Preferred Site for World Headquarters

     Testimony of Attorneys Marise James and Marjorie Rawls Roberts On Behalf of Caribbean Space Technologies, LLC and Beal Aerospace, LLC Before the Committee of the Whole Legislature of the Virgin Islands July 23, 1999 5 P.M. AST
     
     President of the Senate and Other Distinguished Senators.
      We appreciate the opportunity to testify before you today regarding Bill No. 23-0098, which ratifies and approves a land exchange agreement between the Government of the Virgin Islands and Beal Aerospace Technologies, Inc., to be assigned to Caribbean Space Technologies for use by Beal Aerospace, both Virgin Islands entities. For purposes of this testimony we will refer to the companies collectively as Beal. We would first like to acknowledge several other people who will testify as part of our presentation or are present to respond to questions. Amy Dempsey of Bioimpact is available to address environmental issues. In addition to Ms. Dempsey, D. Arlen Wheeler, who conducted the appraisals, and Attorney Daryl Dodson, who has reviewed the legality of the land exchange for Beal, are prepared to respond to any questions or concerns you might have.
      We will address three issues related to the land exchange. First, we will address why it is so crucial to Beal Aerospace that it obtain Plots No. 5 and 6, which are the properties that Frank Wiesner deeded to the Virgin Islands Government, and what we will do with the Wiesner property. Second, we will address certain issues related to the legality of the Exchange. Third, we will address issues regarding the valuation of the three parcels. In addition to dealing with the land exchange issues, we will address an issue that has come up regarding a letter dated January 8, 1999, from Federal Fish and Wildlife to Beal Aerospace.
     Beal's Need for the Wiesner Property; What Beal Will Do to Improve It
      Beal will build its World Headquarters on St. Croix. The Headquarters will include executive offices and a rocket assembly facility, a parking lot, and access facilities, on Plots 6, 26 and 28 which Beal has under contract from the Great Pond Trust. Access facilities and the southeastern comer of the building will lie on Plot 6, which is part of the Wiesner property, but not on the small portion of that parcel that fronts the water. We want to emphasize that Beal will not build on Plot 5, which is the part of the Wiesner property that contains almost all of the ocean frontage and historic structures. The conceptual building design is set out as part of the application for rezoning of approximately 55 acres out of the total acreage of 269 acres under contract by Beal, that will be submitted to Commissioner Plaskett next week. Beal would welcome a zoning variance specific for the proposed uses for all the property where it plans to build its World Headquarters. Therefore, we have requested that Governor Charles Turnbull amend Bill No. 230098 to strike Section 2 so that it no longer provides for a zoning variance for Plots 5 and 6, since we will not request a zoning change for Plot 5 and will incorporate any change for Plot 6 in our overall application for a zoning change or variance so that a thorough evaluation can be made.
      In addition to using part of Plot No. 6 for the access road and the World Headquarters building, Beal Aerospace needs the former location of Camp Arawak for several purposes. First, the property is in disrepair and deteriorating. The property is overgrown and its water frontage is highly eroded. The shallow water is muddy due to this severe erosion. The historic structures are falling down and the pre-Colombian sites have no type of protection. They are being impacted by erosion. A derelict property is not the proper environment for a world headquarters. Second, Beal Aerospace requires a buffer area around its World Headquarters. Beal does not intend to have fences around its facility, but it is required to have a secure building to meet State Department Guidelines. Furthermore, it cannot risk having either the Virgin Islands Government sell the property to another party or lease it to an organization that might jeopardize Beal Aerospace's need for security. Beal intends to provide access to the beach and is required to provide a 20-foot easement from South Shore Road to the beach under the IDC law. We anticipate utilizing the Wiesner property for the public easement, bearing in mind that we have many steps still ahead of us -- the rezoning/variance process and the CZM process. We will not permit cars to drive along the beach as currently occurs -- which is extremely detrimental to the sea turtles. Beal is committed to maintaining fisherman access.
      Should Beal obtain the Wiesner Property, it will hire archaeologists and other qualified personnel to examine and to determine how to best preserve the historic structures in accordance with applicable Federal and local statutes and guidelines, looking in particular to the Department of Interior Guidelines for Historic Preservation. It will conduct all applicable archeological and historical studies in accordance with the filing of applications for rezoning and for permits from the Coastal Zone Management Commission and Federal Agencies. Beal will preserve the pre-Columbian artifacts and work with the Virgin Islands Government and appropriate non-profit organizations to display them appropriately. It will seek through its archaeologists to recover and preserve any previously undiscovered pre-Colombian artifacts that may be located during its efforts to improve the Wiesner Property. For example, Beal plans to control the erosion that has already destroyed one sugar mill which is in ruins in the water, and pre-historic artifacts that may be discovered that are eroding out along the shoreline during the shoreline. Beal will incorporate any erosion control within its overall plan for the adjacent property, which we anticipate will involve using vegetative erosion control matting and seashore stabilization grasses.
     Finally, the use of the Wiesner Property is undoubtedly tied to the use of the adjacent property Plots 26 and 28 -- that Beal has under contract. Indeed, much if not most of the objections to the Land Exchange derive from opposition not to purchase of the waterfront areas, but to the development of the areas near the road. This opposition is not from those who want to use the beach but those who simply do not want any development there. The plots in question, Nos. 26 and 28, have been on the market by their private owner for approximately 15 years. They are zoned W-1, which permits development of a hotel, yacht club, amusement park, or auditorium. These permitted uses might have much greater impacts on the Bay than would the construction of a World Headquarters for Beal and Beal Aerospace, and would also similarly alter the view. They would also increase the traffic along the road. However, due to the shallow water and mud bottom near the beach these are not likely uses for the property, and it is much better suited for fecal coliform bacteria was not present in the water at Estate Whim. We would be glad to provide copies of these laboratory tests to the Senators and others.
     
