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8000 Nisky Center, Suite 620 St. Thomas, VI 00802 340-714-1700 www.usvieda.org info@usvieda.org 116 King Street, Frederiksted St. Croix, VI 00840 340-773-6499 Economic Development Bank Enterprise Zone Commission Economic Development Park Corporation Economic Development Commission VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 1 TESTIMONY BY WAYNE L. BIGGS, JR. 2 FISCAL YEAR 2026 BUDGET HEARING 3 COMMITTEE ON FINANCE 4 36th LEGISLATURE OF THE VIRGIN ISLANDS 5 ST. THOMAS, VIRGIN ISLANDS 6 7 Good afternoon, Chair Novelle E. Francis, Jr., members of the Committee on 8 Budget, Appropriation, and Finance, other members of the 36th Legislature, the 9 Legislative staff, the Virgin Islands Economic Development Authority (“USVIEDA” 10 or “the Authority”) team, and the viewing and listening audience. I am Wayne 11 Biggs, Jr., Chief Executive Officer of the Virgin Islands Economic Development 12 Authority. With me today are executive team members Dwayne A. Benjamin, 13 Assistant Chief Executive Officer, Kelly Thompson Webbe, Chief Financial 14 Officer, and Tracy Lynch Bhola, Esquire, General Counsel. I am joined in the 15 Chambers today by the following USVIEDA management team members: Nadine 16 Marchena Kean, Managing Director, Enterprise Zone Commission; Margarita 17 Benjamin, Managing Director, Economic Development; Kirk Callwood, Associate 18 Managing Director, Economic Development; Celina Morris, Director, Marketing; 19 Mark Finch, Director, Physical Plant; Kali Richardson, Director, Human 20 Resources; Sharmane Brookes, Director, State Small Business Credit Initiative 21 Program; K’Nisha Gumbs, Loan/Collections Officer; and Jessica Taylor, Budget & 22 Financial Analyst. Not here with us in person today is Monique T. Samuel, 23 Managing Director, Economic Development Bank. If necessary, they are 24 available to respond to any inquiries you may have. 25 VI Economic Development Authority FY 2026 Budget Hearing Testimony Before we begin, we invite you to view a short video highlighting key 26 accomplishments from Fiscal Year 2025—showcasing the impact of our 27 collective efforts across the Territory. 28 29 As the Territory’s lead economic development organization, USVIEDA plays a 30 vital role in building a stronger and more resilient Virgin Islands economy. By 31 uniting several programs and services under one umbrella, the Authority offers 32 a wide range of tools and programs to attract investment, support 33 entrepreneurs, create and sustain jobs, revitalize neighborhoods, and expand 34 access to capital. Additionally, USVIEDA provides affordable commercial space 35 through its industrial park facilities, further enabling business growth and 36 economic opportunities across the Territory. 37 38 At the core of our mission is a commitment to improving the quality of place for 39 all Virgin Islanders. We do this by providing tools that support entrepreneurship 40 and small business growth, creating conditions that attract private-sector 41 investment and generate job opportunities, fostering innovation, and driving 42 sustainable, long-term economic growth. USVIEDA fulfills this mission through 43 its four (4) key divisions: the Economic Development Bank for the U.S. Virgin 44 Islands (EDB), the Virgin Islands Economic Development Commission (EDC), the 45 Enterprise Zone Commission (EZC), and the Economic Development Park 46 Corporation (EDPC). Together, these divisions operate under a single strategic 47 framework designed to maximize impact, eliminate redundancy, and position 48 the Territory as a competitive destination for business and investment. 49 50 51 VI Economic Development Authority FY 2026 Budget Hearing Testimony Budget Request, Financial Management, and Expenditure 52 53 For Fiscal Year (FY) 2026, USVIEDA has developed a results-driven budget that is 54 both fiscally responsible and strategically aligned with our mission. This budget 55 is not solely about maintaining current operations—it is about building capacity, 56 driving outcomes, and expanding our reach throughout the Territory. 57 58 The Authority’s FY 2026 Operating Budget totals $7,316,891 and reflects our 59 continued focus on performance, accountability, and economic impact. 60 61 The budget is comprised of: 62 63 a. A General Fund appropriation of $6,613,000, consistent with the prior 64 fiscal years 2022, 2023, 2024 and 2025; and 65 b. Internally generated revenue of $703,891, comprised of an annual 66 transfer from the EDC Industrial Promotion Fund, interest income from 67 the Micro Loan Fund (authorized for operational use), and other 68 miscellaneous revenue. 69 70 This funding structure allows USVIEDA to build on its existing momentum while 71 moving forward with key initiatives that improve access to capital, attract new 72 private-sector investment, and sharpen the Territory’s overall economic 73 competitiveness. 74 75 76 77 VI Economic Development Authority FY 2026 Budget Hearing Testimony Personnel Services 78 Personnel Services represents the largest share of the Authority’s FY 2026 79 operating budget, with a total allocation of $5,104,525, accounting for 80 approximately 70% of total expenditure. 81 82 This funding supports 46 full-time positions, of which 42 are currently filled and 83 four (4) remain vacant. Of the 46 positions, 27 are based on St. Thomas and 15 84 are based on St. Croix. The four (4) vacant positions include a Compliance Officer 85 and Loan Officer on St. Thomas, and a Compliance Officer and 86 Paralegal/Investigative Analyst on St. Croix. These roles are critical to 87 maintaining tax incentive monitoring and oversight, ensuring legal support, and 88 sustaining lending operations. Recruitment for these positions is actively 89 underway. 90 91 In addition to these 46 positions, the Authority also supports four (4) full-time 92 employees on St. Croix at the Economic Development Park Corporation (EDPC), 93 as well as one (1) grant-funded position on St. Thomas under the State Small 94 Business Credit Initiative (SSBCI) Program. Collectively, these roles form the 95 backbone of USVIEDA’s operational capacity—ensuring that the organization 96 can effectively deliver on its mission to drive investment, create jobs, and 97 support small business development throughout the Territory. 98 99 Professional Services 100 Professional services represent the second largest component of the Authority’s 101 FY 2026 budget, supporting a broad range of operational and strategic functions. 