Authority: Lack of funds holding back Lindqvist
Published: August 26, 2010
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ST. THOMAS — Magens Bay Authority officials gave their annual report for the semi-autonomous agency Wednesday to the V.I. Senate Appropriations and Budget Committee.
The Magens Bay Authority is self-supporting, funding its operations from entrance fees and other revenue. The authority oversees and maintains Magens Bay Park, Drake’s Seat and Smith Bay Park and is governed by a seven-member board.
Magens Bay Authority Chairman Aubrey Nelthropp told senators that while Magens Bay Park is doing very well and expanding and upgrading to keep up with increased use, Smith Bay Park is struggling.
In 2006, the Virgin Islands government purchased the area known as Lindqvist Beach on the northeast shore of St. Thomas. Not long after, the beach was given to Magens Bay Authority to manage, and the area was named Smith Bay Park. A $1.5 million appropriation was passed for the authority to manage the beach, but to date only $712,000 has been received, Nelthropp said.
He said the lack of funding has prevented the authority from moving ahead with infrastructure improvements to the beach — although the beach has been cleaned up and is maintained. While the authority has been collecting $2 per person for usage of the beach, Nelthropp said they get a lot of resistance from locals who do not feel they should pay for a beach that has no amenities.
Another hurdle has been obtaining the needed Coastal Zone Management permits to build a paved access road as well as a bathhouse with storage and office space and two sheds on the beach, he said.
“We want to get this road in here by September,” Nelthropp said.
He said once the plans are approved for the road, which he expects to happen in the next few weeks, the project will be put out to bid. Nelthropp said they will borrow the money from the Magens Bay Authority — which they legally are allowed to do — and then reimburse the authority later, when revenue picks up. He said he expects to see positive cash-flow at Smith Bay Park in about a year.
According to the Legislature’s Post Audit Division report, Magens Bay brought in $1.8 million in revenue and expended $1.6 million to fund operations, leaving the authority with a $211,777 surplus.
Smith Bay Park however, brought in only $20,026 but spent $215,575 to operate the park.
Nelthropp said the revenue from Magens Bay has been funding Smith Bay Park’s operations.
In the last year the authority has made several major upgrades to Magens Bay, Nelthropp said.
“We're always upgrading and expanding the Magens Bay Park,” he said.
Most recently, a second gatehouse was installed, and the entrance road was widened to speed up the line of vehicles that wait to get into the beach on busy weekends.
Also in the last year, the authority finished the new road and parking areas at the back of the beach, installed a handicapped-access ramp from the road to the beach, separated the parking for the tour operators from the taxi drivers, and released a documentary about Magens Bay that retails for $20.
Nelthropp reminded senators that at one point there was a plan to make $150,000 in upgrades to Drake’s Seat, but funding for the project never materialized. He said the authority would like to revisit the plan at some point in the future and move ahead.
