News of St. John, U.S. Virgin Islands

Subway Closed

A domino tile falls. It knocks over another, and that’s apparently why the St. John Subway is closed.

The International House of Pancakes at Tutu Mall on St. Thomas, is closing. 

Allie-Allison Petrus, a former V.I. Senator, is the owner of the 15-month-old franchise operation. He also owns several Subway restaurants, including the unit on St. John.

About the IHOP closing, the St. Thomas Source quoted Petrus saying,  “We have seen our WAPA bill (electricity) hover around $11,000 and our cooking gas now around $3,000 monthly, not to mention a leasing rental expense around $13,500.”

As we said, Petrus also owns several Subway sandwich shops, one of which is - er, was - in Cruz Bay.  It is now closed, according to locals. The business is still listed for sale:  http://www.islandiarealestate.com/Details.cfm?id=28&type=commercial.

Here's the Source's report: http://www.onepaper.com/stthomasvi/?v=d&i=&s=News:Local&p=1206160157

Taxi drivers endorse Pond Bay

Update:  Gov. John deJongh was among 100 people who attended the official groundbreaking of the Pond Bay luxury hotel project at Chocolate Hole on Tuesday, according to the St. John Source. 

The ceremony follows almost 30 years of planning and previous failed efforts to develop the land.  Leona Smith, St. John Administrator, said Pond bay will be good for the economy.  And the Source quoted Sen. Roosevelt David saying, “The taxi drivers are in favor of it.” 

Full story: http://www.onepaper.com/stjohnvi/?v=d&i=&s=News:Local&p=1206159868

Believe me, there's been plenty of ground broken already.  Here's what it looks like.

Marketing for the 15-acre “Luxury Private Residence Club” is well underway.  There is a sales office at the Marketplace. 

Plans are for 50 three-bedroom villas and cottage, a 140-seat fine dining restaurant and a 12,000 square-foot world-renowned ESPA destination spa which will, according to promotional material "feature relaxation rooms with tropical gardens, (and) heat experiences with coral steam rooms," Vitality Pools, Body Jet Showers and Rock Saunas and a gym.

Here’s a Web site promoting Pond Bay.  It’s been on the web since last July.  Things still move slowly on St. John: http://www.foliocollection.com/#pb-intro  Islandia Real Estate is also marketing the project.

Condo owner likes Grande Bay's 'European' flavor

A few owners of the St. John's new condo development overlooking Cruz Bay have moved in and one has talked about it.  Raymond Krek says he likes the “European living” experience of being close to town, restaurants and the ferry dock. 

The trial lawyer from Wisconsin spoke about life at the waterside condominium development to Eloise Anderson, publisher of the St. John Sun Times.  About the controversy surrounding the still-unfinished project, Krek said, “If someone says they’re upset we bought here, well I’d say, ‘Let’s talk about it.’  I think we’d have more things in common than we would have differences.”

Krek said that even though the controversial Grande Bay is years behind schedule, and not exactly what he contracted for, “It was worth the wait.” Anderson’s impression of Krek’s unit: “It’s a fine view, but it’s quite small.”  (Reading the article, you get the idea it’s a one-bedroom condo.)

Another condo owner refused Anderson's interview request, “fearing negative publicity," she wrote.

Toys r Us coming to St. John?

Not likely, you would think.

But for the past couple weeks on the Monster.,com employment Web site, there’s been a “Store Manager” listing for Toys r Us/Babies r Us with the location given as US-VI-St. John.  The ad says the successful candidate should have five years retail experience and will be “Responsible for creating a supportive culture where there is a partnership commitment among the team.”

The News of St. John reader who alerted the Inquiring Iguana to this item commented, “Hmmm, typo or has the recent villa boom called for this store on island? :)”

Here’s a link to the ad: http://jobview.monster.com/GetJob.aspx?JobID=70574047&JobTitle=Store+Manager&lid=51&lid=1381&brd=1&cy=us&vw=b&AVSDM=2008-04-07+16%3a40%3a00&pg=1&seq=6

Grande Bay uses the 'B' word

On the one hand, the news is good about what's going on down on the waterfront at the Grande Bay condo project.  Work on many units is complete, buyers have gone to closing, and inspectors have signed Certificates of Occupancy. Some of the condos are occupied.

On the other hand, nine units on two upper floors have not closed. The developers say they need the money from those sales to finish the project. They are blaming an island family’s lawsuit for their problem.

The matter came to another head this week in V.I. Superior Court, during a hearing covered by the Virgin Islands Daily News.  Read the story here.

Bay Isle Associates testified that the lawsuit by the Jadan family and Liza Trey, claiming their property value has been damaged by the project, has prevented closing on condos. 

No closing = no money changes hands. The Daily News reported an attorney from St. Thomas said that because of the Jadan-Trey claims, buyers cannot get title insurance and so won't complete their purchases.

Proceeds from those sales are so critical, said Grande Bay’s general partner, that bankruptcy is possible, according to the Daily News story.  David Band told the court the project’s Florida developers had to go to friends to raise $10 million dollars for a construction loan payment that had come due. 

Bankruptcy, "the B word", is the last thing anyone wants to think about Grande Bay.  While the darn thing is unbelievably big, crammed onto 1.03 acres, it's there and it's not going away.  You just hope that the folks who have watched this project, since ground breaking in 2003 and well past the original completion target of 2006, will try like heck to make sure the next commercial development doesn't run off the rails, too. (Maybe Pastory Gardens? Lots of commercial interest in that beautiful site up Centerline Road.)

