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STATEMENT BEFORE THE 36TH LEGISLATURE ON BILL NO. 36-_________ BY THE VIRGIN ISLANDS COASTAL ZONE MANAGEMENT COMMISSION AUGUST 28, 2025 1 Good morning Honorable Senate President Milton L. PoOer, members of the 36th Legislature of the U. S. Virgin Islands, and the viewing and listening audiences. My name is May Adams Cornwall and I am the Chair of the Virgin Islands Coastal Zone Management (CZM) Commission and a member of the St. Croix CZM CommiOee. I come before you today in my role as the Virgin Islands CZM Commission Chair. On Monday, August 18, I received a copy of the St. John CZM CommiOee leOer signed by all members regarding Opposi&on to Modifica&on and Extension of Consolidated Major CZM Permit for the Summer’s End Group, LLC – Upholding the Virgin Islands Code and CZM Process dated and submiOed to this body on August 15, 2025, as it relates to Bill No. 36-_____. This Bill was submiOed to the Legislature on July 31, 2025, by the Honorable Governor Albert Bryan, Jr. for your ra\fica\on of the approval of the Modifica\on and Extension of Consolidated Major Coastal Zone Management Permit Nos. CZJ-04-14(W) and CZJ-03-14(L), issued to the Summer’s End Group, LLC, for con\nued development of the Summer’s End Marina project in Coral Bay, St. John. Upon my request, I received the transmiOal leOers and the drac Bill from the Office of the Senate President this past Monday, August 25. In addi\on to this short turnaround \me, the CZM Commission lacks access to independent legal counsel to review and advise the Commission. Notwithstanding, I stand in support of the St. John CZM CommiOee’s opposi\on to approval and ra\fica\on of this permit modifica\on and extension and will endeavor to the best of my ability to represent the VI CZM Commission’s posi\on on this maOer before the 36th Legislature. Accordingly, I will focus my statement on two overarching legal and procedural deficiencies. 1. The previously approved consolidated CZM permit has expired. Addi\onally, the Applicant’s failure to adhere to permit condi\ons has rendered the permit null and void; STATEMENT BEFORE THE 36TH LEGISLATURE ON BILL NO. 36-_________ BY THE VIRGIN ISLANDS COASTAL ZONE MANAGEMENT COMMISSION AUGUST 28, 2025 2 hence, there is no exis\ng valid CZM permit for this project to extend and/or modify. The St. John CZM CommiIee is the only legal body with the statutory authority to extend and/or, in this case, reinstate and extend, a CZM permit based on the facts, extenua&ng circumstances, and good cause to do so. To do so, would require the Applicant to submit proposed project modifica\ons with the requisite suppor\ng documents to the St. John CZM CommiOee. At the \me of this reading, the St. John CZM CommiOee has not received any such request to reinstate and extend the permit. 2. There is no provision in the CZM law that permits the Governor to unilaterally and administra\vely modify or extend an expired or null and void CZM permit. While it is not specifically cited or stated in the transmiOal leOer, the Governor’s Office and this body may wish to rely on Sec\on 911(g); however, this Sec\on prefaces that “In addi&on to any other powers of enforcement set forth in Sec&on 913…”. This request for modifica\on and extension is not related to an enforcement ac\on pursuant to Sec\on 913, as this project is not currently permiOed and work has not begun. The enforcement prerequisite enables the Governor to modify or revoke a permit for work in progress and provides 30-day window to expedite correc\ve ac\ons and to minimize nega\ve impacts of the “ongoing” work. In 2019, then Senate President Novell E. Francis and the members of the 33rd Legislature no\fied the Governor of numerous defects and stated that a related request from the Execu\ve Branch to modify this same permit could not be ra\fied. More specifically, I quote, “Pursuant to the Virgin Islands Coastal Zone Management Act, Virgin Islands Code, Title 12, Sec&on 911 (e), the Legislature may ra&fy the Governor’s approval of only those coastal zone permits that have been duly approved by the appropriate Coastal Zone Management CommiIee. However, the permit transmiIed to the Legislature was not approved by the St. John CommiIee of the Virgin Islands Coastal Zone Management Commission (the St. John CommiIee). STATEMENT BEFORE THE 36TH LEGISLATURE ON BILL NO. 36-_________ BY THE VIRGIN ISLANDS COASTAL ZONE MANAGEMENT COMMISSION AUGUST 28, 2025 3 The leOer goes on to reiterate that the modifica&ons of the current proposed project have not been properly submiIed and reviewed by the St. John CZM CommiIee as required by law; thereby, rendering it impossible to determine if the project described and approved in the permit truly reflects or conforms to the applicant’s current proposal for the development of a marina. The leIer concluded that it was the consensus of the Legislature that the marina project proposed by Summer’s End Group, LLC, has not been yet submiIed for