Business View Caribbean - Sept. / Oct. 2014

%XVLQHVV 9LHZ ‡ &DULEEHDQ ² 6HSWHPEHU ‡ 2FWREHU 86 9LUJLQ ,VODQGV right. The mix of intermittent methods, which we all want to do, and know that we can take advantage of we also realize that we can’t be too reliant on them. Otherwise, we would have problems. We really need to be focused on securing the right mix of energy sources to ensure reliable and cost effective delivery. . The other thing that we’re excited about is that while most islands over the years have been reliant on a diesel power generators over the last 50 years, we’re in the process of converting our power generation plants within the WAPA utility to natural gas. And so, with that said, in the coming year we’re going to see significant cost reduction in power for everyone from the person on the street to the businesses and that’s really critical because power is important. Although our tax incentive has easily offset these costs on an annual basis. So that’s one of the trade-offs. There are always trade-offs when you locate in a particular place, whether it’s Boston, St. Croix, St. Thomas, or Caracas, Venezuela. They all have pros and they all have cons and one of our cons has been the high cost of electricity. But we’re working on that with significant relief coming in 2014. BV: When people think about an organization such as yours, they may think of it is as their development programs to help businesses, or efforts to bring new businesses in. But there are examples of a larger impact in the creation and furtherance of a community, a whole community. FENTON-CAMERON: Yes, very much so. This speaks directly to the VIEDA’s Enterprise Zone Commission. What they’re charged with is the rehabilitation of small, more depressed areas in our community, which previously were economically viable locations. They’ve given additional incentives to businesses who develop in those areas, and have funding set aside for provisions such as our Scrape and Paint initiative. The entire effort is towards boosting the infrastructure and the image of the location. Recently, the Enterprise Zone has embarked on a revitalization plan for the Christiansted town in St. Croix. It’s been a number of years that persons have expressed their concern about the appearance of Christiansted and the use of this area for tourist attraction. Christiansted is filled with small business artisans displaying the wares that speak to the cultural background of St. Croix, but land owners and other vested parties, see the possibility for further development of our Cultural Tourism components. So, they had several weeks of meetings called charrettes, to gather all the ideas and once complete, two local architects were obtained to create two versions for a revitalization plan. The community was then invited to see the proposals, review the illustrations, and vote on their preferred option. When the final plan is concluded, it will be a phased process, but it’s one of the ways we’re going to use to seek additional assistance in order to revitalize Christiansted. BV: The trade missions and events that your organization goes to – with all of these assets and all of the advantages that you’ve put together, do you find that it’s resonating with business? Do you find yourself fielding a lot of inquiries? Are you getting the feedback that excites you? CLUTZ: The U.S. Virgin Islands is a pretty small place in a very, very loud dynamic, competitive world. So in order for us to get our fair share of interest, visits and eventually investments, we’ve got to be really very active in our targeted markets. Now that doesn’t mean we’re out advertising across the board and speaking to everyone. We’re very targeted about our approach and the events and geographic activities that we do are focused based on those strategies and it includes everyone from the Governor, V I Tourism, our partners on down to our VIEDA divisions -Marketing, Applications, Compliance and others participating in this activity. We are seeing the results. We’ve had an increase in the number of applications this year over the last. We are getting the types of companies that we would like to attract, and for those that are not yet responding, we’re working on adapting our products and our assets; fine-tuning those so that we can become more competitive. We know it’s a unique place – this is not about locating to a place like Cincinnati – it’s a series of 86 9LUJLQ ,VODQGV 6HSWHPEHU ‡ 2FWREHU ² &DULEEHDQ ‡ %XVLQHVV 9LHZ islands out in the Caribbean, albeit a very nice location. The weather is absolutely stunning and it’s a great place to do business, with great people, great food, and short commutes. The U.S. Virgin Islands has got a great lifestyle and great amenities for business, but we still understand, it’s not for everybody. The people that make that trip to locate their business, they are ones that are typically more adventurous than others and also looking for tax advantages that we have, but also looking for quality of life that’s unique and so it doesn’t play to everyone. It does play to a certain set of people and companies, and we’re on track to speak to those people, introducing the concept of this as the potential location for their firm. FENTON-CAMERON: We’re here to facilitate the process. We want people to understand there’s no right or wrong. Once you’re coming in to apply for benefits, demonstrating your desire to move here, we’re here to walk you through and facilitate the process, because there is an approval process. However, even if there are some questions or concerns, we will outline those to you so that you’re well aware of what it takes in order to receive these benefits and be approved. BV: That’s the beauty of an effective VIEDA – you help the businesses eliminate the guesswork and they can come and readily access resources. And that’s the other advantage of a small community, when there is that resolve to grow and that want to attract businesses, when businesses come into a community like that, they find that there’s a greater receptivity and willingness to assist in the process and they end up being more welcoming than maybe what someone would find in Ohio or some other areas of the world. CLUTZ: That’s true, we expect that. We frequently getcomparedtono-taxregions, suchasCaymanIslands, things of that nature, and those are jurisdictions where companies can set up post office box operations and avoid tax. As we know in the United States, that’s very much frowned upon and illegal. Our program is not about that. Our program is about creating economic prosperity in the territory through the investment by companies from the outside. We want them to come to the territory, take advantage of its special tax situation, which allows them to pay a reduced rate, not a zero-tax, but reduced rate, hire and train our people, which is also very critical to the program, and become an active part of the community. So each beneficiary applies, there are expectations in order to get those benefits, things such as having training programs for local people, hiring the local people – as the requirement is to make a good faith effort to have 80 percent of the staff be local – being active in the community in terms of supporting charities through donations, but also in-kind activities, sponsorships, training programs, events, etc. So, we, as a small community, want companies that are going to play a key role, a positive role, in our community, but also be a productive unit of the society. It’s a special kind of business owner, with a particular business structure, that proves to be a perfect fit for our U.S. Virgin Islands.