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INFORMATIONCENT A HT Off ice Of' The Governor 395 .v6 E26 Virgin Islands Planning Office 00@r, 1977 COASTAL ZONE MANAGEMENT A U S DEPARTMENT OF COMMERCE NOAA COASTAL SERVICES CENTER IT 2234 SOUTH HOBSON AVENUE CHARLESTON ' SC 29405-2413 ECONOMIC ASPECTS OF THE VIRGIN ISLANDS COASTAL ZONE MANAGEMENT PROGRAM r Y 0@2 Libra-ry Cyril E. King Govern'or Thomas R. Blake Director of Planning Compiled By: Walter L. Stewart, Ph.D., Resource Economist Edward H. Lindelof, Project Coordinator August 1977 Government of the Virgin Islands J Virgin Islands Planning Office This program is funded in part through financial assistance provided.by the Coastal Zone Man- agement Act of 1972, administered by the Office of Coastal Zone Man- agement, National Oceanic and Atmospheric Administration 0001. TABLE OF CONTENTS Page Introduction ...................................................... I Some Basic Economic Problems ...................................... I Background and Context for Planning ............................... 2 Employment Summary ............................................. 2 Unemployment ................................................... 4 Non-Resident Labor Force ...................................... 5 Population Growth ............................................ 5 Components of Change ........................................ 5 Distribution ............................................... .. 6 The Tourism Industry .......................................... 6 Future Population and Employment .............................. 13 Socio Economic Impacts ........................................... 14 Property Values ............................................... 17 Property Rights ............................................... 17 Proposed Permit System ........................................ 19 Coastal Policies .............................................. 22 Land and Water Use Plan ....................................... 30 Areas of Particular Concern .. ................................. 31 Intergovernmental and-Public Involvement ....................... 45 Public Access/Acquisition ..................................... 45 Visual Concerns ................................................ 46 Economic Development .......................................... 47 Construction and Commercial/Industrial Activities .......... 47 Commercial Fishing and Recreational Boating ................ 48 Tourist/Recreation ......................................... 49 Ports ...... ......... ..................... 50 Additional Provisions of the Federal Act ...................... 52 CEIP Program .............................................. .. 52 Interstate Grants ............................................. 53 Research and Training Grants .................................. 53 Beach Access and Island Preservation .......................... 54 List of Tables 1. Estimated Annual Employment ............................... 3 2. Components of Population Change-Summary .................... 7 30 Components of Population Change-Annual ..................... 8 4. Population Distribution ............. -'-* ................ 9 5. Air and Cruise Arrivals ................................... 10 6. Estimated Tourist Expenditures ............................ 11 7. Overnight Accommodations .................................. 12 8. Impact of Government Action Upon Property Values .......... 17 INTRODUCTION. It has long been recognized that the 'coastal zone plays a vital role in the life of every resident of the Virgin Islands. The coastal zone is not simply important: it is the essential resource that makes the islands what they are,today. 'Such diverse demands as petroleum refining, major port activities, as well as*breeding grounds for endangereg species like the Hawksbill Seaturtle, the Brown Pelican and the Humpback Whale, depend significantly on the coastal resources. The Virgin Islands National Park on St. John, Magens Bay Beach on St. Thomas, and Davis Beach on St. Croix are all exa'mple-, of the recreational resources of the coastal zone. Enthusiasts of big gaine fishina, sailing, and scuba diving find unsurpassed opportunities in the Virgin Islands coastal zone. World record marlin catches and world famous scuba diving and snorkeling locations, such as Euck. Island Reef National Monument, make the Virgin Islands Coastal Zone a resource of vast economic and recreational value. The coastal zone is literally the-life linear the isiFnds. From providing seawater for the desalinization plants, or 11te ports from which most food and goods enter the islqnds, to providing the resource base for the most important industry, tourism, the coastal zone performs an indispensable rurction 1,"o the people of the Virgin islands. Hence economic develo@,mentt must rely on careful cultivation of coastal assets. Some Basic Economic Problems The existing systein of allocating coastal resources among varlOuz> uses is largely through private market forces and a federal-teritorial regulatory system which is complicated and uncoordinated. Indivic'uLll regulations tend to address a fairly narrow scope of activities, purposes, and interests with little attention directed towards overall long-range goals. policies and priorities. The existing system fails to maximize the economic benefits of the Virgin Islands coastal resources for a number of reasons: 1) Many coastal resource users have a detrimental effect on other activities without considering the "costs" of these "external" effects in dec-id'Ing whether or not to undertake their activity. Thus, the developer (public or private) of a facility which destroys or obstructs a scenic view, is not required to compensate all the people who would have otherwise received visual satisfaction. In effect, the private market does not properly value such common property resources as wetlands, scenic quality, clean air or clean vater. 2) The.private market tends to value present consumption much'higher that future comsumption and this places a high discount rate on future needs. This makes sense to the private consume@ because in the long-term future he will no longer be around. Thus, the present system tends to understate the value of scarce non-replaceable natural resources that will continue to be demanded by future generations. 