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Legislature of the Virgin Islands P.O. Box 1690, Emancipation Garden Station St. Thomas, U.S. Virgin Islands 00804 ——○—— POST AUDIT DIVISION TEL: (340) 774-2478 December 10, 2025 MEMORANDUM: TO: Honorable Novelle E. Francis, Jr. Chairperson, Committee on Budget, Appropriations and Finance 36th Legislature of the Virgin Islands FROM: Post Audit Division SUBJECT: Contract for Sale SELLER: Government of the Virgin Islands (Property and Procurement) BUYER : Z Property V.I., LLC. PREMISES: Parcel No. 20-A Hospital Street, St. Croix, U.S. Virgin Islands, consisting of 2,000 U.S. sq. ft. more-or-less, as more fully described on Measure Brief 49329 Folio No. 472 dated July 24, 1997. Parcel ID# 2-04904-1102-00. PAYMENT TERMS: The total purchase price for the property shall be Two Hundred Sixty Thousand Dollars ($260,000) payable by Buyer to Seller as follows: 1. Deposit. Upon execution of this Agreement Buyer shall pay a deposit of the amount of Twenty-six Thousand Dollars ($26,000). The Deposit shall be held by Seller and shall be applied toward the Purchase Price at Closing. 2. Balance of Purchase Price. The remaining balance of the Purchase Price, in the amount of Two Hundred Thirty-Four Thousand Dollars ($234,000) will be paid by the Buyer to the designated escrow agent no less than ten (10) business days prior to the scheduled closing date, in immediately available funds. 3. Z Property V.I., LLC. Agrees to pay the delinquent sewer fees owing against the premises of Three Thousand Seven Hundred Forty-Two Dollars and Twelve Cents ($3,742.12), the cost of which will be credited to Z Property at closing. Honorable Novelle E. Francis, Jr. Sale of No. 20-A Hospital Street BACKGROUND: Initially registered with the Division of Corporations and Trademarks in December 2019, Z Property V.I., LLC holds a business license as an owner’s representative coordinator in the United States Virgin Islands (USVI). The company is currently engaged in the revitalization and redevelopment of a designated corridor in Christiansted, U.S. Virgin Islands. REQUIRED SUPPORTING DOCUMENTATION DOCUMENT EXPIRATION DATE Business License 8/31/2026 Certificate of Good Standing 6/30/2026 Articles of Organization N/A Resolution 11/20/2025 APPRAISAL REPORTS The following appraisals were submitted with the Contract of Sale to establish a baseline value for Parcel No. 20-A Hospital Street, zoned R-4 Residential, and purported to consist of approximately 11,500 square feet. The Appraisals were used to assist the Government of the Virgin Islands and the Department of Property and Procurement in determining just compensation for the property. Appraiser Estimated Net Value Date of Valuation Date of Report Kenn Hobson & Associates $83,600 March 12, 2025 March 20, 2025 Edwards Valuation Services $15,000 February 24, 2025 March 24, 2025 Integra Reality Resources $135,000 January 31, 2025 February 21, 2025 It must be noted that all appraisals reported a single masonry structure that has been vacant for some time and appears to be overrun with vegetation and garbage. Kenn Hobson & Associates noted that they were unable to find any recent sale of property which matched the qualities of the subject property, therefore a cost approach was used to estimate the value of the property. Structure (Apparent size 40’ x 30’) 1,200+/- sq. ft. x $280/sq. ft. $336,000 Less: Depreciation (90%) $302,400 Depreciated Value $33,600 Plus: Land $50,000 Total Value $83,600 Honorable Novelle E. Francis, Jr. Sale of No. 20-A Hospital Street A comparable list of recent sales was used by Edwards Valuation Services which used a Sales Comparison Approach to determine the estimated net value. As a result, a land value of $15,000 was assigned to the property on an “after demolition” basis. Subject Sale #1 Sale #2 Sale #3 Street Address 20 A Hospital St 19 Prince St 16 Green St 40 A New St Sale Price $11,700 $20,100 $13,500 Unit of Comp Land SF Land SF Land SF Land SF UoC Value 2,400 sf 2,915 sf 4,792 sf 2,086 sf Sale Price/UoC $4.01 $4.19 $6.47 Date Sold 6/3/2024 1/23/2023 10/18/2022 Integra Reality Resources (IRR) also employed a Sales Comparison Approach to estimate the net value of the subject property at $135,000. Comparable properties sold within a four-year period were analyzed to ensure relevance. Subject Sale #1 Sale #2 Sale #3 Street Address 20 A Hospital St 47 King St 54 A Company St 25 Hospital Street Sale Price $140,000 $164,100 $99,000 Unit of Comp Land SF Land SF Land SF Land SF UoC Value 2,400 sf 5,881 sf 3,106 sf 3,190 sf Zoning B3 B-1 B-1 Date Sold 7/2024 7/2022 9/2021 Indicated Value per Square Feet $ 30.00 Subject Square Feet 2,701 Indicated Value $ 81,022 Adjustments Contributory Value of Shell $ 54,000 Total Adjustments $ 54,000 Indicated Value $135,022 Rounded $135,000 CONCLUSION The Department of Property and Procurement is representing the Government of the Virgin Islands in the Contract of Sale for parcel 20 A Hospital Street, comprising of 2,000 U.S. square feet, more or less. Appraisals submitted in support of the transaction were used to establish a baseline property value and inform the determination of just compensation. Collectively, the appraisal analyses provide a valuation framework to support the Government’s decision-making and conclude the property disposition process. Theodora Philip, DBA. Post Auditor Honorable Novelle E. Francis, Jr. Sale of No. 20-A Hospital Street APPENDIX I Honorable Novelle E. Francis, Jr. Sale of No. 20-A Hospital Street