Senate finance committee advances 50-year lease renewal for Tropical Marine Inc. in Red Hook

The Committee on Budget, Appropriations and Finance approved bill 36-0028 on March 18, 2025, voting to forward the proposed lease between the Government of the U.S. Virgin Islands and Tropical Marine Inc. for parcel 37-1, Estate Nada No. 2, Red Hook, St. Thomas, for further consideration by the Committee on Rules and Judiciary.

The approved measure would renew a legislative lease in favor of Tropical Marine — a family-owned marina business that, testifying to the committee, said it has operated at the site since 1980. Assistant Commissioner Vincent Richards of the Department of Property and Procurement told the committee the lessee has been on the site since November 2005 and has a record of keeping its account in good standing. Richards said the department supports the lease under 31 V.I. Code §205(c) and described the tract as approximately 20,908 square feet of upland and about 7,083 square feet of unsurveyed submerged land, to be used for a retail shop, commercial spaces, marine engine repair, parking and related marine purposes.

Tropical Marine president Carmen Ruan told senators the business has weathered hurricanes and the COVID-19 pandemic, that her son and grandson are involved in operations, and that upgrades and expansion are now necessary to keep pace with the territory’s marine industry. Ruan said the marina currently has about 25 in-the-water slips and roughly 80 onshore moorings and that the in-water slips are fully occupied.

Under the proposed lease, the initial term is 50 years with two additional 10-year options. Annual rent begins at $30,000 ($2,500 per month) and rent adjustments are tied to the Consumer Price Index. The lease includes a 24-month construction period and requires minimum general liability insurance of $1,000,000; the department must approve permits and licenses required to develop the premises. Richards said the lessee provided required documentation, including business licensing and certificates of good standing.

The committee motion to approve the bill on the floor was made by Senator Ray Fonseca and seconded by Senator Dwayne DeGraff. The clerk recorded the committee vote as 6 in favor, 0 opposed, 1 absent; the measure will now go to the Committee on Rules and Judiciary for additional vetting.

The committee and witnesses clarified administrative details during questioning, including the lease area, the construction timeline, the rent schedule, and insurance and permitting requirements. Richards said the department considers the proposal a partnership that unlocks government-owned property value while supporting a multi-generational local business.

The matter now proceeds to Rules and Judiciary, where the full text and attachments will be reviewed before any final floor action.

Ending: The committee left open requests for follow-up materials (for example, property insurance documentation and copies of permitting policy) before final legislative action; the lease remains subject to additional review in Rules and Judiciary.