Chocolate Hole webcam

It's a beautiful (Monday) day in the neighborhood.  And we know that because of a new Webcam that's been fired up at Chocolate Hole villa, Serendipity. Here's a link to the Cam.

Word of the Cam came from the Virgin-Islands-On-Line Forum.  Read all about it here.

Retail/Office center sale pending

There's a "Sale Pending" message on the Multiple Listing Service entry for Palm Plaza. The two-story retail strip is located on the South Shore Road and is near the Westin.  Listing price recently was $2.25 million.  When originally listed, in winter of '06, the asking price was $2.6 million.

Palm Plaza was built years ago and quickly became a favorite of locals and visitors for a gourmet deli/special foods store on the first floor.  When that business closed, energy went out of the center. Retail vacancies began to appear.

With a new retail strip being built right across the road, next to the Guinea Gut apartments, Palm Plaza might not continue as a retail project.  Especially since it's been pitched to buyers since last February as, "Ideal for condominium conversion.

New on the market this week: Little Fish, the children's toy store at Coral Bay's Cocoloba Plaza.  Asking price: $48,000.

Villa sales slump in Q-1

Last week's post suggesting home buying may be picking up looks premature wrong.

Results for the first three months of the year are in. They are dismal. According to Islandia Real Estate’s Web site, there were only two homes which went to closing in the first quarter. A house in Catherineberg and one at Rendezvous were purchased for a total of $5.26 million dollars. That's an average price of $2.63 million.

The average home price in 2007 was $1.98 million, including the record-setting $14 million Mugar property at Peter Bay.

“Though the numbers do not show it, there is much more real estate activity this year than last, with a lot of people looking,” said Merry Nash, president of Islandia. “I expect to see a lot more contracts in this quarter than last, particularly in commercial and development properties as those in the know look forward to a prosperous future for St. John.” She said the slump in sales is not resulting in bargain pricing. “Though there are a few really motivated sellers, prices in general are holding firm.”

Real estate sales activity: http://www.islandiarealestate.com/statsummary.cfm

Property owners seek halt to tax collection

A coalition of St. Johnians wants a federal judge to order a halt to government efforts to collect taxes based on a recently completed real estate revaluation study.The Virgin islands Unity Day Group has hired James Derr to to make the arguement to a federal judge.  Derr is the same attorney who, eight years ago, led the successful effort to begin a reworking of the islands’ property tax system.

Derr said his clients have been trying to work with the Tax Assessor, to rectify what are said to be huge disparities in property valuations, out and our errors, and revaluations that have increased values b y as much as 1000%.  “They tried going through the process, and they got to the point where nothing more happened,” Derr said, according to a report by the Virgin islands Daily News. (Read the full story here http://www.virginislandsdailynews.com/index.pl/article_home?id=17622715.)  Derr’s legal complaint says “The methodology used to generate assessed values ... was unfair, unreasonable, and discriminatory.”

Disclaimer:  Mrs Inquiring Iguana and I.I. are supporting the Unity Day Group's effort.

Home sales appear stronger

Judging from the Multiple Listing Service, the residential real estate business is picking up.  At least eight homes have “Sale Pending” notices on their listings, the most I’ve seen in a long time.  The most expensive property apparently under contract (nearly $3 million) is a new four-bedroom villa at Rendezvous Bay. Features include a pool, spa, media room and gym.  The least expensive is a “cute island cottage” near Coral Bay, priced at $349,500.

In the last six weeks, the average house listing price has risen slightly from $2.065 million to $2.167 million while the median price of a house for sale on the MLS has held steady at $1.5 million. The largest number of homes for sale are in Chocolate Hole, with an average asking price of $1.8 million.  Carolina (Coral Bay) has 23 homes for sale at an average of $1.2 million.  There are 14 listings at Rendezvous/Ditliff and 13 in Fish Bay.

On the commercial side, it appears the Cruz Bay Subway is back on the market, at $150,000.  A week ago, the MLS showed a sale pending graphic, but it’s gone now.  Meanwhile, Estate Zootenvaal  (at right), located on the shore of East End’s Hurricane Hole, is offered at $14 million.  It includes four short-term rental cottages and a white powder beach on nearly 5 acres. Web site: http://www.estatezootenvaal.com/

Uncertain future of Maho Bay land

Kayre Carney, the listing agent for the almost-14 acres on which Maho Bay Campground sits, says there have been several expressions of interest in the land.  The price tag is $32 million. 

Carney told the Virgin Islands Daily News several prospective buyers have mentioned developing the land as a resort.  But she said the folks who have come to actually see it are looking at possible residential use. "It's a no brainer," she told the Daily News. "It's the safe rate of return." 

As projects like Pond Bay have shown, developing a resort can take an awful lot of time and money.  Selling building lots is more simple. Read the Daily News story: http://www.virginislandsdailynews.com/index.pl/article_home?id=17621493

The photo at left is a sign from the Trust for Public Land, one of several on island; this one at Little Maho.  The Trust previously purchased land around Maho, and has been interested in this last piece, but needs to do fund raising to make it happen.

