The V.I. Economic Development Commission took action on two noncompliant beneficiary companies during a decision meeting Thursday morning after approving an ownership change for a third.
The EDC previously approved tax incentives for Octavia Consulting Group in 2022 to provide financial services for clients outside of the U.S. Virgin Islands. At the time of its application, the company committed to maintaining at least five full-time employees and making a $100,000 capital investment in the business. Kirk Callwood, the Economic Development Authority’s associate managing director, told the board Thursday that Octavia fell short of a charitable contribution requirement for the V.I. Education Department by a thousand dollars.
The commission approved Octavia’s petition to make up for the shortfall in 2025 and required the company to donate $1,856 to VIDE. The company has until 2026 to provide proof of the contributions or risk a fine and, potentially, a loss of benefits.
Callwood also presented a resolution of noncompliance for STR Management, a longtime beneficiary that appeared before the board for a compliance review in May. During that meeting, commissioners found that the company failed to meet its charitable contribution requirements and provide paid medical, life and other insurance — as well as paid vacation, sick leave and time off for holidays — between 2015 and 2022. STR was ordered to pay $11,000 toward workforce development, educational or other organizations and provide non-covered employees with $250 bonuses.
The commission approved the resolution Thursday and gave the company until 2026 to provide proof of compliance.
A change in ownership was approved for Morabeza Capital Management, which first applied for benefits in 2022. Later, the Enterprise Zone Commission authorized an address update for DM Hospitality.