102 Budgeted at just over half a million dollars, this category includes legal counsel, 103 VI Economic Development Authority FY 2026 Budget Hearing Testimony audit services, compliance consulting, IT and website support, grant writing, 104 marketing, transcription, and now, lead generation. In line with our Global 105 Marketing Plan, this new lead generation component builds on our prior 106 marketing efforts and reflects a renewed push to capitalize on emerging 107 opportunities in the market. It will help us identify and engage prospective 108 investors and spread awareness of the benefits of doing business in the 109 Territory. These services are critical to maintaining program integrity, expanding 110 outreach, and advancing organizational goals. Each engagement is carefully 111 evaluated to ensure alignment with the Authority’s priorities and commitment 112 to responsible financial management. 113 114 Advertising and Promotion 115 For FY 2026, the Authority has allocated $470,118 to advertising and 116 promotional activities—an investment aimed squarely at increasing visibility 117 both locally and globally, generating qualified investor leads, and positioning the 118 U.S. Virgin Islands as a competitive destination for business development. 119 120 This allocation will support: 121 a. Participation in at least five (5) national investment missions and trade 122 shows, strengthening our global reach and face-to-face engagement with 123 potential investors; 124 b. Engagement in site selector and industry conferences to promote 125 opportunities in key sectors; 126 c. Development of targeted investor materials and promotional videos that 127 highlight the Territory’s special economic zones, infrastructure readiness, 128 and tax incentive programs; 129 VI Economic Development Authority FY 2026 Budget Hearing Testimony d. Expanded national media campaigns and digital advertising across 130 platforms that reach corporate decision-makers, site selectors, and 131 emerging industries; and 132 e. Territory-wide stakeholder engagement and outreach, including targeted 133 media and events to connect with local entrepreneurs, returning 134 residents, and the business diaspora networks. 135 136 These efforts build on the momentum of the FY 2025 marketing campaign and 137 directly support USVIEDA’s Global Investment Strategy. They also reflect a 138 proactive approach to lead generation and brand positioning—ensuring the 139 Territory is effectively positioned in an increasingly competitive global and 140 digital marketplace. 141 142 Our goal is clear: when firms evaluate expansion opportunities, the U.S. Virgin 143 Islands should not only be on the list—but rise to the top. By broadening our 144 media reach and sharpening our outreach efforts, we are increasing visibility, 145 building strategic connections, and aligning investor interests with the 146 Territory’s economic strengths. 147 148 As we move into FY 2026, we view this promotional investment not as a cost, 149 but as strategic leverage to attract capital, grow jobs, and expand the Territory’s 150 economic footprint—both regionally and globally. 151 152 Capital Outlay 153 For FY 2026, $40,000 is allocated under Capital Outlay to update our servers that 154 support lending platforms, accounting software, and email communications to 155 VI Economic Development Authority FY 2026 Budget Hearing Testimony complement our recent laptop upgrades —enhancing cyber security, internal 156 controls, and improving financial reporting. 157 158 FY 2025 ACCOMPLISHMENTS (October 1, 2024 – July 15, 2025) 159 While this budget outlines our financial strategy and key objectives, its real value 160 is reflected in what we’ve already accomplished with the resources entrusted to 161 us. These results are the strongest indicator of our effectiveness and our 162 commitment to turning public investment into meaningful, lasting impact for 163 the people of the Virgin Islands. 164 165 I am proud to report that from October 1, 2024, through July 15, 2025, the Virgin 166 Islands Economic Development Authority has made tangible progress in 167 advancing our mission. Across every division—from compliance and lending to 168 investment promotion and community revitalization—our team has delivered 169 outcomes that reflect discipline, innovation, and a strong commitment to the 170 people of the U.S. Virgin Islands. 171 172 Allow me to now share some of the key accomplishments that have shaped this 173 fiscal year and positioned us for continued success. 174 175 Marketing, Promotion, and Investor Outreach 176 In FY 2025, USVIEDA significantly elevated its national and international 177 presence by prioritizing strategic promotion of both the Territory and the 178 Authority’s economic development programs. We used multiple platforms to 179 amplify the message that the U.S. Virgin Islands is a serious, competitive, and 180 attractive destination for global investment. 181 VI Economic Development Authority FY 2026 Budget Hearing Testimony We secured media placements and targeted features in high-profile publications 182 such as Area Development Magazine, The Miami Herald, Newsweek, and 183 Business Facilities—all of which are trusted sources for site selectors, business 184 advisors, and corporate decision-makers evaluating U.S. expansion. 185 186 A major milestone this year was USVIEDA’s participation in a nationally 187 broadcast PBS documentary-style program, ViewPoint with Dennis Quaid. This 188 feature, which profiles the Territory as a rising investment hub, is expected to 189 reach an estimated 60 million U.S. households across platforms such as CNBC, 190 Fox Business, CNN, and Discovery. The production will highlight our business 191 environment, incentive offerings, and lifestyle advantages—delivering a 192 compelling message that the Territory stands as a resilient and forward-thinking 193 destination, where innovation meets opportunity to an audience of investors, 194 entrepreneurs, and industry leaders. 195 196 To connect directly with global markets, USVIEDA participated in several high- 197 impact investor events and forums: 198 1. Uncorrelated Puerto Rico | Alternative Investments Conference | March 199 2025 | San Juan, PR 200 2. ALIS CALA | Caribbean and Latin American Hotel Investment Summit 201 |April 2025 | Miami, FL 202 3. SelectUSA Investment Summit | U.S. International Investment Summit | 203 May 2025 | National Harbor, MD 204 4. Trade and Investment Convention | July 2025 |Trinidad and Tobago, W.I. 205 VI Economic Development Authority FY 2026 Budget Hearing Testimony 5. Upcoming: National Association of Black Hotel Owners, Operators, and 206 Developers (NABHOOD) |29th Int’l. African American Hotel Ownership & 207 Investment Summit | July 2025| Miami, FL 208 209 Through these efforts, our FY 2025 marketing outreach not only improved 210 USVIEDA’s visibility—it reinforced the message: The U.S. Virgin Islands is a 211 serious player in the global investment landscape, offering the value, stability, 212 and support businesses need to succeed. 