3) The existing local permit and regu latory system'for the shorelines can be time consuming and, potentially, arbitrary as a result of unclear public policy and lack of guidelines. Thus, the existing system can result in economic hardship upon developers as a result of delays or confusion. In any event, (whether @herp are delays or not) the uncertainty which accompanies the present system can frustrate the development of worthwhile project@_;. The only way to correct the misallocation of resources and the ineffective management of the present system is through carefully reasoned and coordinated public intervention. This is essentially the objective of the Virgin Islands Coastal Zone Management Proaram. @ackground and Context for Planning The population of the United States Virgin Islands has alr-ost tripled since 1.960, from about 33,000 to an esti-mated 95,000 inhabitants in 1976 (V.I. Department of Health estimates). This rapid population growth has occurred primarily as a result of increasc.-I employment,opportunities associated with a developing tourism. industry, and territorial government policies which have encouraged economic development by means of tax rebates and subsidies. As a result of this economic growth, Virgin Islanders enjoy a standard of living which is unsurpassed in the Caribbean. Estimated personal income per capita was $3,200 in 1972, approximately the same as for the state of Mississippi which ranked last in per capita among the states (McElroy, 1974). The national estimate for the same year was $4,500. Employment Summary Total employment in 1965 was about 23,000 and by 1977 it was expectedtD reach 40,500 (all employment estimates are from Virgin Islands Employment Security). The most prominent feature of the employment situation is the large local government sector, about 22 percent of total employment in 1965 (4,900) and 25 percent of the total in 1977. Employment estimates for 1965-1977 are shown in Table 1. -2- TABLE 1 ESTIMAMM ANNUAL DIP1001ENT - VIRGIN ISLANDS 19651 1966 1967 1968 1969 19702 1�71' 1972 1973' 1974 5 1975 IM, 19777 SIC Industry Classification Name 01-W, 14 Agriculture, Forestry, Fisheries, I'Lining 2W 193 184 148 179 165 130 144 172 200 200 200 200 15-17 Construction 2699 4470 3733 4679 5474 4572 5517 4362 4781 5200 5675 5065 5430 20-39 Manufacturing 1568 1937 1878 1981 2500 25(Y7 2727 2807 2708 2610 2890 2650 28751 41-49 Transj)crtation, 03w.mications, Utilities 1503 1929 1910 1859 2049 1949 1914 2032 2141 2250 2175 2160 220o 56-51 %IxAf-tale Trade 294 110 300 319 414 425 440 474 442 410 480 525 535 52-59 Petail Trade 3213 4006 3890 4584 5M2 5125 5223 5224 5207 5190 5490 5415 5600 6C-67 Finance, Insurance, Rr-Al Estate 570 650 634 820 1556 1708 12-19 1315 1627 1940 1450 1475 1475 70 Hotels and Lodging Places 2056 2094 2397 @521 31-19 3182 2722 2500 2945 3390 3180 2550 2880 72-66--89 Sex-.,ices, Other than Hotels 1079 1196 1478 1558 1962 2004 2054 2273 2361 2450 2450 2475 2550 92 Territorial Government 4939 6076 6618 819-1 8170 8647 9062 9700 9645 9690 10003 10114 10514 92 F-@@d,:ral G,,v,.r7=:nt N.A. N.A. N.A. N.A. N.A. 356 368 362 371 380 -150 508 S. E. C. Self-lj:ipluyed, Unpaid Fainily Workers N.A. N.A. N.A. N.A. N.A. N.A. N,A, N.A. N.A. 5200 5450 5540 5740 Total Emplo@r)ent 6 22700 26220 29400 30940 32490 35100 36550 36683 37420 38910 39S.90 38C,77 405C7 EstixnatW Ernploprnt 150 190 200 231 230 480 700 1530 1560 2229 2270 4683 3763 NEC - N*ot Elsewhere Classified, N.A. - Not available 1. Estimtes for 1965-1969 are for December 2. IM estimate is average monthly employnent for calendar year. 3. 1971 and 1972 estimates a-re monthly averages for fiscal years. 4. 1973 estimate based upon 1972 and 1974 levels. 5. 19'14-1977 estimates are monthly averages for fiscal years. 6. Inoune Instances, total eMloyment has been estimated independently, total may not correspond to esthmtes by industry. SOURCE Virgin Islands Employment Security Agency The construction and manufacturing sectors have almost doubled in size since 1965. The number of workers engaged in construction has grown from about 2,700 in 1965 to 5,400 in 1977. Manufacturing employment increased from 1,600 to 2,900 from 1965 to 1977. Most of. the manufacturing employment is accounted for by the two large industrial operations on St. Croix, Hess Oil and Martin Marietta Alumina. In addition to oil refining and alumina proccessing, other manufacturing activities include watch assembly, textiles, and the production- of rum. Retail trade establishments, with an estimated 1977 employment of 5,600, represent the largest single industry in the private sector .This was also true of the 1965 total of 3,200.Whose's trade increased from 300 in 1965 to more than 500 in 1577. Hotels and other lodging places accounted for 2,900 employees in, 1977, an increase of' about 800 over 1965 totals. The peak employment during the period was 3,400 in 1974. Other services employment grew from 1,100 in 1965 to 2,600 in 1977. From 1965 to 1977, employment in transportation, communications, and utilities increased from 1,500 to 2,200. Finance, insurance, and real estate grew from about 600 in 1965 to 1,500 in 1977. Self-employed, domestics, and unpaid family workers have constituted a sizable portion of the employment total in recent years, and these workers comprised about 15 percent (5,400 employees) of the total in 1977. The actual size oil the agricultural and fishing industries is difficult to determine since most of these workers are self-employed or part-time only. Local estimates for covered employment (estimated 200 employees) undoubtedly understate the importance of the fishing industry in particular. There are presently about 500 licensed commercial fishermen and an additional 450 helpers in the islands. The average number of days fished per month is low (5.2 days), indicating a great deal of part-time employment. The total fish catch for 1974-75 was valued at about $1 million. In addition, an estimated 50,000 pounds of lobster was harvested from, nearby waters (V.I. Bureau of Fish and Wildlife, 1976). With the exception of several dairy and livestock operations and some small scale truck farming, there is little large scale commercial agricultural activity in the Territory. Unemployment - Between 1965 and 1971, unemployment in the Virgin Islands was almost non-existant. The 1972 rate of 4.0 percent was double that of the preceeding year. The rate has climbed steadily since then. There have been sharp increases in the unemployment rate in the past three years, from about 5.5 percent in fiscal 1974 (weekly average 2,200)to 10.8 percent is fiscal -4- 1976 (4,700 per week). By December 1976, the unemployment rate was estimated to be about 8.5 percent