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FY2010 ANNUAL REPORT 2 ALLIMAGES©LEEA.LASHLEY--WWW.LEELASHLEY.COM BOARDOFDIRECTORS AlbertBryan,Jr. CHAIRMAN NathanSimmonds VICECHAIRMAN LynnMillin-Maduro,Esq. SECRETARY RandolphAllen MEMBER JohnLewis MEMBER JosePenn MEMBER HenrySmith,Ph.D. MEMBER EXECUTIVESTAFF CHIEFEXECUTIVEOFFICER PercivalE.Clouden ASSISTANTCHIEFEXECUTIVEOFFICER AliciaBarnes PROJECTCOORDINATOR PaulArnold DIRECTOR,COMPLIANCE(EDC) MargaritaBenjamin DIRECTOR,LENDINGDIVISIONDianneDuinkerk DIRECTOR,APPLICATIONS(EDC) PaulFlemming DIRECTOR,MARKETING D.JerryGarcia DIRECTOR,ADMINISTRATIONandFINANCE ErnestHalliday DIRECTOR,ENTERPRISEZONE NadineMarchenaKean LEGALCOUNSEL StaceyPlaskett,Esq. SUPERINTENDENTofPARKS GeorgeSt.Rose 3 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. 4 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 in 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. 5 TABLEOFCONTENTS MISSIONSTATEMENT ....................................4 VIRGINISLANDSECONOMICDEVELOPMENTAUTHORITY........5 ECONOMICDEVELOPMENTCOMMISSION ....................11 INDUSTRIALPARKDEVELOPMENTCORPORATION .............22 LENDINGDIVISION.......................................24 ENTERPRISEZONECOMMISSION...........................30 MARKETINGINITIATIVES..................................34 SPECIALPROJECTS......................................36 PROJECTFINANCE ......................................38 6 7 8 9 Message from the Chairman of the Board The raw material in a service economy is talent, which is necessary to power the innovation and creativity that foster new service products into the marketplace. At the Virgin Islands Economic Development Authority (VIEDA) we know this to be true and have therefore been working to develop sustainable economic growth by supporting the educational system that is the incubator for this talent. Over the years in partnership with beneficiaries of the Economic Development Program and the Department of Education, we have made it possible for thousands of Virgin Islanders to pursue their dreams. We intend to continue this trend and as such have set up a special fund dedicated to workforce development. Additionally, we have sponsored many initiatives with a focus on the development of our future. Understandably, the initiatives that we have taken to grow, develop and retain our small business base would be useless if we cannot encourage and develop a new generation of entrepreneurs. This would make ludicrous the millions of dollars that we have invested in small business loans, together with the lower interest rates that we have offered prospective clients. In my capacity as Chairman of the VIEDA Board of Commissioners, I will continue to provide the leadership necessary for the Authority to stay on course in providing economic opportunities for off-shore businesses to relocate here, while at the same time ensuring the increased participation of local residents in the economic development of the Territory. Now more than ever we recognize the importance of utilizing this two-prong approach to growing the local economy. While we work towards enhancing our attractive tax-incentive product to increase the number of companies participating in the Economic Development Program, so too will we collaborate with other government and non-government entities to provide the necessary financial and technical resources to help residents in the areas of business creation, expansion and sustainability. We understand that private sector development is the base of our economic success, and the VIEDA’s calling is to facilitate this development using all the tools and creativity bestowed upon us. On behalf of the Board of Commissioners, I extend sincere thanks to you for your continued support. Sincerely, Albert Bryan Jr. Chairman of the Board Message from the Chief Executive Officer 10 As we embrace the new fiscal year with a spirit of optimism, the management and staff of the Virgin Islands Economic Development Authority (VIEDA) take pride in the accomplishments of the past year, realized through team effort and an unwavering commitment to our mission of enhancing and promoting economic development throughout the Territory. We knew that despite the prolonged global economic downturn--now in its fourth year—the VIEDA, the lead economic development entity of the local government, would still be required to help local businesses to remain viable and to seize all opportunities to expand. To that end, the Lending Division of the VIEDA, comprised of the Government Development Bank (GDB) and the Small Business Development Agency (SBDA), offered a 90-day amnesty on delinquent loans to allow for loan consolidations and interest rate reductions. This helped to ease the financial burden on our clients by making available additional investment dollars. The Authority also provided loans to first-time entrepreneurs, consistent with an initiative to encourage and support new local businesses. In addition to the steps taken by the Lending Division to meet the needs of a growing small business community, the VIEDA made significant strides in FY 2010. Chief among these was the expansion of services to the residents of St. John with the opening of a satellite location within the Office of the St. John Administrator. We also implemented a Performance Bonding Program to assist contractors so that they could qualify for medium and large construction jobs; increased by 64 percent the number of businesses participating in the Enterprise Zone Tax Credit Program; increased traffic to the Authority’s Web site, which resulted in a number of new prospects for our tax-incentive program; and enhanced the infrastructure of our industrial parks. We are excited about the myriad possibilities of FY 2011. We will continue to encourage large corporate investment, facilitate employment growth opportunities and promote the establishment of financial services and manufacturing companies in the Territory, all while continuing to support those who already are a part of our dynamic Economic Development Program. By improving the efficiency of the EDC application process and enabling potential investors to apply electronically for tax incentives, we hope to see an increase in the number of applications, particularly as the economy begins to stabilize. Similar efforts will be expended to helping the local small business sector. If any lesson has