Coast Guard deal unblocks $100M St. Thomas waterfront project

ST. THOMAS. A longstanding federal property dispute blocking the second phase of the Veterans Drive expansion has been resolved through an agreement between the Government of the Virgin Islands and the U.S. Coast Guard, Governor Albert Bryan Jr. announced Monday.

The breakthrough removes obstacles that have prevented the downtown Charlotte Amalie waterfront project from progressing for years. With the agreement in place, the administration can now move forward with federal procurement and complete remaining property acquisitions needed before construction starts.

The overall project is expected to cost approximately $100 million. Construction work alone is estimated between $80 million and $90 million, according to a Federal Highway Administration procurement notice.

What will be built

Phase 2 will reconstruct and widen about 2,052 feet, or roughly 0.39 miles, of Veterans Drive into a continuous four-lane roadway. The work includes a tree-lined pedestrian promenade, upgraded drainage systems, seawall reinforcement and improvements aimed at reducing congestion and strengthening coastal infrastructure.

The expansion will extend improvements completed in December 2021 around the Virgin Islands Legislature toward the Blyden ferry terminal.

Timeline and procurement

Federal Highway Administration solicitation documents are expected around November 19, with contractor proposals due January 13, 2027. The Eastern Federal Lands Highway Division is administering the procurement.

The federal notice sets a 32.10 percent disadvantaged business enterprise subcontracting requirement, with contractors expected to meet the target or demonstrate good-faith efforts.

Before construction can begin, final property surveys, appraisals and required approvals must still be completed. Contract award or notice to proceed remains subject to permitting requirements.

Governor Bryan credited negotiations involving the Coast Guard, Federal Highway Administration, Eastern Federal Lands Highway Division, and the V.I. Departments of Public Works and Property and Procurement. He noted that Phase 1 finished in 2021 and the administration has been working since then to advance the next phase.

The specific terms of the Coast Guard agreement have not been disclosed. The project is expected to continue under the incoming Plaskett-Potter administration, which takes office in January.