for the Territory. Un- employment on St. Croix Was estimated at 9.7 percent. For St. Thomas-St. John, the rate was 7.2 percent. The unemployment rate for 1977 is estimated to be about 8.5 percent (weekly average 3,800). The Non-Resident Labor Force - In mid-1975, there were approximately 10,700 non-immigrant aliens residing and working in the.United States Virgin Islands. By the end of 1976, there were only 6,500 aliens in the work force (all estimates furnished by U.S.Department of Labor, Manpower Administration). In 1976, these workers comprised about 17 percent of total employment. Many have resided In the Virgin Islands for long periods of time and have become a permanent part of the economic structure.These non-residents workers have bear a significant part of the total work force for many years.Non- residents are employed in almost every industry; however, they are a major part of the work force in the construcion industry and private household workers. Population Growth - The population of St. Croix has increased from about 15,000 residents in 1960 to 48,000 in 1976 or 53 percent of the total increase for the Virgin Islands. During the; same period, St, Thomas has grown by about 28,000 residents and has added almost 1,300 new inhabitants. Populatior chances are summarized below. Population Growth By Island 1960-1976 Year Virgin Islands St. Thomas St. John St. Croix 1960 33,425 17,392 928 15,105 1965 49,742 26,375 1,347 22,020 1970 75,151 37,285 1,924 35,942 1976 95,650 45,240 2,220 48,190 .Source: V.I. Department of Health Population Growth -Components of Change Population growth in the Virgin Islands over the past 15 years has been largely attributable to an influx of migrants from the nearby islands, and to a lesser extent, migration from the continental United States. For the ten- year period 1960-1970, 64 percent of the total increase was due to net in-migration . -The most striking aspect of population change in recent years is the complete reversal of the 1960-1970 qrowth trend. Between 1970-1975, only about 35 percent of the total -5- population change was accounted for by net migration with the remainder attributable to natural increase. Most of the natural increase of the past 5 years is the result of a very high,birth rate rather than a lowering of.the death rate. Table 2 and Table 3 detail the components of population change for 1950-1975. Table 2 shows a summary of the changes while annual estimates are listed in Table 3. During the 5 year period 1967-1971, average annual net migration was 4,100 as compared to about 450 per year for 1972-1975. Population Distribution Population increases and economic advances haw brought about dramatic changes in the land use patterns ef the Virgin Islands. The traditional activity centers of.Charlotte Amalie, Cruz Day, Christiansted and Frederiksted continue to be important as residential centers for commercial activity; however, thetr importance as residential centers has declined considerably in recent years. Most new housing developments have located in the formerly rural countryside, contributing-to urban sprawl conditions in some oreas. Comparative population distributions for each island by quarters are shown in Table 4. On St. Thomas, the most striking population changes are those which have occurred on the eastern end of the island.. In 1960, the combined population of East End, Red Hook, Frenchman's Bay, and New Quarters was 904; the estimated population of these areas in 1976 was 19,000. Growth in the Cruz Bay area of St. John has accounted for almost all of the population increase on that island. Central St. Croix (Company, Queen, King, and Prince Quarters) has grown from 5,700 inhabitants in 1960 to an estimated 31,200 in 1976. The Tourism Industry With the exception of Hess Oil, the single most significant economic activity in the Territory is tourism. In 1973, it was estimated that this industry was directly responsible for 20 percentcf all -employment in the Islands. Indirect employment attributable to the tourist industry accounted for an additional 16 percent of the total (Checchi and Comapny, 1974). The industry has grown dramatically since 1960: annual visitor totals have increased from less than 200 thousand to well over a million, tourist expenditures have increased to more than six times the 1960 level, and the number of overnight accommodations has �rown from 1,400 rooms in 1960 to more than 4,400 in 1976 (V.I. Department of Commerce estimates). Overnight hotel 'visitors continue to play a central role in the tourism industry; however, the relative importance of this type of tourist activity has diminished in recent years. An increased level of day-trip shopping and sightseeing by visitors -6- 2 CONPOW-11IT-1 OF POPULATION CHMIGE-RIMMARY Begin End Population Natural Net Time Period Pcpulation Paulation Chalme D i rths Deaths Increase Migration 1950-1@60 26,ol(,,o 33,@25 6,52r, 9,765 3,319 6,446 79 1560-1070 33,4-25 75,151 41,726 19.000 3,903 15,097 26,629 1970-1975 75,151 92,430. 17,279 13,882 2,568 11,314 5,965 1950-1970 26,900 75,151 48,251 28.765 7,222 21,543 26,7o8 1950-1975 26,900 92,430 65,530 42,647 9,790 32,857 32,673' 1960-1975 33,425 02,430 59,005 32,882 6,471 26,411 32,594 Source: V.I. Department of 11(@alth 'I j'@3LL 3 Mid-Year Pol-,: 11 at i on Na tura I Year Pol @ I,j t ion C ha- (,, e r I r, ci t h I nc r ease Net Migration 1950 26,900 1551 27 251 700 Eno 774 5149 lr,,c,2 27,5500 200 91',7 5117 -347 I -Z I -, 953 26,900 -1,000 866 1 - 554 -1,5-54 IS,54 2-,200 i0o 875 289 586 -286 1555 2/,600 400 8,)6 309 587 -187 1@16 28,40o 8,00 9111 337 6A 1@6 :1 1957 2q,4oo, 1,0co 1,0011 341 663 337 l -8 33A 7rO -150 gr 600 1 0'611 1 31,600 1 0.-,0 '119 3 -22 787 213 33,L`5 2,42-5 327 817 IS4,.! 34,450 1,025 329 8r@8 167 S,00 1@062 35,430 j i,284 3?3 61 19 15@3 T` 2 70 2,81,0 1 4113 351 1 00@2 1,748 1@64 41,913 3,643 1,637 362 1,@75 2,368 7p8 29 1,880 379 6,348 '7 119/77 1,575 50,8 C) 1,)28 402 -447 1@67 56,6-09 5,920 2,iili 380 1,731, 4,o95 15 '( 8 61- 'e-02 6,103 If 23 1 , 8 F') 8 4,215 196P 6c", 61;? 6,8!7 475 1 964 4,883 10,70 7::,1--] 50 2 2 7:@ It h72 2,252 3,250 1?71 8 1 740 6 , -f-, F. 9 2,41) 4,178 2,355 135 1572 8L,230 539 1973 87,010 2,7h 7 7 7 3 518 2,255 525 10@4 85,740 2., 7 3 0 6-r: 499 2,176 554 975 gz,41o - 90 2,623 r05 2,H8 572' 1976 9:5, , 6 @ 0 3 220 Slourco V I Df!partm(!n t of th TABLF 4 Populat.ion Distribution By Place 1930 1940 1950 1960 1970 1970 '1976 Area Census Censu" Censtis Census Census Estimate Estimate Virgin Islands 22012 24899 26665 32099 62459 75151 95650 St. Thomas 9834 112165 13813 16201 28960 37285 45240 Charlotte Amalie 7036 9801 li469 12880 12220 15977 15041 East End 122 126 188 2,16 607 809 1928 Redhook 126 93 125 253 1848 2462 2617 F@renchbay 15 64 57 129 1413 1883 ''4098 New 886. 