2015 Annual Report MESSAGE from the LIEUTENANT GOVERNOR

U. S. Virgin Islands Economic Development Authority ANNUAL REPORT A Year in Review: In the Spirit of Entrepreneurship 20 15 Government House in Christiansted, St. Croix, U.S. Virgin Islands, courtesy of the U.S. Virgin Islands Department of Tourism MESSAGE FROM THE GOVERNOR www.usvieda.org 3 USVI Economic Development Authority FY 2015 Annual Report MESSAGE FROM THE LIEUTENANT GOVERNOR USVI Economic Development Authority FY 2015 Annual Report 4 www.usvieda.org D^^'&ZKDd,,/ZDE &ŝƐĐĂů zĞĂƌ ϮϬϭϱ͕MESSAGE KĐƚŽďĞƌD^^'&ZKDd,,/ZDE ϭ͕ ϮϬϭϰ FROM ƚŽ ^ĞƉƚĞŵďĞƌ THE ϯϬ͕ CHAIRMAN ϮϬϭϱ͕ ǁĂƐ Ă ǇĞĂƌ ŽĨ ŵĂŶǇ ƚƌĂŶƐŝƚŝŽŶƐ ŝŶ ƚŚĞ dĞƌƌŝƚŽƌǇ͘DŽƐƚŶŽƚĂďůĞǁĂƐƚŚĞƐǁĞĂƌŝŶŐŝŶŽĨĂŶĞǁ'ŽǀĞƌŶŽƌĂŶĚ>ŝĞƵƚĞŶĂŶƚ'ŽǀĞƌŶŽƌ ĂŶĚĂůůƚŚĞ &ŝƐĐĂů zĞĂƌŵĂŶĂŐĞŵĞŶƚĐŚĂŶŐĞƐƚŚĂƚĐŽŵĞǁŝƚŚ ϮϬϭϱ͕ KĐƚŽďĞƌ ϭ͕ ϮϬϭϰ ƚŽ ^ĞƉƚĞŵďĞƌĂŶĞǁĂĚŵŝŶŝƐƚƌĂƚŝŽŶ͕ĞƐƉĞĐŝĂůůǇĂĨƚĞƌ ϯϬ͕ ϮϬϭϱ͕ ǁĂƐ Ă ǇĞĂƌ ŽĨ ŵĂŶǇŚĂǀŝŶŐ ƚƌĂŶƐŝƚŝŽŶƐƉƌĞǀŝŽƵƐůǇ ŝŶ ƚŚĞƐĞƌǀĞĚ dĞƌƌŝƚŽƌǇ͘DŽƐƚŶŽƚĂďůĞǁĂƐƚŚĞƐǁĞĂƌŝŶŐŝŶŽĨĂŶĞǁ'ŽǀĞƌŶŽƌĂŶĚ>ŝĞƵƚĞŶĂŶƚ'ŽǀĞƌŶŽƌƵŶĚĞƌ Ă ƚǁŽͲƚĞƌŵ 'ŽǀĞƌŶŽƌ͘ &Žƌ ƚŚĞ hŶŝƚĞĚ ^ƚĂƚĞƐ sŝƌŐŝŶ /ƐůĂŶĚƐ ĐŽŶŽŵŝĐ ĞǀĞůŽƉŵĞŶƚĂŶĚĂůůƚŚĞ ƵƚŚŽƌŝƚǇ ŵĂŶĂŐĞŵĞŶƚĐŚĂŶŐĞƐƚŚĂƚĐŽŵĞǁŝƚŚ(“Authority” or “USVIEDA”)͕ ƚŚĞĂŶĞǁĂĚŵŝŶŝƐƚƌĂƚŝŽŶ͕ĞƐƉĞĐŝĂůůǇĂĨƚĞƌ ĐŚĂŶŐĞ ŝŶ ĂĚŵŝŶŝƐƚƌĂƚŝŽŶ ƚĞƌƌŝƚŽƌŝĂůůǇ ŚĂƐŚĂǀŝŶŐ ŵĞĂŶƚƉƌĞǀŝŽƵƐůǇ ĨŽƵƌ ŶĞǁƐĞƌǀĞĚ ŐŽǀĞƌŶŝŶŐ ƵŶĚĞƌ ĂďŽĂƌĚŵĞŵďĞƌƐ͕ ƚǁŽͲƚĞƌŵ 'ŽǀĞƌŶŽƌ͘ĂƐǁĞůůĂƐ &ŽƌƚŚĞĚĞƉĂƌƚƵƌĞŽĨƚŚĞŚŝĞĨǆĞĐƵƚŝǀĞKĨĨŝĐĞƌ͕ƚŚĞƐƐŝƐƚĂŶƚ ƚŚĞ hŶŝƚĞĚ ^ƚĂƚĞƐ sŝƌŐŝŶ /ƐůĂŶĚƐ ĐŽŶŽŵŝĐ ĞǀĞůŽƉŵĞŶƚŚŝĞĨǆĞĐƵƚŝǀĞ ƵƚŚŽƌŝƚǇ (“Authority”KĨĨŝĐĞƌͬ orŚŝĞĨ “USVIEDA”) KƉĞƌĂƚŝŶŐ͕ ƚŚĞ KĨĨŝĐĞƌ͕ ĐŚĂŶŐĞ ĂŶĚŝŶ ĂĚŵŝŶŝƐƚƌĂƚŝŽŶ ƚǁŽ ^ƉĞĐŝĂů ƐƐŝƐƚĂŶƚƐ͘ ƚĞƌƌŝƚŽƌŝĂůůǇ,ŽǁĞǀĞƌ͕ ŚĂƐ ŵĞĂŶƚ ŝƚ ŝƐĨŽƵƌ ŵǇ ŶĞǁ ŽƉŝŶŝŽŶ ŐŽǀĞƌŶ ƚŚĂƚŝŶŐ ƚŚĞ ďŽĂƌĚŵĞŵďĞƌƐ͕ŵĂŶĂŐĞŵĞŶƚĂƐǁĞůůĂƐĂŶĚƐƚĂĨĨƚŚĞĚĞƉĂƌƚƵƌĞŽĨƚŚĞŚŝĞĨǆĞĐƵƚŝǀĞKĨĨŝĐĞƌ͕ƚŚĞƐƐŝƐƚĂŶƚŽĨƚŚĞƵƚŚŽƌŝƚǇ͕ƵŶĚĞƌƚŚĞůĞĂĚĞƌƐŚŝƉŽĨƚŚĞŶĞǁƐƐŝƐƚĂŶƚK͕ǁŚŽĐƵƌƌĞŶƚůǇŚŝĞĨǆĞĐƵƚŝǀĞ KĨĨŝĐĞƌͬŚŝĞĨƐĞƌǀĞƐ KƉĞƌĂƚŝŶŐ ĂƐ the Acting KĨĨŝĐĞƌ͕ CEO, have ĂŶĚ ƚǁŽcontinued ^ƉĞĐŝĂů to advance ƐƐŝƐƚĂŶƚƐ͘ and improve,ŽǁĞǀĞƌ͕ the ŝƚ USVIEDA’s ŝƐ ŵǇ ŽƉŝŶŝŽŶ efforts ƚŚĂƚ to meet ƚŚĞ its