been learnt from the global economic meltdown, it is the critical importance of small businesses to any economy, and especially so to an island economy such as ours. Therefore, we plan to do all that we can to provide financial and technical support to our small business community while simultaneously encouraging start-ups. This will be done through a series of small business seminars in collaboration with our small business partners, on-site visits to clients, and aggressive marketing of our entrepreneurship initiative. With your continued support, we are confident of achieving these goals. Sincerely, Percival E. Clouden Chief Executive Officer 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 The mission of the Applications Unit, which is consistent with the Economic Development Program, is to facilitate the promotion of the growth, development, and diversification of the economy of the U.S. Virgin Islands by processing application packages to be submitted to the VIEDA’s Board of Directors. Upon review, this Board will consider and recommend that the applicant be approved to receive economic development benefits. VISION The vision of the Applications Unit is to be a functioning entity of the Economic Development Authority that facilitates the mandate of enhanced economic sustainability and diversity in the USVI, by expeditiously processing applications in a manner that ensures program integrity. SHORT-TERMGOALS In FY 2010, the Applications Unit, with the assistance of the VIEDA’s Marketing and PR Dept., has increased awareness of the EDC program. This division also focused on these two primary areas of the EDC program: enhancing the cost/benefit analysis model and the timely processing of applications. The cost/benefit model, which is included in the evaluation process of an application, captures comprehensive data – both qualitative and quantitative - that can ascertain the fiscal and economic impact of the EDC program on our Territory. Aggressive efforts have been made to expeditiously process all applications and address the issues that can delay the approval of certificates. In FY 2011, this unit will continue to be diligent in processing all applications in a timely manner. LONG-TERMGOALS The Applications Unit will continue to work with the Marketing and PR Dept. to actively attract potential beneficiaries of the EDC program through tradeshows, conferences and target meetings with industry leaders. Furthermore, this division will periodically revisit work-unit plans that can be implemented to adjust to major shifts in the economy that can occur in today’s global marketplace. Local outreach activities for beneficiaries, such as workshops on the proper procedures for completing EDC applications, will be held. These workshops can also encourage the timely processing of applications within the 80 to 90-day period. APPLICATIONSUNIT 12 SUMMARYOFMAJORACCOMPLISHMENTSFORFY2010 In FY 2010, the Economic Development Commission (EDC) received 11 applications. Five (5) new applications for initial benefits were submitted, and six (6) were filed for tax benefit extensions or modifications. Of the 11 applications that were received, three (3) were approved by the Board for benefits, seven (7) are pending the Board’s decision, and one (1) application was tabled for additional information. These applications that were presented before the Board reflected a potential of 60 full-time jobs, a payroll value of $1,888,379, and $10,393,300 in capital investments. NEWPOLICIESANDPROCEDURES To streamline the application process, the strategic planning team has completed a comprehensive revision of the EDC application. The revised application reflects a significant policy change that will reduce the retroactive time-frame for applicants to receive economic development tax benefits from 18 months to 12 months commencing from the filing date of the completed application. ONLINEAPPLICATIONS The strategic planning initiative to launch the EDC’s online application in December 2010 is in progress. With this added feature to the website, applicants can submit their applications electronically, expediting the filing process of completed EDC applications. QUANTITATIVEANALYSIS Table 1 represents the quantitative analysis of the fluctuations in the amount of new applications received by the EDC during the last six years. In FY 2009, 24 applications were filed compared to 11 applications submitted in FY 2010, a 45% decrease in applications received. There was also a 13.98% reduction in payroll and a 15% decrease in investments. When compared to the statistics of FY 2009, these reductions as depicted in Table 1 are a result of the global economic recession and the impact of the American Jobs Creation Act that was passed by Congress in 2004. 13 14 TABLE1:EconomicDevelopmentCommission–FYHistoricalApplicationInformation 11 3 1 7 60 1,888,379 10,393,300 24 10 1 13 282 13,507,347 67,391,888 26 20 1 6 213 6,629,473 19,836,030 24 20 0 4 1,218 37,708,081 613,966,946 28 25 1 2 743 20,705,713 312,814,477 26 20 2 4 798 33,063,228 83,882,000 Table 1: Economic Development Commision - 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 FY2007 FY2006 FY2005 FY2008 FY2009 FY2010 No. of Apps Received No. of Apps Approved No. of Apps Tabled or Denied Apps Pending Job Opportunities Approximate Wages of New Apps Minimum Potential Investment of New Apps CONCLUSION The information provided in this report reflects the impact of the economic downturn on the global economy. The effects of the recession on our efforts to attract potential investors were evident. Although the number of inquiries increased, there was a decrease in the amount of applications filed. To some extent, our strategic approach was to focus on business retention and expansion. This will sustain the Virgin Islands economy and encourage further economic growth that will continue to enhance the quality life in our Territory. To achieve these objectives and assist in addressing the challenges of our local economy, monthly site visits with beneficiaries will continue as we work collaboratively with these businesses of our EDC program. 