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Senate committee approves WSTA lease; three Subbase redevelopment leases held for further review
Summary
The committee approved a 20-year lease for WSTA Radio (bill 36-0089) with a $30,000 annual base rent and $100,000 in lessee improvements. Three larger Subbase lease proposals (36-0199, 36-0204, 36-0205) proposing multi-year terms, phased rent abatements and millions in capital investment were held in committee for additional information and parity checks.
The Senate Committee on Budget, Appropriations and Finance voted to approve a 20-year lease for PEO Productions LLC (doing business as WSTA Radio) covering three Submarine Base parcels and forwarded bill 36-0089 to Rules and Judiciary. The committee held three other Subbase lease proposals for additional review and requested parity checks and more detailed revenue and remediation plans from the Department of Property and Procurement.
WSTA lease approved
PEO Productions (WSTA) will operate under a 20-year lease with two five-year renewal options; the agreed base rent is $30,000 annually (with a reduced permitting/construction rent during an initial two-year work period) and the lessee committed to approximately $100,000 in site and building improvements, including hurricane repairs and security upgrades. Peter Hartley, president of WSTA, said the station has "remained committed to meet the needs of its listeners" and described the outlet as "the people's station" that serves information and emergency roles for the territory.
Three Subbase redevelopment proposals held for further review
The committee held three additional bills that would authorize long-term leases to private developers to rehabilitate multiple Submarine Base parcels and return industrial and warehouse capacity to the market. The Department of Property and Procurement told senators the four prospective lessees together propose tens of millions in capital improvements (estimates ranged from $100,000 for WSTA to multimillion-dollar commitments for warehouse redevelopment); the Submarine Base Warehouse proposal included an initial investment estimate that rose in testimony from about $2 million to as much as $7 million due to rising construction costs.
Assistant Commissioner Vincent Richards described the common structure: multi-year terms (20'30 years), construction/permit-period rent abatements, annual CPI adjustments thereafter, and a revenue-sharing clause (up to 30% of subtenant rent) to capture upside.
Why the committee held the Subbase bills
Senators pressed for parity across the lease packages and asked the department for clearer maps, revenue projections, remediation and abatement plans, and a tighter explanation of how subtenant revenue-sharing would be tracked and audited. The committee recorded support in principle for redevelopment but requested additional data before acting on the larger industrial leases.
Next steps
Bill 36-0089 (WSTA) passed committee on a roll call vote and will go to Rules and Judiciary; the other three Subbase lease bills were held in committee at the chair's discretion pending the requested materials and further staff review.
