Virgin Islands Real Estate Trends

You may want to think again. This is a follow up to our previous entry about Greater St. James - a wonderful spot directly across from the St. Thomas Yacht Club and a wonderful anchoring spot at Christmas Cove. Following is an excerpt as reported by the Virgin Islands Daily News:

"... owners plan to carve near-pristine Great St. James island into lots for dozens of high-end homes was unanimously vetoed Tuesday by the St. Thomas Coastal Zone Management Committee.

Christian Kjaer of Denmark, who owns the 162-acre island 1 mile southeast of St. Thomas along with several relatives, had applied for a major CZM permit to subdivide the land into 53 lots to be sold for about $750,000 each.

The ecologically rich island, part of a Territorial Marine and Wildlife Sanctuary since 1994, has long been valued by boaters, environmentalists, snorkelers and fishermen.

Great St. James' best-known feature is Christmas Cove, a popular mooring site among both tourists and local residents. Numerous charter yachts and day-sail companies deliver visitors to the cove daily for snorkeling and picnicking.

The committee's environmental concerns included questions over whether clustering the homes would be preferable to spreading 53 lots over the island, thereby minimizing the impact of erosion and preserving more green space for wildlife.

The island is a habitat for the Virgin Islands tree boa, an endangered species. Its land also features six salt ponds used by land and fiddler crabs and at least 12 species of birds, along with a beach used as a nesting area for the endangered green sea turtle.

A set of logistical issues, including insufficient access for residents and government services agencies, further led the committee to find that the proposed development would not be consistent to the greatest possible extent with the V.I. Coastal Zone Management Act.

The island's existing dock would not be sufficient to handle either heavy construction equipment and supplies or provide access for fire trucks in case of emergency, CZM committee member Peggy Simmonds said as she read aloud the committee's findings.

"Staff is concerned that the subdivision development of Great St. James by the applicant is presented in a 'piecemeal' fashion with probable intent to submit a separate application for temporary barge landing in the future," CZM Division staff wrote in their findings. "The Virgin Islands Coastal Zone Management Act was created to prevent uncoordinated and fragmented development within the Coastal Zone. Until proper access to the island by water is adequately addressed, approval cannot be recommended by staff."

In addition, the developer had not submitted a road plan to the V.I. Public Works Department and had not received the approval of the V.I. State Historic Preservation Office, Simmonds said.

The office's approval was needed because the island holds several significant archaeological sites, including Great St. James Village, a set of historic ruins of 17 structures, along with a well, dry-laid stone and coral walls and a grave site.

Plans had called for each residence to include its own cistern, sewage treatment system and generator for power. Simmonds said the application did not fully address whether the developments would be truly self-supporting.

Following the reading of findings, committee chairman Austin Monsanto and members Simmonds, Winston Adams, Fern LaBorde and Henry Harrigan voted unanimously to deny the permit.

Project designer William Karr declined to comment on the committee's decision after Tuesday's meeting."

Owning your own island may seem like a great idea (shades of Swiss Family Robinson) but unfortunately reality may invade your dreams.

We'll keep you posted as things progress on this "tiny island in the sun!"

Opportunity for good press for Virgin Islands Real Estate! I had the pleasure of spending yesterday morning with Steve Bergsman who is on island to research vacation home opportunities in the US Virgin Islands. If you haven't heard of this fascinating writer you could be missing out on some important information and analysis of investing in real estate. Steve's accolades read like this:

"I have been reading Steve Bergsman's insightful real estate reporting and commentary for over a decade. He is one of the best real estate writers in America..." says Jonathan L. Kempner, President and Chief Executive Officer at Mortgage Bankers Association

So with a chapter on the Virgin Islands in Steve's upcoming book to reach the market in Spring 2008 we expect good things.

In the mean time, you may want to check out Steve's previous book - Maverick Real Estate Investing - the art of buying and selling properties like Trump, Zell, Simon, and the world's greatest land owners

"A fascinating story that chronicles the wins and losses of several of the most renowned real estate investors of our time. Insightful and thought provoking, it confirms that if you follow Bergsman's golden rules of real estate investing, the chances of being successful are substantially increased," is what Stephen B. Siegel, Chairman, Global Brokerage CB Richard Ellis thinks of it.

Who knows, reading his first book can help you understand investing and prepare you for your vacation investment in the US Virgin Islands. I was fortunate to receive a copy and will give it my serious attention so look for my personal review shortly.