ST. CROIX — Blue Sky Towers III has filed a federal lawsuit against the Virgin Islands Coastal Zone Management Commission, alleging that the agency's failure to issue a written decision following its rejection of a proposed telecommunications tower on St. Croix has prevented the company from pursuing an appeal, leaving it caught in an “administrative impasse.”
The lawsuit, filed Tuesday in the District Court of the Virgin Islands, stems from the St. Croix CZM Committee's May 2026 decision to deny Blue Sky Towers' application to construct a 150-foot communications tower on the island's East End. The proposed facility was intended to improve wireless coverage for commercial customers and the territory's FirstNet public safety communications network.
Blue Sky Towers originally submitted its application in September 2024, seeking approval to construct a “multi-user wireless communications facility” on a privately owned parcel in Estate Long Point and Cotton Garden.
The project encountered opposition from neighboring residents, who raised concerns about its location, environmental effects and potential impact on surrounding properties. Following several months of consideration, the St. Croix CZM Committee voted unanimously in May to deny the application, despite a recommendation from its professional staff that the project be approved.
As previously reported by V.I. Consortium, commissioners questioned whether the developer had adequately justified its proposed location and documented the reasons other potential sites were rejected.
Days after the denial, an attorney representing Blue Sky Towers emailed officials at the Department of Planning and Natural Resources and CZM, requesting a formal written decision documenting the committee's action.
According to the federal complaint, Assistant CZM Director Gregory Richards responded that because the committee had rejected the staff's final report recommending approval, staff members would not be able to assist commissioners in preparing a written decision.
The absence of that document subsequently prevented the company from challenging the denial, the lawsuit alleges.
In June, Blue Sky Towers attempted to appeal the committee's decision to the Virgin Islands Board of Land Use Appeals. However, according to the complaint, the board informed the company that it could not proceed without a written decision from CZM.
The company maintains that the statutory period for pursuing an appeal has since expired, leaving it unable to obtain administrative review of the denial.
Lawsuit Alleges Violations of Territorial and Federal Law
Blue Sky Towers argues that CZM's failure to issue a written decision violates Title 12, Section 910(d)(4) of the Virgin Islands Code, which requires coastal zone permit decisions to be transmitted in writing to applicants and others who request them.
The company also alleges violations of the federal Telecommunications Act of 1996, which requires state and local agencies denying applications to construct wireless communications facilities to issue written decisions supported by substantial evidence in the record.
A separate provision of the federal law prohibits state and local regulations that effectively prevent the provision of personal wireless services.
According to Blue Sky Towers, its proposed facility would address longstanding cellular coverage gaps on St. Croix's East End, including deficiencies affecting FirstNet, the dedicated broadband communications network used by emergency responders.
The complaint contends that the denial of the project violates that federal prohibition, in addition to the requirements governing written decisions.
Blue Sky Towers is asking the District Court to declare that CZM violated the applicable territorial and federal statutes and to order the commission to immediately issue the written decision required by law.
The company is also requesting an order directing the Board of Land Use Appeals to consider its pending appeal once CZM provides the written decision.
