The V. I. Public Finance Authority Board of Directors authorized preliminary contracts in the plan to rebuild the Juan F. Luis and Roy L. Schneider Hospitals at its meeting Thursday.
Both contracts went to Clark/MCN USVI. The preconstruction contract for the Gov. Juan F. Luis Hospital and Medical Center has a value not to exceed $139 million, lasts 18 months, and covers preconstruction services. Upon completion, authorization will be sought for contract amounts to complete subsequent phases.
The one for Roy L. Schneider Hospital and Schneider Regional Medical Center has similar details but was approved not to exceed $173 million.
Board member Dorothy Isaacs said she was not comfortable with the method of issuing contracts. She called it piecemeal. She referred to the past, where Virgin Island projects because of contract malfunctioning, were delayed.
Office of Disaster Recovery Director Adrienne Williams-Octalien, who presented the projects as part of the Rebuild USVI Initiative, said the method helped to “get the projects started and moving.”
Board member Keith O’Neale said he had read that many projects were being done this way and could be “very successful.”
He said if this method had been used for the Paul E. Joseph stadium and other projects, the Virgin Islands would not be in the situation it is in today. The Paul E. Joseph Stadium project has spanned more than 12 years, with repeated funding allocations, shifting timelines, and limited visible progress.
Gov. Albert Bryan, who chaired the meeting, said the process might be more “laborious” but was “a good move.”
According to the ODR website, the Juan F. Luis Hospital is to be completed in the spring of 2031 at a cost close to a billion dollars.
Preconstruction services, according to ODR, include the completion of designs, constructability reviews, and value engineering.
Issacs also had questions about authorizing ODR to enter into a lease with Henry Properties for office space located at 1AH Estate Diamond first and second floor suites for the St. Croix ODR staff.
She said that adding what appeared to her to be about a $1 million in building improvements for a five-year lease appeared excessive. This time, O’Neal agreed with her. The resolution was amended to make it a 10-year lease.
According to an email from ODR’s communication office, “For the period between Sept. 1, 2025, and Feb. 28, 2027, the cost is $63,806.94 per month, which includes build-out, and for the period between March 1, 2027, and August 31, 2030, the cost is $37,050 per month.”
After a lengthy executive session, the board approved obtaining extended lines of credit at local banking institutions for $200 million, some of which could be used to help the government with critical needs. The credit would be repaid with federal money.
Board members Kevin McCurdy and Julio Rhymer also attended the meeting.
