E.D.A. To Oversee Compliance Audit Of Ritz-Carlton; Approves Tax Benefits For Amalie Global, Among Other Actions

ST. THOMAS — The U.S. Virgin Islands Economic Development Authority (E.D.A.) announced Friday actions taken on multiple local businesses.

On Thursday, during an executive session of a governing board decision meeting held by the V.I. Economic Development Commission (E.D.C.), the E.D.C. board voted favorably to reconsider the application for tax benefits and incentives from Amalie Global, Inc., and to recommend to Governor Kenneth Mapp that the application from Amalie Global, Inc. be reconsidered for approval.

The E.D.C. board also voted in favor of changes to the application for tax benefits regarding charitable contributions, capital investments and employment along with actions by the board of directors. The Economic Development Bank (E.D.B.) board also decided on loan applications from five local businesses.

Amalie Global, Inc., a designated service business, applied to receive tax exemptions through the U.S. Virgin Islands’ economic development program. This business provides a family office and financial and investment advisory and consulting services, business management services, including human resources and executive training and back office and related services to its clients located outside of the territory.

Following the decision meeting, the E.D.C. board voted to invoke Title 29 of Virgin Islands Code, Chapter 12 Subsection 705(h) to assess extraordinary costs for the use of contractual services for performing a compliance review of RC Hotels Virgin Islands, Inc., doing business as The Ritz-Carlton St. Thomas (“RC Hotels”), an E.D.C. beneficiary. This action was based upon the request of the beneficiary. RC Hotels is a 180-room hotel located in Great Bay, St. Thomas, USVI. RC Hotels was approved for an extension of tax benefits for a period of 10 years on August 6, 2007.

On December 15, 2015, RC Hotels changed ownership from Marriott International Hotels, Inc. to Ashford Thomas LLC, a wholly-owned subsidiary of Ashford Hospitality Prime, Inc. The objective of the request was to expedite a 10-year compliance review of E.D.C. beneficiary RC Hotel within a 60-day period. E.D.A. says it will hire the contractor and oversee the audit process. RC Hotels will pay for the contractor’s services to perform the compliance review.

Following an executive session, the E.D.B. board reported its decisions concerning loan applications from five businesses. This board voted to approve a loan application from Account Ability, LLC; a loan modification for Two Plus Two Corporation to restructure its outstanding loan; a charge-off of the principal balance for a loan issued to Ivan J. James (now deceased) while continuing legal collection action against the collateral securing the loan; and an Offer-in-Compromise (paying less than than which is owed) for Kathleen Henry, doing business as Brownies Disneyland.

The E.D.B. board also approved a new application for collateral support of a loan for Sadi’s Laundromat, LLC. Pending further review, the E.D.B. Board tabled a decision on an application from Cruzan Organix Farm, Inc.