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1 WWW.USVIEDA.ORG VIEDA FY 2013 AN- ANNUAL REPORT FISCAL YEAR 2013 OCTOBER 1, 2012 to SEPTEMBER 30, 2013 REPRINTED IN JUNE 2014 3 WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT A place of promise, opportunity, & prosperity. WE ARE THE U.S. VIRGIN ISLANDS. 4 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG Message from the Chairman of the Board 6 7 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT BOARD OF DIRECTORS EXECUTIVE STAFF Message from the Chief Executive Officer 9 8 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT MISSION STATEMENT 10 11 12 22 28 30 44 46 48 58 TABLE OF CONTENTS COVER: EZC Charrette map viewing and employees of the V.I. Economic Development Authority Photos by Semele A.C. George, Merle Fenton-Cameron, and Tamra B. Graham/VIEDA. Groundbreaking ceremony of the Island Crossings Shopping Center on St. Croix in 2009 (See TIF report inside) Photo courtesy of the VI Source. Bottom far left photo of VIEDA employee Courtesy of the V.I. Legislature VIEDA is an equal opportunity provider, employer and lender. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY 11 10 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT ECONOMIC DEVELOPMENT COMMISSION (Left to right) VIEDA Board’s Legal Counsel Henry Smock, Esq., Board member Jose` Penn, Board Chairman Albert Bryan, Jr., Vice Chairman Nathan Simmonds, and Board members Randolph Allen and Dr. Henry Smith prepare to discuss VIEDA cases at a Board meeting held on May 8, 2013 at the University of the Virgin Islands on St. Thomas. (Not pictured) VIEDA Board Secretary Lynn Millin-Maduro, Esq Photo by: VIEDA/Semele A.C. George Attorney Marjorie Roberts, middle, speaks during an Economic Development Commission show cause hearing on July 24 at the Economic Development Authority office building in the William D. Roebuck Industrial Park. Roberts represented GeoNet Biofuels Inc. and Allquest Financial Services Corporation during the hearing. Photo by Tom Eader, © 2013, St. Croix Avis 13 12 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT The mission of the Applications Division, consistent with the Economic Development Commission (EDC) Program, is to facilitate the promotion of the growth, development, and diversification of the economy of the United States Virgin Islands by processing (evaluating, analyzing and preparing) application packages for submission to the V.I. Economic Development Authority’s (VIEDA) Governing Board of Directors (hereafter referred to as “The Board”) for consideration of a recommendation for the granting of economic development benefits. EDC APPLICATIONS DIVISION FISCAL YEAR 2013 OBJECTIVES FISCAL YEAR 2013 ACCOMPLISHMENTS APPLICATIONS RECEIVED IN FY 2013 TABLE 1: FY 2013 EDC APPLICATIONS RECEIVED DECISION MEETINGS IN FY 2013 TABLE 2: FY 2013 EDC DECISION MEETING CASES 15 14 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT APPLICATIONS PENDING GOVERNOR’S APPROVAL TABLE 3: EDC APPLICATIONS PENDING GOVERNOR’S DECISION AS OF 9/30/13 PETITIONS CERTIFICATES TABLE 4: PETITIONS RECEIVED IN FISCAL YEAR 2013 Panel moderator Gregory R. Francis, USVI Lt. Governor, shares comments with attendees of the 2013 EDC Beneficiary Summit on August 15 alongside panelists Horace Graham, assistant director of the V.I. Dept. of Licensing and Consumer Affairs; and Margarita A. Benjamin, EDC director of applications. This summit was held on St. Thomas at Frenchman’s Reef and Marriott’s Morningstar Beach Resort. Photo courtesy of the Office of the Governor 17 16 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT APPLICANTS THAT ACTIVATED BENEFITS FROM OCTOBER 1, 2007 - SEPTEMBER 30, 2013 BUSINESS RETENTION INQUIRIES FROM POTENTIAL INVESTORS DURING FY 2013 ELIGIBLE V.I. SUPPLIERS TABLE 5: EDC CERTIFICATES OF BENEFITS ISSUED IN FISCAL YEAR 2013 19 18 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT PUBLIC EDUCATION FORUMS STAFF DEVELOPMENT FISCAL YEAR 2013 CHALLENGES ONGOING PROJECTS/TASKS TABLE 6: EDC ELIGIBLE SUPPLIERS FISCAL YEAR 2013 21 20 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT HISTORICAL COMPARISONS - APPLICATIONS TABLE 7: APPLICATION INFORMATION TABLE 8: ELIGIBLE SUPPLIER – HISTORICAL