In about three weeks, the V.I. Port Authority is expected to close on a bond package of as much as $60 million that would allow them to pay off approximately$25 million in outstanding marine revenue bonds and issue $29 million in new bonds for capital projects.

A resolution granting authorization for both the refinancing and new bond issue was approved by the VIPA board during a special meeting Friday on St. Thomas. During the meeting, VIPA Chief Financial Officer Valdamier Collens said the refinancing of two sets of outstanding 2003 bonds would save the agency more than $1 million. He also proposed using $1.9 million in available marine division funds to finish paying off a third set of bonds the port was set to make final payments on in 2015.

VIPA board members also approved going to the market for $29 million in new bonds needed to cover various capital improvement projects, including:

– $7.1 million for the proposed Crown Bay cargo and cruise ship port dredging and facility upgrades,

– $11 million for the construction of a new U.S. Customs building and parking lot at the Red Hook ferry dock,

– $1.6 million for improvements to the Cruz Bay ferry and barge facilities on St. John,

– $2.6 million for the development of the Gallows Bay port on St. Croix,

– $5.2 million for improvements to the Wilfred Allick Port and transshipment center on St. Croix, and

– $1.4 million for improvements to Frederiksted’s Abramson Marine facility.

The board approved hiring Jeffries LLC to underwrite the bonds, but some board members expressed concern over the company’s proposed fee and Collens’ suggested a $0.35 increase, for a maximum $345,150. In the end, the board ended up approving only the action items originally submitted by Collens, which included a fee of $5.50 per every $1,000 bond.

According to the resolution passed during the meeting, cost for Jefferies is $324,500, with an additional $50,000 in out of pocket expenses and a $1,000 per bond management fee at a cost of $59,000.

During the meeting, VIPA staff also explained that the port had not yet received approval from the Army Corps of Engineers on the permit needed to begin the proposed Crown Bay and cruise ship port dredging project. VIPA has said it is ready to start once the permit comes through, but if it doesn’t before November, the territory could lose up to 13 cruise ship calls and an estimated $18 million in revenue.

Attending Friday’s meeting were board members Manuel Gutierrez, Allie Petrus, Vincent Frazer, Robert Cintron, Beverly Nicholson-Doty, Yvonne Thraen, and chairman Robert O’Connor.