Seniors housing bill advances in Senate

ST. THOMAS - The Senate Finance Committee approved a bill Tuesday to help the V.I. Housing Authority buy land for a new senior living facility on St. Thomas.

The committee also approved two leases for government property.

The original senior housing bill appropriated $1.2 million from the General Fund to the Housing Authority to assist with the purchase of about 8 acres behind Schneider Hospital. The bill was amended Tuesday, however, and the revised legislation authorizes the V.I. Public Finance Authority to reprogram $650,000 in bond proceeds or use any other available funds to help buy the land.

"We have a great need for affordable housing for families, but we have an even greater need to provide senior housing on both islands," Housing Authority Executive Director Robert Graham said.

In 2010, St. Thomas had 14,966 residents - about 15 percent of the island's total population - older than 65. Only three developments offer housing for senior citizens, Graham said. Lucinda Millin Homes houses 85 people; Ebenezer Gardens houses 42; and Sunrise Cove houses 22.

"This current supply of senior housing provides shelter to less than 2 percent of St. Thomas' senior population," Graham said.

Graham estimates the project will cost about $19.5 million, but that cost largely will be carried by private developers using federal low-income tax credits to fund construction. The V.I. Housing Authority also plans to use federal grant funding, program income from other properties and $1.3 million from selling the Warren E. Brown property on St. Thomas to the V.I. Housing Finance Authority in 2010.

The Housing Authority secured an option from the property owner, Lockhart Realty, to purchase 8.82 acres in Estate Thomas, Graham said. The seller appraised the property at $1.6 million, but the authority plans to obtain their own appraisal before negotiating the final purchase price, he said.

"So, basically this is not a done deal? It's still up for negotiation?" Sen. Sammuel Sanes said.

"We hope so," Graham replied.

The design and development of the senior center has been put out to bid, and the field has been narrowed to a few finalists, Graham said. He said the exact details of the project will not be known until a design has been chosen, but the facility will contain about 80 units and amenities, such as a fitness center, computers, a library and hospitality suites for visiting family members.

"The neighborhood, located outside of the central business district, is developing as a health care center, which has the potential to create a safe, stable environment for Virgin Islands senior population and significantly enhance their quality of life," Graham said.

Sen. Shawn-Michael Malone said the $650,000 will be taken from left over or unspent bond proceeds issued for capital projects, and the funds can be reprogrammed because the senior center development also is a capital project. He said the money could not be used for government operations.

Sen. Carlton Dowe, Sen. Louis Hill, Malone, Sanes, Sen. Celestino White Sr. and Sen. Janette Millin Young voted in favor of the bill. Sen. Nereida Rivera-O'Reilly was absent from the hearing Tuesday.

In other business, the committee approved two lease agreements:

- A 20-year lease agreement, with two five-year options to renew, was approved for MLC Holdings, doing business as Import Supply. Import Supply will use 16,152 square feet to operate a generator sales and maintenance business. Import Supply will pay the government $41,357 annually in rent.

- A five-year lease for 142,194 square feet that includes a two-story building was approved for Chevron Caribbean. The primary use of the property is for storing and marketing petroleum products. Chevron Caribbean will pay $167,794.49 in rent annually to the government.

- Contact reporter Aldeth Lewin at 714-9111 or email alewin@dailynews.vi.

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