213 214 Economic Development Bank for the U. S. Virgin Islands – FY 2025 215 Accomplishments 216 The Economic Development Bank (EDB) continued to deploy targeted financing 217 tools to support small business growth, promote homeownership, and advance 218 energy sustainability throughout the Territory. Through a focused and 219 coordinated approach, EDB leveraged both local and federal resources to 220 expand access to capital and deliver measurable progress in key areas of 221 economic need. 222 223 State Small Business Credit Initiative (SSBCI 2.0) 224 The U.S. Virgin Islands was awarded $57.8 million under the State Small Business 225 Credit Initiative Program—also known as SSBCI 2.0—a federally funded program 226 administered by the U.S. Department of the Treasury. Designed to support small 227 businesses and entrepreneurship, SSBCI provides loan guarantees that reduce 228 lender risk, making it easier for businesses to access the capital needed to 229 launch, expand, and build resilience. SSBCI 2.0 represents a transformative 230 VI Economic Development Authority FY 2026 Budget Hearing Testimony investment in our Territory’s economic future. It expands access to capital, fuels 231 job creation, and empowers local enterprises to grow. 232 233 The funding is released in three (3) tranches. The first tranche, totaling $18.9 234 million, was received in February 2023. Each subsequent tranche is contingent 235 on meeting performance benchmarks set by the U.S. Department of the 236 Treasury, including demonstrating that at least 80% of the previous tranche has 237 been deployed to eligible businesses. This phased structure ensures 238 accountability and directly links funding to measurable economic outcomes. 239 240 I’m pleased to report that, as of July 15, 2025, $15.7 million of the first tranche 241 has been expended or obligated through small business loan guarantees. These 242 investments are projected to create 109 new jobs and retain 100 existing jobs 243 across the Territory. Approved businesses represent a diverse cross-section of 244 our economy—from aviation and construction to healthcare, marine services, 245 social support, hospitality, tourism, and more. An additional $6 million in loan 246 guarantee requests is currently in the pipeline, undergoing review by 247 participating financial institutions. 248 249 With approximately 86% of Tranche 1 already committed ahead of schedule 250 (February 2026), we are now applying for Tranche 2—an additional $18.9 million 251 in funding to continue strengthening our small business sector. 252 253 To ensure that more Virgin Islands entrepreneurs can take advantage of this 254 opportunity, the Authority applied for and was awarded $521,109 in 255 competitive grant funding to launch the SSBCI 2.0 Technical Assistance Program. 256 VI Economic Development Authority FY 2026 Budget Hearing Testimony This program helps local small businesses become loan-ready through tailored 257 consulting support in business planning, financial literacy training, and 258 assistance with legal documentation at no cost to eligible participants. 259 260 We also expanded our outreach efforts—hosting lender roundtables, 261 conducting town halls on both St. Thomas and St. Croix, and rolling out a 262 targeted marketing campaign to increase awareness. These efforts ensure that 263 businesses of all sizes and across industries understand how to access SSBCI 264 resources and receive the support they need to thrive. The success of this 265 program is due in large part to strong collaboration with our lending partners— 266 First Bank, Merchants Commercial Bank, and Banco Popular. We are also 267 actively engaging additional institutions, including Oriental Bank, Bank of St. 268 Croix, Stearns Bank (Minnesota), and Alba Capital (Rhode Island), to broaden 269 access and extend our reach across the Territory. 270 271 Through these combined efforts, SSBCI 2.0 is doing much more than deploying 272 capital, it is helping to build a more inclusive, resilient, and opportunity-rich 273 economy for all businesses in the U.S. Virgin Islands. 274 275 Direct Lending and Small Business Support 276 In addition to administering federally funded programs, the EDB continues to 277 provide direct lending support to small businesses and entrepreneurs across the 278 Territory. These loans are essential for driving new business formation, 279 supporting job creation, and advancing economic diversification, particularly in 280 areas where traditional financing options remain limited. 281 282 VI Economic Development Authority FY 2026 Budget Hearing Testimony As of July 15, 2025, the Authority approved $705,000 in new loans through its 283 Internal Credit Committee and Governing Board. These approvals led to the 284 creation of 22 new jobs and the retention of 13 existing positions. Borrowers 285 represented a diverse mix of industries, including food services, transportation, 286 retail, and wellness—highlighting the responsiveness of the EDB’s programs to 287 the Territory’s evolving commercial needs. We are also developing a program 288 specifically designed to provide technical assistance and access to capital to our 289 local fishers and farmers to grow and sustain their operations in collaboration 290 with the Department of Agriculture, the Agriculture Business Center, the Local 291 Food and Farm Council, and other related stakeholder agencies. 292 293 In total, the Economic Development Bank approved or committed over $16.4 294 million in financing through both direct loans and SSBCI loan guarantees. These 295 efforts are projected to create 131 new jobs and retain 113 existing positions— 296 a clear reflection of the EDB’s critical role in supporting sustainable economic 297 growth and financial empowerment across the Territory. 298 299 VI Slice Moderate-Income Homeownership Program 300 EDB also administers the VI Slice Moderate-Income Homeownership Program 301 (VI Slice), which offers gap financing to qualified first-time homebuyers. As of 302 July 15, 2025, a total of 82 applications were received under VI Slice, requesting 303 approximately $8.7 million in gap financing. 