For years, the territory has been caught up in a battle with the federal government. The V.I. government has sought clarification on and relief from new limitations placed on source income and residency requirements related to the authority's tax incentive benefits program. While these issues have still had a somewhat negative impact on investors coming into the territory, EDA officials said Tuesday that other factors -- such as developing the territory's infrastructure -- are key to making the local economy more attractive.

Federal prosecutors have alleged that Auffenberg and others illegally funneled millions through tax shelters by falsely claiming to be residents of the U.S. Virgin Islands and conducting business there.

Lawyers for Auffenberg and the others have denied that. They also asked U.S. District Judge Michael J. Reagan to move the trial to the U.S. Virgin Islands, saying the case should be tried there for a variety of reasons, including the expense of flying hundreds of possible witnesses from the islands to East St. Louis.