Legal STX EDA DirectorofLegislative&LegalAffairs FrederickHandleman STX EDA LegalCounsel StaceyPlaskett,Esq.* STX EDA Paralegal/LegalAssistant TanyaHill,CP STX EDA Investigator BethHoffman Board STT EDA ExecutiveAssistanttoBoard DoreneLouis *serveduntilApril2012 Applications STT EDC DirectorofApplications MargaritaA.Benjamin+ STX EDC Director ofApplications PaulFlemming,Ph.D.** STX EDC ApplicationAnalyst EstherJoseph STX EDC DocumentSpecialist LaShannaMcBeandeChabert Compliance STX EDC Director of Compliance MargaritaA.Benjamin++ STT EDC ComplianceOfficer JoyPenn STT EDC ComplianceOfficer SandraBess STT EDC ComplianceOfficer KyleThomas STX EDC ComplianceOfficer TelsaldaJosiah STX EDC ComplianceOfficer AyannaRomney EnterpriseZoneCommission STT EZ Director,EnterpriseZone NadineMarchenaKean STT EZ EnterpriseZoneFacilitator KizzyMoscoso STT EZ EnterpriseZoneSpecialist RaheemSmith STX EZ EnterpriseZoneSpecialist CusaHolloway Lending STX EDA DirectorofLending(GDB/SBDA) DianneDuinkerk STT GDB Loan/CollectionOfficer DeniseDonadelle STT SBDA LoanAssistant CharleneGerard STT GDB AdministrativeAssistant/Collector MaryOttley STT SBDA AdministrativeOfficer KarenSwan STT SBDA EnergyProjectAssistant ShatimaCharleswell STX SBDA Loan/CollectionOfficer MoniqueSamuel STX SBDA OfficeAssistant KimeneJacobs Industrial ParkDevelopmentCorporation STX IP ParkSuperintendent GeorgeSt.Rose STX IP SeniorMaintenanceWorker EdwardBerry STX IP MaintenanceWorker AthanasiusObieus STX IP MaintenanceWorker EthelbertLesmond STT IP Messenger/ServiceWorker CuthbertCharlemagne **serveduntilJanuary2012 +servedinthiscapacitysinceFebruary2012 ++servedinthiscapacityuntilOctober 22, 2012 ADMINISTRATION VIEDAENTITIES KEY STT-St.Thomas STJ-St.John STX-St.Croix EDA-EconomicDevelopmentAuthority GDB-GovernmentDevelopmentBank SBDA-SmallBusinessDevelopmentAgency IP-IndustrialPark 44 45 CREDITS: GRAPHICDESIGN&LAYOUT:JeanJ.Picou–620Design(www.620design.com) PHOTOGRAPHY:LeeLashley(www.VisualArtCreations.com) VIEDAMarketingandPRSpecialist, p.25 CourtesyoftheEnterpriseZoneCommission,p.34 CourtesyoftheVirginIslandsPortAuthority(VIPA)-MarinePortphotos:pp.15,23and31 PRINTING:VirginIslandsDepartmentofPropertyandProcurement–GovernmentPrintingOffice 46 Frenchman’sReef &MorningStarMarriottBeachResort,St.Thomas 47 FINANCIALS Financials - 48 Financials - 49 Financials - 50 Financials - 51 Financials - 52 Financials - 53 Financials - 54 Financials - 55 Financials - 56 Financials - 57 Financials - 58 Financials - 59 Financials - 60 Financials - 61 Financials - 62 Financials - 63 Financials - 64 Financials - 65 Financials - 66 Financials - 67 Financials - 68 Financials - 69 Financials - 70 Financials - 71 Financials - 72 Financials - 73 Financials - 74 Financials - 75 Financials - 76 Financials - 77 Financials - 78 Financials - 79 Financials - 80 Financials - 81 NOTES NOTES NOTES NOTES NOTES EDCBeneficiaryGoldCoastYachts,St.Croix 87 88 ST.THOMAS 8000NISKYSHOPPINGCENTER,STE620 ST.THOMAS,VI00802 (340)714-1700 www.usvieda.org ST.CROIX 116KINGSTREET, FREDERIKSTED,ST.CROIX,VI00840 (340)773-6499 ...Seeking new opportunities for economic growth.