ŵĂŶĂŐĞŵĞŶƚŵĂŶĚĂƚĞŽĨĂŶĚƐƚĂĨĨƐƉƵƌƌŝŶŐŽĨƚŚĞƵƚŚŽƌŝƚǇ͕ĞĐŽŶŽŵŝĐĚĞǀĞůŽƉŵĞŶƚƵŶĚĞƌƚŚĞůĞĂĚŝŶƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐsŝƌŐŝŶ/ƐůĂŶĚƐ͘ĞƌƐŚŝƉŽĨƚŚĞŶĞǁƐƐŝƐƚĂŶƚK͕ǁŚŽĐƵƌƌĞŶƚůǇ ƐĞƌǀĞƐ ĂƐKŶ:ĂŶƵĂƌǇϯϬ͕ϮϬϭϱ͕ƚ the Acting CEO, haveŚĞhŶŝƚĞĚ continued^ƚĂƚĞƐsŝƌŐŝŶ/ƐůĂŶĚƐKĨĨŝĐĞŽĨƚŚĞ/ŶƐƉĞĐƚŽƌ'ĞŶĞƌĂů to advance and improve the USVIEDA’s efforts(“IG”) to meetŝƐƐƵĞĚƵĚŝƚ its ŵĂŶĚĂƚĞŽĨZĞƉŽƌƚZƐƉƵƌƌŝŶŐͲϬϭͲĞĐŽŶŽŵŝĐĚĞǀĞůŽƉŵĞŶƚͲϭϰ͕ŽŶƚŚĞUSVIEDA’sŝŶĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐsŝƌŐŝŶ/ƐůĂŶĚƐ͘Commission (“EDC”) program, ĐŽǀĞƌŝŶŐ ƚŚĞ ƉĞƌŝŽĚ KĐƚŽďĞƌ ϭ͕ ϮϬϬϵ ƚŚƌŽƵŐŚ ^ĞƉƚĞŵďĞƌ ϯϬ͕ ϮϬϭϭ͕ &ŝƐĐĂů zĞĂƌƐ ϮϬϬϵ͕ ϮϬϭϬ͕ ĂŶĚ ϮϬϭϭ͘ ƵĚŝƚ KŶ:ĂŶƵĂƌǇϯϬ͕ϮϬϭϱ͕ƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐsŝƌŐŝŶ/ƐůĂŶĚƐKĨĨŝĐĞŽĨƚŚĞ/ŶƐƉĞĐƚŽƌ'ĞŶĞƌĂů(“IG”)ŝƐƐƵĞĚƵĚŝƚ ZĞƉŽƌƚZͲϬϭͲͲ14 concluded that “although the EDC had a positive impact in promoting the growth, ZĞƉŽƌƚZͲϬϭͲͲϭϰ͕ŽŶƚŚĞUSVIEDA’sĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚCommission (“EDC”) program, ĐŽǀĞƌŝŶŐ development, and diversification of the Territory’s economy, there was need for improvement in its ƚŚĞ ƉĞƌŝŽĚ KĐƚŽďĞƌ ϭ͕ ϮϬϬϵ ƚŚƌŽƵŐŚ ^ĞƉƚĞŵďĞƌ ϯϬ͕ ϮϬϭϭ͕ &ŝƐĐĂů zĞĂƌƐ ϮϬϬϵ͕ ϮϬϭϬ͕ ĂŶĚ ϮϬϭϭ͘ ƵĚŝƚ ĂĚŵŝŶŝƐƚƌĂƚŝŽŶ ŽĨ ƚŚĞ ĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚ Wƌogram.” The Management of the Authority͕ǁŝƚŚ ƚŚĞ ZĞƉŽƌƚZͲϬϭͲͲ14 concluded that “although the EDC had a positive impact in promoting the growth, ďůĞƐƐŝŶŐŽĨƚŚĞ'ŽǀĞƌŶŝŶŐŽĂƌĚ͕ŚĂƐĐŽŵŵŝƚƚĞĚƚŽĂĚĚƌĞƐƐŝŶŐƚŚĞĐŽŶĐĞƌŶƐƌĂŝƐĞĚďǇƚŚĞĂƵĚŝƚƌĞƉŽƌƚ development, and diversification of the Territory’s economy, there was need for improvement in its ĂŶĚƌĞƐƵůƚŝŶŐƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐŽĨƚŚĞ/'͘ ĂĚŵŝŶŝƐƚƌĂƚŝŽŶ ŽĨ ƚŚĞ ĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚ Wƌogram.” The Management of the Authority͕ǁŝƚŚ ƚŚĞ ďůĞƐƐŝŶŐŽĨƚŚĞ'ŽǀĞƌŶŝŶŐŽĂƌĚdŚĞ ƵƚŚŽƌŝƚǇ ŝƐ ŝŵƉůĞŵĞŶƚŝŶŐ͕ŚĂƐĐŽŵŵŝƚƚĞĚƚŽĂĚĚƌĞƐƐ Đƚ ϳϲϱϭ ĨŽƌ ƚŚĞ ĐŽŶŽŵŝĐŝŶŐƚŚĞĐŽŶĐĞƌŶƐƌĂŝƐĞĚďǇƚŚĞĂƵĚŝƚƌĞƉŽƌƚ ĞǀĞůŽƉŵĞŶƚ ŽŵŵŝƐƐŝŽŶ ƉƌŽŐƌĂŵ͕ ǁŚŝĐŚ ĂŶĚƌĞƐƵůƚŝŶŐƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐŽĨƚŚĞ/'͘ǁĂƐ ĞŶĂĐƚĞĚ ŝŶ KĐƚŽďĞƌŽĨ ϮϬϭϰ͘ dŚĞ Đƚ ƉƌŽǀŝĚĞƐĂ ŵŽƌĞ ƌĞĂůŝƐƚŝĐ ĨŽƵŶĚĂƚŝŽŶ ĨŽƌ ƚŚĞ sŝƌŐŝŶ /ƐůĂŶĚƐ ĞĐŽŶŽŵŝĐ ĚĞǀĞůŽƉŵĞŶƚ ƉƌŽŐƌĂŵƐ ƚŽ ďĞƚƚĞƌ ĂĚĚƌĞƐƐ ƚŚĞ ŶĞĞĚƐ ŽĨ ƚŚĞ dĞƌƌŝƚŽƌǇ͘ ZĞǀŝƐĞĚ ƌƵůĞƐ ĂŶĚ dŚĞ ƵƚŚŽƌŝƚǇƌĞŐƵůĂƚŝŽŶƐĂƌĞďĞŝŶŐĚĞǀĞůŽƉ ŝƐ ŝŵƉůĞŵĞŶƚŝŶŐ Đƚed ϳϲϱϭ as part ĨŽƌ ƚŚĞof Act ĐŽŶŽŵŝĐ 7651’s implementation. ĞǀĞůŽƉŵĞŶƚ ŽŵŵŝƐƐŝŽŶ ƉƌŽŐƌĂŵ͕ ǁŚŝĐŚ ǁĂƐ ĞŶĂĐƚĞĚ ŝŶ KĐƚŽďĞƌŽĨ ϮϬϭϰ͘ dŚĞ Đƚ ƉƌŽǀŝĚĞƐĂ ŵŽƌĞ ƌĞĂůŝƐƚŝĐ ĨŽƵŶĚĂƚŝŽŶ ĨŽƌ ƚŚĞ sŝƌŐŝŶ /ƐůĂŶĚƐ ĞĐŽŶŽŵŝĐ/ƚ ŝƐ ĚĞǀĞůŽƉŵĞŶƚ ĞƐƐĞŶƚŝĂů ƚŚĂƚ ƉƌŽŐƌĂŵƐ Ăůů ƚŚĞ ƐƚĂŬĞŚŽůĚĞƌƐ ƚŽ ďĞƚƚĞƌ ĂĚĚƌĞƐƐ ŽĨ ƚŚĞ ƚŚĞderritory ŶĞĞĚƐ work ŽĨ ƚŚĞ together dĞƌƌŝƚŽƌǇ͘ if the ZĞǀŝƐĞĚ territory’s ƌƵůĞ economicƐ ĂŶĚ ƌĞŐƵůĂƚŝŽŶƐĂƌĞďĞŝŶŐĚĞǀĞůŽƉĚĞǀĞůŽƉŵĞŶƚƉƌŽŐƌĂŵŝƐƚŽƐƵĐĐĞĞĚ͘ĚƵĐĂƚŝŽŶ͕ǁŽƌŬĨŽƌĐĞ͕ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͕ĂŶĚĂĐƵůƚƵƌĞĨŽƌĞĐŽŶŽŵŝĐed as part of Act 7651’s implementation. ƐƵĐĐĞƐƐƌĞƋƵŝƌĞĂůůŽĨƵƐƚŽĞŶŐĂŐĞĐŽůůĂďŽƌĂƚŝǀĞůǇĨŽƌŽƵƌĞĐŽŶŽŵŝĐĚĞǀĞůŽƉŵĞŶƚƉƌŽŐƌĂŵƚŽŝŵƉƌŽǀĞ /ƚ ŝƐ ĞƐƐĞŶƚŝĂůŽƵƌƋƵĂůŝƚǇŽĨůŝĨĞĂŶĚĨƵŶĚƚŚĞůŽĐĂůƚƌĞĂƐƵƌǇďǇĐƌĞĂƚŝŶŐĂƐƚĂďůĞƚĂǆďĂƐĞ͘ ƚŚĂƚ Ăůů ƚŚĞ ƐƚĂŬĞŚŽůĚĞƌƐ ŽĨ ƚŚĞ derritory work together if the territory’s economic ĚĞǀĞůŽƉŵĞŶƚƉƌŽŐƌĂŵŝƐƚŽƐƵĐĐĞĞĚ͘ĚƵĐĂƚŝŽŶ͕ǁŽƌŬĨŽƌĐĞ͕ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͕ĂŶĚĂĐƵůƚƵƌĞĨŽƌĞĐŽŶŽŵŝĐ ƐƵĐĐĞƐƐƌĞƋƵŝƌĞĂůůŽĨƵƐƚŽĞŶŐĂŐĞĐŽůůĂďŽƌĂƚŝǀĞůǇĨŽƌŽƵƌĞĐŽŶŽŵŝĐĚĞǀĞůŽƉŵĞŶƚƉƌŽŐƌĂŵƚŽŝŵƉƌŽǀĞ :ŽƐĠ͘WĞŶŶ ŽƵƌƋƵĂůŝƚǇŽĨůŝĨĞĂŶĚĨƵŶĚƚŚĞůŽĐĂůƚƌĞĂƐƵƌǇďǇĐƌĞĂƚŝŶŐĂƐƚĂďůĞƚĂǆďĂƐĞ͘ ŚĂŝƌŵĂŶ h͘^͘sŝƌŐŝŶ/ƐůĂŶĚƐĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚƵƚŚŽƌŝƚǇ :ŽƐĠ͘WĞŶŶ ŚĂŝƌŵĂŶ h͘^͘sŝƌŐŝŶ/ƐůĂŶĚƐĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚƵƚŚŽƌŝƚǇ www.usvieda.org 5 USVI Economic Development Authority FY 2015 Annual Report MESSAGE FROM THE ACTING CHIEF EXECUTIVE OFFICER Economic development is the heartbeat of a community. And, in the U.S. Virgin Islands it is especially so. In fiscal year 2015, we continued to focus on the importance of attracting investment to the Territory, securing financial and technical assistance for our small businesses, community development activities, and