GERS Petitions Senate for Zoning Changes to Build 5-story Hotel

Under the proposal, Parcel Nos. 2 and 4 Estate Thomas, Nos. 6B and 6F New Quarter, St. Thomas–which are owned by the GERS–would be rezoned from W-2 (Waterfront-Industrial) to R-3 (Residential-Medium Density) in order to allow the construction of the proposed “brand-name” hotel. As noted by GERS Administrator Austin Nibbs, St. Thomas has not witnessed the building of a new hotel in over 30 years.

“This development would not only be a boost to the economy of the Virgin Islands and the GERS portfolio,” said Nibbs, “but also a game-changer for the Havensight Mall tenants.”

Plans for parcel Nos. 2 and 4 began 5 years ago when Hurricanes Maria and Irma damaged the warehouses that currently occupy those properties, according to Nibbs. The original plan included shops with living spaces atop the storefronts.

“The ability to enter into a ground lease on Parcel 2 with the hotel developer is the beginning of an overall strategy to diversify the mall offerings and spur economic activity to include a local pop-up store, an exhibition hall/museum, historical talks, and authentic cultural experiences for visitors and the community,” said Nibbs in his testimony.

In response to testimony to justify the rezoning amendment, Senators pushed for further information, with a heavy emphasis on potential economic impact. In response to Senator Alma Francis Heyliger, Nibbs estimated that leasing the property would net the GERS an estimated $46,000 per month or over $500,000 on an annual basis.

The additional income would generate a new stream of revenue for the struggling GERS, but lawmakers stressed the need for the projections on the economic benefits outside of the GERS and called for further analysis of how the proposal would impact local businesses in the area, and consequently, the government’s budget as a whole.

After voicing his support for the project, Senator Javan E. James pushed for additional estimates on how it would help or hurt local businesses in the area. “I look forward to the economic impact analysis, so we can have an idea of what we're truly supporting here,” said Sen. James.

Senator Samuel Carrión continued the calls for an economic feasibility study and questioned whether the proposed site provided the best location for a hotel at all.

“I just have some reservations and I will continue to listen in if that's the best place to have this type of hotel,” said Sen. Carrión.

Yet, Senator Janelle K. Sarauw went further and questioned if the Virgin Islands even needs another hotel at all and argued that it could negatively impact the prospects of the Territory’s workforce.

“In this Territory, economic development has become synonymous with hotels, villas and Air Bnbs and do you saturate 32 square-mile islands with hotels?” asked Sen. Sarauw. “In this district we have so many people working at hotels that flip beds, clean rooms, the front desk managers. And then there’s a glass ceiling with them not becoming the general manager of our local hotels.”

In response to the concerns raised by her colleagues in the 34th Legislature, Senate President Donna Frett-Gregory noted that while the hearing focused on an application for land rezoning, it ultimately raised existential questions about the future direction of the Territory.

“I am over 50. And I was born and I was raised here,” said Sen. Frett-Gregory. “And as long as I have known myself, the only thing we have truly in the Virgin Islands is tourism. We’ve tried manufacturing. It went south.” She would later continue: “We have to decide what we want to be here in the Virgin Islands.”

Aside from the questions concerning the economic impact of constructing a 5-story hotel adjacent to the ocean, fellow lawmakers with their own lifelong roots to the Territory expressed their own concerns for how the project would affect the overall atmosphere and environment of the surrounding area.

“As you know, being born and raised here, I love to see the ocean. I love the idea that I live on an island,” said Sen. Francis Heyliger earlier in the proceeding. “I'm the oldest of 10 siblings and I've never left. The rest of them live away. So I love my home. So I'm always going to be from the perspective of how do we still keep that island home feeling without potentially turning into a concrete jungle? And I'm seeing five stories in front of the ocean.”