CZM review, thereby rendering this permit and all related processes invalid. The VI CZM Commission agrees with the 33rd Legislature conclusion and finds it s\ll applicable today – 5 years later. In May 2025, the Honorable Jean-Pierre Oriol, Commissioner of the Department of Planning and Natural Resources, was credited with acknowledging in the VI Source “that the St. John CommiIee of the Coastal Zone Management Board would have to approve this request to allow an extension of the permit.” The VI CZM Commission agrees with Commissioner Oriol. It appears that the 36th Legislature and the Governor may be relying on Sec\on 911(g) en\tled Modifica\on and Revoca\on, which reads, “In addi'on to any other powers of enforcement set forth in sec'on 913 of this chapter, the Governor may modify or revoke any coastal zone permit that includes development or occupancy of trust lands or submerged or filled lands approved pursuant to this sec&on upon a wriIen determina&on that such ac&on is in the public interest and that it is necessary to prevent significant environmental damage to coastal zone resources and to protect the public health, safety and general welfare. Such wriIen determina&on shall be delivered both to the permiIee and to the Legislature, together with a statement of the reasons therefor. It shall state the effec&ve date of such modifica&on or revoca&on and shall provide a reasonable &me in which the permiIee or lessee either may correct the deficiencies stated in such wriIen determina&on or may establish, to the Governor's sa&sfac&on, that any or all of the deficiencies or reasons stated therein are incorrect. If the permiIee shall fail to correct or establish the inaccuracy of such deficiencies or reasons within the &me provided in such wriIen determina&on, the modifica&on or revoca&on of such occupancy permit shall be effec&ve as of STATEMENT BEFORE THE 36TH LEGISLATURE ON BILL NO. 36-_________ BY THE VIRGIN ISLANDS COASTAL ZONE MANAGEMENT COMMISSION AUGUST 28, 2025 4 the date stated therein; provided, however, that the Legislature, shall ra&fy the Governor's ac&on within thirty days aber said effec&ve date. The failure of the Legislature, either to ra&fy or rescind the Governor's ac&on within said thirty-day period shall cons&tute a ra&fica&on of the Governor's ac&on. A cursory review of Sec\on 913. Enforcement, Penal\es, and Judicial Review reveals that the intent to this sec\on is the enforcement of approved permit condi\ons, issuance of penal\es, and opportunity for judicial review to ensure that ongoing ac\vi\es and work is in accordance with the approved CZM permit, including the CZM Commission’s permission to enter the project site and have access to records. There is no established project site and there are no ongoing ac\vi\es or work that require enforcement ac\on to prevent significant environmental damage to coastal zone resources and to protect the public health, safety and general welfare. This sec\on should not be interpreted to jus\fy project modifica\ons that have not been reviewed by the St. John CZM CommiOee or to extend an expired CZM permit. All of the project modifica\ons are specifically in response to the federal and territorial permimng processes, not in response to any enforcement ac\on. Further, the 30-day period for the Legislature to ra\fy or rescind is arguably to expedite correc\ve ac\on and, thereby, minimize environmental damage, none of which apply in this case. As I was doing my limited research, I kept asking myself why …. what is the jus\fica\on for bypassing the St. John CZM CommiOee and, thereby, the Virgin Islands law and CZM permit process? Honestly, I have my doubts about the reasons purported to bypass the St. John CZM CommiOee - specifically to avoid misalignment with federal permimng process and to avert financial risk. Truth be told, the con\nuing misalignment for the past 5 years appears due, in total part, to the Applicant’s failure to simultaneously submit project modifica\ons to USACE and the St. John CZM CommiOee. Equally disturbing is the Applicant’s failure to comply with CZM permit condi\ons, to \mely request extension before expira\on (2020), and to request reinstatement in the past 5 years since that expira\on date. STATEMENT BEFORE THE 36TH LEGISLATURE ON BILL NO. 36-_________ BY THE VIRGIN ISLANDS COASTAL ZONE MANAGEMENT COMMISSION AUGUST 28, 2025 5 In May 2025, Chalise Summers, of Summer’s End Group, LLC, is credited in the VI Source with wri\ng that “Once the federal agencies have finalized their review and specifically the environmental work, and with the support of the DPNR and territorial officials the territorial CZM permit will go through the process to be updated and extended to mirror the addi&onal environmental work that is being added and incorporated into this project, the addi&onal mi&ga&on measures, the addi&onal lands secured to make this possible, and the reduc&on in the size of the marina.” This statement is inaccurate and implies that the St. John CZM