St. Croix residents packing Frederiksted’s Legislature Complex on Monday showed strong feelings in support and vigorous opposition to a proposed $55 million baseball, tennis, volleyball and swimming complex in Frederiksted.
Proponents, including Our Town Frederiksted and the Frederiksted Economic Development Authority, pointed to the immediate jobs and longer-term economic gains from sports tourism. Opponents, including talk radio host Mario Moorhead and Board of Elections member Adelbert Bryan, objected to the expense during a time of government austerity.
Moorhead and Bryan both also objected to the specific sports envisioned for the project on racial grounds.
The Human Services and Recreation Committee was considering legislation requested by Gov. John deJongh Jr. approving a Memorandum of Agreement signed by deJongh and GlobeVest V.I., the company selected for the project through the administration’s bidding process. GlobeVest V.I. is a joint venture partnership between GEC, a major contracting company in the territory, and GlobeVest, a large, multinational development company.
Under the terms of the agreement, the territory would invest $30 million. The V.I. Government would spend $5 million for designs and planning now, mostly from funds already appropriated to renovate the condemned Paul E. Joseph stadium.
Bonds would finance the remaining $25 million. The legislation before the Senate would also authorize the V.I. Public Finance Authority to issue the bonds.
"The site will remain the property of the government and will be leased to GlobeVest for 30 years. At the end of the term the improvements on the property will revert to government ownership," Dawson said.
The bonds would be financed through the Communities Facilities Trust account, a fund established in Diageo’s operating agreement with the V.I. Government. The agreement states that Diageo’s new distillery will deposit “3 percent of the annual gross cover over receipts” into the fund, administered by the PFA.
If approved and funded, the sports facilities will be built over 60 acres of land, with about 35 acres of public land and 25 acres of private land GlobeVest V.I. will purchase, said James Sutherland, one of GlobeVest V.I.’s principals.
Sutherland said the company met with Our Town Frederiksted in 2006 and received a copy of a 2005 charrette (a kind of public hearing) that developed draft concept plans for revitalizing Frederiksted, including the now-completed work renovating the waterfront and the Vincent F. Mason Coral Resort swimming pool and park.
In 2007 GlobeVest developed and submitted its plan to Our Town Frederiksted. Then in 2009, GlobeVest responded to the government’s request for proposals to redevelop the condemned Paul E. Joseph baseball stadium. The agreement before the Legislature arose out of that process, Sutherland said.
The completed sports facility would have four stadiums sanctioned by the various sports governing bodies, which will give it the ability to hold major international and regional tournaments, Sutherland said. "We strongly believe that this model, based upon the letters of endorsement by several sports governing bodies … gives this project the upper advantage over any other current or proposed competitive stadiums within the Caribbean that can offer sports tourism," he said.
Tourism Commissioner Beverly Nicholson Doty emphasized the potential for bringing in tourist dollars, saying sports tourism generates some $600 billion annually and sports tourist room occupancy is growing.
"As a destination, we are competing against other destinations with facilities such as the National Tennis Center in St. Lucia, which is a multi-purpose facility used for cricket, basketball, volleyball, tennis and with plans to add an aquatic center in time for the 2017 Youth Games," Doty said. "With this proposed state-of-the-art sports complex, we will now be able to level the playing field with our neighbors in the region."
Doty emphasized the financial impact of large sports tourism in other districts. The International Tennis Championships held in Delray Beach, Fla., brought in an estimated $10.4 million into the local community, and the U.S. Fast-pitch Association Fast-pitch World Series softball tournament accounts for some 400 teams and fills 25,000 room nights, she said. The 2011 U.S. Masters Swimming Spring Nationals in Mesa, Ariz., had an estimated impact of up to $3 million on the local economy.
Closer to home, sports tourism has contributed more than $4.7 million directly and $22 million indirectly to Puerto Rico’s economy, she said. Doty did not say over how long a period of time.
Administration officials from Management and Budget, Housing Parks and Recreation and other departments also testified in support of the legislation.
Many residents spoke in support of the proposal, although not without some caveats and concerns.
Frederiksted Economic Development Authority President Melody Rames testified the FEDA board supports the project "and encourages the Legislature and GlobeVest V.I. to move forwards as soon as possible."
She said FEDA would like to see the complex named for 1970s New York Yankee Horace Clarke, a St. Croix native.
FEDA and the Crucian Christmas Festival organization both want to ensure the stadium does not impinge upon the annual Christmas Festival, she said. "We implore the developers to make provisions for us to have a safe Christmas Festival at that same location" Rames said.
The Crucian Christmas Festival organization would like to see a permanent cultural village for the festival, with a proper stage and booths designed to tribute historic buildings, she said.
Our Town Frederiksted President Hugh Payne described the project as "long overdue," saying it "is an important part of revitalization," that will "encourage owners to come to town and fix up their buildings and attract visitors," and "serve as a place our youth will be able to come."
Talk radio host Mario Moorhead spoke in opposition to the project, saying he found it extremely offensive that the complex envisioned baseball, swimming, volleyball and tennis, which Moorhead said were deeply inappropriate and insulting.
"It is not that the elitist sport of tennis is not physically challenging and demanding. It simply does not allow for the mass participation of a deprived population like ours," Moorhead said. At the end of his prepared remarks, Moorhead again emphasized what he felt was the offensive nature of the sports and saying a facility aiming to attract tourists was offensive as well.
"We do not want the sporting facilities of elitists and tourists. Our people want the sports we are accustomed to or nothing at all," Moorhead concluded.
Moorhead also said he believed the $55 million was too high and that he was certain an equivalent complex could be built for half as much. Increasing the government’s debt also worried Moorhead, who said he had calculated the bonds would ultimately cost $150 million, because of compounded six percent interest on the bonds.
Asked to clarify later, Dawson said the bonds would cost a total of roughly $59 million, if they are issued for roughly six percent interest, as anticipated.
Senators expressed concern over whether the government could afford such a massive investment right now, and over the potential risks if the project does not pan out as projected.
"Where is the recourse, say, if the government invests $30 million and the investment flops?" asked Sen. Alvin Williams.
Sutherland responded that the plan includes a series of benchmarks and that after the government spent the initial $5 million on per-construction, it could stop at that point and have all the preparatory work in place to just build a new baseball stadium.
Housing Parks and Recreation Commissioner St. Claire Williams agreed. "If something should happen, at least we will be able to move forward with the Little League and baseball field," Williams said.
"In my view we have not exhausted questions on this," said Sen. Janette Millin-Young, asking at 12:25 a.m. that the committee hold the bill for further testimony.
Voting to hold the bill for further testimony were Millin-Young, Sens. Craig Barshinger, Terrence "Positive" Nelson and Alvin Williams. Absent were Sens. Alicia "Chucky" Hansen, Shawn-Michael Malone and Patrick Sprauve.
