ST. THOMAS — A proposed 169-room resort in Estate Bakkero could operate under the Hilton, Hyatt or Marriott brand, developers told lawmakers Monday, as they sought approval to rezone additional property needed for the hotel development near Morningstar Beach.
St. Thomas Hospitality LLC, the company behind the proposed resort, is pursuing conversations with the three international hotel companies but has not finalized an agreement with any of them, according to attorney George Dudley, who represented the developer during Monday's Committee of the Whole hearing.
Dudley explained that the final layout and amenities of the development will depend partly on which hotel company agrees to affiliate with the property.
"The plans for the site cannot be finalized until we have concluded an agreement with the flag," he told lawmakers, explaining that the chosen company would have specific requirements for the hotel.
The proposed development would occupy approximately 6.66 acres in Frenchman's Bay Quarter, where St. Thomas Hospitality intends to construct a resort-style property with guest accommodations across multiple buildings, a swimming pool, restaurant, spa and supporting facilities.
Under Bill 36-0407, the company is seeking to rezone two parcels totaling 1.37 acres at Estate Bakkero from R-1, residential-low density, to R-3, residential-medium density.
The parcels are surrounded by other R-3 properties owned by the developer. Approval would bring the additional acreage into conformity with the larger development site, allowing the company to incorporate the existing residential structure into the resort as a reception area.
Gail Pagan, a planning technician with the Department of Planning and Natural Resources, told lawmakers that the proposed hotel would include "approximately 169 guest rooms distributed among multiple buildings, with amenities including a pool, restaurant, spa, parking facilities, and hotel support services."
The plans also include an on-site sewage treatment plant and localized electricity generation.
DPNR has recommended approval of the rezoning, citing its compatibility with the territory's Comprehensive Land and Water Use Plan and the surrounding area's existing hospitality developments.
The department said the project would support tourism investment, expand visitor accommodations and create employment opportunities.
Neighbors raise concerns about traffic and infrastructure
Although DPNR supports the application, the project has generated concerns among neighboring property owners.
During a July 20 public hearing, residents raised questions about traffic, parking availability, road improvements, stormwater management and wastewater treatment.
Additional concerns included the project's proximity to Morningstar Beach and its potential effects on the surrounding residential neighborhood.
Pagan acknowledged that many of those issues remain under review because the hotel is still in the design phase.
Dudley told Senator Franklin Johnson that the development's engineers have considered the objections raised by residents. "The engineers have all taken into account the concerns that were expressed by the public," he said. He explained that once the additional parcels are rezoned, internal roads would be constructed throughout the 6.66-acre property to provide access to guest rooms and amenities.
Parking is also expected to include a multilevel garage, although the final design and number of spaces have not been determined.
Ryan Lee, who will assume a senior oversight role in the development, assured lawmakers that there is "ample space" on the property for such a structure.
Environmental considerations could also affect construction. DPNR has identified the possibility that Virgin Islands tree boas, a protected species, may be present in the area. The developer has been advised of the relevant protocols established by the Division of Fish and Wildlife should the species be encountered during construction.
Developers anticipate construction challenges
Lawmakers also questioned the developer's ability to complete the project amid labor shortages, supply chain constraints and competing construction activity across the territory.
Senator Novelle Francis raised concerns about the availability of construction materials, prompting Lee to reference his involvement in approximately 30 ongoing projects throughout the United States.
"We can overcome it," Lee said.
He also expressed confidence in the developer's ability to recruit employees for the hotel once it opens, citing employment benefits that could be provided through an affiliation with an established hotel franchise.
"I think that we won't have a problem staffing," he said.
However, the availability of workers needed to construct the hotel remains a separate concern.
Lee estimated that construction could take approximately two years once the necessary permits are secured, but Dudley cautioned against committing to that timeline.
"I forgot to tell him that when you look at the clock here, sometimes it runs backwards. We got to make sure that we're not making promises that I know we can't keep," Dudley said.
He explained that the developer would be competing for construction resources with large companies employing hundreds of workers as disaster recovery projects accelerate throughout the territory.
"We still have to keep our promise to develop the hotel within some kind of a reasonable budget on a reasonable timetable," he said.
Despite those concerns, Lee maintained that financing would not prevent the development from proceeding.
"We've been developing hotels for about 25 years now, and we are very, very well funded," he told lawmakers.
The company did not provide a final construction budget during the hearing.
Senators support investment, encourage local hiring
Several lawmakers expressed support for the proposed resort, pointing to its potential to create jobs and generate additional government revenue.
Dudley argued that the Virgin Islands must continue expanding and modernizing its hotel inventory to remain competitive as a tourism destination.
"We need to keep our hotel amenity inventory modern and fresh to continue attracting hotel visitors," he said. He also highlighted the potential for increased gross receipts, hotel occupancy and income tax collections.
Senator Hubert Frederick welcomed the proposed investment. "I support any business venture that will improve the overall economy of the Virgin Islands," Frederick said.
Senator Avery Lewis likewise expressed enthusiasm about the potential economic benefits. "I see economic growth there. That's jobs," Lewis said, urging the developer to purchase supplies locally whenever possible and ensure that employees receive the benefits available under any eventual hotel franchise arrangement. "Whatever benefits you have, make sure it's passed on to the employees as well," he added.
The proposed resort remains in the planning stages. A final hotel brand, parking design, construction cost and development schedule have not been established.
While DPNR has endorsed the rezoning, legislative approval remains outstanding. Lawmakers took no vote on the measure during Monday's Committee of the Whole hearing, and further action will be required before the zoning change can take effect.