304 305 Of these, 61 applications were approved, representing $6.2 million in gap 306 financing, leveraging $18.7 million in primary lender financing. Approved 307 VI Economic Development Authority FY 2026 Budget Hearing Testimony applications included 44 properties on St. Croix, 16 on St. Thomas, and 1 on St. 308 John. 309 310 To date, 57 of the approved applications have been fully disbursed, providing 311 $5.6 million in funding and enabling more than $17.6 million in home purchases 312 or construction. An additional four (4) applications are pending closing due to 313 title issues. 314 315 Among the remaining applications: 316 a. 2 recently received are being reviewed for final decision by the EDB; 317 b. 6 are pending supplemental documentation from primary lenders; 318 c. 7 were withdrawn by the primary lender; and 319 d. 6 were declined due to eligibility. 320 321 This program continues to bridge the affordability gap for moderate-income 322 Virgin Islanders, supporting both family wealth creation and local housing 323 market stability. 324 325 Solar Plus Financing Pilot Program (Solar+) 326 In partnership with the Virgin Islands Energy Office (VIEO), the EDB team 327 administers the Solar Plus Financing Pilot Program, a zero-down, low-interest 328 loan program for residential solar and battery installations. As part of this 329 collaboration, EDB provides the back-office support for this initiative—including 330 document review and preparation, title clearance, disbursement coordination, 331 pre- and post-closing administration, and financial reporting. 332 VI Economic Development Authority FY 2026 Budget Hearing Testimony VIEO received 112 applications, of which 80 were pre-approved based on 333 available funding. From the pre-approved pool, 51 applications were forwarded 334 for title searches, while the remaining 29 are still under review by VIEO. Twenty- 335 nine of the 51 were cleared for processing and closing by EDB. The remaining 22 336 were returned to VIEO for further action due to various title-related issues. 337 Among the cleared applications, 24 were successfully funded totaling 338 $662,965.08 - of which $480,492.54 was disbursed on St. Croix and $182,472.54 339 on St. Thomas. Five (5) applicants withdrew from the program prior to closing. 340 EDB remains actively engaged with VIEO to advance the remaining applications 341 and ensure the program’s successful execution. 342 343 Virgin Islands Economic Development Commission – FY 2025 Accomplishments 344 The Virgin Islands Economic Development Commission (EDC) continues to serve 345 as one of the Territory’s most effective tools for attracting private-sector 346 investment, creating quality jobs, and fostering long-term economic growth. At 347 its core, the EDC program offers strategic tax incentives to companies that 348 relocate or expand their operations to the Virgin Islands. These incentives 349 primarily apply to income earned from services performed within the Territory 350 for clients located outside of the U.S. Virgin Islands. Participating companies pay 351 a minimum of ten percent (10%) in income taxes on revenues or sales generated 352 from clients on the U.S. mainland or abroad – injecting new money into the 353 Virgin Islands economy. In return, these businesses establish operations locally, 354 hire USVI residents, and commit to a broader set of obligations, including 355 investing in the Territory’s infrastructure, local procurement, employee benefit 356 VI Economic Development Authority FY 2026 Budget Hearing Testimony packages, and contributing to charitable giving and public/private educational 357 assistance programs and initiatives. 358 359 The EDC tax-incentive program attracts new money and job opportunities that 360 would not have otherwise existed. More importantly, it adds new tax dollars to 361 the Territory’s tax base, helping to fund essential public services without placing 362 an additional burden on local taxpayers. By tying incentives to measurable 363 economic outcomes, the EDC program helps convert beneficiary income into 364 local opportunity—broadening the tax base, supporting entrepreneurship, job 365 creation, and delivering meaningful benefits for the people of the Virgin Islands. 366 This strategy is delivering results. As of July 15, 2025, the number of active VIEDC 367 beneficiaries has surpassed 100 beneficiaries—up from 80 in FY 2022. This 26% 368 growth over three years signals strong investor confidence in the Territory and 369 reflects the success of USVIEDA’s continued outreach and program 370 modernization. 371 372 Moreover, between October 1, 2024 and July 15, 2025, 10 new EDC applicants 373 were approved for EDC tax-incentive benefits, with committed local 374 investments exceeding $29.6 million. These companies are projected to create 375 approximately 70 full-time jobs and generate significant wages and charitable 376 contributions. In addition, nine (9) certificates were executed during this period, 377 reflecting capital investment commitments of approximately $17.3 million, the 378 creation of at least 65 full-time positions, and the injection of approximately 379 $4.4 million annually into the local economy through salaries, wages, and 380 charitable giving. 381 382 VI Economic Development Authority FY 2026 Budget Hearing Testimony The continued growth of the EDC Portfolio has reinforced the critical role of the 383 Compliance Unit, which ensures adherence to program requirements through 384 orientations, site visits, and comprehensive compliance reviews. 385 386 While we are encouraged by the program’s progress, USVIEDA remains focused 387 on continuous improvement. To meet the demands of the growing portfolio, we 388 are actively pursuing opportunities to modernize, embrace technology, and 389 improve operational efficiency, while ensuring greater accountability and long- 390 term program effectiveness. In FY 2025, the Authority made significant strides 391 in this area by developing a cloud-based Compliance Reporting Portal to 392 streamline beneficiary submissions and improve monitoring capabilities. 393 394 However, with an increased number of beneficiaries comes the need for 395 additional resources. To maintain the standard of oversight required by the EDC 396 Program, there is an urgent need to ramp up staffing in the Compliance Unit. 397 Additional Compliance Officers are urgently needed to sustain thorough 398 reviews, timely reporting, and on-site engagement, ultimately preserving the 399 integrity of the program. 