161 165 276 5265 64,16 10347 Great Korthside 434 302 114 625 1266 1687 2308 Little Northside 196 239 269 290 1596 2127 2404, Sout hside 1001 462 1126 1488 4365 5388 5595 -WOst End 19 17 - 14 380 506 902 St. John 765 722 749 925 1720 1924 2220 East End 73 77 65 .32 26 32 33 Alaho Bay 115 52 39 16 15 18 24 Cruz Bay 278 263 279 599 1497 1640 1881 Reef Bay 19 14 61 18 19 23 38 Coral Bay 280 316 305 260 172 211 244 St. Croix 11413 12902 12103 14973 31779 35942 48190 C'sted 3767 -1495 4112 51317 3020 3679 3579 v F'sted 2698 2498 1961 2177 1531 1939 1939 West End 673 1033 1227 1641 5208 5748 7285 Northside A 235 263 181 210. 270 298 289 Northside B 75 135 132 163 736 813 1092 Prince 1358 1041 1099 1322 2718 3000 8022 King 863 1045 1083 1258 4615 5181 6118 Queen 926 1078 1090 1372 4229. 4668 7019 Company 673 1134 1005 1273 7360 8307 10068! East End A 145 180. 204 346 1460 698 1115 East End B - - 9 74 632 1611 1664 Source: 1970 and 1976 distribution are Planning Office estimates. Air and Cruise ShipPassenger Arrivars 1960-1976 Air Arrivals I Cruise Arrivals 2 Year (thutisands) (thousands) (FY) V.I. Total St. Thomas St. Croix V.I. Total St. Thomas St. Croix 1960 -123.0 87.0 36.o 49.8 49.1 .7 1 961 146.o 104.0 42.0 58.6 57.5 1.1 1962 187.7 131.1 56.6 58.9 57.6 1.3 1963 215.8 151.6 64.2 66.1 64.2 1.9 1964 285.6 202.3 83.3 110.6 99.1 11.5 1965 354.4 270.8 83.5 109.3 103.5 5.8 1966 436.8 327.8 105.0 117.7 108.1 9.6 1967 516.3 4oo.5 115.8 133.4 125.1 8.3 1968 685.8 507.4 178.3 166.1 149.6 16.5 1969 795.0 566.6 228.4 .213.5 195.1 18.4 1970 669.8 441.6 228.2 251.4 230.3 20.8 1971 657.1 425.7 231.4 253.9 237.9 16.0 1972 742.8 499.8 243.1 364.6 254.0 10.6 )973 681.9 464.7 217.2 491.0 449.3 41.7 1974 58o.6 423.4 157.2 500.1 484.4 15.7 1975 531-0- 372.0 159.0 450.5 447.9 2.5 1976 528.2 371.2 157.0 471.1 457.1 13.9 Notes: Air arrivals are for Truman and Hamilton Airports only. 2 Cruise ships only, does not include other water borne passengers. Source: Virgin Islands Department of Commerce. -10- from Pu-erto Rico and the many cruise ships which regularly call inthe islands has accounted for this relative decline. In spite of some recent shifts in charter boat activity out of the Territory to the nearby British Virgin Isl 'ands, this segment of the tourist industry has also increased in importance in recent years. St. Thomas is the focal point for most of the tourist industry in the Territory. More than three-fourths of all air visitors to the islands spend some portion of their stay in St.-Thomas. In addition, the vast majority of cruise ship calls are also made to St. Thomas. Air and cruise ship passenger arriv'als for the period 1960- 1976 are shown on Table 5. Air arrivals at Truman Airport in St. Thomas have increased from about 87 thousand in 1960 to 3471 thousand in 1976. In the peak year of 1969,.airlost 567 thousand passengers deplaned in St. Thomas. Arrivals at Hamilton Air.ncor, in St. Croix have climbed from 36 thousand in 1960 to 157 thousand in 1976. The peak year was 1972, when 243 thousand were counted. Cruise ship passenger arrivals totaled about 150 thousand in 196-0 and 470 thousand in 1976. Most of these visit St. Thomas only. Estimated tourist expenditures for selected yeers are shcvjn in Table 6. The estimated expenditures in 1960 were S24.8 i-.iillilon and by 1976, these had climbed to more than S152 million. In expenditures by all air visitors (overnig.@t and day trip) were about $119 million. Cruise ship visitors spent an estimated 53@' million in 1976. Table 6 Estimated Tourist Expenditures Year Total All Air All Water (FY). ($mil.) Visitors Visitors 1960 24.8 n.6. n.a. 1965 54.0 n.a. n.a. 1972 158.5 131.0 27.5 1973 148.8 112.3 36.5 1975 145.6 114.8 30.8 1976 152.2 118.9 33.3 Source: V.I. Department of Commerce The local Department of Commerce conducted a survey of approximately 7,000 exiting air travelers throughout 1976. In addition, a number of cruise ship passengers were interviewed during the first quarter of the year.. Some of the results pertaining to expenditures are shown below.' The expend.itures represent dollars actually spent in the Virgin Islands and do not include any prepaid expenses which may have been incurred. Average Group Average Travel Expenditure Group Size All a,ir $466 1'.97 Overnightonly 563 1.93 One-day non-resident of Puerto Rico 174 1.69 One-day Puerto Rico businessman 67 1.10 One-.day Puerto Rico non-businessman 115 2.15 Cruise ship 114 1.96 IV Table 7 shows the changes in the number of overnight tourist accomodations and the estimated hotel occupancy rates for the period 1972-1976. The number of rooms shows considerable variability during the period as a result of hotel closures and obenings and the shifts of condominium units to hotel type accommodations and vice-versa. The total number of rooms available in 1976 was only slightly higher than in 1972. Overall occupancy rates viere about 48 percent in 1976, down from an estimated 58 percent in 1972. Table 7 Overnight Visitor Accommodations Occupancy Occupancy Occupancy Rate-V.I. Rate Rate Year Rooms M St. Thomas/St. John St. Croix 1972 4,317 57.7 62.2 53.5 1973 3,865 48.8 58.9 38.5 1974 3,939 43.8 42.4 37.8 1975 4,552. 50.6 47.8 44.2 1976 4,460 48.2 55.0 4o.3 Sources: Number of rooms and total occupancy rates are from V.I. Department of Commerce. Occupancy.rates by island are monthly averages from St. Croix and St. Thomas-St. John Hotel Associations. -12- 06cupancy rates for St. Croix-have been consistently lower than those fQr St. Thomas-St. John. In 1976, the St. Croix figure was about 40 percent compared to 55 percent for St. Thomas- St. John. Using an overall occupancy rate of 48 percent for 1976, the total number of vacancies for the year amounts to about 845,000 room nights. Future Population and Employment - Population projections by the V.I. Department of Health indicate that by 1985, the total population of the Territory may reach 120,000, an increase of about 25,000 over 1976 estimates. More than 60 percent of this increase is expected to occur in St. Croix. If the population of the Territor'@ in 1985 is 120,000, then the total number of people available for employment will be about 54,000. The estimated employment for 1977Y 'is about440,000. In 8 years, the employment need increase is 14,000 or about 1,700 new jobs per year, ever,, year through 1985. This need, of course, includes finding employment for about 3,800 residents who are presently unemployed. For the ten year period 1967-1977, employment in the Virgin Islands increased from about 29,000 to 40,000 or 3,000 'less than the needed increase forthe next 8 years. It should beremembered that about 4,000 of.the 1967-1977 employment increase was attributable to increased employment by the local government. 