the cultivation of an entrepreneurial mindset for our young people to become innovative leaders, business owners and future economic developers. Aside from the challenges entrepreneurs face, their desire to be a business owner or a manufacturer of unique products continues to be the driving force of a vibrant, entrepreneurial community within our Territory. Historically, the U.S. Virgin Islands is enriched with stories of entrepreneurship. As such, it is our responsibility to continue supporting our local small to medium-size businesses while we continue to seek and retain investors for business development to increase tax revenues and job opportunities through our tax incentive and benefits program. In fiscal year 2015, through the assistance of the State Small Business Credit Initiative (SSBCI) Program, more than $19 million in loans were approved for local small businesses through participating banks and the Economic Development Bank. In addition to securing financing for these businesses, we invested in the aspirations of new start-ups with Small Business Camp Weekends and in the dreams of our young people with the Young CEO Camp. These activities were held by the Disaster Small-Mid-size Enterprises Incubation Program (DSMEIP) in partnership with Andrew Morrison, president of Small Business Camp. With other partnering consultants, the DSMEIP also hosted informative seminars on disaster preparedness and opportunities for small businesses to secure federal contracts. For our local businesses to connect, network and potentially increase their profits, 22 manufacturers met with local business owners at the USVIEDA’s first Business2Business event hosted by the Enterprise Zone Commission (EZC). However, in addition to fostering business relationships, community development is extremely important for economic development to fully thrive. Community town plans for Garden Street and Upstreet on St. Thomas, and Frederiksted and Christiansted on St. Croix brought forth by the EZC are