400 401 To ensure long-term program effectiveness, the Authority also began 402 discussions for a comprehensive update to its Cost-Benefit Analysis (CBA) model 403 to include the integration of EDC and EZC program specific performance metrics. 404 These enhancements will sharpen economic impact assessments, improve 405 transparency, and ensure decisions remain aligned with the Territory’s evolving 406 development goals. We are currently negotiating a professional services 407 agreement to support the execution of this initiative. 408 VI Economic Development Authority FY 2026 Budget Hearing Testimony In addition to administering the EDC tax-incentive program, the Applications 409 Unit also processes applications under the Hotel Development Act (HDA), 410 Sustainable Tourism Through Arts-Based Revenue Streams (STARS), Tax- 411 Increment Financing (TIF), and Eligible Supplier programs. These complementary 412 tools are increasingly being used in tandem to accelerate high-impact 413 development projects across the Territory. 414 415 In particular, HDA continues to serve as a powerful catalyst for advancing 416 tourism infrastructure development. By offering tailored incentives to 417 developers, HDA supports both new construction, reconstruction, expansion, 418 and revitalization of existing hotel properties. Increasingly, developers are 419 leveraging a combination of USVIEDA programs – including EDC, HDA, and SSBCI 420 to fast-track high impact projects that yield broad economic benefits. 421 422 Flagship Projects Benefitting from Multi-Program Support: 423 • Haven Development LLC d/b/a Hampton by Hilton – St. Thomas 424 Located adjacent to Havensight Mall, this five-story, 126-room hotel 425 spans 71,000 square feet and represents the first new ground-up branded 426 hotel construction in the Territory in over 30 years. Backed by both EDC 427 and HDA incentives, the $44.1 million project is nearing completion and is 428 scheduled to open in August 2025. It is expected to generate at least 21 429 full-time jobs. 430 431 • By-the-Sea Resort Properties, LLC d/b/a The Botany Hotel – St. Thomas 432 This planned $44 million, 68-key, five-star boutique luxury resort is 433 advancing with support through both the EDC and SSBCI programs and is 434 VI Economic Development Authority FY 2026 Budget Hearing Testimony also under consideration for HDA participation. Located at the Preserve 435 at Botany Bay on the scenic west end of St. Thomas, the development 436 promises world-class accommodations and long-term economic returns. 437 With its distinctive character and upscale positioning, the resort will 438 enhance the Territory’s luxury tourism offerings and strengthen its 439 presence in the Caribbean hospitality market. 440 441 • DV USVI Investment, LLLP (Formerly Sugar Bay Hotel)– St. Thomas 442 This $12 million plus revitalization project aims to restore the former 294- 443 room resort property, which is expected to reopen in late 2026. While still 444 in early development, this EDC beneficiary may qualify for HDA 445 incentives—highlighting our continued efforts to reactivate dormant 446 properties and re-energize the tourism landscape. 447 448 • Historic Heritage Holdings, LLP – St. Croix 449 This boutique hotel project was approved for EDC benefits. Project 450 commitments include over 80 hotel rooms, $11 million in capital 451 investment, 15 full-time hotel and 5 full-time designated service business 452 jobs, and structured employee training programs in partnership with the 453 University of the Virgin Islands and other local providers. 454 455 • MJB Caribbean Ventures, Inc. d/b/a Hotel 1829 & At Home In The Tropics 456 – St. Thomas 457 This project involves the restoration and reopening of the 19-room 458 historic Hotel 1829 in downtown Charlotte Amalie. Supported by EDC 459 incentives, this $4 million redevelopment is designed to invigorate the 460 VI Economic Development Authority FY 2026 Budget Hearing Testimony downtown area by attracting visitors and stimulating commercial activity 461 in the historic district. 462 463 • Betty’s Hope – St. Croix 464 Identified as a promising site for an airport hotel or mixed-use tourism 465 development, Betty’s Hope highlights territory-wide efforts to support 466 infrastructure revitalization and attract new hospitality investment. The 467 developer, having received the Virgin Islands Port Authority (VIPA) 468 property lease, is actively engaged in discussions with USVIEDA regarding 469 participation in both the EDC and HDA programs. 470 471 These projects exemplify a growing trend of leveraging multiple USVIEDA 472 programs to bring transformational tourism developments to life—aligning 473 public policy, private investment, and community benefit within a unified 474 strategic framework. 475 476 As the Territory continues to attract tourism-related capital, the EDC remains 477 committed to refining the HDA process, deepening engagement with 478 developers, and ensuring that hotel projects translate into long-term, 479 sustainable economic benefits for the people of the Virgin Islands. 480 481 Together, these accomplishments reaffirm the EDC’s role as a cornerstone of 482 economic development. Through targeted incentives, modernized platforms, 483 and a strong emphasis on accountability, the EDC continues to drive business 484 growth, job creation, and resilient economic progress across the Territory. 485 486 VI Economic Development Authority FY 2026 Budget Hearing Testimony Enterprise Zone Commission – FY 2025 Accomplishments 487 As we continue to attract new investment and grow key industries, we also 488 understand the importance of restoring our historic neighborhoods that have 489 long been the backbone of our communities. This is where the Enterprise Zone 490 Commission plays a vital role. Through targeted revitalization efforts, business 491 support, and community partnerships, the EZC is working to bring renewed 492 energy and opportunity to communities that were once socially and 493 economically vibrant. 494 495 Neighborhood Revitalization 496 EZC’s core mission is to revitalize neighborhoods within the four (4) designated 497 Enterprise Zones: Christiansted and Frederiksted on St. Croix, and Savanne- 498 Downstreet and Garden Street-Upstreet on St. Thomas. By offering customized 499 tax incentives, the EZC helps bring these areas back to life through strategic 500 support and cross-sector collaboration. 