15 TABLE2:EconomicDevelopmentCommission–6monthsFYHistoricalApplicationInformation 5 0 1 16 576,980 4,500,000 11 3 0 169 8,163,875 47,685,000 17 13 0 141 7,996,700 17,286,031 20 9 0 1,144 35,264,559 612,871,942 22 14 6 1,608 42,089,782 304,924,477 19 12 0 605 25,806,712 79,827,000 Table 2: Economic Development Commision - 6 Months FY Historical # of Apps Received # of Apps Approved # of Apps Denied Job Opportunities Approx. Wages of New Apps Minimum Potential Investment 2007 as of March 31st 2006 as of March 31st 2005 as of March 31st 2008 as of March 31st 2009 as of March 31st 2010 as of March 31st No. of Apps Received No. of Apps Approved No. of Apps Denied Job Opportunities Approximate Wages of New Apps Minimum Potential Investment of New Apps 16 The main function of the Compliance Unit is to ensure the integrity of the Economic Development Program and assist the beneficiaries in meeting the requirements outlined in their certificates. The Compliance Unit reports its findings to the EDC Commission, which has the legal authority to assess fines for non-compliance. Funds derived from such penalties are used to support education, workforce development and training programs within the Territory. ACCOMPLISHMENTS ORIENTATIONS During FY 2010, 14 beneficiary certificates were executed, and 17 orientations were performed which included three contracts executed in the prior fiscal year. Of these contracts, 14 were new beneficiaries from these industries: three (3) Manufacturers; eight (8) Designated Service Businesses; and three (3) Hotels/Guesthouses. There were also three extensions/renewals of benefits for businesses in the following industries: two (2) manufacturers and one (1) recreation facility. Of the 17 beneficiaries, four (4) businesses under the EDC Small Business Program were granted these benefits: three (3) new and one (1) extension. The certificates issued to beneficiaries during FY 2010 contributed to the employment of 243 full-time employees, annual wages of approximately $8,023,191, investments of approximately $8,387,740, annual contributions of $402,455, and annual scholarships of $39,000: THECOMPLIANCEUNIT American Management Solutions* Alpha Value Worldwide, Inc. Atlantic Industries Global Financial Strategies, LLC Goddard Catering Group St. Thomas Corp Golden Eagle Financial, LLLP Grapetree Shores, Inc. HAI II, LLC* Horizon Fuel & Financial Management, LLC Madison Associates, LP* Marmarus Management Company Masters Capital Management, LLC Paradise Sodas, Inc. Paradise Sodas, Inc. Redhead Management, Inc. Secret Harbour Beach Resorts Associates Shoreline, Inc. South Bay Partners, LLLP* Sparco Management, LLLP* St. Albans Global Management, LLLP* Territory East Asset Management, LLC The Link Group, LLLP* Tutu Park, Ltd. Suspension Suspension Extension Deadline Termination Employment Waiver Employment Waiver Procurement Waiver Termination Suspension Termination Termination Termination Suspension Extension of Suspension Suspension Ratify Hotel Management Agreement Termination Termination Termination Suspension Extension of Time to Employ Ten Employees Termination Ratify Certificate Addendum BENEFICIARY PETITION PETITIONSTOTHEBOARD In FY 2010, 23 petitions submitted by beneficiaries were presented before the Board for deliberation. Four (4) beneficiaries requested extensions or employment waivers; one (1) petitioned for a procurement waiver; seven (7) requested suspension of benefits - two (2) of which were related to the American Jobs Creation Act; nine (9) petitioned for termination of benefits - five (5) of these cases being related to the Jobs Act; and three (2) requested changes to the terms of their certificates. TABLE2:BeneficiariesandPetitionsinFY2010 17 TABLE1:CertificatesofBenefitsIssuedinFY2010 567 SGB Alpine Securities USVI, LLC AVisco, L.P. B&B Manufacturing, Inc. Celtic Therapeutic Management, LLLP Columbus Landing, LLC Contractors Concrete & Building Supplies, Inc. Fedderson Design, LLC Glacial Energy VI, LLC Inner Circle Logistics, Inc. Intrepid Investments Kiskidee, LLC d/b/a Hibiscus Beach Resort St. Croix One, LLC St. Thomas Tramway Joint Venture 2 VI Asphalt Products Corporation Virgin Beverages, Inc. West Indies Bay Company, Inc. ** Certificate of benefits executed in the Fiscal Year 2009 As of September 30, 2010, there were 93 active companies on the EDC Program. (New) (New) (New) (Ext./SBP) (New) (New) (New)** (New/SBP) (New) (New)** (New) (New) (New)** (Ext. & Renewal) (Ext.) (New/SBP) (New/SBP) Hotel DSB - Investment Management DSB - Technical Financial Management, etc. Manufacturer - Roofing & Accessories DSB - Investment Management & Advisory Services DSB - Investment Management Manufacturer - Aggregates & Sand Mix Concrete DSB - Design & Consulting Services Marine Industry DSB - Management & Financial Services DSB - Management Advisory DSB - Management & Financial Services Hotel Guest House Resort Recreation Facility Manufacturer - Asphalt Products Manufacturer - Bottling & Distributing Premium Beverages Manufacturer & Distributor - Fragrances and toiletries BENEFICIARIES INDUSTRY 18 Bates Trucking & Trash Removal Drury Capital, Inc. GeoNet BioFuels, Inc. Lizard Management, VI LLLP US Viking, LLC Pending Site Visit Final Draft Pending 2007 Financials Pending 2009 Financials & Review Resubmitted for changes Pending 2009 Financials & Review COMPLIANCE REPORTS DRAFTS AS OF SEPTEMBER 30, 2010 Americas Management Services, LLLP Seabourne Virgin Islands, Inc. St. Croix Renaissance Group, LLC Derivative Consulting Group, LLC Wyndham Sugar Bay Beach Resort Bridge Capital USVI, LLC Territory East Asset Management, LLC Charitable Contribution Charitable Contribution Charitable Contribution Residency Requirement** Procurement Violations Residency Requirement* Internship Resolution Approved Reprieved Granted Resolution Approved $5,000 $10,396 $5,000 $4,800 COMPLIANCE REPORTS RESOLUTIONS AS OF SEPTEMBER 30, 2010 Americas Management Services, LLLP Caribbean Reservations Emerald Beach Corp. Globalvest Management Co. Kenzie Financial Management, LLC Mario Virgin Crystal, LLC Masters Capital Management, LLC MIFR (Virgin Islands), Inc. Seabourne Virgin Islands, Inc. The Buccaneer Territory East Asset Management, LLC Non-Compliance Internship Non-Compliance Requirement Compliance Non-Compliance Internship Compliance Non-Compliance Charitable Contribution Compliance Non-Compliance Procurement Non-Compliance Charitable Contribution Compliance Non-Compliance Internship Requirement COMPLIANCE REPORTS COMPLETED AS OF SEPTEMBER 30, 2010 COMPLIANCEREVIEWS As of September 30, 2010, eleven (11) compliance reports were completed. Additionally, five (5) reviews were being finalized