PFA approves lease for new dive shop at King's Alley Hotel

Font size: [A] [A] [A]

ST. THOMAS - The space in the front of King's Alley Hotel, which always was intended to be a restaurant, soon will become a dive shop.

The V.I. Public Finance Authority board approved a lease agreement Wednesday with Dive Experience Inc. for the space.

The dive company was the only respondent to a request for proposals issued by the authority.

The five-year lease will have a five-year option to renew and includes a provision for termination of the lease if the hotel is sold.

The lease begins Sept. 1, and the business owner will be responsible for any build-out or renovations to the space.

King's Alley is owned by the Public Finance Authority, taken in 2001 after the owner, Development Consultants Inc., defaulted on its government-backed loan.

In October 2003, the Public Finance Authority took control of the property and the renovation project, using bond proceeds to fix up the 22 rooms in the main hotel complex and the restaurant.

The simple renovation project was supposed to cost about $2.5 million and be finished by March 2004. The final price tag for the project hit $11.4 million, and the hotel did not open until January 2008.

In 2006, King's Alley Hotel was appraised at $6.5 million, and while the Public Finance Authority has tried to find an interested buyer, the agency has said that to date all offers have been too low.

- Contact reporter Aldeth Lewin at 714-9111 or email

We welcome user discussion on our site, under the following guidelines:

To comment you must first create a profile and sign-in with a verified DISQUS account or social network ID. Sign up here.

Comments in violation of the rules will be denied, and repeat violators will be banned. Please help police the community by flagging offensive comments for our moderators to review. By posting a comment, you agree to our full terms and conditions. Click here to read terms and conditions.

Best of the VI

Best of the VI: After more than 100,000 text and Facebook votes were cast, it is time to unveil the winners.

Daily News E-Edition

Try our e-newspaper delivered to you every day

Island Trader

Good stuff, best buys, great fun

Crucian Trader

Celebrating St. Croix History, Culture and People

Island Action

Your complete guide to where to go and what to do this week in the Virgin Islands.