Tax protesters seek attorney

Some property owners on St. John are seeking to raise $20,000 to hire an attorney to fight results of the the Territory's recent real estate revaluation. 

Real estate agents and villa management companies are among those who have been alerting property owners off island about the project organized by the St. John Unity Day Group.  "It's very unfair and it's going to hurt everybody," Linda Sorenson, an owner, told the St. John Source.  "Just because our properties are overvalued, we're going to be overtaxed." The revaluations boosted assessments by as much as 500 percent or more for some properties.

"Many properties have been either over or under valued because the procedures employed for arriving at the new valuations are fundamentally and fatally flawed," the Unity Day Group said in an e-mail soliciting funds. "Implementation of these new valuations will have a disastrous and far reaching impact on our island. Many St. John residents will be forced to sell their properties if these unfair property tax values are instituted."
 

Many people - like the Inquiring Iguana - sent an appeal to the Tax Assessor, indicating he'd be happy to sell for the outasite estimated valuation.  After months of silence, he received a letter from the Assessor saying that his valuation was being raised $4,000. 

So much for due process.

The Unity Group is asking for contributions of $100 from property owners to build a legal fund. They may be sent to Box 371, St. John VI, 00831-0371.

Island Blues on the market

This ad appeared this week in the Tradewinds and the Virgin Islands Daily News.

"Island Blues restaurant for sale.  Owners looking for quick sale. Leased until 4/30/2012.  Best offer.  Call Sarah at 774-2547." 

Here's the Island Blues Web site: http://syrinx.meccahosting.com/~a0002e33/

In other real estate news, the Multiple Listing Service is showing there is a sales contract pending on the Subway, listed for $150,000.

Development: it's here. Get over it.

Yesterday's posting of updated photos of the island's major construction projects have brought comments offering real anger and frustration about Sirenusa, Grande Bay, and Pond Bay.

It's time for a reality check.

For some time, I've been critical of the island development, particularly the monster homes and McMansions so different from the Caribbean cottages we found here in the late '70s.  But at some point, you have to grow up and realize other people have found he island, too.  Get over it.

In most places, if the Ritz or Four Seasons said it wanted to build a resort in town, people would applaud and governments would rush to provide tax incentives to make a deal happen.  Development means construction jobs now, service employment later, and new tax revenues from the groundbreaking to operation.

Besides, if you'd like to see what a freeze on construction can do, remember what the sub-prime mess has done to the nation's economy for the past 14 months.  Real estate sales are down as much as 15% (slowing on St. John, too).  The ripples of that weakness have turned into waves of pain for retailers, professionals, transportation companies, banks, and more.  We're all feeling it.

Chances are the town where you live is different, too.  And if you've lived there more than 10 years, you probably say to your neighbor, "Boy, has our town changed!"  Well, it's the same thing here.  You can't expect St. John to stay as it was 10, 20, or even 5 years ago.  It's not an island in aspic.

I'm also going to suggest that the folks buying these new condos and timeshares won't get in the way of you eco-visitors or beach-and-a-book types like me.  The folks at Pond Bay, for instance, will do everything they can to keep guests on the property.  Their own beach, restaurants, gift shops, waters ports, etc.  I suspect, unfortunately, they will be successful.  It's not often you meet someone staying at Caneel having dinner at Fish Trap or even Paradiso.  Tourists who want the kind of all-in-one cocoon experience they will find at Pond Bay are unlikely to leave the enclave.  I wish they would.  The downtown restaurants can use the business.  (Some are even closed on weekends, partly because the villa renters are eating in.) I'd like the high-end resort tourists to get out and see the beaches and the hikes, but as someone recently said when I encouraged him to see the North Shore, "You've seen one beach, you've seen 'em all."

I think that what really galls people about the island's development is the government's failure to exploit and manage it.  Granted, this is not Bermuda, where comfort, appearance and image are primary. Grande Bay and Sirenusa show that hearings and permits and procedures don't seem to matter much.  The consequences are projects that are too big, too close, and too dense.

The other irritant is that those extra tax dollars don't seem to have any effect on island.  Gifft Hill and the North Shore roads are a parade of potholes, there is no safe pedestrian path from the ferry dock to Mongoose, finding a parking space is a fantasy, and Cruz Bay Park is too busy and noisy and dirty.

Whatever it is that attracted you to St. John, chances are it's still here.  Francis Bay has pelicans.  The Reef Bay hike has petroglyphs.  East End has Vie's Snack Shop.  Coral Bay has Skinny's.  Hawksnest is a great beach.

When you came for the first time, you 'found'  St. John.  But even then, you could have found people who said, "You should have seen this five years ago."  Time does fly.

Construction update photos

The three big projects. (Click the photos for larger images.)

Grande Bay, Cruz Bay

Not much activity on the site, a few guys milling around.  Street level still unfinished.

Sirenusa, Enighed

Unbelievably gorgeous up there, with incredible western views of St. Thomas and the British Virgin Islands.  The MLS shows a 3-bedroom unit just went under contract at $2.1 million

Pond Bay, Chocolate Hole

You won't believe how big it is.

Grande Bay buyers settle with developer

Developers of the Grande Bay condominiums and several dozen condo buyers have come to an agreement and avoided a hearing in V.I. Superior Court. The purchasers claimed the project is deficient in promised amenities and fails to meet environmental and safety standards. 