APPLICATION INFORMATION 23 22 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT EDC COMPLIANCE DIVISION The mission of the EDC’s Compliance Division is to ensure the integrity of the Economic Development Commission’s Program and to assist the beneficiaries in meeting the requirements outlined in the Economic Development Commission’s Laws, Rules & Regulations, and Certificate of Benefits. FISCAL YEAR 2013 OBJECTIVES FISCAL YEAR 2013 ACCOMPLISHMENTS ORIENTATIONS TABLE 1: CERTIFICATES OF BENEFITS ISSUED IN FY 2013 PETITIONS TO THE BOARD TABLE 2: BENEFICIARIES AND PETITIONS IN FY 2013 SHOW CAUSE MATTERS TABLE 3: SHOW CAUSE MATTERS BEFORE THE EDC GOVERNING BOARD IN FY 2013 *DSB – DESIGNATED SERVICE BUSINESS 25 24 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT COMPLIANCE REVIEWS TABLE 4: COMPLIANCE REVIEWS COMPLETED IN FY 2013 SITE VISITS TABLE 5: SITE VISITS CONDUCTED IN FY 2013 COMPARISON TO PRIOR YEAR STATISTICS (FOR PERIOD ENDING SEPTEMBER 30TH) 27 26 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT FISCAL YEAR 2014 OBJECTIVES KEY PERFORMANCE INDICATORS ONGOING PROJECTS AND TASKS EDC Compliance Director Stephanie J. Berry (left) talks with an attendee at Ocwen’s Call Center Open House event held at the William D. Roebuck Industrial Park on St. Croix on September 17. 2013. Photo by: VIEDA/Semele A.C. George 29 28 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT INDUSTRIAL PARK DEVELOPMENT CORPORATION The WILLIAM D. ROEBUCK INDUSTRIAL PARK The ST. THOMAS INDUSTRIAL PARK 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 the activities of the V.I. Economic Development Authority. Presently, there are two (2) industrial parks that fall under the auspices of the IPDC, the William D. Roebuck Industrial Park and the St. Thomas Industrial Park. 31 30 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT VIEDA LENDING DIVISION GOVERNMENT DEVELOPMENT BANK (GDB) SMALL BUSINESS DEVELOPMENT AGENCY (SBDA) The Government Development Bank (GDB) 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." The GDB became functional in 1997, and since then it has been providing access to capital for small and medium-sized businesses in the Territory. In 2000, the legislation that created the VIEDA placed the GDB within its purview. The GDB currently manages four (4) programs in its lending portfolio: the Intermediary Revolving Program (IRP), the Micro Loan Program, the Public Finance Authority (PFA) Economic Development Fund, and the State Small Business Credit Initiative (SSBCI). The Small Business Development Agency (SBDA) was originally created by legislation in 1969. The SBDA provides access to capital for small and medium-sized businesses in the Territory. It currently manages five (5) loan programs in its lending portfolio: Farmers and Fishermen Loan Program, Small Business Development Agency Direct Loan Program, Economic Development Administration Loan Program 3801 and the Economic Development Administration Loan Program 3804 (both components of the United States Economic Development Administration), the Frederiksted Loan Program, and the State Trade and Export Promotion (STEP) Program. The GDB and SBDA presently operate as independent entities. Management is seeking legislation to merge the SBDA with GDB to improve operating efficiency in the Lending Division. OPERATIONAL GOALS FISCAL YEAR 2013 OBJECTIVES LOAN FINANCING 33 32 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT LOAN PORTFOLIO TABLE 1: LOAN PORTFOLIO (PRINCIPAL AND DELINQUENT VALUES) AS OF SEPTEMBER 30, 2013 PIPELINE REPORTS LOAN APPLICATIONS SMALL BUSINESS COUNSELING SITE VISITS TABLE 2: LENDING CASH BALANCES AS OF SEPTEMBER 30, 2013 35 34 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT COLLECTIONS INDEPENDENT COLLECTION AGENCIES ARM SERVICES CARIBBEAN CREDIT COLLECTIONS GROUP, LLC CASES TO BE FILED IN SMALL CLAIMS DIVISION AT THE SUPERIOR COURT OF THE VIRGIN ISLANDS OTHER PROGRAMS STATE SMALL BUSINESS CREDIT INITIATIVE (SSBCI) TABLE 3: STATE SMALL BUSINESS CREDIT INITIATIVE ACTIVITY AS SEPTEMBER 30, 2013 STATE TRADE AND EXPORT PROMOTION GRANT (STEP) 37 36 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT PAYMENT AND PERFORMANCE BONDING PROGRAM VIRGIN ISLANDS ENERGY LOAN PROGRAM SYNOPSIS OF THE REVOLVING ENERGY LOAN PROGRAM: “PHASE II” FISCAL YEAR 2013 ACCOMPLISHMENTS TABLE 4: KEY PERFORMANCE INDICATORS 39 38 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT GRANT AWARDS INCUBATOR PROGRAM SMALL-MIDSIZED ENTERPRISES PROGRAM OBJECTIVES The site of the VIEDA Disaster Small-Midsized Enterprises Incubation Program (VIEDA DSMEIP) at the William D. Roebuck Industrial Park on St. Croix. 