501 502 Among the Commission’s most impactful tools is the Rejuvenation Program, 503 which offers financial and technical assistance to help property owners 504 rehabilitate underused or deteriorating structures for business, housing, or 505 community use. In FY 2025, the EZC completed 10 of these projects utilizing the 506 Historic Recovery Grant administered by the Department of Planning and 507 Natural Resources. Each project continues to contribute to the preservation of 508 our historic architecture and the reactivation of local economic spaces. 509 510 To support continued revitalization efforts, the EZC Governing Board also 511 approved recommendations to Governor Bryan to expand the Frederiksted and 512 VI Economic Development Authority FY 2026 Budget Hearing Testimony Savanne-Downstreet Enterprise Zones and to establish new Commercial Zones 513 in Cruz Bay, St. John and Charlotte Amalie, St. Thomas. These actions are 514 intended to bring investment and resources to neighboring corridors that share 515 similar conditions as the original zones. 516 517 Agro & Food Centers 518 The EZC advanced two (2) key infrastructure projects focused on food-based 519 entrepreneurship and value-added agriculture. On St. Croix, the Authority 520 purchased a complex, known as the Padilla Building on King Street in 521 Frederiksted as the site for the future Agro & Food Innovation Center, supported 522 by an appropriation from the 33rd Legislature of the Virgin Islands through Act 523 No. 8385. On St. Thomas, EZC is awaiting an assignment of the former Marcelli 524 School facility, where the Agro & Food Technology Center will be located. These 525 two (2) centers are designed to serve as hubs for agricultural innovation, 526 offering technical assistance, commercial-grade equipment, and market access 527 for entrepreneurs working in food production, processing, and packaging. 528 529 Community-Based Initiatives 530 In FY 2025, the EZC also conducted two (2) innovative pilot programs that reflect 531 its deep commitment to strengthening local infrastructure and empowering 532 Virgin Islanders. 533 534 Tech Thyme Program 535 As part of the early programming for the Agro & Food Technology Center, EZC 536 partnered with the Grisela Lois Foundation to launch Tech Thyme — an initiative 537 aimed at cultivating a tech-savvy community. This summer program engages 538 VI Economic Development Authority FY 2026 Budget Hearing Testimony high school students and adults in technology-based learning and innovation, 539 providing early exposure to future-focused career paths and helping to build a 540 resilient, locally grounded workforce. 541 542 Heirs Property Program 543 With funding support from the U.S. Department of the Interior, EZC also 544 continued its pilot Heirs Property Program to assist families in addressing 545 complex estate planning and property inheritance issues. To date, eight (8) 546 families have received assistance through this initiative. The program is being 547 fully documented to provide long-term educational value to the wider Virgin 548 Islands community, with key findings to be presented at the upcoming Estate 549 Planning Conference. 550 551 South Shore Trade Zone 552 In addition to its work in historic neighborhoods, the EZC is also laying the 553 foundation for new centers of industry and commerce. One of the most 554 promising examples is the South Shore Trade Zone (SSTZ) —a designated 555 economic area on St. Croix created to attract strategic investment and support 556 long-term development in emerging sectors. A major highlight this year was the 557 inaugural South Shore Trade Zone Investor Roundtable, a multi-day event that 558 welcomed 12 prospective investors representing 10 companies across industries 559 such as aquaculture, renewable energy, advanced manufacturing, and capital 560 investment. Through site tours, panel discussions, and one-on-one meetings, 561 the event spotlighted the zone’s infrastructure, strategic location, and tailored 562 incentives—reinforcing investor interest in the Territory’s newest development 563 area. 564 VI Economic Development Authority FY 2026 Budget Hearing Testimony The Authority received and reviewed its first SSTZ tax benefit application from 565 In the Mix Cakery, LLC, a local business based on St. Croix. This marked a key 566 step in activating the zone and demonstrated growing confidence in the 567 Territory’s broader vision for sustainable economic development. As interest 568 continues to build, the EZC finalized SSTZ’s boundary mapping and collaborated 569 with the Virgin Islands Port Authority to align infrastructure priorities with 570 investor demand. This momentum is reflected in the rising number of inquiries 571 from businesses and site selectors, especially as companies navigate global 572 supply chain shifts and evolving trade conditions. 573 574 Trade and Export Development 575 To support the expansion of Virgin Islands businesses into global markets, the 576 EZC successfully closed out its State Trade Expansion Program (STEP) grant from 577 the U.S. Small Business Administration. This grant enabled local entrepreneurs 578 to participate in national and international trade shows — broadening their 579 export capacity and positioning them for long-term success. Through this grant, 580 the Authority facilitated STEP-client participation in two (2) of the nation’s most 581 prominent trade events held in New York City, Summer Fancy Food Show and 582 NY NOW, as well as the Trade and Investment Convention (TIC) in Trinidad and 583 Tobago. 584 585 The Summer Fancy Food Show is the largest specialty food and beverage 586 exhibition in North America, drawing thousands of buyers from restaurants, 587 retail chains, and global distributors. By showcasing Virgin Islands-based food 588 producers, the Authority helped open the door to new markets and national 589 distribution opportunities. Similarly, NY NOW is a leading marketplace for home, 590 VI Economic Development Authority FY 2026 Budget Hearing Testimony lifestyle, and artisanal products. With the Authority’s support, Virgin Islands 591 creative entrepreneurs were able to present their brands to top-tier retailers, 592 expanding their customer base and building relationships that can drive future 593 sales. In FY 2025, the Authority secured a new STEP grant and returned to the 594 Summer Fancy Food Show, continuing efforts to promote export-ready products 595 and further strengthen our local presence in the national specialty foods market. 