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Senate committee approves WSTA lease, holds three Subbase redevelopment leases pending more documentation
Summary
The committee approved a 20‑year lease for WSTA/PEO Productions at Subbase (Bill 36‑0089) and held three larger redevelopment leases (Bills 36‑0199, 36‑0204, 36‑0205) for further review; Property & Procurement outlined staged rent abatements, CPI adjustments and revenue‑share terms tied to lessee investment and subtenant income.
The Committee on Budget, Appropriations and Finance considered four government lease bills on Nov. 17 seeking to return underused Subbase and Crown Bay parcels to productive use.
On behalf of the governor, Senate President Milton E. Potter presented the four bills. Assistant Commissioner Vincent Richards of the Department of Property and Procurement described the structure common to the packages: multi‑decade initial terms (20–30 years), rent abatement during permitting and construction, annual CPI adjustments and an escalator that provides the government a share (up to roughly 30%) of base rent collected from subtenants. DPP said the approach aims to attract private capital for large‑scale rehabilitation of hurricane‑damaged assets and to expand local industrial and logistics capacity.
PEO Productions (doing business as WSTA) sought a 20‑year lease for three Subbase parcels to operate a radio station and tower. PEO President Peter Atley told the committee WSTA has long provided emergency broadcasting and community programming; the committee approved Bill 36‑0089 and forwarded it to Rules & Judiciary. The lease includes an initial reduced rent during a construction period (DPP testimony estimated ~$100,000 of improvements) and CPI‑linked rent adjustments after that period.
Three larger redevelopment proposals drew longer questioning and were held for further consideration. Accent Property Management (Bill 36‑0199) proposed phased rehabilitation of Parcels 123 and 129, committing to a multi‑phase capital program and minimum improvements estimated at about $1,000,000. Commercial Investments LLC (Bill 36‑0204) offered to renovate Parcel 30 into climate‑controlled logistics storage (estimated $500k–$600k in improvements) and noted one building is presently occupied by the Department of Education pending its planned relocation. Submarine Base Warehouse LLC (Bill 36‑0205) proposed bulk storage at Crown Bay and cited initial demolition and reconstruction costs; the lessee and DPP acknowledged that construction cost estimates have risen since the proposal was first discussed.
Committee members pressed lessees and DPP for parity across the leases (why rent levels and revenue‑share structures differ), clearer remediation and demolition plans (including CZM permitting), explicit schedules for construction periods and assurances that the government will collect and properly account for lease revenues. DPP agreed to provide maps, spreadsheets and additional contractual language to justify rent and revenue‑share calculations and to explain contingency procedures if government occupants delay transfer of premises.
What happens next: the committee forwarded the WSTA lease to Rules & Judiciary after a favorable vote. It held the three redevelopment bills for additional documentation and to reconcile differences across the proposed lease terms before returning them for further action.