and draft reports were submitted for the Directors’ review. Of the completed reports, it was determined that four (4) beneficiaries were in full compliance with their requirements. Americas Management Services, LLLP Bellavista Properties, Inc. CBI Acquisitions, LLC Clearwater Consulting Concept, LLLP Communications Technologies, Inc. Four Winds Plaza Corp. Heavy Materials, LLC Inner Circle Logistics Odyssey VI, LLLP Professional Holding Company, LLC QT Investments Managers, LLP Sparco Management, LLLP Smooth Kreationz St. Thomas Plastic Bottle Manufacturer, Inc. The Link Group Tut Park Limited Virgin Islands Telephone Corporation Windward Capital, LLC Yacht Haven USVI, LLC COMPLIANCE REPORTS IN PROGRESS AS OF SEPTEMBER 30, 2010 A total of seven (7) compliance cases were presented to the Board for deliberation on non-compliance matters which included one (1) for **reconsideration of penalties, and one (1) for the ratification of a management agreement. The Board accessed penalties totaling $25,196. The following are nineteen (19) reviews actively in progress at the end of the period: 19 Aggregate, Inc. Blue Sky Real Estate, LLC BluFin Home Builders Bluestone Services, LLC Bryant Barnes Beckstedt & Blair, LLP Calabash Real Estate Caribbean Island Education Foundation, Inc. Charles Dowdy d/b/a Cd Services & Installations Fusion Solution, LLC Great House Reproductions d/b/a Quinn House Galleries of St. Croix Jackson Cleaning Services James C. Deitrich d/b/a James Deitrich Real Estate KB Landscaping Kern Construction Magic Moments Mark Henson Designs Inc. Martin Emanuel d/b/a Martin Emanuel MLC Holding, LLC d/b/a Import Supply Nielin Group, LLC PR Construction & Heavy Equipment LLC Rastafari Landscaping & Maintenance Services Ratio Design Lab, Inc. Spencer Ocean Services, LLC Springboard, LLC Steve Schuler & Son Construction The Greathouse d/b/a Quinn House Galleries VI Technical Services, LLC Victorious Cleaning Services Wheel Coach Services XTR Construction, Inc. As of September 30, 2010, a total of 418 businesses are certified as Eligible Virgin Islands Suppliers. Processed construction (sand & gravel) Real Estate Construction Contractors Construction Contractor Legal Services Real Estate Agent Arts & Craft School Fire & Burglar Alarm Installer IT Consulting Furniture & House Décor Cleaning Services Real Estate Landscaping Services Construction Contractor Luxury Yachts & Sailing Windows Installations Book Keeping Generators & Repair Services Management & Consulting Services Construction Contractors Landscaping IT Systems & Designs Industrial & Freight Services Contruction Construction Contractors Furnishings IT Services Cleaning Services Transportation Services Construction Contractor ELIGIBLE VIRGIN ISLANDS SUPPLIERS CERTIFIED AS OF SEPTEMBER 30, 2010 APPLICANTS TYPE OF BUSINESS ELIGIBLESUPPLIERS Forty-two (42) applications were filed. Thirty (30) applications were approved and four (4) were denied. At the end of the fiscal year, eight (8) incomplete applications are pending additional information to be processed. 25 13 12 10 4 6 14 9 5 14 7 7 26 12 14 17 8 9 15 0 15 COMPLIANCE REPORTS Completed Compliance Non-Compliance FY2006 FY2005 FY2004 FY2007 FY2008 FY2009 FY2010 46 29 7 13 42 30 4 8 47 43 3 4 36 23 0 13 28 23 2 3 30 32 65 59 4 2 ELIGIBLE SUPPLIERS Received Approved Denied Pending FY2006 FY2005 FY2004 FY2007 FY2008 FY2009 FY2010 20 21 14 9 14 17 15 11 18 16 16 19 27 26 13 9 CERTIFICATES Executed Orientation FY2006 FY2005 FY2004 FY2007 FY2008 FY2009 FY2010 22 INDUSTRIALPARKDEVELOPMENTCORPORATION The Industrial 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 activities of the Economic Development Commission. At present, there are two (2) industrial parks that fall under the auspices of the IPDC, the William D. Roebuck Industrial Park and St. Thomas Industrial Park. On the island of St. Croix, the William D. Roebuck Industrial Park is situated between Frederiksted and Christiansted, two beautiful and historic towns that are economic centers both primed for dynamic growth and investment. This park is housed within four adjoining buildings which provide commercial space of 148,160 square feet. Currently, four (4) companies are located within the park. At the end of FY 2010, 45 percent (45%) of the space has been occupied resulting in a significant amount of rental space that is available at very competitive prices. Located on a lush hillside just outside of the Virgin Islands’ capitol, the bustling town of Charlotte Amalie, the St. Thomas Industrial Park, which is located in the area of Contant, overlooks the Cyril E. King Airport. This site is a prime, central location in this active metropolitan area. The St. Thomas Industrial Park is 20,000 square feet of commercial space as compared to the size of its counterpart on St. Croix. At the end of FY 2010, 75 percent (75%) of this park’s total commercial space was occupied by a total of four (4) companies. To maximize the occupancy levels of both parks, the IPDC has requested permission from the U.S. Department of Commerce to lease the park’s vacant spaces to non-EDC companies. The IPDC will be used as the location for the VIEDA’s anticipated Business Incubator Program. The IPDC is also the owner of the building at No. 4 King Street in Frederiksted which was purchased in 2002 and houses the VIEDA offices on St. Croix. 23 FY2011OUTLOOK • Promote and increase parks’ level of occupancy • Update procedures for the maintenance of buildings, vehicles and equipment • Reduce energy consumption through an integrated VIEDA program VI INDUSTRIAL PARK DEVELOPMENT CORPORATION - OCCUPANCY / VACANCY (%) ST. CROIX VI INDUSTRIAL PARK DEVELOPMENT CORPORATION - OCCUPANCY / VACANCY (%) ST. THOMAS 24 EDALENDINGDIVISION (GOVERNMENTDEVELOPMENTBANK) 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 operation. Since that year, the GDB has provided access to capital for small and medium-sized businesses in the Territory. During FY 2010, although the lending arm of the VIEDA experienced a significant increase in the dollar value of loan approvals, there was a decline in the number of loans that were approved, and a decrease in collections (see “Lending Unit (GDB/SBDA) Comparative Statistics” chart in this report). Thus far this fiscal year, although indications show a slight decrease in the number of loans approved, the indicators reflect a significant growth in the dollar value of