Measures clear way for St. Thomas solar projects, back a $200 million Crown Bay redevelopment and create a financing framework that will give the public a long-term stake in Frenchman’s Reef
U.S. VIRGIN ISLANDS — Governor Albert Bryan Jr. today signed three landmark measures passed by the 36th Legislature during its November 18 legislative session that will help transform the territory’s energy landscape and strengthen its position as a premier tourism destination.
The bills, requested by the administration, approve two major Coastal Zone Management permits for utility-scale solar and battery energy storage projects on St. Thomas, approve a lease to enable a $200 million redevelopment of the upland areas of the Crown Bay marine facility, and amend the Hotel Development Act to modernize hotel financing tools while securing long-term public ownership of one of the territory’s marquee resort properties.
“These bills move the Virgin Islands toward an energy system that is more reliable and affordable and a tourism product that is more competitive and more inclusive,” Governor Bryan said. “We are putting federal incentives to work, unlocking major private investment at Crown Bay and securing a pathway for the people of the Virgin Islands to own one of our marquee resort properties in the years ahead.”
Two of the measures approve major Coastal Zone Management permits for solar and battery energy storage facilities at Estate Bovoni and Estate Fortuna on St. Thomas. The projects are designed as key components of a microgrid to serve the St. Thomas district and will pair significant new solar generation with large-scale battery energy storage, similar in concept to the solar farms constructed on St. Croix that have already helped improve grid stability there.
By acting under the authority of Section 910 of Title 12 of the Virgin Islands Code, the Legislature and the governor moved to expedite these critical projects so they can show substantial progress and take advantage of available federal tax incentives for clean energy. The administration emphasized that environmental safeguards, monitoring requirements and coordination with the St. Thomas Coastal Zone Management Committee and the Department of Planning and Natural Resources remain in place as the projects move into construction and interconnection.
“Families and small businesses in the St. Thomas-St. John district are tired of rolling blackouts and high bills,” Governor Bryan said. “These solar projects are a practical step to add clean megawatts, stabilize the grid and reduce our dependence on imported fuel. Signing these bills ensures we do not leave federal dollars on the table and that our people see real improvements on the ground.”
The governor also signed legislation approving a lease that will enable an estimated $200 million public-private investment to transform the upland areas of the Crown Bay marine facility on St. Thomas. The Crown Bay District Redevelopment Project will add an additional cruise berth that will accommodate the industry’s newest vessels and convert underutilized industrial lands into a modern cruise and leisure district, including an expanded Crown Bay Village and a day resort experience for cruise passengers and residents.
“Crown Bay is our front door for millions of visitors,” Governor Bryan said. “With this bill we are turning an underutilized industrial area into a vibrant, walkable waterfront that generates jobs, supports local vendors and keeps St. Thomas competitive as a leading cruise homeport in the Caribbean.”
Under the legislation, the Government of the Virgin Islands retains ownership of the underlying land while the Virgin Islands Port Authority and its partners invest in new upland facilities and amenities. The project is expected to create hundreds of construction and permanent jobs and to expand opportunities for local small businesses in retail, food and excursions tied to the expanded Crown Bay Village.
A third measure amends the Hotel Development Act to create a modern financing structure, through a wholly owned subsidiary of the Virgin Islands Public Finance Authority, that can issue tax-exempt bonds for qualifying hotel projects under defined conditions. The structure is intended to lower borrowing costs for hotel developers without creating public debt or taxpayer guarantees, aligning the territory’s longstanding hotel incentives with tools widely used in other U.S. jurisdictions.
One immediate application is the Frenchman’s Reef resort complex on St. Thomas, including the Westin Frenchman’s Bay Beach Resort. The financing plan would allow the current private owner to refinance existing investment through tax-exempt bonds issued by the new Public Finance Authority subsidiary while keeping all bond repayment obligations on the private owner, not the government.
Under the terms of the legislation, after an expected 30-year bond term and full repayment, title to the Frenchman’s Reef property, including the Westin Frenchman’s Bay Beach Resort, would transfer to the people of the Virgin Islands, giving the government the option to lease or sell the resort in the public interest under normal processes.
“This is the model we should pursue across our tourism economy,” Governor Bryan said. “We welcome private capital and expertise, we protect taxpayers from risk and we build in a clear path for long-term ownership by the people of these islands. With this bill, Frenchman’s Reef will not just be a symbol of our hospitality industry. In time, it will be an asset owned by Virgin Islanders.”
Governor Bryan said the three measures are part of a single, integrated strategy to make the Virgin Islands more resilient, more competitive and more equitable.
“Energy and tourism are the twin engines of our economy,” he said. “By stabilizing our grid with solar and batteries, reimagining Crown Bay as a world-class waterfront and securing a future public stake in Frenchman’s Reef, we are building an economy that works better for residents while welcoming more visitors to share in all that the Virgin Islands has to offer.”
The governor thanked Senate President Milton E. Potter and members of the 36th Legislature for their partnership in advancing the bills in the November 18 session and committed his administration to swift implementation in coordination with the Virgin Islands Port Authority, the Public Finance Authority, the Department of Planning and Natural Resources, the Virgin Islands Water and Power Authority and other stakeholders.
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