St. Croix residents packing Frederiksted’s Legislature Complex on Monday showed strong feelings in support and vigorous opposition to a proposed $55 million baseball, tennis, volleyball and swimming complex in Frederiksted.
Proponents, including Our Town Frederiksted and the Frederiksted Economic Development Authority, pointed to the immediate jobs and longer-term economic gains from sports tourism. Opponents, including talk radio host Mario Moorhead and Board of Elections member Adelbert Bryan, objected to the expense during a time of government austerity.
Moorhead and Bryan both also objected to the specific sports envisioned for the project on racial grounds.
The Human Services and Recreation Committee was considering legislation requested by Gov. John deJongh Jr. approving a Memorandum of Agreement signed by deJongh and GlobeVest V.I., the company selected for the project through the administration’s bidding process. GlobeVest V.I. is a joint venture partnership between GEC, a major contracting company in the territory, and GlobeVest, a large, multinational development company.
Under the terms of the agreement, the territory would invest $30 million. The V.I. Government would spend $5 million for designs and planning now, mostly from funds already appropriated to renovate the condemned Paul E. Joseph stadium.
Bonds would finance the remaining $25 million. The legislation before the Senate would also authorize the V.I. Public Finance Authority to issue the bonds.
"The site will remain the property of the government and will be leased to GlobeVest for 30 years. At the end of the term the improvements on the property will revert to government ownership," Dawson said.
The bonds would be financed through the Communities Facilities Trust account, a fund established in Diageo’s operating agreement with the V.I. Government. The agreement states that Diageo’s new distillery will deposit “3 percent of the annual gross cover over receipts” into the fund, administered by the PFA.
If approved and funded, the sports facilities will be built over 60 acres of land, with about 35 acres of public land and 25 acres of private land GlobeVest V.I. will purchase, said James Sutherland, one of GlobeVest V.I.’s principals.
Sutherland said the company met with Our Town Frederiksted in 2006 and received a copy of a 2005 charrette (a kind of public hearing) that developed draft concept plans for revitalizing Frederiksted, including the now-completed work renovating the waterfront and the Vincent F. Mason Coral Resort swimming pool and park.
In 2007 GlobeVest developed and submitted its plan to Our Town Frederiksted. Then in 2009, GlobeVest responded to the government’s request for proposals to redevelop the condemned Paul E. Joseph baseball stadium. The agreement before the Legislature arose out of that process, Sutherland said.
The completed sports facility would have four stadiums sanctioned by the various sports governing bodies, which will give it the ability to hold major international and regional tournaments, Sutherland said. "We strongly believe that this model, based upon the letters of endorsement by several sports governing bodies … gives this project the upper advantage over any other current or proposed competitive stadiums within the Caribbean that can offer sports tourism," he said.
Tourism Commissioner Beverly Nicholson Doty emphasized the potential for bringing in tourist dollars, saying sports tourism generates some $600 billion annually and sports tourist room occupancy is growing.
"As a destination, we are competing against other destinations with facilities such as the National Tennis Center in St. Lucia, which is a multi-purpose facility used for cricket, basketball, volleyball, tennis and with plans to add an aquatic center in time for the 2017 Youth Games," Doty said. "With this proposed state-of-the-art sports complex, we will now be able to level the playing field with our neighbors in the region."
Doty emphasized the financial impact of large sports tourism in other districts. The International Tennis Championships held in Delray Beach, Fla., brought in an estimated $10.4 million into the local community, and the U.S. Fast-pitch Association Fast-pitch World Series softball tournament accounts for some 400 teams and fills 25,000 room nights, she said. The 2011 U.S. Masters Swimming Spring Nationals in Mesa, Ariz., had an estimated impact of up to $3 million on the local economy.
Closer to home, sports tourism has contributed more than $4.7 million directly and $22 million indirectly to Puerto Rico’s economy, she said. Doty did not say over how long a period of time.
Administration officials from Management and Budget, Housing Parks and Recreation and other departments also testified in support of the legislation.
Many residents spoke in support of the proposal, although not without some caveats and concerns.
Frederiksted Economic Development Authority President Melody Rames testified the FEDA board supports the project "and encourages the Legislature and GlobeVest V.I. to move forwards as soon as possible."
