Governor de Jongh and Lt. Governor Francis met with the leaders of the St. Croix and St. Thomas-St. John business community this morning as the administration continues to assess the economic impact of HOVENSA’s decision to close its oil refinery on St. Croix within the next three months. 

The governor, joined by Tourism Commissioner Beverly Nicholson Doty, Energy Office Director Karl Knight, EDA Chief Executive Officer Percival Clouden and EDA Assistant Chief Executive Officer Jennifer Nugent-Hill, opened the discussion with an overview of the administration’s efforts in responding to the HOVENSA announcement. He addressed the financial impact of HOVENSA’s closing as “more on the order of $100 million.” The governor said that WAPA is identifying alternative suppliers of oil and that HOVENSA will continue to supply fuel and other petroleum products to retailers in the St. Thomas-St. John district.

Concerns raised by the business community leaders included the need for consideration by the VI Economic Development Authority to fast track applications from companies seeking benefits, the need to increase lending, the need for further development of public-private partnerships, and a call for an improved tax structure in the territory. President of the St. Thomas-St. John Chamber of Commerce Richard Berry said he will submit for the governor’s review “about 15 or so initiatives” that have been developed by the business community and the hotel industry that could be implemented in relatively short order. Many of the business leaders asked the governor to work with the business community “to level the playing field for on island small businesses” by proposing an import users tax. Several asked for greater public messaging to urge residents “to buy local” as a means of stimulating local businesses. There was also a call for sustained messaging about the value of the territory’s tourism product and the need for public safety. 

Director Knight spoke of several alternative energy projects which are being finalized for implementation. He also said work was continuing towards an electrical grid interconnection and acknowledged the Alpine Energy proposal is in process. 

Other options under review include incorporating wind to energy technology and studies to determine the feasibility of using coal, liquid natural gas and solar as alternative energy sources. Several business leaders asked about the strict Environmental Protection Agency permit requirements the territory is subjected to and whether those will be waived or somewhat relaxed once the refinery closes. 

In response to a question, the governor noted that at the present time there are no commercial permit applications awaiting approval at the Department of Planning and Natural Resources. 

Commissioner Nicholson Doty briefed business leaders on marketing efforts to continue to stabilize and grow airlift capacity to St. Croix, develop off season promotion strategies and grow the film industry. She announced that nine film projects are already slated for the territory. One is a $3.5 million dollar project which was finalized by Tourism in late December 2011.

Other business leaders in attendance at today’s Government House meeting included: Trudie Prior, President of the V.I. Hotel and Tourism Association; St. Thomas businessmen Tom Brunt and Sebastiano Paiewonsky Cassinelli; St. Croix Chamber President Stuart Logan; St. Croix Chamber of Commerce Executive Director Michael Dembeck; St. Thomas-St. John Chamber of Commerce Executive Director Joe Aubain and Lisa Hamilton, Executive Director of the V.I. Hotel and Tourism Association.

Late this afternoon, a meeting between Governor de Jongh and members of the 29th Legislature was underway to discuss the HOVENSA decision to close the St. Croix refinery.