loan approvals while collections remain steady. LOANFINANCING Through the end of the 4th quarter of FY 2010, we received and reviewed 28 loan packages for financing under the GDB/SBDA loan programs. Of the 28 loan packages received and reviewed, 26 were approved and two (2) were declined. The total dollar value of approved loans for FY 2010 as of Sept 30th was $1,329,500 which consists of $409,000 in financing in the District of St. Croix and $920,500 in the District of St. Thomas/St. John. 25 The Government Development Bank continues to administer and monitor the Intermediary Relending Program (IRP Loan), a component of the United States Department of Agriculture, and the Micro-Credit Loan Program (MICRO Loan). The current IRP loan portfolio consists of 12 loans valued at approximately $595,795. The current Micro-Credit loan portfolio, valued at approximately $2,820,010, consists of 161 loans. Our new Economic Development Loan Program, which was funded by Legislative Act 7081, consists of three (3) loans valued at $395,140. NEWLOANPROGRAMS In FY 2010, we created the “Tour Bus Leasing Program” on St. Croix to assist in establishing St. Croix as a cruise destination, and the “Surety Bonding Program” which assisted small and medium-sized contractors in obtaining bid, performance and payment bonds. Both of these programs are part of the Governor’s economic development initiative for the Territory. To date, we have approved four (4) bonds valued at $2,605,993. We also entered into a partnership with the Virgin Islands Energy Office and the Water and Power Authority to finance a Loan/Rebate Program for home owners and small businesses to purchase and install solar water heaters. To date, we have closed 177 loans at a value of $411,812 and issued 129 rebate checks totaling $228,365. This Loan/Rebate program will operate for two years and will expend a total of $3.5 million when fully drawn in loans and rebates. FOCUSONECONOMICDEVELOPMENT We remain committed to the GDB’s mission of accelerating the economic development of the Territory through our small to medium-sized businesses. 26 EDALENDINGDIVISION (SMALLBUSINESSDEVELOPMENTAGENCY) 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; and the Transportation Loan Program which was introduced earlier this fiscal year. LOAN PORTFOLIO VALUATIONS Presently, the entire SBDA loan portfolio has a total of 281 loans valued at approximately $6,712,884. The SBDA Direct Loan portfolio consists of 181 loans valued at approximately $5,322,621. Sixty-nine loans valued at approximately $244,085 are included in the portfolio of the Farmers & Fishermen Loan Program, and the Frederiksted Loan portfolio consists of eight (8) loans that are valued at approximately $117,311. The EDA 3801 loan portfolio is valued at approximately $563,391 with 14 loans, and seven (7) loans in the EDA3804 loan portfolio valued at approximately $375,104. The most recently established loan program, the Transportation Loan portfolio, consists of two (2) loans valued at approximately $90,372. SMALLBUSINESS INCUBATOR PROGRAM The results of the feasibility study for the Small Business Incubation Program as mandated in Act No. 6753 - the Small Business Incubators Enterprise Act. - will be submitted to the Legislature in the near future for implementation of the recommendations indicated therein. 27 OUTLOOKFORCONSOLIDATION OFLENDING ENTITIES We remain committed to SBDA’s mission of promoting, creating, and expanding small businesses throughout the Territory. However, it is anticipated that by the end of FY 2011, we will be proposing legislation to eliminate the SBDA by merging its programs into the Government Development Bank (GDB) thereby deleting the duplication of services and creating a single comprehensive lending entity under the EDA. This will allow us to better serve the small business community by pooling some of our loan funds, modifying or eliminating obsolete loan programs, and creating new products tailored to identified markets. It is anticipated that after the consolidation of the GDB and SBDA’s loan programs, the new GDB - with its increased lending limits, reduced interest rates, new products, new programs and targeted marketing initiatives - will generate increased lending activity in the amount and dollar value of loans. The VIEDA’s lending arm will be in a better position to serve the needs of all small businesses in the U.S. Virgin Islands. COLLECTIONS An aggressive and intensive collection program has been implemented. There has been an increase in the total amount of collections on loans for the fifth consecutive year. In FY 2010, collections totaled $793,763, and although we did not achieve our goal of collecting $1,000,000.00 on delinquent loans, we continue to make every effort to improve our collections. The Lending staff is working continuously to reduce its delinquency rate through consistent collection efforts via telephone calls, distribution of collection letters, and regular site visits. With the assistance of our Legal Division, we have begun to take legal action against delinquent borrowers by filing “Actions for Debt” and “Actions for Debt & Foreclosure.” We have identified two private collection agencies, one on St Croix and the other on St. Thomas. For accounts that are delinquent 120 days or more, these agencies will assist us in our collection efforts. During FY 2011, SBDA will continue to aggressively pursue our delinquent borrowers in an effort to reduce our delinquent portfolio by at least 35 percent (35%) reducing each portfolio delinquency rate by at least 25 percent (25%), and increasing collections by at least 20 percent (20%). We hope to introduce and implement various new loan repayment options such as automatic debit accounts; payments by credit, debit and ATM cards; and e-payments during FY 2011. FY2011OUTLOOK • Increased Funding through various sources: Government Development Bank » U.S. Treasury – Application for up to $13,000,000.00 for relending purposes Small Business Development Agency » U.S. Department of Agriculture – Application for $750,000.00 for the GDB’s IRP Loan Program » U.S. Small Business Administration – Application for funds allocated in blocks of $750,000.00 » U.S. Department of Commerce – Application for additional U.S. Economic Development Administration funds in the form of a matching grant • Increase awareness of loan programs through different