ST. THOMAS — A longstanding federal property obstacle that has delayed the second phase of the Veterans Drive expansion in downtown Charlotte Amalie has been resolved through an agreement between the Government of the Virgin Islands and the U.S. Coast Guard, Governor Albert Bryan Jr. announced Monday, advancing a project expected to cost approximately $100 million.
The agreement addresses federal property issues along the St. Thomas waterfront that have prevented the project from progressing for years. Its resolution allows the government to move forward with federal procurement and the remaining property acquisition requirements, bringing the long-awaited roadway expansion closer to construction.
Bryan announced the development during his weekly Government House press briefing, crediting negotiations involving the Coast Guard, Federal Highway Administration, Eastern Federal Lands Highway Division, and the V.I. Departments of Public Works and Property and Procurement.
"This is a project the people of St. Thomas have been waiting a long time to see move forward, and I understand why," Bryan said. "We finished the first phase in 2021, and we have been working ever since to get this next phase off the ground. It has taken a lot of work with our federal partners to get through these property issues, but we have finally gotten to a place where we can move forward."
The announcement comes as the project enters a significant federal contracting stage.
According to a Federal Highway Administration procurement notice posted November 5, the planned work involves reconstructing and widening approximately 2,052 feet of Veterans Drive, or roughly 0.39 miles, to create a continuous four-lane roadway with two lanes in each direction.
The federal notice, identified as solicitation 693C73-27-R-000012, estimates the construction work at between $80 million and $90 million across multiple work schedules and contract options.
That estimate is separate from the approximately $100 million the Bryan administration anticipates for property acquisition and construction-related costs associated with Phase 2.
Federal officials expect solicitation documents to become available around November 19, with contractor proposals due January 13, 2027. The procurement is being administered by the Federal Highway Administration's Eastern Federal Lands Highway Division.
The federal notice also establishes a 32.10 percent disadvantaged business enterprise subcontracting goal, requiring the selected contractor to meet the target or demonstrate good-faith efforts toward doing so.
Phase 2 will extend the waterfront improvements completed in December 2021, including the four-lane expansion of Veterans Drive around the Virgin Islands Legislature.
The planned work includes a tree-lined pedestrian promenade, upgraded drainage systems, seawall reinforcement and other improvements designed to reduce congestion, strengthen coastal infrastructure and improve access for pedestrians.
The Consortium reported when Phase 1 opened in December 2021 that the subsequent expansion was intended to extend the improved roadway around the Legislature peninsula toward the Blyden ferry terminal.
The new Coast Guard agreement follows another significant milestone announced earlier this year.
On May 26, the Department of Public Works announced that it had secured the final federal environmental permit from the U.S. Army Corps of Engineers. At the time, officials anticipated moving into solicitation within 30 to 45 days, although they acknowledged that Coast Guard right-of-way matters remained unresolved.
The federal pre-solicitation notice was ultimately posted on November 5, several months beyond that earlier projected timeline.
Despite the latest agreement, additional steps remain before construction can begin. Government House said final property surveys, appraisals and required approvals must still be completed. The federal procurement notice also states that contract award or a notice to proceed remains subject to permitting requirements.
The administration did not announce a construction commencement date or disclose the specific terms of the Coast Guard property agreement.
With Governor Bryan preparing to leave office in January, the project is among the major infrastructure undertakings expected to continue under the incoming Plaskett-Potter administration.
"We still have a lot of work to do, and we're going to keep pushing these projects right up until our last day in office," Bryan said. "We're not going to finish every project before we leave. That's the reality of government. But what we can do is make sure the work keeps moving and that the next administration has something solid to build on."
