ST. THOMAS SENATE BACKS $3M RED HOOK WATERFRONT DEAL FOR LOVANGO RESORT

The Senate Committee on Budget, Appropriations and Finance has cleared the way for Lovango Resort and Beach Club to undertake a $3 million redevelopment of a waterfront site in Red Hook, St. Thomas.

Bill 36-0357 grants Lovango Islands Holding, LLP a 30-year lease on roughly 12,600 square feet of government property at Parcel No. 100-1, Estate Nazareth, in Red Hook. The company plans to construct a rebuilt dock, ferry landing, receiving terminal, passenger and freight facilities, retail space, laundry services, parking and employee housing.

The lease carries an annual rent of $60,000 in monthly payments of $5,000. During construction, which may last up to 60 months, the company can pay a lower rate of $2,000 per month. After the tenth year, rent rises annually with the Consumer Price Index, capped at 3 percent each year. Two additional 10-year renewal options are available.

Mark Snider, speaking for the resort, explained to lawmakers that Lovango Cay, situated off St. John, requires dependable transport and cargo infrastructure. The resort has "needed a receiving and logistical facility, wharf, and home base location for some time," Snider told legislators. Most staff members live on St. Thomas and travel daily to the island property.

The company's supply barge regularly waits hours at the Red Hook car barge dock when shipments are delayed, driving up labour costs and hampering supply chains. A dedicated receiving terminal would let Lovango store goods and coordinate barge schedules as needed, "reducing wasteful time and congestion," Snider said.

The dock reconstruction will maintain its current footprint of roughly 216 feet long and seven feet wide, with four finger piers added to form a small marina. The company also intends to tear down existing wooden structures, build support facilities and add landscaping, fencing and lighting.

Vincent Richards, assistant commissioner at the Department of Property and Procurement, backed the lease, saying the $3 million investment would substantially boost the property's value. "When this $3 million is invested in the property, the property is going to be valued much more than $3 million," Richards said.

Senator Dwayne DeGraff flagged concerns about construction noise and activity affecting Ivanna Eudora Kean High School, which sits across from the site. Lovango plans phased work, with the opening phase scheduled from January through July. DeGraff proposed shifting the schedule toward summer months to reduce disruption to classes.

Mangrove preservation emerged as another consideration. Snider committed that Lovango would handle the mangroves with care. DPNR Commissioner Jean-Pierre Oriol noted that trimming branches would be allowed. Snider also indicated the resort would dredge around the dock if needed and remove derelict vessels nearby, though that last task falls outside the lease terms.

The project remains subject to Coastal Zone Management approval before construction starts. The bill moves next to the Committee on Rules and Judiciary.