     Letter of January 8, 1991
      Much publicity has been given to a letter sent to Andrew Beal on January 8, 1999, from the United States Fish and Wildlife. This letter was written by Felix Lopez and signed by his field supervisor, James Oland. Representatives of Beal subsequently met with Mr. Lopez in San Juan. 'Me January 8th letter did not indicate that Federal authorities opposed to the Beal project, but that they wished to be included early in the planning process. From the meeting with Mr. Lopez we discovered that his major concerns, and those also voiced by the US Army Corps of Engineers, were the impacts to seagrass beds and turtle nesting and that a thorough alternative analysis must be conducted. Beal will make every effort to see that these and all other environmental concerns are addressed and that environmental impacts are mitigated to the greatest degree feasible. We will be addressing these and other environmental issues in detail during the CZM and US ACOE process.
     
     Conclusion
      In conclusion, it seems that Beal's proposal to bring a clean, high tech industry to the island of St. Croix has produced many conspiracy theories. The truth is that we have no hidden agendas. We want to bring a high tech growth industry to-St. Croix and provide the people of these islands with jobs: not minimum wage dead-end jobs with no benefits and no security, but desirable jobs, technical jobs, and jobs that we hope will bring home many of our Virgin Islanders who have been forced to leave the territory due to the lack of opportunities.
      The land swap is a fair and appropriate proposal that will provide many benefits to this island. It will retain access to the Wiesner parcel waterfront for those who desire it. It will provide Crucians with a new public beach, broad and sandy, not eroded and muddy; not a beach that is difficult to access but one that is conveniently located and accessible by public transportation. Similarly, we are providing the government with a second parcel, suitable for relocation of the Camp Arawak educational and training facilities, and again easily accessible by public transportation for its students.
     This proposal is about something bigger and more important than Beal Aerospace and this land swap. It is the message that we are all sending to other high tech businesses that might seek to relocate here. If it is the will of the elected representatives of these islands that this environmentally benign, economically desirable investment should not be approved, then how can we ever hope to attract any new businesses? How can we ever hope to create good jobs and lure back the lost generation of technically trained young people?
      This concludes our prepared testimony about the land exchange. We will now show pictures of the various sites followed by prepared testimony on job opportunities.