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COMMITTEE ON BUDGET, APPROPRIATIONS AND FINANCE BILL NO. 36-0275 Thirty-Sixth Legislature of the Virgin Islands March 13, 2026 An act approving the amended lease agreement between the Government of the Virgin Islands, acting through the Commissioner of the Department of Property and Procurement, and Hearts In Service Association, Inc., for the leasing of Parcel No. 175C Estate Anna’s Retreat No. 1 New Quarter, St. Thomas for the purpose of providing eligible programs and services to homeless families, individuals, veterans, and at-risk youth and the operation of a soup kitchen and other related purposes PROPOSED BY: Senator Milton E. Potter, by Request of the Governor WHEREAS, on July 14, 2021, the Governor of the Virgin Islands approved a Lease 1 Agreement between the Government of the Virgin Islands and Hearts In Service Association, 2 Inc.; 3 WHEREAS, the lease agreement was ratified by the Legislature of the Virgin Islands on 4 December 23, 2021, and is now Act No. 8532; 5 WHEREAS, the premises are being used to provide eligible programs and services to 6 homeless families, individuals, veterans, and at-risk youths including transitional housing and 7 the operation of a soup kitchen and other related purposes; 8 WHEREAS, additionally, in the event of a natural disaster, the premises may be used by 9 the lessor as a temporary shelter, the details of which use will be governed by a separate 10 memorandum of agreement between the parties; 11 2 WHEREAS, on March 3, 2026, the Governor of the Virgin Islands approved the 1 amended lease agreement between the Government of the Virgin Islands and Hearts In Service 2 Association, Inc.; 3 WHEREAS, title 31 Virgin Islands Code, chapter 21, section 205, subsection (c) 4 provides that in addition to the Governor’s approval of any lease, the Legislature of the Virgin 5 Islands must approve all leases exceeding a term of one year; Now, Therefore, 6 Be it enacted by the Legislature of the Virgin Islands: 7 SECTION 1. Pursuant to title 31 Virgin Islands Code, section 205, subsection (c), the 8 Legislature of the Virgin Islands approves the amended lease agreement between the 9 Government of the Virgin Islands, acting through the Commissioner of the Virgin Islands 10 Department of Property and Procurement, and Hearts In Service Association, Inc., for Parcel 11 No. 175C Annas Retreat, No. 1 New Quarter, St. Thomas, consisting of approximately 16,041 12 sq. ft., or 0.368 U.S. acres of land, as shown on DPNR File No. D9-4696-T89 for an initial 13 term of 15 years, with options to renew for two, five-year terms at an annual rental fee of 14 $1,200, for the purpose of providing eligible programs and services to homeless families, 15 individuals, veterans, and at-risk youths and the operation of a soup kitchen and other related 16 purposes. 17 BILL SUMMARY 18 This bill approves the amended lease agreement between the Government of the Virgin 19 Islands and Hearts In Service Association, Inc., for use to provide eligible programs and 20 services to homeless families, individuals, veterans, and at-risk youths and the operation of a 21 soup kitchen and other related purposes. 22 The amended lease agreement lowers the annual rent from $12,000 to $1,200, removes 23 the construction period rent, removes annual adjustments of rent, lowers the lessee’s liability 24 3 insurance requirement from $3,000,000 to $1,000,000 and changes the fire and extended 1 coverage start date to the date the lessee receives its occupancy certificates for the premises. 2 BR26-1059/March 10, 2026/PFA 3 G36-060 4