2 Careening Hole KI, St. Thomas 00802

Property Description

Rare opportunity to own waterfront commercial land between Frenchtown and Subbase Port on St. Thomas, U.S. Virgin Islands. Land is zoned R-3 and qualifies for hotel, condominium, or mulit-family residential development. Views extend out into St. Thomas's harbor, Hassel Island and Water Island. HOTEL DEVELOPMENT ACT The Hotel Development Act (HDA) Program offers an opportunity for investors and developers keen on the hospitality sector, in the US Virgin Islands. This initiative aims to support the growth and progress of the hotel sector an element of the region's tourism-driven economy. The program provides benefits, to qualified projects, which include; -Support for Development: The program assists in the creation, building, reconstruction, and refurbishment of both existing hotel facilities. -Hotel Room Occupancy Tax (HROT) Advantages: New hotels are eligible to benefit from utilizing 100% of the HROT while existing hotels can make use of up to 50% of HROT if 70% of their units were previously damaged, such as by hurricanes. -Economic Recovery Fee (ERF): A fee known as ERF is imposed to cover expenses related to renovating, constructing, and developing hotel properties. The ERF amount is determined as the difference between the HROT rate (12.5%) and an additional rate not exceeding 7.5% chosen by the applicant. -ERF Trust Account: ERF funds can be collected over a 30 year period and deposited into a trust account designated for ERF purposes and are accessible for applicants submitting their applications before December 31st, 2028. -Flexible Fund Utilization: Any remaining funds after project completion can be utilized by developers for enhancements or improvements to the project funded by ERF.