8, 11 1985, the needed, employment increase will be twice that of the private sector for tne ten year period 1967-1977. It is unrealistic to assume that the local government can absorb another 4,000 or even 2,000 additional e-r-ployees between now and 1985; therefore, most new jobs must come from the private sector. If these new job-opportun] ties are not found, there will be considerable out-migration from the Territory. The V.irgin Islands Coastal Zone Management Program.is premised upon the assumption that the public and private sectors will take positive steps to attempt to fill at least part of these employment needs. It can be anticipated that the federal government will also assist in meeting this objective. As a result, we can expect that development pressures and use conflicts for the shoreline area will increase greatly over the next 5-8 years. The necessity for long range development planning for coastal areas isthus paramount. The increased demand for port facilities, local and tourist recreational facilities, commerce and industry of all types,.h6tels, housing, schools, marinas etc., wiJI only accentuate the basic economic problems outlined earlier. In essence this is the economic and social basis for the Coastal Zone Management Program. m13- Socio -Economic Impacts A study by the Real Estate Research Corporation of the potential impacts of coastal management programs identifies those sectors affected by coastal management. Benefits will be of various kinds and will occur in different ways and degrees. The following major categories of beneficiaries can be identified: oviners of p,roperty directly affected by implementation decisions, neighboring property oviners, owners of businesses @%fiose productivityar market attractiveness would be enhanced by the Virgin Islands Management@Program-pblicies, government, and the general public. The benefits of coastal zone management will be the positive changes which occur in the scale, distribution, and place of elements such as production (including manufacturing, agriculture, fishing), utility services and costs, business sales, employment opportunities, population and the labor force, housing demand and supply,.construction, financing and investment, property values, government costs and revenues, educational and recreational opportunities, and aesthetics. Planning and managing the coastal zone of*the Virgin Islands consIsts of the use of foresight in cooperatively determining how to both preser%.-- valuable natural resources and accommodate the needs of an expanding population and economy. To achieve this balance involves trade offs which include some short-run and long-run positive and negative effects. For example, long-run benefits from protection of marine habitat such as a mangrove lagoon include increased fisheries productivity. In the short-run, the loss of such an area for development is often perceived as a highly negative impact. Potential economic benefits of the coastal zone policies have the following attributes: They can be "one time only" or "recurring," They can cause net increase in economic activity or merely shift benefits among individuals or groups, 0 Costs may be incurred in their attainment--such as, expenditures for shoreline restoration, and maintenance, pollution control, and Secondary "spin-off'' effects may befelt--both positive and negative, depending on the nature of policies and the economic activities affected. The following list of benefits of coastal zone planning and management is similar to the benefits of most State and local planning activities: 0 Reduced cost of,new development, 0 Better preservation of natural environment and natural buffers, 0 Increased recreational opportunities, 0 Better preservation of exi*sting buildings, 0 Less pollution, Less congestion, 0 Higher quality development, 0 More efficient use of existing public facilities and services, More diversified tourism opportunities, Better fit of supply and demand, Greater awareness of needs and opportun_ities, Less uncertainty regarding fueure potentials, thus creating an atmosphere which is conducive to attracting outside investment and long-range economic development, and Improved posibilities for effective actions based on under- standing and consensus regarding goals. Potential economic benefits can include increased productivity, increased amount of commercial and industrial development, more jcJ-'s, increased property values, reduced or stabilized con sumer prices, and heightened satisFaction with one's physical environment. Prudent coastal.zone planning, therefore, results in balance between conservation of irreplaceable natural resources and the needs--job creation, housing, recreation, port facility and marinas--of an expanding economy. While some coastal zone actions result in net gain or net losses for the local economy, in most instances the short-term effects of the program cause a redistribution of assets. Some lost expectations will undoubtedly be encountered, but gains elsewhere should offset these losses. In any case where regulations would actually result in a legally-determined taking, the regulations w6uld be declared void or compensation paid. Planning stabilizes erratic "swings" in expectations because it results in less uncertainty in future prospects ofland investment. While there may be short-term lags, the long-run benefits are likely to balance or exceed costs. For example, many non-water dependent activities may not be built in the coastal zone. These'same regulations will result in heightened opportunities in coastal dependent economic activities--tourism, recreation, fisheries, port, and marina development. Property-Values The Real Estate Rechearch Corporation report states the following with respect to property values: The key determinants of land values include 0 Natural site characteristics and environment, 0 Man-made site characteristics and environment, 0 Community image, 0 Demand for particular land uses, Access, Utilities, Public facilities and sservices, 0 Taxes, and 0 Land use and