Governor John deJongh has signed off on the first development project in the US Virgin Islands that will use Tax Increment Financing as a vehicle for funding. Financing for The Island Crossing Project on St Croix was formulated through the efforts of the Public Finance Authority (PFA) and the Economic Development Authority. First Bank VI also assisted financing the project.
“This public / private partnership will provide employment opportunities for about 200 St Croix residents and will be the basis for the introduction of the popular Home Depot store to St Croix. Several other tenants are slated to occupy space in the center which will be located in Estate Barren Spot including medical facilities, restaurants and other offices,” deJongh said.
The Governor explained that tax increment financing, or TIF, is a proven approach for achieving the goals of economic expansion. Many states and municipalities have implemented TIF legislation which has generated significant funding of public infrastructure improvements and other investments in support of a broad range of economic development projects. He explained, “TIF works by allowing projects to be financed by pledging the increases in tax revenues that can be reasonably anticipated to be collected by government once the financed project or activity is completed…TIF is a vehicle to strengthen the relationship between government and the private sector.”
This is one more example of what is in our economic future. Contact a Coldwell Banker agent to discuss St Croix real estate.