Committee forwards Kim Foundation lease for Hamburg America building to full Senate after debate

The Committee on Rules and Judiciary voted March 27 to report favorably and forward Bill No. 36-0040, an act approving a lease of the Hamburg America Line building to the Charles M. Kim VI Foundation, Inc. for development of the Virgin Islands Museum of Art.

Sponsor Senate President Milton E. Potter said the foundation has committed roughly $18,000,000 of private funds to demolish and rebuild the deteriorated Hamburg America building and create a museum that would preserve cultural heritage, generate construction and permanent jobs, and enhance downtown Charlotte Amalie’s tourism offering. Potter described the building as a deteriorating safety hazard and said the project would require private investment to address the condition and create a public cultural asset.

Debate: Several senators supported the lease as a no-cost private revitalization of a derelict government-owned property; Senator Alma Francis Heiliger said she “100% support[s]” the measure, calling the project a preservation and public‑benefit opportunity. Other senators raised concerns about long lease terms (members referenced a 99‑year term in debate), potential long-term public-interest protections and consistency with prior lease terms negotiated by property and procurement. Senator Maurice James and others discussed tax issues; legal counsel advised the committee that under Title 33, section 2304, property used for educational, literary, scientific or charitable purposes may be exempt from real‑property taxation and that the lease language requiring payment of real‑property taxes could be voided by statute.

Motion and committee action: Senator Avery L. Lewis moved the committee to vote favorably; the motion passed by roll call with six yeas and one no. The committee will forward the lease to the full Senate.

Clarifying details recorded in the hearing: the proponent cited approximately $18,000,000 in private investment, an estimate of roughly 140 jobs during demolition and construction and 10–20 permanent positions after opening, and multiple prior committee hearings and vetting in Budget, Appropriations and Finance.

Ending: Supporters framed the project as a rare private investment that preserves cultural assets and addresses a public-safety hazard; opponents and some committee members urged caution and noted the need for clear terms protecting the public interest given the long lease horizon.