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St. Croix Forum: Amalago Bay Resort

Davidsonville...
posts: 127
reviews: 1
 Amalago Bay Resort 

Whats is your opinion on this news?

It was sent to me by a real estate agent in St Croix;

We’re writing with an exciting announcement. The Williams and Punch resort development project “Amalago Bay” in Frederiksted has received official approval of the CZM permit! While this is just the first step, it is a big step forward for the developers and the people of St. Croix. This is such a significant event, and when built it will really make a positive difference for our island community. We hope that you share in our excitement. A more detailed accounting of the event is below as reprinted from The St. Croix Source (www.stcroixsource.com ).

Estero...
posts: 433
reviews: 1
1. Re: Amalago Bay Resort

The Army Corps of Engineers will have major problem with the project as proposed. That is a turtle nesting beach and cutting channels in through it will cause shore erosion that will require beach renourishment. Digging an inland marina will also bring about some serious saltwater intrusion into the local freshwater aquifers. These issues were overcome with the raw emotion that often accompanies permitting in the USVI but will be serious obstacles at the ACOE for the project as planned.

The island needs some development but it needs to consider the demands put on the infrastructure. The water, sewer, and power grids are already shaky at best and if the development creates additional demand, it should make substantial contributions to help the systems expand and modernize. That was not required int heir CZM permit. The labor market for people who want to do this type of work is extremely limited and the plan makes no accomodations for imported labor. If more have to move to the island to provide the labor, that will drive the cost of housing up even higher for the local population.

Hope they can work out the kinks and try and make a go of it. Without additional tourism, the flights will continue to decrease and the prices continue to rise. The reality is that any development on the island has to be of substantial size to be able to generate the revenue that will be needed to address the above referenced issues. The cost of land, labor, and utilities on the island preclude small eco-tourism like is prevalent in Costa Rica or Belize where land and labor is much less expensive.

One last issue is the Pequoit claim to sovereignty (currently in the courts)which would exempt them form the laws in place to protect the workers and guests of the resort. If granted sovereignty, you could not sue them as I understand it.

Davidsonville...
posts: 127
reviews: 1
2. Re: Amalago Bay Resort

Sounds like it is going to be a very long and drawn out process that will be full of lawsuits and counter suits. One can only imagine how much money will be spent working this issue through the system to a final resolution that is most likely years away.

The Mashantucket Pequot tribe (owners of Foxwood casino in Connecticut) has, as the article states,"very deep pockets" and will most likely not give up easily.

St. Croix
posts: 660
reviews: 35
3. Re: Amalago Bay Resort
Destination Expert   What's this?
for St. Croix

I am hoping it is a very long process as I am not in favor of casinos on the island. I would like to see more small hotels (like there were in the 60's) rather that mega resorts. I think our island is unique in that it is not overrun with tourists like St. Thomas and that it can be marketed as a quieter place to visit with a lot of historical value. F'sted could be similar to Williamsburg. First step is to get all the local people to want to work towards making tourists feel welcome.

Davidsonville...
posts: 127
reviews: 1
4. Re: Amalago Bay Resort

crabgroupie,

I agree with you that a significant increase in the number of smaller hotels is much better than one mega resort. I also agree with that the process starts with the local residents truly understanding the tourism is the foundation of economic prosperity and that tourists are the fuel of that engine. The big question is how to do that. If mega resorts are the only option currently available, should they be delayed?

As for Fredriksted becoming the next Williamsburg, we need to find another Rockefeller with deep pockets to finance the restoration similairly to what happened in Williamsburg.

I fervently believe that St Croix is on the cusp of a financial and tourism boom. Which direction that recovery takes is solely up the the residents of St Croix and the influences they have on the government of USVI.

St. Croix, VI
posts: 26
5. Re: Amalago Bay Resort

I have some issues with the marina and the jetties but I think it is a good thing for Fredricksted and STX.

In Hawaii we lived near Turtle Bay on the Norh Shore of Oahu and it was a wonderful place to hang out and pretend that you could afford to stay there.

The rest of the permits will take time but this is the closest STX has gotten to a hotel project in the last 20 years.

Christiansted...
posts: 65
reviews: 4
6. Re: Amalago Bay Resort

One of the best things about this project is that they're not asking the VI government to pay. Other projects currently in the pipeline (e.g. Golden) have asked the VI government for considerable subsidies to pay for buildings; the Mashentucket Pequod Indian Tribe has the money to go ahead with the project on their own. They will be getting the sort of tax incentives that any US state / local government would give to lure them to the area, but we the VI taxpayers are not footing the bill to build the place.

Estero...
posts: 433
reviews: 1
7. Re: Amalago Bay Resort

Amalago did apply for the same convention center funding that Golden did and from what I hear, may apply for TIFF financing. TIFF financing does not cost the island residents directly but does direct the additional taxes post development to help fund the infrastructure costs for the development.

The $32 mil for the convention center is still in the hands of the PFA. The convention center funding is currently committed to Golden but could end up with whoever gets there first with enough funding and permits to go to construction.

Unfortunately, small hotels cannot provide the same airlift demand that larger ones will and cannot compete due to economy of scale and the cost demands in the USVI.

At the end of the day, the Captain Morgan deal will bring more funding to the USVI than any of the projects, it just won't create as many jobs or airlift demand.

Governor deserves some real credit for the Captain Morgan deal and for the cruise ships. Hope the taxi drivers, etc can get their stuff together before Disney comes again or it may be the last time Disney comes. They had to refund over $13k in excursion fees from the first Disney ship that came and I hear from friends on island that Disney was not happy.

8. Re: Amalago Bay Resort

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