She said FEDA would like to see the complex named for 1970s New York Yankee Horace Clarke, a St. Croix native.
FEDA and the Crucian Christmas Festival organization both want to ensure the stadium does not impinge upon the annual Christmas Festival, she said. "We implore the developers to make provisions for us to have a safe Christmas Festival at that same location" Rames said.
The Crucian Christmas Festival organization would like to see a permanent cultural village for the festival, with a proper stage and booths designed to tribute historic buildings, she said.
Our Town Frederiksted President Hugh Payne described the project as "long overdue," saying it "is an important part of revitalization," that will "encourage owners to come to town and fix up their buildings and attract visitors," and "serve as a place our youth will be able to come."
Talk radio host Mario Moorhead spoke in opposition to the project, saying he found it extremely offensive that the complex envisioned baseball, swimming, volleyball and tennis, which Moorhead said were deeply inappropriate and insulting.
"It is not that the elitist sport of tennis is not physically challenging and demanding. It simply does not allow for the mass participation of a deprived population like ours," Moorhead said. At the end of his prepared remarks, Moorhead again emphasized what he felt was the offensive nature of the sports and saying a facility aiming to attract tourists was offensive as well.
"We do not want the sporting facilities of elitists and tourists. Our people want the sports we are accustomed to or nothing at all," Moorhead concluded.
Moorhead also said he believed the $55 million was too high and that he was certain an equivalent complex could be built for half as much. Increasing the government’s debt also worried Moorhead, who said he had calculated the bonds would ultimately cost $150 million, because of compounded six percent interest on the bonds.
Asked to clarify later, Dawson said the bonds would cost a total of roughly $59 million, if they are issued for roughly six percent interest, as anticipated.
Senators expressed concern over whether the government could afford such a massive investment right now, and over the potential risks if the project does not pan out as projected.
"Where is the recourse, say, if the government invests $30 million and the investment flops?" asked Sen. Alvin Williams.
Sutherland responded that the plan includes a series of benchmarks and that after the government spent the initial $5 million on per-construction, it could stop at that point and have all the preparatory work in place to just build a new baseball stadium.
Housing Parks and Recreation Commissioner St. Claire Williams agreed. "If something should happen, at least we will be able to move forward with the Little League and baseball field," Williams said.
"In my view we have not exhausted questions on this," said Sen. Janette Millin-Young, asking at 12:25 a.m. that the committee hold the bill for further testimony.
Voting to hold the bill for further testimony were Millin-Young, Sens. Craig Barshinger, Terrence "Positive" Nelson and Alvin Williams. Absent were Sens. Alicia "Chucky" Hansen, Shawn-Michael Malone and Patrick Sprauve.
Can’t pay our income tax refunds. Can’t pave the roads or fix the pot holes. Can’t afford nurses and teachers.
But we can afford to borrow tens of millions of dollars for more basketball courts?
Here goes more of our tax dollars being committed to a company with NO track record.
How about actually getting a company that has PERFORMED in the past and has sucessfully built such a complex?
This is allot of money, out of OUR pockets, once again, that our Government is willing to spend when they cannot keep the lights on and WAPA running.
Hope all those sports fans will be willing to bring their flashlights to see games in a darkened stadium when we have no electricity.
Right now, there are more important things to be obligating our money for. Such as reliable and affordable electricity, recycling programs that work for us, making the islands safe for people to walk the streets in broad daylight or to be in their homes and having good, well lit roads to drive on.
Cleaning up the trash filled roadsides would be nice and cutting all the overgrown vines and branches from the WAPA poles, transformers and lines as hurricane season approaches, quickly.
If our Senators are willing to spend so much money on investing in a company with no track record to build a sports stadium, maybe they should consider spending our money to give us BASIC SERVICES!
I would not go so far as to agree with Mr. Moorhead or Mr. Bryan about the project being racist, however, I must agree that it is somewhat elitist. Why not build a decent football field as part of the complex? The Virgin Islands has produced numerous football stars as well, and it would do wonders in trying to attract professional football teams to spring practice in the VI. Bringing the team, family members, as well as other curiosity seekers. I think as Virgin Islanders, we need to try to stop looking for racism in everything that is done/proposed by continental americans/foreigners, however, we do need to constantly remember the likes of Prossor and Stanford, and scrutinize all the individuals that come to the islands with proposals to HELP it’s people move forward.
