Senate budget committee approves three long-term leases for St. Thomas properties, holds one for further review

The Committee on Budget, Appropriations and Finance on Feb. 3, 2026 approved three long-term lease agreements that would turn underused government properties in the St. Thomas district over to private developers and held a fourth measure for further consideration.

The committee voted to advance bill 36-0199, approving a 30-year lease with Accent Property Management LLC for Parcels 123 and 129 at Sub Base, and bill 36-0204, approving a 30-year lease with Commercial Investments LLC for Parcel 30 at Submarine Base; it also approved bill 36-0237 for DM Hospitality LLC to lease two downtown properties on Crystal Gutter. A separate measure, bill 36-0205 for Submarine Base Warehouse LLC, did not receive a second on a motion to pass and was left in committee.

Why it matters: the four leases are intended to return derelict or storm-damaged buildings to productive commercial use, expand warehouse and office capacity, and generate recurring rent revenue for the government while preserving government ownership of the land.

The department's case and developers's proposals Vincent Richards, assistant commissioner of the Department of Property and Procurement, told the committee the projects would repair or replace hurricane-damaged structures, clear debris and bring approximately 74,000'75,000 square feet of industrial, warehouse and office space back to market. On Accent's parcels, he said, "Accent will undertake at its own expense and cost phase property improvements valued at approximately $3,000,000," and the agency expects lessees to pay additional rent equal to as much as 30% of base rent collected from subtenants.

Developers said they already have local experience and financing. Rhonda D'Souza of Accent Property Management said Accent had expended capital to clear the sites and was ready to move forward to support logistics and disaster-recovery supply chains. Julius Perez Puedinan, representing Commercial Investments LLC, said his company planned about $500,000 in improvements to convert a one-story building into climate-controlled logistics space. DM Hospitality representatives said they would invest at least $250,000 to restore a historic downtown structure for a commissary kitchen, office space and food-and-beverage operations.

Tensions in committee: rents, sublease shares and possession Several senators pressed developers and the department about the leases' economic terms and practical risks. Senator Dwayne M. DeGraff criticized the proposed rents for some parcels, saying he would "never agree to that" in reference to the $144,000 annual rent proposed for one Accent parcel and the $60,000 annual rent for another. Senators also questioned graduated sublease-sharing schedules, which vary by project and phase, and asked why the government negotiated lower immediate percentages for some developers.

Assistant Commissioner Richards defended the differences as necessary given distinct business plans and investment scales, and said the department was authorized in prior sessions to negotiate sublease terms to attract redevelopment. Lawful possession and occupancy also drew scrutiny: some parcels remain occupied by informal occupants or contain structures that require demolition, and senators asked whether the government could be left renting replacement space for Bureau of Motor Vehicles operations. Richards said the leases include protections for developers if the government cannot immediately convey possession and that the agency is pursuing alternatives for displaced government functions.

Actions and votes - 36-0199 (Accent Property Management LLC): Motion to approve as amended carried; roll call recorded 6 yea, 1 absent. The committee forwarded the bill to Rules and Judiciary for further consideration. - 36-0204 (Commercial Investments LLC): Amendment adopted to raise post-construction annual rent and clarify reduced-rent months; committee approved as amended and forwarded to Rules and Judiciary (roll call recorded as 5 yea, 1 absent, 1 not voting). - 36-0205 (Submarine Base Warehouse LLC): A motion to pass failed for lack of a second; legal counsel confirmed a failed motion left the bill held in committee for further work. - 36-0237 (DM Hospitality LLC): Committee voted to approve and forwarded the bill to Rules and Judiciary (roll call recorded as 6 yea, 1 absent).

What comes next Committee members asked the department to return with clarified language on force majeure, environmental mitigation and inspection/maintenance enforcement, and some senators asked for more consistency across lease templates. The approved bills will next be considered by the Rules and Judiciary Committee. The held bill will remain in committee until sponsors resolve outstanding concerns, the committee indicated.

Quotes "Accent will undertake at its own expense and cost phase property improvements valued at approximately $3,000,000," Vincent Richards told the committee in describing Accent's commitments. "I'll never agree to that," Senator Dwayne M. DeGraff said of the $144,000 annual rent proposed for one parcel. "When the motion failed for lack of a second, the bill was automatically held in committee," legal counsel Charlene Rogers said when members sought procedural clarity.

Ending The committee recessed after extended questioning and returned to record multiple motions and roll-call votes. The three approved leases move to Rules and Judiciary for vetting; the submarine-base warehouse measure remains under study in committee.