Fall 2009 St. Croix Real Estate Update

From David Fedeles, St. Croix:

Greetings from St. Croix! A great article about our island was a feature story in the October 2009 issue of Caribbean Travel + Life Magazine. If you missed it, check it out and I was quoted with a sidebar editorial shown below:

"FOR SALE" SIGNS Think Caribbean homeownership is only for Ponzi schemers and James Bond villains? Well think again. The dream of buying a residence in the United States Virgin Islands can be surprisingly attainable, with familiar tax laws and real estate practices defining the process and the good ol' American dollar making it happen. "And anyone searching for the Virgin Islands' biggest bang for the buck need look no farther than St. Croix," says veteran agent David Fedeles of Farchette & Hanley Real Estate, in Christiansted. With a median home price hovering around the $600,000 mark ($229,000 for condos) and no shortage of available properties, thanks to our lingering economic blahs, th e island is ripe for bargain hunting. We found a furnished, two-bedroom, two-bath Teague Bay home on the island's eastern tip priced at $639,000 (Ed. Note: now Sold!) and boasting a heated pool, a full acre of land, and a glorious view of Buck Island to the north. And three miles west of Christiansted on Pelican Cove beach, $249,500 buys a furnished two-bedroom condo with resort-style amenities and an ocean view (also Sold!)." Let's hope I get some inquiries and can 'stir up some action' from the stateside economic doldrums which impact St. Croix as well. Also newsworthy...

Home Depot gets Financing
Governor DeJongh approved final documents in late September for tax-increment financing, allowing the government to issue bonds based on the projected increased in property and gross receipts taxes the project will bring once completed. The construction financing is being provided by First Bank VI. The 44-acre mixed use development will be anchored by Home Depot and also will include an IHOP, medical offices, shopping, affordable housing amidst renovated sugar mill ruins and a solar and wind power plant. It is being developed by Caribbean Development Partners headed by local developer Jim Watson. Ground breaking is set for November 2nd.

Williams and Punch Clears another Hurdle
The Coastal Zone Management Commission gave permission for the developers to extend the beach at their proposed 378-room resort and casino north of Frederiksted. The developers noted this is a key component of their proposed development because the area became much rockier after Hurricane Lenny blew in from the southwest in 1999 and removed much of the sand there. Spokesmen for the project noted that the beach restoration project brings back the beach for recreation and also makes the area more conducive to turtle nesting, all with minimal effect on the environment. The developers are now working wit h the Army Corps of Engineers to get their permit as well as a land swap agreement with the VI Government to relocate the road inland and away from the shoreline which will need legislative approval as well.

Diageo Distillery Making Progress!
St. Croix welcomes the liquor industry giant Diageo which is building a state-of-the-art Captain Morgan Rum Distillery on 26 acres of land at the St. Croix Renaissance Group. This eco-friendly distillery will provide between 200and 300 temporary jobs. It is scheduled to open in 2011 and approximately 40 to 70 permanent jobs will then be created.