596 Building on this momentum, the EZC led a delegation to the Trade and 597 Investment Convention (TIC) in Trinidad and Tobago (T&T) — one of the 598 Caribbean’s largest business-to-business networking events. Hosted by the 599 Trinidad and Tobago Manufacturers’ Association, the convention attracted over 600 20,000 attendees and 30,000 registered buyers, featured 317 booths, and 601 brought together regional policymakers and private-sector leaders to discuss 602 trade, investment, and market access. 603 Participation served a dual purpose: 11 STEP clients exhibited and connected 604 with international buyers and explored export opportunities, while the EZC 605 promoted the SSTZ as a dynamic hub for regional manufacturing, logistics, and 606 commerce. The USVI delegation held an SSTZ VIP networking event that had 607 over 85 attendees, many of whom expressed interest in pursuing trade with and 608 investment opportunities within the USVI. The Territory also gained visibility 609 through multiple T&T radio and newspaper interviews as well as television and 610 social media coverage. The Virgin Islands’ presence was widely praised, 611 generating enthusiastic interest from businesses across the region and affirming 612 Territory’s growing reputation as a serious player in Caribbean commerce. 613 614 615 616 VI Economic Development Authority FY 2026 Budget Hearing Testimony Economic Development Park Corporation – FY 2025 Accomplishments 617 The Economic Development Park Corporation (EDPC) operates two (2) industrial 618 parks in the Territory: the Virgin Islands Industrial Park on St. Thomas and the 619 William D. Roebuck Industrial Park (Roebuck Park) on St. Croix—collectively 620 referred to as “the Parks.” I am pleased to report that both locations are at 100% 621 occupancy. 622 623 This level of demand underscores the value of our industrial spaces and the 624 growing interest in doing business in the Virgin Islands. To maintain and enhance 625 the quality of our commercial offerings, we are actively investing in capital 626 improvements that support tenant success and long-term resilience. 627 628 On St. Thomas, Phase I hurricane repairs at the Virgin Islands Industrial Park— 629 addressing damages from Hurricanes Irma and Maria—were completed earlier 630 this fiscal year. These repairs included restoration of three (3) commercial bays 631 and the installation of a new entrance gate. Phase II will include the construction 632 of a new 10,000-square-foot office facility, which will serve as the new home of 633 USVIEDA’s St. Thomas office. The project is expected to break ground before the 634 end of the calendar year 2025. 635 636 On St. Croix, we are working to finalize FEMA-funded repairs for the William D. 637 Roebuck Industrial Park. Following multiple revisions, final project approval is 638 anticipated in the Q4 of FY 2025. 639 640 EDPC has also prioritized energy resilience as part of our modernization efforts. 641 In partnership with the Virgin Islands Energy Office (VIEO), one (1) public Level 642 VI Economic Development Authority FY 2026 Budget Hearing Testimony II electric vehicle charging station was installed at Roebuck Park—supporting the 643 Territory’s renewable energy goals and establishing the park as a modern 644 industrial zone. 645 646 We are also engaged in microgrid planning at Roebuck Park, the Fleming 647 Building, and the Virgin Industrial Park to reduce reliance on the central grid and 648 improve energy reliability. Working with VIEO and an experienced design firm, 649 we are identifying funding opportunities—including federal grants—to bring this 650 energy transition to life. 651 652 To meet sustained demand, EDPC is actively seeking funding to construct two 653 (2) new 40,000-square-foot buildings at Roebuck. These spaces will support the 654 growth of assembly, light manufacturing, and related industries on St. Croix. We 655 continue to receive daily inquiries from businesses looking for space in the Parks 656 or for designated SSTZ sites—underscoring the critical need for expansion. 657 658 In Frederiksted, EDPC also manages the historic Fleming Building, which serves 659 as USVIEDA’s St. Croix headquarters. Bids have been received for hurricane- 660 related repairs, and construction is anticipated to begin in Q4 of FY 2025. This 661 restoration will protect a landmark structure while ensuring it continues to 662 support the Territory’s economic development goals. 663 664 Although EDPC operates independently and does not receive direct government 665 funding, it remains an essential driver of USVIEDA’s broader mission. Through 666 strategic facility upgrades, energy-focused innovation, and strong tenant 667 VI Economic Development Authority FY 2026 Budget Hearing Testimony engagement, EDPC continues to deliver value, stimulate business growth, and 668 strengthen the industrial ecosystem of the U.S. Virgin Islands. 669 670 Financial Management 671 In addition to our programmatic accomplishments, I am proud to report that the 672 Virgin Islands Economic Development Authority received an unmodified audit 673 opinion for the 14th consecutive year. This continued clean audit outcome 674 reflects the Authority’s strong financial management, adherence to sound 675 accounting practices, and commitment to transparency and fiscal responsibility. 676 It also reinforces stakeholder confidence—both locally and externally—and 677 underscores the integrity with which we manage public funds and federal 678 resources. 679 680 Other Collaboration - Agricultural and Food Systems Investment 681 Equally important to our mission is our continued support for agriculture in the 682 Virgin Islands, recognizing its vital role in advancing food security and economic 683 resilience. Through close collaboration with the Local Food and Farm Council, 684 USVIEDA has partnered with the Virgin Islands Department of Agriculture to 685 advance initiatives that directly benefit local farmers. 686 687 Late last year, USVIEDA disbursed a $500,000 legislative appropriation as a 688 component of the Virgin Islands Agricultural Plan to provide direct financial 689 assistance to 14 farmers, helping to increase local food production and build the 690 Territory’s agricultural capacity. 691 692 VI Economic Development Authority FY 2026 Budget Hearing Testimony Continuing this trajectory, we have requested the draw down of the FY 2025 693 $500,000 appropriation to provide direct financial support to qualified local 694 farmers. 695 696 These funds are essential to: 697 • Expand support for the Territory’s agricultural community; 698 • Promote long-term food security and local self-sufficiency; and 699 • Deepen cross-agency collaboration through sustained engagement with 700 the Local Food and Farm Council. 