PFA votes to sell or lease the Kings Alley hotel | New
The VI Public Finance Authority is still trying to sell the King’s Alley hotel in Sainte-Croix.
PFA board members voted on Wednesday to approve a resolution allowing Authority staff to begin the process of selling or leasing the King’s Alley Hotel and the adjacent vacant land that once housed the Anchor Inn PFA spokeswoman Carol Burke said in a statement.
The competitive negotiation process “will involve soliciting proposals from entities that have previously expressed an interest in one or both establishments, as well as developers and operators of neighboring hotels and is cleared both by the board of administration and by the Authority’s procurement policies and procedures. “
The resolution received the unanimous consent of the members present – Governor Albert Bryan Jr., Office of Management and Budget Director Jenifer O’Neal, Acting Finance Commissioner Clarina Modeste-Elliot and Keith O’Neale.
Bryan, who is chairman of the PFA board of directors, excused lawyer Dorothy Isaacs for the meeting.
The PFA has been trying unsuccessfully to sell the hotel for years, and in January 2020 the board met in executive session âto discuss certain legal issues relating to the King’s Alley offers to buy. Hotel, âaccording to a published press release. at the time.
The governor, following another closed-door session in December, said council had again discussed the potential future use of the King’s Alley Hotel and the nearby Anchor Inn site, but did not provided no details to the public.
The PFA took over the hotel in 2003 after the former owner, Development Consultants Inc., defaulted on its government-guaranteed loan. The PFA used the proceeds of the bonds to renovate the 22 rooms of the main hotel complex and the hotel restaurant, a project that was expected to cost around $ 2.5 million and be completed in March 2004.
The final price of the project reached $ 11.4 million and the hotel did not open until January 2008.
In 2006, King’s Alley Hotel was valued at $ 6.5 million, and while the PFA tried for years to find an interested buyer, the agency said all the bids were too low.
In other areas on Wednesday, council members voted unanimously for:
â¢ Amend a contract with Gaffney-Cline & Associates to allow an additional $ 20,000 in costs associated with Argus Media, Inc. to provide the data and analysis necessary to complete the scope of work.
â¢ Renew the PFA general liability insurance to protect the PFA operations of the Frederiksted shopping center, the King’s Alley hotel and its offices in St. Croix and adopt the PFA budget for fiscal year 2022.
Burke, in the statement, said that Anthony Ottley, chairman and chief executive officer of WICO, spoke to board members about “the company’s specific austerity measures to keep operations consistent pending the return of the cruise ship industry ‘in ports VI.
According to the statement “Currently, WICO operates a 32 hour work week with staff working staggered shifts to maintain WICO’s normal office hours.”
The statement noted that WICO “has successfully negotiated a temporary deferral of loan payments with its lender, Banco Popular, which begins in May and runs through October” and that the agency “received $ 717,200 from the program. Federal Paycheck Protection â.
âThe combination of cost savings and additional revenue has resulted in positive cash flow for WICO during this time of austerity,â according to the press release.
Ottley also mentioned dredging projects. Bryan added, âWe are also in talks with some cruise lines about the possibilities for St. Croix. The ships may arrive in Sainte-Croix this year. “
According to the statement, Stephan Adams, president and CEO of the Virgin Islands Next Generation network, said his agency “has been vigilant with its spending while prioritizing certain aspects of its operations.”
He said the priorities âinclude the enrichment of critical infrastructure components for the upcoming hurricane season, other related capital projects and the FEMA Project Mandatory Worksheets – Fiber Optic Landing Sites. and the FEMA generator mitigation project. â
Adams âalso highlighted the viNGN initiative to reduce the digital divide by deploying WIFI in public housing, libraries and parks across the country.
Council members also discussed the PFA’s 2022 fiscal year budget in executive session, according to the press release.
The next regular meeting of the Public Finance Board is scheduled for June 24.