completed and are poised for approval by our Board of Directors. The revitalization of our distressed neighborhoods helps ensure that our Territory is attractive, safe and significantly viable for new and existing investors as well as our residents. Through the EZC Plan Program, investors can prosper from their business growth while they improve the conditions of these neighborhoods through business development so that these areas can be uplifted to the once thriving centers of economic activity in the U.S. Virgin Islands. In the midst of serving the people of this Territory and our global investors, the USVIEDA received the 2015 Best of the VI Award by the Virgin Islands Daily News Readers Poll as the Best Government Agency in the Territory. We thank those individuals who voted for our team and recognized our efforts to serve our community while entrusting us to continue the same. As we move forward into fiscal year 2016, I thank the Honorable Kenneth E. Mapp, Governor of the U.S. Virgin Islands, the USVIEDA Board of Directors, management and staff for their continuous dedication and tireless efforts in working together in the best interest of the people of this Territory. USVI Economic Development Authority FY 2015 Annual Report 6 www.usvieda.org USVIEDA BOARD of DIRECTORS Jose A. Penn Interim Chairman of the Board Chief Financial Officer of Penn's Apartment Rentals, Inc. (St. John representative) Philip Payne Interim Vice Chairman Owner and CEO of Dyer & Payne, Inc. (St. Croix Representative) Avery Lewis Interim Secretary Elementary School Teacher, Ulla F Muller School (St. Thomas Representative) Simon Jones-Hendrickson, Ph.D. Board Member Chief Economic and Fiscal Advisor to the Governor of the Virgin Islands (Representative of the Governor's Executive Staff) Catherine Hendry, Esq. Board Member Commissioner of the Virgin Islands Department of Labor (Representative of the Governor's Cabinet) Haldane Davies, Ph.D. Board Member Vice President for Business Development

Load more