Calling it unconstitutional, in violation of the Organic Act and detrimental to the territory, Gov. Charles W. Turnbull announced in a Friday afternoon press conference that he had no choice but to veto the so-called "Prosser bill."
Turnbull said the Legislature had handed him a bill that was pre negotiated and full of ambiguities. He pointed out that the Legislature had no right to negotiate anything.
"There are several areas (in the bill) where the Legislature attempts to inject itself. These are clear violations of the separation-of-powers doctrine of the United States Constitution and the Revised Organic Act of 1954," he said.
Under the terms of the Organic Act the only person who can negotiate on behalf of the Virgin Islands is the governor.
When Turnbull was given the bill on May 31 that the Legislature passed in the early morning hours of May 29, he said he would have a financial analysis done.
He said Friday the analysis revealed that because the benefits to St. Croix businessman Jeffrey Prosser were "above and beyond what is available through the existing Industrial Development Program to so many entities, the overall long-term benefit and value to this community must be weighed against the potential loss of revenue and the negative impact resulting from the anti-competitive impact on other enterprises."
Under the bill, 10 of Prosser's companies would have gotten a full tax ride for 30 years in exchange for land and money to build several public projects.
The maximum benefit period available under the Industrial Development Commission is 10 years initially with five-year extensions available.
Turnbull also said the bill would negatively affect competition and have an "adverse impact on the current HOVENSA contract."
"While the intent of the Legislature is notable, I cannot condone an unconstitutional act or approve a proposed agreement that is not in the best interest of the territory," Turnbull said.
Turnbull concluded by saying that Prosser's contributions are well-documented and appreciated, adding, "I remain committed to seeing some or all of these projects to fruition and will pursue all available options."
(For full text of the governor's statement go to Local government.)