development regulations. In general, about 55 percent of land value is attributable to government action, with the balance resulting from the actions of the property owner, his neighbors, and the general public. Governments influence land values through use or design'regulations, improving access, providing public facilities and services, preserving favorable "images" and through its tax rates and policies. Table 8 shows the different types of government action that impact property values, and their relative importance in determining the overall net .effect of coastal zone regulations on land value. Restricting land use options will lower land values of subject properties, but will also transfer any unsatisfied demand to other competitive sites not .subject to use restrictions. Regulations requiring mitigation of adverse environmental impacts result in higher development costs but also result in more attractive, desirable sites. Improved access and public facility provision generally impact positively on land values; however, access improvements can have s.uch negative effects as increased noise or reduced privacy. TABLE 8 IMPACT OF GOVERNMENT ACTION ON PROPERTY VALUES Impact on Values of Relative Importance of impact on Values of Neighboring or Net Effect on Specific Actions in Type of Subject Property competitive Properties Property values Determining Impacts Restrictions on land use Value declines Value rises Redistributional Very important Developer required to make Value declines Value rises Slightly negative Unimportant compared to improvements or pay fees other public actions Resource amenities protected Value rises Value rises Slightly positive to very Very important or restored by government positive action Shore access by the public Value declines Value rises. Slightly negative Less important than use restrictions or amenity maximized and protected protection Concentrating development If still undeveloped, value Value rises Positive VerY important in existing communities declines; if already im- proved, value rises Providing infrastruce, Value rises Values unchanged Positive Important public facilities, and services Tax reduction or deferral Value rises Values unchanged Slightly positive Less important than use restrictions or amenity for regulated, restricted, protection or encouraged uses of coastal properties Source: Real Estate Research Corporation. The Virgin Islands Coastal Zone Management Program will be implemented through government action resulting in a loss in development potential (and hence lower profit expectations) for some sites--presently unserviced rural lands, agricultural and wooded acreage, areas with development hazards, and parcels with scenic, historic, or ecological significance. Recreation and other water dependent uses will be given priority over urban development along the waterfront. If a market for more intense use exitsts, the affected parcel will lose value. In a normal market, the demand for more intense use will be transferred elsewhere; this is encouraged by program policies fostering more compact development in already built-up communities. The overall net effect of the program on land values will ultimately be positive because of better management, improved amenity protection, and reduced uncertainty about future governmental policies. Property Rights The individual right of property owner is one of the most sensitive issues with respect to the management of resources, whether the management is accomplished through coastal zone programs, Territorial land use plans, or regulation of development. Concern has been expressed about property regulation, and this concern will undoubtedly continue in the future. -17- The Virgin Islands law is clear on this point(Revised Organic Act of 1954, Section 3). It prohibits the taking or damaging of private property unless there is payment or just compensation. The Virgin Islands Coastal Zone Management Act requires that permits which affect the use or conservation of coastal resources also take into account social and economic needs of the people. These concerns will be incorporated into the Environmental Assessment form for major permits. Proposed- Permit System The existing regulatory system which controls development activities in the coastal zone includes: Zoning Permit from Department of Public Works Earth Change Permit from V.I. Conservation District (private sector projects) or the Department of Conservation and Cultural Affairs(public projects) Building Permit from Department of Public Works Subdivision approval from Planning Office 0 Historic District approval from Virgin Islands Planning Board Provisions of the Trustlands, Occupancy, and Alteration Control Act administered by the Department of Conservation and Cultural Affai.rs 0 Provisions of.the Open Shoreline Act administered by the Department of Conservation and Cultural Affairs 0 Provisionsof the Oil Spill Prevention Control Act administered by the Department of Conservation and Cultural Affairs 0 Water and Air Pollution Discharge Permits administered Inv the Department of Conservation and Cultural Affairs The proposed permit system for the first tier coastal zone would consolidate the zoning permit, earth change permit, Trustlands Occupancy .and Control, and Open Shorelines Act. The Oil Spill and Water and Air Pollution Permits would remain in the Department of Con- servation and Cultural Affairs but.would be coordinated with the consolidated permit by the proposed Division of Coastal Zone Man- agement in the Department of Conservation and Cultural Affairs. As contrasted to the present system, the proposal calls for definite time limits for action on all the permits which are consolidated into the "Coastal Zone Permit." A well-defined appeals process through the existing Board Of Zoning, Subdivision and Building Appeals Board (renamed the Land Use Appeals Board) is also included in the proposal. Judicial review through the District Court is also included in the appeals process. In addition, a consolidated "Bureau of Enforcement" will be set up to monitor and enforce all rules and regulations of the Coastal Zone Permit and all other laws administered by DCCA including fish and wildlife protection and boating. The proposed permit system makes distinction between ''minor" and major" permits. The time limits for administrative action are cleariv defined. A decision on the coastal zone permit application by the Commissioner of Conservation and Cultural Affairs is required within 60 days for minor permits