701 702 These efforts reflect our ongoing commitment to building a stronger, more 703 sustainable food system that empowers producers, reduces our reliance on 704 imported goods, and contributes to a more resilient Virgin Islands economy. 705 706 Looking Ahead: Priorities for Continued Economic Growth 707 As we look to Fiscal Year 2026, USVIEDA remains focused on building an 708 economy that is resilient, dynamic, and forward-looking. Guided by the progress 709 made to date, we are advancing a set of targeted initiatives that will broaden 710 the Authority’s impact, strengthen investor confidence, and deliver lasting value 711 to the people of the U.S. Virgin Islands. 712 713 Our top seven (7) priorities aligned with Vision 2040 include: 714 1. Attracting a New Hotel Investment and New Hotel Brand 715 USVIEDA will actively expand its hotel development portfolio by 716 supporting the completion of current projects and securing a new hotel 717 flag that aligns with the Territory’s tourism goals. USVIEDA will continue 718 VI Economic Development Authority FY 2026 Budget Hearing Testimony to support hotel projects such as, Historic Heritage Holdings, The Botany 719 Hotel, Hampton by Hilton, and the former Sugar Bay Resort, representing 720 hundreds of new rooms, substantial job creation, and renewed 721 confidence in the Virgin Islands as a premier travel and business 722 destination. 723 724 In addition, USVIEDA will work to secure both a new hotel development 725 and a new hotel brand for St. Croix, further diversifying the Territory’s 726 tourism offerings, stimulating economic activity on the island, and 727 meeting the growing demand for high-quality accommodations. 728 729 2. Expanding Participation in the EDC Program 730 The Authority will continue its outreach efforts to attract qualified 731 businesses to the Virgin Islands through the Economic Development 732 Commission (EDC) program. This includes promoting the benefits of 733 relocating or expanding operations in the Territory. These companies 734 inject fresh dollars into the local economy while committing to job 735 creation, infrastructure investment, and procurement from local 736 suppliers. 737 738 3. Launching the EDC Compliance Reporting Portal 739 In FY 2026, we will launch a secure, cloud-based Compliance Reporting 740 Portal for EDC beneficiaries. This platform will streamline reporting, 741 improve data integrity, and allow for more efficient compliance 742 monitoring—ensuring the program continues to operate with 743 accountability and transparency. 744 VI Economic Development Authority FY 2026 Budget Hearing Testimony 4. Strengthening Small Business Access to Capital through SSBCI 745 Building on momentum from SSBCI 2.0 Tranche 1, the Authority will 746 continue to work with local and other lending institutions, conduct 747 outreach events, and expand technical assistance programs to help small 748 businesses qualify for funding. These efforts are essential to accessing 749 Tranche 3—an additional $20 million in capital that can fuel business 750 growth, job creation, and entrepreneurship across the Territory. 751 752 5. Expanding Homeownership through VI Slice 753 The VI Slice Moderate-Income Homeownership Program is one of several 754 targeted efforts aimed at increasing homeownership opportunities in the 755 Territory. With funding set to expire in 2026, our priority is to accelerate 756 the release of financial assistance for qualified applicants – whether for 757 down payment, closing costs, new construction, or the purchase and 758 rehabilitation of homes. By helping more Virgin Islands’ residents become 759 homeowners, the program also stimulates lending activity, strengthens 760 the local real estate market, and supports broader housing development 761 across the Territory. 762 763 6. Positioning the South Shore Trade Zone for Anchor Investment 764 We will continue to market and prepare the South Shore Trade Zone 765 (SSTZ) for large-scale industrial and logistics investment. With available 766 commercial land and active infrastructure development underway, SSTZ 767 is well-positioned to support light manufacturing, assembly, warehousing, 768 transshipment, cold storage, logistics, shipbuilding, agribusiness, and 769 renewable energy projects. As developments unfold, the SSTZ is primed 770 VI Economic Development Authority FY 2026 Budget Hearing Testimony to become a major driver of job creation and commercial growth on St. 771 Croix—unlocking new opportunities and positioning the island as a 772 strategic gateway for trade and investment throughout the wider 773 Caribbean. 774 775 7. Modernizing Economic Evaluation Tools 776 USVIEDA will complete the overhaul of its Cost-Benefit Analysis (CBA) 777 model to ensure economic impact evaluations reflect current business 778 realities. New performance metrics will further enhance our ability to 779 measure all USVIEDA’s tax incentive programs’ effectiveness and ensure 780 alignment with evolving policy goals. 781 782 Conclusion 783 The Fiscal Year 2026 budget represents more than a funding request—it is a 784 strategic plan to maintain operational excellence, grow internal capacity, and 785 scale the impact of our programs. Every line item in this budget has been 786 purposefully structured to support the delivery of measurable outcomes that 787 benefit the people and economy of the U.S. Virgin Islands. 788 789 Our accomplishments to date demonstrate that we are delivering strong results 790 and are effective stewards of public resources. With the support provided in 791 prior fiscal years, USVIEDA has advanced key economic development initiatives, 792 strengthened program performance, and expanded access to critical resources 793 for businesses and investors. This budget builds on that trend. 794 795 VI Economic Development Authority FY 2026 Budget Hearing Testimony With adequate funding, we can expand our impact, fast-track project 796 implementation, and open new avenues to strengthen the Territory’s economy 797 – attracting investment, creating jobs, and promoting sustainable growth 798 throughout the Virgin Islands. 799 800 We thank the Committee for its continued support and reaffirm our 801 commitment to responsible financial stewardship, economic transformation, 802 and transparency. We also extend our sincere appreciation to the Governor, the 803 Legislature, our Board of Directors, and the dedicated staff of Authority for their 804 ongoing leadership, guidance, and service to the people of the Virgin Islands. 805