The Virgin Islands Daily News was unable to report details of what Bay isles Associates LLP called an "amicable agreement." One owner told the newspaper it was his expectation "construction will move forward." (Click here for the full story: http://www.virginislandsdailynews.com/index.pl/article_home?id=17621407)

During an earlier court hearing, a condo buyer testified that she was in fact living in the development now and, since she knows it's the Virgin Islands, didn't really expect features like Internet access, parking, or the pool would be completed when she moved in.

In fact, Grande Bay's web site is consistent with that attitude.  The last "Construction Update" is for June, 2006.  And when you click on the tab showing the condo resort's "Amenities" the page is blank.

She may, in fact, have neighbors.  Thursday night, it appeared there were lights on in what could have been five Grande Bay units.  But the project still looks like an unfinished construction site at street level, along the waterfront in Cruz Bay.

Chesney's house for sale at $14 million

You can own Stoneridge, Kenny Chesney's seven-bedroom home overlooking Caneel Bay and the North Shore of St John, if you're rich. The luxurious estate was built in 1979. 

The Multiple Listing Service blurb offering the house says it is "Situated amidst and abutting preserved National Park lands ... (and) no expense was spared." 

Stoneridge includes 10,600 square feet of living space on about 1.5 acres.  By comparison, it is said that the 40-some condo units of Grande Bay have been built on a parcel just one acre.

Some folks are wondering whether Chesney's affair with St. John is cooling - he sold another home on island last year.  He reportedly still owns a property in Chocolate Hole.

Author's new St. John project 'up in the air'

I just tore through Mike Mullen's saga of building a McMansion villa on St. John, 'Keep Left'. One day on the Caneel beach, with time out for that $40 hamburger, and the book was done. 

I remembered that Mike told me the experience hadn't soured him on construction projects here.  In fact, he had another one in the works.  Turns out it's at Maria Bluff, right next door to a house we used to own.  It's also just around the corner from Blue Tang, where we are staying until mid-March.

So, we walked up there this afternoon - homing in on the loud Spanish music radio we heard blaring from the workers' truck.  Maybe half a dozen guys were on the site, after 4 p.m. (Donna said, 'Wow, they're working late!)  The foundation is in, the cistern is poured, a dipping pool is formed in and it looks like the guys are working the first of what will be a two-floor house. 

The land, as I remember it, may be half an acre or more.  But, honest to God, 50% of it is air.  There's land on one side, where our former house is, then straight down to the ocean, then some more land.  Mike's managed to get an architect to find a way to build a reasonably-sized house (I think he said it's two bedrooms) that won't fall down the hill. 

In his book, Mullen said, I remember, several other architects had taken a swipe at doing plans.

Quite an adventure.

Maho Bay in the Wall Street Journal

This ad ran in Friday's Journal.

 

 

Former Caneel exec lands on Virgin Gorda

Rik Blyth's seen several different islands since he left the top spot at Caneel Bay Resort. 

In a bold move, the Virgin Islands Hotel Association hired him to power the Territory's hospitality industry. That lasted six months. Blyth told the Virgin Islands Daily News he was accustomed to large organizations with hundreds of employees.  "It just wasn't the right decision for me ... I just felt very miscast (in a small nonprofit association)."

But he's back in the private sector, and happy. He e-mailed to say, "I have just taken over as GM of Virgin Gorda's Biras Creek Resort and will also be involved in the Oil Nut Bay residential development that is going in next door to Biras.

Property tax bills likely in Spring

The Assessor expects to put property tax bills in the mail in April. 

Roy L. Martin said owners who are still unhappy with their valuations can then file formal appeals with his office. There has been an 'informal' appeal process going on since a Territory-wide revaluation was released last Fall, and some "tax bills (have been) recalculated to reflect the lower values characteristic of the real estate market in 2006," the St. John Source reported.  Martin said re-revaluation data will be posted to the Assessor's Web site, but didn't say when. (Read the full story here: http://www.onepaper.com/stjohnvi/?v=d&i=&s=News:Local&p=1203138795)

His comments came after the VI Senate approved a property tax bill, similar to one proposed by the Governor establishing different tax rates for various categories of property. The Assessor said property values will be adjusted each year. The Senate-passed bill puts a three percent cap on the amount taxes can increase "within a five-year period," the Source reported.

If history is a guide, there's still a lot of time before taxes have to be paid.  For starters, a federal court has to approve the new tax rates and process. 

Real estate update: lower prices

Inventory of homes is up just a bit, while the price tags appear to be coming down. 

The Multiple Listing Service this past weekend listed 133 properties for sale, compared to 126 which were on the market a year ago.  That's an increase of 5.5%. 

Pricing is showing a greater change. A year ago the average listing price was $2.31 million. This month, its $2.065 million, a drop of 11%.  In January 2007, the median house price was $1.7 million, today it's $1.5, 12% lower.

Grand trouble at Grande Bay

The Virgin islands Daily News reported that would-be buyers of condos at Grande Bay began arguing in V.I. Superior Court why they shouldn't be forced to close on the purchases.  Dozens of would-be buyers say the units are not safe and that promised amenities are not in place.

Most troubling: One of the buyers, DC attorney Thomas Hill III, testified he's been told by agents of the developer that the project is "potentially on the verge of foreclosure."

Here's the Daily News story: http://www.virginislandsdailynews.com/index.pl/article_home?id=17620036.