We all know, especially where the governor is concerned, that nothing is as clear as it seems? How much does he and his family stand to gain personally? Has anyone asked that question? Here’s a thought, If I remember correctly, when i was visiting the islands a few years ago, Kenneth Mapp, a then gubernatorial candidate, proposed a sports complex for the same location, with the ability to also sponsor/hold enormous musical concerts and other performances? Is this the same proposal put forth by Governor Schneider and his cronies? If not, where is that particular proposal and what are the differences between the two? Is one better than the other? Can the two be merged to make one great plan? Or were both set forth as proposals to line certain individuals pockets, and NOT for the BETTERMENT of the Virgin Islands people, and as such neither can be brought to fruition? We as a people need to wake up before we end up losing our Beautiful Island to imports and thieves who care nothing for us, but rather for how they can line their pockets. Many have said the the Virgin Islands is too beautiful a piece of America to be owned by the naive and uneducated natives, are we going to prove then right? Are we going to one day be visitors in our own American Paradise? Let’s learn from Prossor and Stanford, and let’s not forget how much of our monies are already spent and siphoned by our elected officials! Ask questions people!!!!!!!
“GlobeVest, a large, multinational development company” I can find no evidence of this. As matter of fact I can find no evidence of anything that GLOBEVEST has done except attempt to perpetrate a fraud on the people of the VI. With the Governors assistance of course.
Googled GlobeVest, LLC and found a webpage that was under construction. It was the only link that mentioned sports destination development. So much for a fully functioning, proven company which has no history, whatsoever, to check!
It is disheartening and exhausting to have to continue to be so constantly vigilant when it comes to our government spending our taxpayer money when we get nothing in return but increases in taxes to fund their already overpaid salaries and continued wasteful spending.
They have given us no reason to trust their intelligence or ability to do the right things, such as providing basic services, when there are so many creative ways they can attempt to continue to fool people and line theirs and their cronies, pockets, with OUR money while we wonder how to pay the ever increasing costs of life in the VI.
They shall be voting soon to INCREASE the Fuel Tax to double the amount it now is, from 7 to 14 cents PER Gallon, while we are now paying the highest amount, ever, for fuel. Makes sense, huh?
They have already run us into the ground financially because they cannot balance a budget and live within the means they set for themselves so we get to constantly cough up the difference for this ineptitude and misspending!
As an aside: When Chucky was a senator, previously, she had the worst attendance record while in office, at that time. So what’s changed? NOTHING! Why should she bother to show up to meetings when she gets paid, anyway?
Salary should reflect attendance. You miss meetings, you should be fined accordingly and it should reduce your salary. She would not last a second in the corporate world at a real job but we get to finance her inability to do her job as a productive senator.
Period, end of discussion.
I think this sports complex would be a good thing for the Territory and particularly for St. Croix. Mario Moorhead’s assertions of racism and elitism are pure nonsense, just more of his same tired old tripe. If Mario had his way there would be no off-islanders allowed here and no white people, either – and he calls others racist? What a joker!
If the territory was in a position where the basics were taken care of, then I’d say yes, let’s really explore the idea of borrowing $55m to build basketball courts.
That, unfortunately, isn’t the situation we’re in now. WAPA is a nightmare. It’s a second mortgage for most citizens and THE business bankrupter in the territory. The power and water systems are in utter shambles in STT. The entire system is in need of modernization. Roads are in the worst shape I’ve seen in my time here. Divots have turned into pot holes and pots holes into sink holes. Since they can’t afford to pave them, they’re going to have to start breaking a number of the paved roads on St. Croix into gravel to keep them drive-able. We can’t afford to keep our schools staffed with teachers and hour hospitals are laying off nurses. When the other shoe drops from HOVENSA, unemployment benefits run out and the middle class families start leaving in droves, the government is going to be in a budgetary disaster of Grecian proportions. Thousands will have to be laid off and St. Croix will be in a death-spiral to 3rd world status.
We’re simply not in a position where we can borrow to buy a non-revenue generating luxury like a sports complex.
You speak the absolute truth. I wonder if the government is listening?
No! They are not listening and haven’t been for some time!