41 WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT 40 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG ONGOING PROJECT/TASKS U.S. Department of Commerce-Economic Development Administration’s EDA Specialist Alma R. Plummer (center) pictured with VIEDA’s Superintendent of Parks Mr. George St. Rose (left), and Incubator Program Manager Ms. Cusa Holloway speaks with VIEDA personnel at a meeting on July 18, 2013 at the William D. Roebuck Industrial Park during her visit to St. Croix. FISCAL YEAR 2013 ACCOMPLISHMENTS 43 42 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT FISCAL YEAR 2013 WORKSHOPS AND PRESENTATIONS: USVI STEP participant and beekeeper Wanda L. Wright of Wright Apiary on St. Croix (center) shares a sample of her mead with VIEDA's Board Chairman Albert Bryan, Jr. (left), VIEDA’s ACEO/COO Jennifer Nugent-Hill (third from the left), and VIEDA’s Board Secretary Lynn Millin-Maduro, Esq. (seated at the right), during a break at the VIEDA's Board meeting on September 17, 2013 at the William D. Roebuck Industrial Park on St. Croix. Photo by: VIEDA/Semele A.C. George OTHER MARKETING INITIATIVES: 45 44 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT MARINE ECONOMIC DEVELOPMENT INITIATIVE The mission of the Marine Economic Development Council is to unify the functions of the various marine-related businesses under one executive board in order to achieve maximum efficiency of operations, and develop comprehensive programs for the overall economic development of the Territory by unifying and supporting every sector of the marine community in conjunction with one another, and in the context of the overall goal of promoting and enhancing the economic development of the Territory. The following describes the scope of work to be accomplished by the marine economic advisor to the V.I. Economic Development Authority and the Marine Economic Development Council established by Executive Order No. 448-2009. FISCAL YEAR 2013 OBJECTIVES FISCAL YEAR 2013 ACCOMPLISHMENTS 47 46 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT ENTERPRISE ZONE COMMISSION TRANSITIONING TO A PROMISING FUTURE Fiscal year 2013 was a year of transition for the Enterprise Zone Commission (EZC). This division was on its fifth year of its five-year strategic plan. Several of the grants acquired during the previous years were successfully closed out with no funds remaining, and due to relocation and internal promotion there were changes made regarding our EZC staff. According to the statistics provided by the V.I. Bureau of Economic Research, the value of total non- governmental construction permits, a leading indicator of current capital investment projects and future economic activity, declined by about 14.8 percent for residential and 52.1 percent for non- residential projects in the first six (6) months of this fiscal year. This translated into a decrease in applications that are submitted for EZC tax credits. As the EZC experienced a decrease in its budget and staff, this team continued to be successful in accomplishing many of its goals that were established for fiscal year 2013. 49 48 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT MARKETING and PR INITIATIVES Our Marketing and Public Relations initiatives promote the five (5) entities of the V.I. Economic Development Authority (VIEDA) and the activities and events that contribute to the enhancement of economic development in the U.S. Virgin Islands. These initiatives also assist the VIEDA in educating local residents and investors about the economic development programs available through the Authority to spur economic growth. This fiscal year was a coordination of all the external marketing preparation and development during the previous year into delivering results based on clear and