Does Cruz Bay face the possibility of an unfinished project smack in the face of arriving visitors?  Not to mention the looming Sirenusa.

A do-over for real estate values

Published reports quote government officials saying villa owners - and everybody else with a stake in real estate in the territory - can expect some new numbers within a week or so. They may mean lower tax bills.  Or not.

It's said that Bearing Point, which conducted a review of all properties on the three islands, has been dealing with hundreds of complaints and appeals, a reported 660 on St. John alone.  Bearing Point has reviewed some of its work, and some of the properties, and is going to issue re-revaluations within a week or two.

Even though some valuations may be reduced, the question of what will happen to property taxes is still open.  The Governor and the Senate have failed to reach agreement on new property tax rates, while the Senate approved a budget for the year which spends $10 million more than the total of previous property tax payments.  In other words,  the politicians have decided to spend even more than they expect to collect.

• Read more about the re-revaluation in the Virgin Islands Daily News: St. John residents strongly denounce property valuations

Governor on taxes, real estate, Park

Gov. John P. deJongh, Jr. delivered his second State of the Territory Address Tuesday night.

We read the speech, looking for St. John references, so you don't have to.

• Mistakes made in development
  "On St. John we have allowed certain development to proceed that can be viewed as nothing short of questionable and threatening to the environment, and therefore more in the interest of special interests than the overall community."
   
• Another promise to hire a Planner
  "On St. John, we have funded the principal planner position and are again advertising the position. We have met with the Urban Land Institute so that they can assist us in jump-starting the planning process once the St. John planner is on-board. The island of St. John offers a unique experience to both visitors and locals. It is now time for us to tap this potential as a positive and to toss away the restrictions that have blinded us to the possibilities."


• The Park is a friend
  "The land ownership of the National Park must be taken for the positive role that it plays and the reality that it represents to our economy. The National Park must be seen to be, and must as act as, a part of this community."


• Property Taxes
  "As to taxes, it is time to talk bluntly about real property taxes. I have sent you a bill which awaits final action. We are all aware that the increase in property values across the Territory, and especially on St. John, created a problem that had to be addressed. This is why my proposal went to great lengths to mitigate the impact of the new property valuations on the vast majority of our home and property owners. The Legislature has passed a budget that included the revenues that were to be generated by real property taxes, well aware that real property tax reform was a precondition, a required first step. It is now time to take that step."

• Farming in Coral Bay
  "We also identified and secured acreage in Coral Bay, St. John to lease to residents interested in crop production––a first time opportunity for St. John residents. We were also successful in getting federal legislation amended that will allow for us to apply for funds to which we have historically been denied access."
  
  
• New school
  "We are also moving ahead with the new school for St. John, and are working with the Delegate and our congressional allies to gain the cooperation of the National Park Service in providing the land that is necessary."
  

Read the full text of the speech: http://www.governordejongh.com/features/2008/address/remarks.html

Governor may talk property taxes tonight

Here's the link for the Webcast of the Governor's speech, 6 p.m. Eastern: http://www.governordejongh.com/features/2008/address/index.html

Villa owners have nervously been waiting for the Government to make up its mind about what to do with the recent territory-wide real estate reassessments.  That's because St. John property owners found their valuations increasing by as much as 500%, while some properties on St. Thomas and St. Croix saw declines.  St. Johnans who own everything from cottages to mini-estates fear their property taxes will skyrocket.

Governor John deJongh has proposed a scale of tax rates for properties which, nonetheless, would still boost St. John levies several hundred percent.  Last week, the Senate began debating the issue, with a variety of suggestions, including don't issue new incredibly higher tax bills and reconsider the entire revaluation project.

It's likely the Governor will have something to say about the matter this week, during his second annual State of the Territory speech.  It will be available live online, audio and video - check back here for the web site.  The address is scheduled for 7 p.m. (6 p.m. Eastern).

Island home sales mirror national market

St. John's real estate market in 2007 could have been a lot worse. The National Association of Realtors reported an almost 13% decline in U.S. home sales during the year.  On St. John, there were 29 homes reported sold last year, a 12% drop from the 33 transactions in 2006.

Karye Carney of Islandia Real Estate called the year's results, "reassuring, particularly if you read the doom and gloom scenario for the mainland resort markets overall."  However, land sales were a bleaker story. "(The) speculative land sector of the market fared quite poorly with only 27 sales in 2007 compared to 49 in 2006."

Despite the lower number of home sales, the value of the transactions rose to $57.5 million, the second highest total in history.  However, the number was inflated by the record sale ($14 million) of a Peter Bay residence.  By itself, that transaction added $500,000 to the "average sales price" for the year, which was $1.982 million.  Without that high end deal, the average price would have been $1.482 million, about the same as in 2006.

The most active neighborhoods for business were Chocolate Hole (6 transactions), Carolina (5), Peter Bay (3) and Rendezvous/Ditliff (3).

A roundup of real estate sales on island is available at http://www.islandiarealestate.com/statsummary.cfm

Book store sale pending

The island's only bookstore may soon have a new owner. 

The store, located at the Marketplace, was listed for sale a couple months ago, because the business' owners   would be making an employment-related move off island.   An employee reportedly told an author trying to place his book on the store's shelves last month that the Book & Bean would "close soon." But now the Multiple Listing Service has a "Sale Pending" tag on the offering.  The asking price was lowered last month to $75,000.

