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.