and 90 days for major permits. Presently, there-is no time limit specified for most permits. If any decision of the Commissioner is appealed to the Land Use Appeals Board, this Board must render a decision within 90 days for.minor permits and 90 days for major permits. All single and two family residences will be ''minor" permits and all development seawardcF the line of mean high tide or which involves submerged lands will require a ''major " permit. Applicants for "major" permit will be required to submit "Environmental Assessment Forms " which include information on both environmental and economic aspects of the proposal. Economic Aspects of the Proposed Permit System The stipulations of time limits for administrai:lvc action can potentially result in great savings for private develo ,pers and consequently the local public. Excessive delays resultinq frorr, the present system can cost private developers and the public additoral expenditures as a result of inflation, cons--ruction c6sts increases, and the cost of capital. In addition, exce@sive delays and unclear guidelines have undoubtedly discouraged economic developrient in some areas. The monetary value of the SaV *111(,-, VlhiCh -could result from the proposed sy5tem is impossible to calculate; however, at the very least, a savings of 1.0 - 1.5 percent a month in cons.tructlon costs increases could occur as a result of s-vifft action in per@-its. Additional savings can be e,,,pected as a result of the elimination of uncertainty and confusion associated with the existing systerl, The preparation of an impact evaluation for some major prcJects may require additional expenditures by a developer - private or public. In most cases, the proposed system will not require more detailed information than is now required. In addition, since many large cojs-c.:@'l projects must have an Army Corps of Engineers permit, the preparation of such an assessment for those kinds of projects is necessary regardless of the local requirements. The consolidated permit procedure and Bureau of Enforcement will require additional personnel, a much greater expenditure of funds than is presently allocated to DCCA for sim'ilar uses. Primarily these funds will be used for personnel, administration, and purchase of materials, supplies, and equipment. The Bureau of Enforcement will require substantial funds for personnel training and equipment. Purchase of boats and motor vehicles will account for much of the Enforcement Bureau expenditures. An approved program will enable the Territory to receive federal funds (80% matching grants) for the above purposes. The local share can be contributed as " in kind services." The exact amount of federal funds is unknown at -20- this time; however, the absolute minimum available is $180,000. According to federal officials, the likely amount is in the neighborhood of $500-600 thousand, an amount which the Territory can easily match with no additional out-of-pocket expenditures locally. A rough estimate of the'minimum federal funding level necessary to implement the proposed program is $500 thousand. Congressional authorization for expenditures presently extend through federal fiscal year 1980. There is very little likelihood that this federal program will be discontinued. Additional personnel an 'd equipment expenditures will have a beneficial effect upon the local economy. An additional $500-600 thousand will be spent locally during the first"year. It is highly unlikely that this amount will decrease in future years, rather it will likely increase if the program is indeed-successful. It should be emphasized that this funding is for administration and day-to-day management activities. Additional funds are available for land purchases, on-going planning, research studies, personnel training programs, interstate planning, and energy impact mitigation. These provisions of the federal CZM Act are covered later in this analysis. -21- The Coastal Policies Section 902 of the proposed Virgin Islands Coastal Zone Man- agement Act of 1977 (Bill No. 7665) outlines the general findings and goals of the management program. These goals have been developed based upon an analysis of existing governmental policies, resource capabilities and likely future needs of the Virgin Islands. These coastal goals reflect the need for economic development, the conservation and preservation of significant natural resources, and the perpetuation of traditional shoreline uses. In order to accomplish these goals and to provide a context for establishing rulots and regulations, a number of major policies -are included in the proposed Act (Section 905 (a)). fhese policies must be used by the Commissionerof Conservation and Cultural AFfairs as the basis for granting, denying or modifying coastal zone permit applications. The policies can be grouped into three broad areas: those relating to development practices, those relating to the natural environment, and those relating to coastal amenitiles. The following section of the anal,/sis summarizes some of the likeiv social and economic aspects of these policies. -22- SUMMARY OF SOCIAL AND ECONOMIC ASPECTS OF VICZM POLICIES (SECTION 905a, BILL NO. 7665) NOTE: Policies with similar impacts have been grouped Development Policies Direct Indirect (A) Within the appropriate areas designated in the Coastal - Fewer miles of sewer,'water, electricity - Lower maintenance and operating Land and Water Use Plan, to guide new development to the lines and roads results in lower capital costs for wate Ir, sewer maximum extent feasible into locations within, contiguous expenditures electricity lines and roads with, or In close proximity to existing developed sites - More efficient use of land resources - Lessens development pressure or, where such sites are not able to accomodate further - More efficient use of waste-water on open space such development, into other areas with adequate publ Ic treatment-systems results In lower - Preserves open spaces servl@es where it will have no significant adverse effects, capital and maintenance and operating - More efficient transportation individually or cumulatively, on coastal zone resources. costs results In energy savings Undeveloped areas will tend to remain - Cost savings In Infrastructure undeveloped can be applied to other public Encourages hotel expansion rather than services such as police, fire, development of new sites schools (B) To assure that development will be sited and designed - Helps to assure that scenic attractions - Preservation