workshops in collaboration with the Small Business Development Center(s) • Reach out more to entrepreneurs in an effort to satisfy their lending and counseling needs • Reduce delinquencies for SBDA and GDB. The VIEDA has signed contracts with two independent agencies to assist with the collection of delinquent accounts in an effort to reduce the delinquency rate. 28 1.Thischartcomparesthetotalloanapplicationsprocessed,approved,anddeclined,bynumber anddollarvalue,foreachDistrictandeachEDAlendingentityinFY06,FY07,FY08,FY09andFY10 andindicatesgrowthtrendsasapercentageofchange. BOTH DISTRICTS Processed Approved Dollar Amount Declined Dollar Amount - STX Approved Dollar Amount - STT/STJ Approved Dollar Amount COLLECTIONS BOTH DISTRICTS Approved Dollar Amount - STX Approved Dollar Amount - STT/STJ Approved Dollar Amount BOTH DISTRICTS Approved Dollar Amount - STX Approved Dollar Amount - STT/STJ Approved Dollar Amount * As of September 30, 2010 -16.1% -8.3% -8.69% -66.7% -47.2%   -54.5% -69.2% 46.15% 88.39% 8.03% 35.3% 103.3% 0% -81.9% 60% 116.38% 28.6% -59.2% -75.0% -96.9% 66.7% 3.88% 31 24 $1,047.5 6 $300.0 11 $535.0 13 $512.5 $734.8 17 $555.0 7 $210.0 10 $345.0 7 $492.5 4 $325.0 3 $167.5 28 26 $1,329.5 2 $158.3 7 $409.0 19 $920.5 $793.8 23 $1,128.5 7 $382.0 16 $746.5 5 $201.0 2 $27.0 5 $174.0 30 27 $1,152.3 3 $110.0 13 $484.3 14 $668.0 $635.1 23 $837.3 12 $384.3 11 $453.0 4 $315.0 1 $100.0 3 $215.0 37 28 $694.0 2 $30.0 17 $435.0 11 $259.0 $603.3 28 $694.0 17 $435.0 11 $259.0 0 $0.0 0 $0.0 0 $0.0 47 39 $1,005.9 6 $200.0 27 $644.0 10 $361.0 $458.9 37 $930.0 29 $644.0 8 $286.0 2 $75 0 $0.0 2 $75.0 LENDING UNIT (GDB/SBDA) COMPARATIVE STATISTICS 2006 APPLICATIONS GDB SBDA 2007 2008 2009 2010 % CHANGE 2.Thischartindicatesthetype(newandexisting)andnumberofbusinessservedbyboththeGDB andSBDAbyfiscalyear. * As of September 30, 2010 BOTH DISTRICTS Created Saved - STX Created Saved - STT/STJ Created Saved -214.6% 74.2% 428.6% -20.0% -10.0%  245.5% 41 31 21 20 20 11 129 54 111 16 18 38 37 45 24 22 13 23 44 32 26 19 18 13 44 43 30 33 14 10 JOBS (CREATED/SERVED) 2006 2007 2008 2009 2010 29 4.Thischartindicatesthetotalcollectionsreceivedineachofficeonamonthlybasisforallthe GDBandSBDAloanprogramsbyDistrict. October November December January February March April May June July August September TOTAL $88,333.67 $70,220.29 $66,419.43 $68,258.43 $66,233.26 $64,243.20 $68,714.91 $51,909.27 $58,600.28 $69,223.46 $51,449.96 $70,156.77 $793,762.83 $49,442.49 $45,103.70 $35,775.17 $33,472.03 $31,009.50 $33,021.13 $40,770.38 $28,598.13 $41,067.50 $44,036.72 $27,067.75 $43,896.17 $453,260.67 $38,891.18 $25,116.49 $30,644.26 $34,786.40 $35,223.76   $31,222.07 $27,944.53 $23,311.14 $17,532.78 $25,186.74 $24,382.21 $26,260.60 $340,502.16 LENDING UNIT COLLECTION REPORT FISCAL YEAR 2010 *As of September 30, 2010 MONTH STX STT/STJ TOTAL 5.ThischartcomparesthetotalcollectionsreceivedforalltheGDBandSBDAloanprogramsby FiscalYears(2007–2010). 1ST 2ND 3RD 4TH TOTAL $224,973.29 $198,734.89 $179,224.46 $190,830.19 $793,762.83 $200,014.97 $297,661.84 $237,082.37 $193,525.23 $928,284.41 $225,565.47 $193,192.68 $216,299.43 $224,058.61 $859,116.19 $158,529.47 $244,006.44 $200,746.64 $241,135.75 $844,418.30 LENDING UNIT COLLECTION COMPARISON REPORT FISCAL YEARS 2007-2010 QUARTER FY2007 FY2008 FY2009 FY2010 3.ThischartindicatesthejobscreatedandsavedasaresultoffinancingfromboththeGDBand SBDAbyfiscalyear. * As of September 30, 2010 BOTH DISTRICTS Created Saved - STX Created Saved - STT/STJ Created Saved -214.6% 74.2% 428.6% -20.0% -10.0%  245.5% 41 31 21 20 20 11 129 54 111 16 18 38 37 45 24 22 13 23 44 32 26 19 18 13 44 43 30 33 14 10 JOBS (CREATED/SERVED) 2006 2007 2008 2009 2010 Ann Alicia Garcia Clevia Robles Delois Abraham Donald Stephens Dora Martin Frederica Charles Hyacinth Nesbitt Lutheran Social Services Maud Roberts Pier 69 Rochelle Smith Rosemary Sheppard Theresita Frazier #4A Regjerings Gade #50 Vester Gade #10A Pile Strade #11CC General Gade #30 Queen Street #19A & 20 King Street #45-46 King Street #62 Prince Street #43 Prince Street #69 King Street #39 Queen Street #13A & B Gamle Gade #48 Vester Gade S S S S F F F F F F F S S EZC SCRAPE, PAINT and REJUVENATE PROGRAM BENEFICIARIES BENEFICIARY BUILDING LOCATION ZONE COMMUNITYAESTHETICS The Commission has forged partnerships with government agencies such as the Housing Finance Authority’s Community Development Block Grant program and with nonprofit agencies to enhance the general appearance of designated zones. The Scrape, Paint and Rejuvenate Program for the zones of Frederiksted and Savanne utilizes private contractors that will make visible changes in the zones. The Virgin Islands Department of Public Works and the State Historic Preservation Office have offered their technical expertise for these projects. Enterprise Zone stakeholder, the St. Croix Foundation, has initiated the same program in Christiansted. TABLE1:SCRAPE, PAINTandREJUVENATE PROGRAM BENEFICIARIES ENTERPRISEZONECOMMISSION Four years ago the Governing Board of Directors of the Economic Development Authority in its wisdom adopted the Enterprise Zone Commission’s Five-Year Strategic Plan. Although the Board was aware that the goals were somewhat lofty for a relatively new agency, its members were convinced that the plan would provide guidance on how to proceed in a specialized area of economic development -- that of community economic development. In the U.S. Virgin Islands, the three designated enterprise zones are Christiansted and Frederiksted on St. Croix and Savanne on St. Thomas. 