CommiOee does not have the legal duty and responsibility or technical exper\se to conduct its own technical review of the project modifica\ons. The CZM permit does not “mirror” the USACE permit. Conversely, the USACE permit does not guarantee that the CZM permit will be reinstated, extended, modified, and approved. Further, we may surmise that her statement supports the CZM Commission posi\on that the CZM permit is not required for the USACE permit to be issued. While we con\nue to wait for USACE to issue its permit, the St. John CZM CommiOee could be conduc\ng its review of the proposed project modifica\ons to facilitate the “alignment”. For a project where all federal agencies ini\ally consulted by USACE previously found the EAR lacking and recommended “denial”, “not to authorize”, “not issue permit”, and “to place the permit in abeyance” and the more recent August 15, 2024, EPA recommenda\on to USACE to deny the permit for this project, it would have behooved the Applicant to maintain communica\ons and ensure “alignment” of the federal and territorial permimng processes over the past 5 years. It seems disingenuous now to use misalignment of permits to jus\fy bypassing the St. John CZM CommiOee review. To my knowledge, the Applicant has not provided any wriOen evidence or proof of financing nor any wriOen evidence of financial risks to this body. Honestly, I would venture to say there were STATEMENT BEFORE THE 36TH LEGISLATURE ON BILL NO. 36-_________ BY THE VIRGIN ISLANDS COASTAL ZONE MANAGEMENT COMMISSION AUGUST 28, 2025 6 financial risks in 2014 and in 2020. It comes with the territory, so to speak. That being said, I would argue that financing risks did not jus\fy breaking or bending the laws of the Virgin Islands then, nor should it now. So, let’s take a few minutes to reflect on missed opportuni\es in hopes we can inform our collec\ve decision today and protect the integrity of the CZM process into the future. The Applicant has missed the opportunity to: • Engage in open communica\ons with CZM re: permit non-compliances and extension • Act \mely in accordance with the law to request permit reinstatement and extension • Submit project modifica\ons to align territorial and federal permimng processes • Provide wriOen evidence or proof of funding and financial risk The Execu\ve Branch may miss the opportunity to: • Communicate, consult, collaborate, and gain approval of the CZM Commission • Allow CZM Commission to objec\vely carry out its legal du\es and responsibili\es • U\lize the St. John CZM CommiOee’s exper\se to review the permit modifica\ons • Facilitate public involvement through the CZM permimng process The Legisla\ve Branch should not miss the opportunity to: • Uphold the law, not break or bend it to correct or accommodate the Applicant’s failure to adhere to the laws of the Virgin Islands • Set the bar to balance economic development and environmental resource protec\on • Hold all prospec\ve developers to the same high standard of conduct and compliance As I stated before, while the CZM Commission does not have independent legal counsel to review this maOer, I respecrully urge this body to engage its legal counsel’s opinion before ac\ng on this request. It is the posi\on of the VI CZM Commission that the 36th Legislature STATEMENT BEFORE THE 36TH LEGISLATURE ON BILL NO. 36-_________ BY THE VIRGIN ISLANDS COASTAL ZONE MANAGEMENT COMMISSION AUGUST 28, 2025 7 should either return this request for legal deficiencies as the 33rd Legislature did because it is not properly before this body OR it should rescind the Governor’s approval of the permit modifica\ons and extension within the 30-day \meframe. As I wind down, I am reminded of the pledge I made to this body and the people of the Virgin Islands in my confirma\on hearing. I stated then, if confirmed, I pledge to • U\lize my technical and engineering knowledge, communica\on skills, work experience, and resources management exper\se to comprehensively review proposed projects • Exercise due diligence and integrity to assess, evaluate, and balance community and economic development needs with environmental and public health risks • Apply permit condi\ons that avoid, minimize, and/or mi\gate poten\al adverse effects and that increase the sustainability and build the resilience of our coastal resources • Work closely, collabora\vely and respecrully with the other CZM commissioners to achieve the very best outcomes we can for the people of the United States Virgin Islands None of the VI CZM Commission members agreed to serve to be derelict of our du\es and responsibili\es to serve in the best interest of the public and our environment. Therefore, we stand united before this body today to honor those du\es and responsibili\es. On behalf of the VI CZM Commission, I would like to thank you for allowing me to tes\fy on this Bill and I remain available to answer any ques\ons you may have at this \me. SubmiOed by May Adams Cornwall Chair Virgin Islands Coastal Zone Commission