Speaking of price cuts, the asking price for the Stone Terrace restaurant has been reduced to $575,000 from $650,000.  American Paradise is the listing agent.

Maho Bay Campground for sale: $32 million

Last we heard, the Trust for Public Land was to meet with the owners of the 13.8 acres on which Stanley Selengut built his award-winning eco-tourist resort.  If they met, they didn't make a deal. It's for sale.

On Friday, the Wall Street Journal's high-end real estate page included an ad for the property. Islandia Real Estate's Kayre Carney was listed as the contact. Since the offering is on the Multiple Listing Service, any of island real estate firm can provide information. It has also been advertised in a St. John newspaper.

The ad for the "rare opportunity" said: "13.8 acres zoned resort or residential white sandy beach front located within the National Park.  Currently Maho Bay Campground; property offered subject to lease expiring 2012."  The land includes 850  feet of shoreline.   The fact the MLS lists it as a "Land" offering suggests it's being marketed as a real estate development opportunity.

In the current issue of Travel + Leisure magazine, Maho Bay is called the island's best value. 

Real estate picking up

The market's got a pulse.

The Multiple Listing Service reports there's a contract pending for the old Marina Market building on the South Shore road. A big price reduction to $995,000 spurred interest in the commercial space and prompted a contract from a buyer.

Meanwhile, Islandia's Amy Dupont blogged that "We have seen an increase in real estate activity in November with 9 sold properties and 11 under contract,which is twice as many as the month of November in 2006, and more than double the activity of October 2007.   Buyers are finding some good opportunities."

Eliminate property taxes

Sounds good, doesn't it?  It's a suggestion from Steve Black, a longtime island resident and thoughtful member of the island community.  For example, Steve's been deeply involved in the effort to get a new school built on St. John.

Black suggests that homes rented to vacationers should be taxed as commercial properties.  A few years ago, I heard the Territory's Tax Assessor tell the St. John Rotary Club he liked that idea, too.

The result: even higher property taxes and, equally likely, higher rental rates.

He also thinks the territory's Economic Development Commission regulations, which extend huge income tax benefits to business owners, should "be designed better to provide a 'leg up,' not a lifelong 'handout.'

In his Guest Opinion for the Virgin Islands Daily News, Black didn't suggest that home renters are doing anything wrong.  What concerns him is that as real estate values have risen, primarily driven by villa buyers.  That means longtime residents' homes and assessments are also being pulled higher. 

It is wrong, Black said, "that our homes are burdened by the popularity of tourism and commercial profits instead of being partners in success."

Taxing villas as businesses could happen.  The Territory is in the midst of restructuring its real estate tax system.  The Governor has proposed there be four categories of properties, with different tax rates.  John deJongh's idea lumps all homes, rental or not, into the residential category. 

Anything can happen when legislators are in session.  One of them might even have read the Daily News.

Another reason villa rental rates could rise

Owners of rented villas are nervously waiting to see their new tax bills, based on a Territory-wide reappraisal project that took more than a year.  We've already seen properties whose assessment quintupled and, at best, face a property tax bill twice or there times what it has been.

Now comes another "gotcha".  The electric company wants to raise rates 30%. 

Remember the story about Tage having a $5,000 a month power bill?  Well, how about another $1,500?  How many more meals would the restaurant have had to serve to generate extra cash to pay that bill?

Villa owners face the same challenge.  Stories about renters who turn on the a,.c,. and then leave the windows open while they take off for the beach are all too common. At our Blue Tang, with two air conditioned bedrooms, a $500 bill for one month is not out of the ordinary.

Homeowners and businesses are angry about WAPA's push for this rate increase, especially since the utility's directors also just approved a plan to begin hedging their purchases of the fuel oil their generators use.  Is it conceivable they haven't be doing this already? Airlines, manufacturers, other utility companies have hedged their needs for years, but WAPA's just getting around to it - with oil at $92/barrel.  Great!

The Virgin Islands Daily News has a story about the rate hike increase proposal here: http://www.virginislandsdailynews.com/index.pl/article_home?id=17617256

St. John restaurants available

A reader wrote, "In the piece about Tage being closed, you mentioned 5 restaurants for sale. What eateries are for sale?"

Here they are:

Pastory Gardens, $6 million
    This is really a real estate land development offering
Stone Terrace, $650,000
Baked in the Sun, $450,000.
Chilly Billy's, $275,000
(Formerly) Duffy's, $200,000
Cafe Roma, $175,000

Source: Multiple Listing Service

Maho Bay Camps land for sale

The Trust for Public Land is hoping to acquire the 14 acres which include Stanley Selengut's Maho Bay Camps. 

A director of the trust told St. John Rotary the lease for Maho Bay expires in 2012 and the land owner, Geri-Geri Corp., has it listed for sale "for a healthy price," according to the St. John Source.  Greg Chelius said the Trust plans to meet with the owner's attorneys in New York next month.

Earlier this year, the Trust made a $19 million deal for Park acreage inland. Chelius told Rotary how his group got a foothold in the 419-acre parcel. 

One of the heirs had been presumed dead because he'd not been heard from for years.  The trust hired a private investigator who, in fact, found the heir, Joey Adler, living in a Veterans Affairs facility in California.  He received $1 million and is now more comfortable, and the Trust had the land which let it negotiate with other heirs.