30 31 BUSINESSDEVELOPMENT In FY 2010, the Enterprise Zone Commission’s (EZC) tax credit program expanded by 64 percent (64%) representing a commitment of more than $1.8 million in investments, a value that has resulted mostly from the Christiansted zone. Professional services and residential rentals are the types of businesses primarily responsible for this expansion. In many cases, these businesses are new or have expanded as a result of the rehabilitation of the property. The Commission’s partnerships with the beneficiaries have served to meet its goal of developing, recruiting, retaining and/or expanding businesses that create jobs with livable wages in the enterprise zones. TABLE2:EZC BENEFICIARIES (TAXCREDITS) Andrew Simpson, P.C. A&N Holdings II, LLC Bhagwandeen Persad, Inc. BLBJ Property Management LLC Bryan’s Marine Service, LLC Chelsnia Rental, LLP Chelsnia Rental, LLP Flower Dan, Inc. Joseph Baker Kalima Center, Inc. Larry R. Witkop Laundry Time, LLC Michael & Kim Sanford Morymac, LLC Olivia H. Henry Orneth LaCorbiniere Samual T. & Rosemary Grey USVI Management Corp. #14-AB Church Street #13 Strand Street #22 Gamle Gade #10A East Street #5AB Hospital Street #20-20A Market Street #21B Queen Street #33 King Street #42AB Company Street #54 King Street #21 Regierings Gade #1AB & 1BB Estate Mount Welcome #14ABA Church Street #9B Prince Street #23B Hospital Street #16 & 17 Kings Street #19A East Street #44A Queen Cross Street C F S C C C C C C C S C C C F C C C Office Office Mix Use Residential Services Residential Residential Bakery Services Health Center Mix Use Services Office Office Services Mix Use Residential Hotel $430,000 $100,000 $250,000 $110,000 $120,000 $55,000 $30,000 $100,000 $14,150 $390,000 $100,000 $600,000 $149,000 $149,000 $354,000 $600,000 $31,000 $310,000 ENTERPRISE ZONE COMMISSION BENEFICIARIES (TAX CREDIT) BENEFICIARY BUILDING LOCATION ZONE ACTIVITY INVESTMENT EDUCATION&ENTREPRENUERSHIP With the assistance of the Department of Property and Procurement, a site has been identified and the nonprofit, HYPE, has prepared young people who will be part of the program. The garden and the training are set to begin in FY 2011. INFRASTRUCTURE,HOUSING&NEIGHBOURHOODDEVELOPMENT Infrastructural development within the zones has been stymied by the issues of multiple-ownership of the properties that exist in these communities. Due to the length of time it takes to resolve ownership issues of these properties, the buildings have fallen into disrepair, and some have been abandoned. In order to meet its goals, the Commission joined with private attorneys to hold Estate Planning Conferences on both islands. Many residents have taken the information and moved forward to resolve their estate issues. Several others have requested that more estate planning conferences be held. 32 33 TOWNPLANCREATION&IMPLEMENTATION In FY 2010, the Commission worked with all stakeholders to discuss the strategic plan for each of the zones. It was determined that a new town plan is needed for both Christiansted and Savanne. It was further determined that the zone of Frederiksted had at least three town plans worth reviewing, and the ideas needed to be compiled and implemented. Many private sector members - from planners to the retailers as well as the nonprofit, grassroots organizations and residents alike - have been working on the creation of the plan. PARTNERSHIPS This year more than ever, the Enterprise Zone Commission joined with private, public and the nonprofit community members to accomplish the projects that were mandated by the Strategic Plan. While seeking to improve the quality of life through creating business opportunities by rehabilitating distressed neighbourhoods, this agency continues to strive to be the best practice case study of community development for other small enterprise and empowerment communities. PUBLICSAFETY&CRIMEPREVENTION The goal of the strategic plan is to create a safe environment for businesses and residents to work and play. Another public sector partnership established by the Commission is with the Law Enforcement Planning Commission, or LEPC, which has provided funding to secure buildings in the Savanne community to prevent theft, vagrancy, storage of drug paraphernalia, health and safety hazards and crimes of opportunity. In order to accomplish this goal, the Enterprise Zone Commission worked closely with the Virgin Islands Fire and Police Departments, the Department of Health, and the Department of Public Works to identify and work on the buildings and resolve various safety problems. Enterprise Zone stakeholder, Our Town Frederiksted, has led the way in operating a similar program in Frederiksted. TABLE3:VACANTBUILDING BOARD-UPPROGRAM BENEFICIARIES (SAVANNE) #2A Jegge Gut Gade #12 Gamle Gade #7A Pile Strade #8B Pile Strade This house, located directly outside of the gate of an elementary school, was burnt. This property was a prime location for an after-school hide-and-seek game. There was also an open cistern located in a dark area of the house. This historic wooden long-row property was periodically checked by its owners who reside on the mainland. Every time they returned to the VI to visit, the owners would clean the property and re-board it. One day later, the squatter that occupied the premises would move back into the building leaving behind crack vials creating a fire hazard. This concrete building was a crack house in previous years. An attempt was made to board it up; however, recent activities showed that there had been an illegal entry back into the building. This revealed that this building could be used to store drug paraphernalia and conduct drug activity. This property is made of solid concrete, but it is an unfinished mixed-used building. Used as a hang out for vagrants and other loiterers, the owners noticed illicit activity by young people occurring around the building at night. The building is currently tagged with turf symbols. EZC VACANT BUILDING BOARD-UP PROGRAM BENEFICIARIES (SAVANNE) BUILDING LOCATION SAFETY ISSUE FUNDING The Strategic Plan requires that the Commission assists businesses and residents with capital to rehabilitate the zones. To accomplish this goal, the Commission is working with several public and private entities to focus its funding sources towards the Enterprise Zone communities. One funding vehicle is a revolving loan program that will be created specifically for businesses within the zones. This loan program is scheduled to commence in FY 2011. 