June 13, 2007 — Members of the V.I. Port Authority's governing board refused to take a rubber-stamp approach to critical policy and management issues at a meeting Wednesday, contributing to the meeting's epic eight-hour length.
Of particular concern for board members — particularly new additions Gordon A. Finch and Cassan Pancham — were a set of leases already approved by VIPA's Property Committee. While Finch questioned how the Port Authority sets and adjusts its rental rates, Pancham set his sights on boosting the agency's revenue streams by filling vacant spaces at both the Red Hook terminal facility and Crown Bay shopping center.
In most cases, Finch's concerns prompted board members to send the leases back to the Property Committee for further consideration and additional testimony. Among other things, Finch urged the board to be cautious when granting leases to entities that have not completed the port's required rental application or submitted certain financial documents.
Finch's persistence also prompted board members to consider making future amendments to the port's existing bylaws, changing various conditions included in the agency's standard lease agreements and expanding the board's authority to approve, ratify and expedite certain critical contracts or leases.
According to VIPA Executive Director Darlan Brin, a draft of the policy changes or amendments should be introduced by the board's next meeting in July.
Board members parted ways, however, on a lease-assignment request from the proprietors of Thatch Farm, a motel/hotel/resort located near the Gladys Abraham School on St. Thomas. The proprietors have asked that the remainder of their lease be turned over to 69 Estate Contant LLC, whose manager also runs a popular nightclub on the western end of the island.
While a majority of board members supported the request, other said they were concerned about Thatch Farm's current reputation as an alleged "house of ill repute."
"I'm concerned that the facility is right next to a school," said Attorney General Vincent Frazer. "It may now be renovated and fixed up, but I'm concerned about who's going to occupy this new high-end operation and what kind of activities will be going on there. The activities now may be low-key, but they might begin to affect the school in the future."
When asked by Pancham whether the facility serves as a headquarters for certain types of illegal activities, VIPA board counsel Don Mills said neither VIPA nor Police officials have been able to confirm such reports.
"There have been no findings from the Police Department on that issue," Mills added. "Many can point out what they believe is an area of ill repute, but most of us can't prove there's any such activity going on."
Board members should not "make assumptions" about the nature of Thatch Farm's business activities "without any proof," Finch added.
"I'm not going to take lightly that this represents some $700 a month to the Port Authority, and unless there's some specific proof, there's no reason not to agree with the assignment (request)," he said.
Board members voting in favor of Thatch Farm's lease-assignment request were Finch, Frazer, Robert O'Connor, Hector Peguero and Yvonne E.L. Thraen.
Pancham and Public Works Commissioner Darryl Smalls abstained.
Tourism Commissioner Beverly Nicholson-Doty was absent.
Other leases approved on Wednesday are between VIPA and:
— TMT Sand Company Inc. (The lease is for 10 years, with a 10-year option to renew, at an annual rental rate of $85,375. The lessee must also invest no less than $150,000 into the property);
— Pierre Lieberson, doing business as Peanut's Auto Clinic. (The lease is for five years, with a five-year option to renew, at an annual rental rate of $12, 800).
— Caricement USVI Corporation. (The lease is for five years with no-option renewal terms at a rental rate of about $32,670 per year. Approval of this lease is conditional — the lessee first has to submit certain financial documents requested by the board.)
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