Senate committee holds bill on 20-year lease for Cruz Bay taxi stand after contested testimony

The Committee on Budget, Appropriation and Finance of the 36th Legislature held Bill No. 36‑0092, a proposed lease between the government of the U.S. Virgin Islands and the Saint John Taxi Services Corporation for Parcel D‑2 (Cruise Bay, Cruz Bay, St. John), after a roll-call vote at a June 18 hearing in the Cleon H. C. Crickie Legislative Conference Room.

The vote to hold the measure in committee at the call of the chair passed on a roll call reported as 3 in favor, 2 opposed and 2 absent. Senator Dwayne M. DeGraff made the motion to hold; Senator Ray Fonseca seconded it.

Why it matters: Parcel D‑2 at Cruz Bay is the main public taxi stand and the primary point of entry for many visitors to St. John. Supporters told the committee a formal long-term lease would create legal clarity, allow capital investment and protect government interests; opponents and several drivers warned a single long-term lease risks excluding independent drivers and institutionalizing unfair discipline or fees.

Assistant Commissioner Vincent Richards of the Department of Property and Procurement testified that the department seeks legislative approval for the proposed lease and described the agreement’s key terms. He said the parcel is approximately 2,700 square feet (about 0.062 U.S. acres) and that the department previously issued a one‑year revocable license ratified Sept. 27, 2024, while it evaluated the site. "The lease agreement requires legislative approval under 31 V.I. Code §205," Richards said. He told senators the proposed lease term is 20 years with two optional five‑year renewals, and that the agreement would require a minimum of $1,000,000 in general liability coverage.

Richards described the rent schedule that was included in the package: $9,600 annually (payable at $800 per month) for the initial two years, an escalation to $12,000 annually in the third and fourth years and $14,400 in later years through the sixth year, with annual adjustments thereafter tied to the U.S. Consumer Price Index.

Sean L. Claxton, president of Saint John Taxi Services Corporation, urged approval. He said the nonprofit association represents 34 licensed drivers and that a long lease would let the group invest in a small dispatch kiosk, passenger waiting areas and other infrastructure. "A 20‑year lease will enable our association to invest in upgrades to the taxi stand infrastructure," Claxton said in testimony, and he told the committee the group planned a small 6‑by‑6 kiosk and a modest modernization plan. Claxton also described membership benefits — including a driver assistance loan program — and said the association has a grievance and disciplinary structure.

Opposition and drivers’ complaints

Several testifiers, and a written submission read into the record by the clerk, opposed granting a long lease to a single entity. Carmen Wesselhoff Hedrington, an independent St. John taxi driver whose written testimony was read for medical reasons, said she presented a petition with more than 50 signatures opposing any lease. "This public taxi stand should not be leased out, period," her testimony said, noting a 1980 law establishing the Cruz Bay taxi stand and warning that a long lease had caused chaos in past administrations.

Drivers who spoke in person described discipline and access problems under the association’s current temporary arrangement. Patrick A. Hendrickson Sr., who identified himself as a longtime taxi operator, said he was suspended from the stand after driving the wrong way on a street while off duty and that suspensions have been imposed without what he called fair notice or consistent procedures. "I was sent home… I was suspended for wrongdoing I say is unjust," Hendrickson said. He also complained about inconsistent enforcement of a dress code and about nonmembers charging for use of the stand.

Claxton and association leaders responded that the group has a handbook with rules, an appeal process and a disciplinary committee; Claxton told the panel drivers are allowed to work while an appeal is pending and that the association was prepared to accommodate nonmembers. Several senators pressed Claxton on whether independents would be excluded or charged a higher daily fee (testimony described $10 daily for members and $20 for nonmembers under current practice).

Senators’ concerns and next steps

Committee members voiced split views. Some senators said the government should not allow continued informal use of public property and that a lease provides accountability and protection for the territory; others expressed concern about granting exclusive long‑term control of the island’s only cruise‑dock taxi stand to a single group without broader consensus among drivers. The committee chair and other senators discussed drafting companion language to protect independent drivers’ access and to limit fees and exclusionary practices if the legislature ultimately approves a lease.

After roughly two and a half hours of testimony and public comment the committee voted to "hold" the bill in committee at the call of the chair for further work. Committee discussion identified at least two follow‑up items: (1) additional documentation from the association (current articles/amendments and bylaws); and (2) drafting a companion protection measure that would require any future lease or agreement ensuring continued access for nonmember/independent drivers and establish limits on fees or discriminatory practices.

Votes at a glance

- Motion: Hold Bill No. 36‑0092 in committee at the call of the chair (motion by Sen. Dwayne M. DeGraff; seconded by Sen. Ray Fonseca). Outcome: Motion carried (reported roll call: 3 yes, 2 no, 2 absent). The motion was described in committee as "hold in committee at the call of the chair."

What remains unresolved: the committee kept the temporary revocable license in effect but did not forward a final recommendation on the proposed 20‑year lease. Senators directed staff and counsel to return with clarified incorporation documents for the association, more detailed financials, and draft statutory or contractual language to protect access for independent drivers before the committee considers a final vote.

Sources and speaker attributions in this article come directly from the June 18 committee hearing transcript and on‑the‑record testimony by: Vincent Richards, assistant commissioner, Department of Property and Procurement; Sean L. Claxton, president, Saint John Taxi Services Corporation; Patrick A. Hendrickson Sr., taxi driver; and written testimony by Carmen Wesselhoff Hedrington read into the record.

Ending: The committee will reconvene the matter after staff and the parties produce the additional documentation requested by senators. The Cruz Bay taxi stand remains under the temporary revocable arrangement with the Department of Property and Procurement until the committee issues further instruction or the full legislature acts.