The closed-door approval of IDC tax breaks for timeshare units constitutes a "very serious breach," according to Tourism Commissioner Rafael Jackson, chairman of the Industrial Development Commission.
"I cannot sit here and be a part of these things which are not correct," Jackson said Thursday, the day after three of his five fellow commission members voted in executive session to grant IDC benefits to the Ritz-Carlton timeshare project. Jackson abstained on the vote.
The group first had to pass a resolution making timeshares eligible for the IDC program. The resolution rescinded one passed by the IDC in 1982 expressly excluding timeshare properties from the program. After making timeshares eligible, the commissioners voted to give the Ritz-Carlton the tax breaks.
Voting in favor were vice chairman Malcolm Plaskett, Mary Ann Pickard and Louis M. Willis. A fifth member, labor representative Randolph Allen, was absent because of a scheduling conflict.
Plaskett said he voted to extend benefits to timeshares because they are a growing segment of the tourism industry.
"We're in a new century and we're trying to grow the economy," he said.
Plaskett said the commission received a study on the question from the administration's consultant, First Union Bank, and there was public debate on the issue. "We worked within the purview of the law" in granting benefits.
But Jackson suggested the move was more secretive.
"This whole thing was put together while I was off-island" last week, he said. "They took a scheduled executive session and turned it into a workshop" ostensibly to take testimony on the issue, but only people who were in favor of extending benefits to timeshare projects were there to testify.
Then, on his return to the territory, Jackson said he was given the proposed resolution and 24 hours to review it before Wednesday's executive session and vote.
"This was only rushed through at the last minute for the benefit of one property," the Ritz-Carlton, he charged.
Jackson also said he tried to postpone the meeting but "it was ordered" to go forward. He would not say who ordered it, but presumably only Gov. Charles Turnbull would have that authority.
The commissioner said he abstained both on the vote to make timeshare projects eligible for IDC benefits and on the Ritz-Carlton's application for them. As commissioner of Tourism, he said he does not want to be perceived as opposing a segment of the industry. But he said other sectors should have been allowed to give their opinions.
Another of his big concerns, he said, is that the resolution does not require that timeshare developments employ as many residents as hotels are required to employ in order to qualify for IDC tax benefits. A primary objective of the IDC program is increased employment.
The resolution does specify that a timeshare project must entail new construction as opposed to being a conversion from an existing hotel. It also spells out a minimum standard for eligible properties, including the amenities they offer.