34 With the continued global economic challenges still present, the VIEDA continued to execute its three-year comprehensive marketing plan which showed some promising results. The VIEDA focused on the attraction of emerging and expanding businesses to the Territory, the creation of small businesses, and the implementation of a public awareness campaign. EXTERNALMARKETING Building upon the strategies and synergies from the marketing campaign as developed by a local consulting firm, CIPA, Inc. (Council for Information and Planning Alternatives, Inc.), the Marketing Unit was able to successfully peak the interest of several national companies. This was accomplished by attending a number of targeted conferences, expos and trade shows as well as conducting a series of regional informational meetings. In addition, placement of advertisements in national and international trade publications were effective in highlighting the VIEDA’s tax incentive program, the Economic Development Commission (EDC). In the Authority’s continued effort to increase global visibility, our focus was placed on increasing traffic to the website. A series of Search Engine Optimization (SEO) strategies were implemented as recommended by the technical consulting firm, BizVI. The results garnered an increase of hits to the VIEDA’s website by 700 percent, and a positive decrease in our ALEXA rating to 1,048,792 which is a vast improvement from the VIEDA’s prior ranking of 11 million in January 2010. MARKETINGINITIATIVES The purpose of the Marketing Unit is to promote the five (5) entities of the VIEDA and the activities and events that contribute to the enhancement of economic development in the U.S. Virgin Islands. The 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. 35 In FY 2010, a public relations campaign was launched highlighting the positive impact the Economic Development Commission’s tax incentive program has on our territory. This campaign was directed towards both branches of local government, key service providers, beneficiaries and the local community. A series of advertisements were placed in local newspapers, press releases were distributed to key stakeholders, appearances were made on local television and radio shows, and an informational brochure was produced. INTERNALMARKETING On the local level, the Marketing Unit assisted the various other units within the VIEDA with disseminating information to the public about their programs and services. A series of collateral materials, for example, were developed to assist the Lending Unit with promoting their initiatives. CONCLUSION In FY 2011, the Marketing Unit will continue to implement the strategic and marketing plans with strengthened outreach efforts to market the benefits of our programs both locally and abroad. There will be an increased emphasis on conducting more targeted marketing meetings with prospective national and international investors. We will continue to focus on promoting the competitive benefits of our tax incentive program. Locally, marketing strategies will be utilized to encourage small business development and maintenance and to increase the awareness of other vital functions and programs of the VIEDA. 36 DIAGEO USVI: The rum distillery of Diageo USVI was commissioned on November 23, 2010 celebrating its grand opening as the V.I.’s newest distiller. More than eighty (80) percent of employees are local residents, some of which were hired for the senior and middle management positions. CRUZANRUM: Cruzan Rum has commenced the construction of its waste treatment plant. This will enable the company to be in compliance with EPA requirements, especially for the improvement of the air quality. CARAMBOLA RESORT: This resort has recently been branded by Marriott Renaissance. In general, resort development in the territory continues to be a challenge. Currently, there are three properties with permits to proceed. Financing of these projects have been challenging; however the ACEO, our legal counsel and bond counsel have been considering various strategies to identify funding sources for development projects. CRUISESHIPSandTOURISTTRANSPORTATION: There has been a significant increase in cruise ship port calls in FY 2010 with more than 100 calls this season. This activity continues to rise particularly on St. Croix. Regarding transportation, the Tour Bus Leasing program has provided vehicles for potential operators that are required for this industry. HOME DEPOT: Site preparation continues for this project with some delays due to the unusual amount of rainfall during the past season in our Territory. SPECIALPROJECTS FY 2010 was a record year of major accomplishments for the Virgin Islands Economic Development Authority, as indicated by the following economic development projects that will have long-term positive effects on the economy of the Virgin Islands, specifically the island of St. Croix: 37 38 PROJECTFINANCE The V.I. Economic Development Authority (VIEDA) has worked to expand its offerings to stimulate the economy of the Virgin Islands and facilitate informational meetings and discussions with other agencies and developers to bring partnership for growth. In February 2009, the American Recovery Reinvestment Act (ARRA) was signed by President Barak Obama. Through the efforts of Governor John P. deJongh, Jr., Delegate Donna M. Christensen and others, the U.S. Virgin Islands was earmarked to potentially receive $244 million in economic benefits over a two-year period. The VIEDA has worked with other Virgin Islands agencies to assist in realizing the maximum use of this funding such as the Public Finance Authority (PFA) to educate developers about the Build America Bonds, specifically the Recovery Zone Facility Bonds and the Recovery Zone Economic Development Bonds. TAXINCREMENTFINANCING(TIF): Presently, the VIEDA is working towards the opening of its first TIF project, the Island Crossing Shopping Center which is scheduled to open Home Depot, an anchor tenant, in the Fall of 2011. Island Crossings is financed through bond anticipation notes from First Bank valued at $15.7 million. To date, approximately half of the approved bond anticipation note amount has been used to fund the development of the public infrastructure at Island Crossings. Island Crossings is a popular development that has generated tremendous interest from additional tenants from new market national retailers to new and established local businesses. As site work progresses, and the construction project for Home Depot nears commencement, ground leases for the remainder of the site’s retail component will be executed, and additional vertical construction will begin. The VIEDA Board has developed a Tax Increment Finance Subcommittee Task Force that is charged with interfacing with other government agencies in the Virgin Islands to prepare for the approval of TIF designated areas by the Governor and the Legislature. This will be a tremendous proactive approach to incentivizing development in necessary areas of our territory. 39 40 ST.THOMAS 5055NORREGADE, ST.THOMAS,VI00802 (340)774-8104 www.usvieda.org ST.CROIX 116KINGSTREET, FREDERIKSTED,ST.CROIX,VI00840 (340)773-6499