St. John golf course for sale

The island's miniature golf course can be yours.  It's part of Pastory Gardens and the Compass Rose restaurant. (at left).  But the businesses are not all the real value.  It's the land: several acres on St. John high up and offering wonderful sunset views of St. Thomas in the U.S. Virgin Islands.

Originally developed as a restaurant and a butterfly exhibit (that never was completed), the owners failed to get permits and approvals to add condominiums to the site. The current real estate offering indicates bulldozers may still get to go to work. Zoning "allows a multitude of uses such as shopping center, hotel, condos, apts.," according to the listing. Asking price: $6 million.  Pastory Gardens' Web site: http://www.pastorygardens.com/4436.html

Under Contract:  Cruz Bay Realty says a sale is pending for Gym in Paradise is under contract. It went on the market more than two years ago for $140,000. Located on the third floor of the Marketplace, the workout facility was last priced for sale at $75,000. 

National Geographic warning for St. John

St. John is a wonderful place for vacationing. Will it stay that way? 

The chances are good it can, according a survey of experts in "sustainable tourism and destination stewardship" to rank islands around the world by National Geographic Traveler.  But there is uncertainty about whether St. John will retain its charm. 

"Best in the Caribbean," said survey participants who evaluated St. John.  (Not all members of the panel reviewed each island.)

"The national park has saved this virgin from being tired like St. Thomas,"  they continued. "There's almost no trash along the roads, you can hike for a couple of miles without coming across structures, and there are fabulous bays reachable only on foot (or boat); snorkeling is outstanding."

But other comments about St. John warned, "One-third of the island is not park and is under siege with
over-scaled villas. Cruz Bay is losing its ramshackle charm to newer buildings containing shopping malls and real estate developers. Traffic is congested."

Included among the people who offered opinions about St. John and other islands were Rafe Boulon, the Park's chief of environmental resources, and Randy Brown, the V.I. Environmental Resource Station's administrator.  Boulon told the St. John Source he was asked to participate in the survey by e-mail.

The magazine ranked 111 islands and archipelagos and ranked them according to the danger they face from "tourism overkill."  Denmark's Faroe Islands were rated at the top of the list with a score of 87, which the magazine said means they are "Authentic, unspoiled, and likely to remain so."  St. John scored a 70, indicating "minor difficulties."

St. Thomas had a score of 37 and was at the absolute bottom of the list.  Comments:  "A mess—too many cruise ships disgorging their passengers into the small town. Totally spoiled and low-quality, high-volume destination. The main town is essentially one big, ugly jewelry store, but the island is nice outside of the main town."

The Traveler article can be read at  http://www.nationalgeographic.com/traveler/features/islandsrated0711/islands.html

Read this if you love St. John

A few months ago, word on island was that a writer from Conde Nast Traveler was working on a story about St. John. Some folks worried the result would be a piece about how crime has increased in the past few years, as it has in many places.

The story's out now and that's not its focus. It is a very thoughtful essay about the island, what's made it a respite and even refuge for many, and the effects of all the new condo and villa construction.

"We thought we had discovered an island unknown to tourists," Joanne says. "Now it's being overpopulated. It's not our oasis anymore. We'll try to find someplace more secluded next trip. Maybe the other side." Read the full article: http://www.concierge.com/cntraveler/articles/detail?articleId=11507&pageNumber=1

Report: Chesney selling land at half-price

The Inquiring Iguana (hereinafter possibly to be known as i-Iguana - ' cause I just bought an Apple MacBook and now everything will have an "i' in front of it) hears that Kenny Chesney's got done a deal to sell his mountaintop land in upper Peter Bay. 

The three-acre lot is reportedly where the singer and Renee Zelwegger were married. It's said to have been on the market almost a year and a half. 

The original asking price was $11 million.  The i-Iguana hears from a former villa-owner who understands the deal was done for about half ... $6.5 million. Ouch!

Marina Market price cut

For $995,000, you can own the former Marina Market building on the South Shore Road.

American Paradise Realty is advertising the property and its adjacent parking lot saying, "Price just slashed."  There was a contract on the property last October, when the original asking price was $1.395 million.  It fell through.

I've always thought it would be a great spot for a gourmet deli and liquor store, but I heard the place is also a lot more than a handyman's special; that it would require a much fix-up work to meet building codes.  But maybe a 40% drop in price gives a potential owner the necessary breathing room to make a deal work.

Updated: Ranking the Realtors

I've been wondering which island real estate firm is the biggest, in terms of the number of residential properties its agents have listed on the Multiple Listing Service.

I went to the Web sites of about a dozen island firms to find which firms had how many listings. Of the 115 properties listed for sale, brokers' Web sites identified 110 of them as their's.

• Holiday Homes 30
• American Paradise 26
• Islandia Real Estate 21
• Cruz Bay Realty 13
• John McCann & Assoc. 7
• Remax Island Paradise 6
• Town & Country 5
• St. John Properties 1
• Reggie's Real Estate Group 1

This is useful information if you're interested in a particular house.  If you're being shown houses by a firm which also listed the property, well - you need to be aware of that possible conflict. Looking at a real estate firm's own Web site can make you a more savvy shopper.

(Updated 10/17 to include John McCann & Assoc.) and Reggie's Real Estate Group.)

Home sales down, average price up

This is turning into a site about real estate, it would appear. Certainly it's a popular subject.

