Senate Finance Committee Green Lights Raising VIPA Bond Limit, STT Museum Lease; Highway Tax Increase Held in Committee

The Senate Finance Committee approved raising the V.I. Port Authority’s limit on outstanding bonds from $100 million to $500 million Tuesday.

VIPA Executive Carlton Dowe testified that raising the cap wouldn’t necessarily mean that the Port Authority would issue bonds up to the proposed limit. However, Dowe said the financial flexibility was needed for VIPA’s short-term financing needs, including seaport maintenance projects, predevelopment projects in Crown Bay, development of a new U.S. Customs and Border Protection facility in Red Hook and costs associated with dredging the Charlotte Amalie Harbor.

In response to questions from Sen. Hubert Frederick, Dowe acknowledged that the Port Authority doesn’t yet have the capacity for $500 million in debt.

“Not today. But we’re looking at the future — what the future might hold,” he said, prompting Frederick to ask why they shouldn’t raise the limit incrementally to match pace with the Port Authority’s financial growth.