coordinated objectives. These results were achieved due to the joint efforts among all the departments within the VIEDA as well as our partners within the government sectors and private sector service providers, including existing beneficiaries. Fiscal year 2014 will build on these efforts to follow up on all initiatives in fiscal year 2013 as well as fine tune the VIEDA’s solutions and relationships to maximize the opportunities for investment in our Territory going forward. INVESTMENT LEAD GENERATION INVESTMENT SUCCESS TABLE 1: COMPANIES GRANTED EDC CERTIFICATES FROM MARKETING EFFORTS HOT PROJECTS PIPELINE PROJECTS ACTIVE TARGETING COMPANY PROFILING 51 50 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT FISCAL YEAR 2013 HIGHLIGHTS EXTERNAL MARKETING EFFORTS GOVERNOR’S MISSION - DENMARK – MARCH 2013 EAST COAST MISSION – WASHINGTON, DC; NEW YORK, AND BOSTON – JUNE 2013 GOVERNOR’S MISSION AT THE 2013 BLACK ENTERPRISE/PEPSI GOLF & TENNIS CHALLENGE PALM GARDENS, FLORIDA (AUGUST 29-SEPTEMBER 1) INTERNAL MARKETING EFFORTS USVI-EDC AMBASSADORS PRODUCT DEVELOPMENT MARKETING COMMUNICATIONS USVI Governor John P. deJongh, Jr., speaks to top corporate professionals at the 20th Annual Black Enterprise/Pepsi Golf & Tennis Challenge on August 28, 2013 in Palm Gardens, Florida. Photo by: Gerard H. Gaskin/Black Enterprise magazine 53 52 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT MARKETING REPORTING STEP EXPORT MARKETING ADVISORY SERVICES FISCAL YEAR 2014 MARKETING PLAN INTERNAL MARKETING EFFORTS PROGRAM AWARENESS DEVELOPMENT Representatives from the USVI pictured with Governor deJongh: (L to R) VIEDA's Marketing Consultant Andrew Clutz, VIEDA's Chief Executive Officer Percival E. Clouden, V.I. Department of Tourism’s Deputy Commissioner Chantal Figueroa, and USVI Governor John P. deJongh, Jr. Photo by Gerard H. Gaskin/Black Enterprise magazine 55 54 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT FISCAL YEAR 2014 PROJECTED CALENDAR OF EVENTS SELECT USA SUMMIT - WASHINGTON, DC (OCTOBER 2013) CARIBBEAN CENTRAL AMERICAN ACTION (C-CAA) - GOVERNOR’S MISSION (NOVEMBER 2013) CARIBBEAN TRAVEL MARKETPLACE – MONTEGO BAY CONVENTION CENTER IN JAMAICA (JANUARY 2014) USVI INTERNATIONAL BANKING/CAPTIVE INSURANCE SUMMIT (FEBRUARY 2014) USVI MANUFACTURER’S CONFERENCE – GOVERNOR’S MISSION - MARCH 2014 CARIBBEAN HOTEL & RESORT INVESTMENT (CHRIS) - APRIL 2014 GOVERNOR’S MISSION - PANAMA - MAY 2014 – POSTPONED CEO Percival E. Clouden and ACEO-COO Jennifer Nugent-Hill testify on marketing and public relations initiatives before the Committee on Finance at the Virgin Islands Legislature on St. Thomas in July 2013 at the FY 2014 Budget Hearing. Photo courtesy of the V.I. Legislature/Barry Leerdam 57 56 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT 59 58 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT Tax Increment Financing (TIF) Enacted by the Government of the Virgin Islands in June 2007, the Tax Increment Financing (TIF) Program serves as a means of promoting growth and development in financing the cost of housing; retaining and attracting industries and commerce; increasing transportation and public services; improving public utlities; and enhancing educational, recreational, medical, cultural and other facilities to benefit the people of the Virgin Islands. USVI Governor John P. deJongh, Jr., shares in the excitement as he addresses attendees of the grand opening of Home Depot on St. Croix, the anchor tenant of Island Crossing Shopping Center. Photo courtesy of the Office of the Governor 61 60 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT ADMINISTRATION FY 2013 STAFF OF THE VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY EXECUTIVE ACCOUNTING HUMAN RESOURCES LEGAL BOARD VIEDA ENTITIES EDC APPLICATIONS EDC COMPLIANCE ENTERPRISE ZONE COMMISSION LENDING INDUSTRIAL PARK DEVELOPMENT CORPORATION 62 VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG NOTES 64 WWW.USVIEDA.ORG VIEDA FY 2013 ANNUAL REPORT WWW.USVIEDA.ORG ST. CROIX ST. THOMAS 8000 NISKY SHOPPING CTR, STE 620, ST. THOMAS, VI 00802 (340) 714-1700 116 KING STREET, FREDERIKSTED, ST. CROIX, VI 00840 (340) 773-6499 Working together for economic resurgence IN THE U.S. VIRGIN ISLANDS.