The latest tidbits come from Islandia Real Estate's Web site and its residential home sales update. Year-to-date, 25 homes have been sold on St. John, compared to 31 a year ago, a decline of 19%. Six home sales went to closing during June, July, and August.

For the year, the average sale price for a home is $2.09 million. Islandia said that number is "skewed upwards 40% due to the unusual number of high end market sales, four this year."  Homes sold in 2007 drew an average 7% less than listing price.

In the quartet of this year's very expensive property sales was the island's most costly home, ever, David Mugar's property at Peter Bay. It brought $14 million. Interestingly, the house sold for 14% more than it was originally listed. 

This year, four homes sold for more than $3.5 million, three transactions between $2 million and $3,.5 million.  The "low end (under $2 mil) of the market (was) still moving well with 18 sold," Islandia reported. Only on St. John do you find homes priced at $21.75 million classified as cheap.

You can read Islandia's third quarter real estate report here.

Residential inventory down, prices steady

The real estate market looks pretty quiet, judging from the Multiple Listing Service’s data. The number of homes for sale has fallen 18% in the past six months, but the average price of a listed home has held steady at about $2.2 million. The median price of a listed home has decreased about 10% to $1.6 million.

Cafe Roma is back on the market, formally.  The popular second-floor Italian restaurant is offered at $175,000.  Roma's been for sale unofficially, through word of mouth, for more than a year, but now it looks like Joshlynn Crosley, the owner and a long time St. Johnian, wants to move on.

Condo-wise, while the Sirenusa construction project not only physically looms over Cruz Bay and dominates the view, it's making up a big chunk of the condo market.  There are 17 Sirenusa offerings out of the MLS's 55 condos. The prices range from $1.395 million for a 2-bedroom to $2.5 million for a 4-bedroom.  Half a dozen Grande Bay units are also on the list, ranging from a two-bedroom to $895,000 to another double at $1.025 million.

Changes at the Marketplace

Summertime doings at the shopping center which is best known as the home of Starfish Market.

Home Accents is gone.  The former interior furnishings store is being replaced by a sales office for the Pond Bay Club at Chocolate Hole. A marketing flyer says, "Pond Bay Club is planned to be a private enclave of spacious villas and cottages with the amenities of a spa, swimming pools, restaurant, beach club and clubhouse."

Across the hallway, the Mail Center is under new ownership.  The Jason Corley family, of Coral Bay, bought it late last month.  Nakira remains the manager of the business offering rental mailboxes, package pickup and shipping, great service and personal attention, and - always - a smiley face

Downstairs, on the first floor, the Starfish Gourmet Food and Wine shop is still under construction.  But now you can come up to the glass front and peer in and see what, if anything, is going on inside.  Opening date?  Soon come :)

SRO at St. John tax meeting

The St. John Source has an excellent report on last night's town hall meeting about the real estate revaluation project.

"If we're not careful, not too many of these faces will be here in a few years," (St. John resident Theodora Moorehead) said, looking around the diverse St. John community gathered for the meeting.

Read the Source story here.

New real estate tax rates for Virgin Islands

If you own a house valued by the Tax Assessor at $1.5 million (like a modest 2-bedroom home), you can expect your new tax bill to be $5,400, under a schedule of tax rates proposed by the Lt. Governor this week.

Gregory Francis said the differentiated rates were a strategy to deal with the huge increases in the recent revaluation project, according to the St. John Source.

The Lt. Gov proposed tax rates of .0036% on residential property, .0065 for commercial property, .0110 for timeshares, and .0046 for land.  The average property owner would see property taxes more than double, from $1,542 to $3,831, the Source reported. The average property value on all three islands increased by 85%.

The new rates would generate an additional $10 million for the government.  The Governor's proposed budget for the next year assumes that increase.

The Lt. Gov. and the Tax Assessor were holding town meetings on each island this week, with the St. John session scheduled for Thursday night.

How to make a villa rental even better

Food and a bottle of wine in the refrigerator, Internet access, and someone to drive them home from a night on the town are enough to get most St. John visitors' vacations off to a good start, according to comments on the Web site over the past week.

In voting over the past week, several hundred people selected from a list of options and decided having the house stocked with food and drink was the best thing they could get (31%), close behind was Internet access (29%), and in third place, that 'designated driver' service (14%).  See the poll results here.

Some respondents said there were other things that make their stay at a rental villa comfortable.

"That welcome basket (can be) great!," said Michelle Reen.  A working washer and dryer are important, too.

Making the connection to get to the house is critical, pointed out Vince. He says villa rental companies should, "Make sure 'greeters' are carrying a cell phone.  (We) have had instances where we got in a bit later and only get an answering machine (when we call the management company)."

Heather wants a practical introduction to her rental house, hoping for a walk-through of the property. "In the past three trips, we encountered a disconnected hot water heater, closed cistern valves resulting in no water, pumps in need of priming, a tripped circuit breaker, and a broken hot tub, all discovered after the agent left the house."

James Rogers said he requires "complete privacy.  Last year, his girl friend was in the shower and the villa owner "got a free (although most assuredly not intentional) peep show as the shower had a huge curtain-less window in it!!"

There is one thing more, said Debbie. "A lime squeezer ... to make those rum punches and other yummy drinks with fresh lime."

Governor urges different property tax rates for different uses