Economy

After Being Spurned by Former Gov. Mapp, PFA Refinances Island Crossing Shopping Center Tax Increment Revenue Term Note

The Virgin Islands Public Finance Authority (PFA) has announced the restructuring of a $12 million loan to prop up the Island Crossing Shopping Center on St. Croix.  A similar refinancing deal was rejected by PFA two years ago when then-PFA chairman and Gov. Kenneth Mapp, opposed the loan changes he contended taxpayers simply could not afford.  Island Crossing is a controversial economic development project that dates back to 2008 when the Caribbean Development Partners LLC (CDP) received $15 million in public financing for a ambitious mix of affordable housing, retail restaurants, medical offices and other establishments. But the promise of brisk growth at the 42-acre site along the Melvin Evans Highway never quite materialized — nor did the tax revenue that was expected as the project matured. In 2008 the V.I. government enacted the Tax Increment Financing (TIF) legislation as an economic development tool.  Under the TIF Act, 90% of Gross Receipts taxes and Real Estate tax increme...