Title 29 — Public Planning and Development
25 chapters · 546 sections in this title.
29 V.I.C. § 1301 Short title
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This chapter may be cited as the Hotel Development Act.
29 V.I.C. § 1302 Legislative findings
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(a) The Legislature finds and declares that:(a) The tourist, hotel and resort industry constitutes a major element of the Territorial economic structure;(b) Additional hotel accommodations and tourist facilities and services are essential to the further development of the Territo…
29 V.I.C. § 1303 Definitions
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(a) As used in this chapter the following terms have the meaning set forth in this section:(a) “Agreement” means the agreement between the Government and a developer which sets forth the terms and conditions for assistance for Project development under this chapter.(b) “Authority…
29 V.I.C. § 1304 Program established, purpose
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(a) The Hotel Development Program is established within the Virgin Islands Economic Development Authority. (b) The purpose of the Program is to encourage and promote development, construction, reconstruction, and renovation of hotel and resort facilities in the Virgin Islands and…
29 V.I.C. § 1305 Administration and powers
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(a) The Authority shall administer a program designed to assist in the development of hotels, resorts and related hotel facilities to increase opportunities in tourism enterprises in the Virgin Islands so as to facilitate and to accelerate opportunity for employment in these ente…
29 V.I.C. § 1306 Application and certification of Project; eligibility
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(a) A person wishing to develop a hotel shall apply to the Authority on forms prescribed and made available by the Authority. (b) Before a hotel development project is approved, the applicant must produce a letter of intent from a financial institution and a copy of all documents…
29 V.I.C. § 1307 Approval or denial; agreement; cure of defects; reimbursement of costs
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(a) After receipt of the criteria set forth in section 1306, the Authority shall certify or deny certification of the proposed project under such procedures as may be established by regulations. In determining certification of the Project, the Authority shall consider the followi…
29 V.I.C. § 1308 Hotel Development Trust Funds
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(a) The Authority shall establish for each approved project a separate Trust Fund, which for the purposes of this chapter shall also be known as “the Project's Hotel Development Trust Fund” or the “Project's Fund”. Monies allocated to and deposited into the Project's Fund from th…
29 V.I.C. § 1309 Hotel Development Notes authorization
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(a) The Notes Issuer may issue Hotel Development Notes to finance total Project costs of eligible Projects approved pursuant to this chapter, including, without limitation, costs of issuance, debt service and other reserves, and related ancillary costs and expenses. Hotel Develop…
29 V.I.C. § 1310 Hotel Development Notes security
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(a) A series of Hotel Development Notes may be secured by a trust agreement or trust indenture between the Notes Issuer and a trustee having trust powers, or by a secured loan agreement or other instrument giving power to the trustee by means of which the Notes Issuer may do the …
29 V.I.C. § 1311 Default
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(a) If there is a default in the payment of the principal of or interest on any Hotel Development Notes of a series after the principal or interest becomes due and payable, whether at maturity or upon call for redemption, or if the Notes Issuer or the Government fails or refuses …
29 V.I.C. § 1312 Economic recovery fee
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(a) Purpose. The purpose of the Economic Recovery Fee is to encourage and promote the recovery and improvement, and expansion of the Territory’s hotel sector. (b) Fee. Developers of hotels located or to be located in the U.S. Virgin Islands may apply for authorization to impose a…
29 V.I.C. § 1313 Use of revenues
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(a) The revenues generated from the Designated Hotel Room Occupancy Tax, Designated Casino Tax on Gross Revenue, and the Economic Recovery Fee, approved in accordance with section 1312(c)(1) of this chapter, are to be allocated to and deposited into the Project’s Fund as follows:…
29 V.I.C. § 1314 Annual payments and pledges
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(a) Any hotel project that is a beneficiary of the Hotel Development Program shall pay to the Authority an annual fee to be determined by the Authority; provided that the annual fee shall be either (1) 1.5% of the projected debt service payable that year, or (2) $100,000 per Proj…
29 V.I.C. § 1315 Limitation of liability
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(a) Neither the Directors of the Notes Issuer nor any persons executing Hotel Development Notes issued pursuant to this chapter are liable personally on the Hotel Development Notes by reason of the issuance of the Hotel Development Notes. (b) Notwithstanding any other provision o…
29 V.I.C. § 1316 Project Financing
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If a Developer is financing a Project that could be financed with the proceeds of Hotel Development Notes under this chapter and the proceeds of Tax Incremental Financing Bonds (TIF Bonds) issued under the provisions of the Tax Incremental Financing Act, title 29 Virgin Islands C…
29 V.I.C. § 1317 Expiration
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(a) The provisions of this chapter, except any provisions pertaining to the Economic Recovery Fee for which the expiration is governed by the provisions of section 1312(n) of this chapter, expire on December 31, 2028, with an automatic two-year extension if substantial permitting…
29 V.I.C. § 1318 Virgin Islands Hotel Development Financing Corporation; purpose
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(a) The Virgin Islands Hotel Development Financing Corporation (“VIHDFC”) is established as a subsidiary of the Virgin Islands Public Finance Authority for the specific purpose of overseeing the development, operation and financing of hotels in the United States Virgin Islands, a…
29 V.I.C. § 1319 Qualifications and Eligibility for issuance of tax-exempt bonds
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(a) Loan to Qualified Nonprofit. The VIHDFC may enter into a loan agreement, lease, instalment sale agreement, or similar financing arrangement with a Qualified Nonprofit, under which bond proceeds are loaned, leased, or otherwise made available to the Qualified Nonprofit to carr…
29 V.I.C. § 1320 No Recourse to the Government; use of administrative fees
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(a) Nothing in this chapter shall be construed to authorize the VIHDFC or the Government of the Virgin Islands, nor any of their officers, employees, or agents, to guarantee, insure, or otherwise become liable for any debt issued for a Qualified Nonprofit. (b) The VIHDFC shall no…