of scenic features to protect views to and along the sea and scenic coastal are maintained maintains attractiveness of areas,- to minimize the alteration of natural land forms, - Possibility of Increased investment islands for visitors and and to be visually compatible with the character of in site design resiaents surrounding areas. To these'ends, regulations of bulk, - Minimize obstructions to views height, set-back, minimum lot coverage and associated - Increase property tax revenues matters provided In the applicable sec 'tions of the Virgin Islands Zoning and Subdivision Law may be made more restrictive by the Commissioner as applied to particular development. (C) To assure that development In areas of high flooding - Fewer losses of private and public - Lower public and private out- hazard is so designed as to minimize risks to life and property as a result of natural lays farclean up - property. disasters - Helps to eliminate the need - Less risk to life for expensive construction - Lower cost for protective measures Lessen impact of social dis- - May result in higher Initial development ruption as a result of a costs natural disaster -23- Direct Indirect (1) The Commissioner, to the extent possible, shall prevent - Will protect natural buffers such as reefs, - Cost of providing man-made further growth and development In high hazard areas and mangroves, and sait ponds buffers Is eliminated preserve natural buffers throughout the first tier of the - Shoreline erosion and destruction of beaches - Wate'r quality will be protected coastal zone. will be minimized - Beaches will be preserved - Less sedimentation will occur - Lessens floodIng.and erosion - Lessens impacts from flooding - Protection of wildlife and - Restricts development fish habitat benefits fishing Industry (D) To assure that all new subdivisions, in addition to the May tend to increase initial development - Lower long-term maintenance other requirements contained In this chapter and In the costs especially road construction costs for roads and utilities Virgin Islands Zoning and Subdivision Law, are physically - Will preserve property values suitable for the proposed sites and are designed and improved - Better designed roads results so as to avoid causing environmental damage or problems of In less erosion and sedirnen- public health. tation impacts - Water quality will be maintained or enhanced - Visual concerns are protected - Adjacent property values will be protected and enhanced (E) To encourage urban waterfront re development and - Maintains traditional character of urban - Enhances visitor attraction renewal-in developed harbors in order to link residential areas - Increases value of property neighborhoods and comnercial downtown areas with physical - Assures that urban residents have adequate with waterfront views and visual access to the waterfront. access to the waterfront - Protects waterfront commercial activity (F) Within appropriate areas as designated in the Coastal - Insures that space will be available for - Reduce time and provide greater Land and Water Use Plan, to give highest pr 'iority along the water and power, waste-water outfalls, convenience shoreline to water dependent uses, particularly in those bulk storage, warehousing, Inter-island and - Lower cost of.shipping and areas suitable for corninercial , industrial, and port and trading boats, marinas, ports and docks, dry transport marine facilities and recreation; to give secondary priority docks, and local fishing needs - Lower fuel and energy costs for to those uses that are water related or have special siting - Prohibits non-water dependent uses as schools. transport and storage needs; and to disapprove uses in areas suitable for housing, and retail stores - Lower cost of Imported goods industrial, commercial, and marine facility development - Insures space for expansion of marinas and - 'Adequate provisions for export which are neither water dependent related nor have special port facilities facilities siting needs. - Assures that economic expansion can occur with a minimum of disruption -24- D i rect Indirect (G) To encourage @ishlng and carefully monitored mariculture -.Protects local fishing industry and related -Mariculture can increase local and, to the maximum extent feasible, to protect local fishing employment by preserving traditional uses food production activities from encroachment by non-related development. Protects charter boat fishing -Fresh fish provided for local consumption -Protects valuable tourist attraction (H) To prohibit dredging or filling of submerged lands Removes uncertainty associated with -Adequate port facilities resul .t unless sucK dredging or filling is clearly in the public expansion of port and marina facilities in lower costs of Imported inte@est; to promote the widest possible benefit from and other water dependent uses through goods port and harbor and channel dredging; and to ensure that dredge and fill -Tourist oriented water sports such proposals are consistent with specific marine - Provides for maintenance dredging will be protected environment policies. Towards'these ends, the diking, - Protects fishing an6 swimming uses -Maintenance dredging protects filling or dredging of coastal waters, salt ponds, lagoons, - Allows for dredging of sand except in existing developments marshes or'estuaries may be permitted, in accordance with significant natural areas -Lowers construction materials other applicable provisions of this chapter, only where there cost are no feasible loss environmentally damaging alternatives, -Insures development will be: and where feasible mitigation measures have Leen provided to consistent with public frin.imize adverse environmental effects, and in any event doctrine shall be limited to the following: (I) maintenance dredging -Vital marine systems will be required for existing navigational channels, vessel berthing protected and mooring areas; (ii) incidental public service purposes, -Assures adequate space for including but not limited to the burying of cables and pipes, futune economic development the inspection of piers, and -the maintenance of existing needs Intake and outfall lines; (III) new or expanded port, oil, gas and water transportation, and coastal dependent industrial .uses, including commercial fishing facilities, cruise ship facilities, and boating facilities and marinas; (iv) except as restricted by federal law, mineral extraction, including sand provided that such extraction shall be prohibited in significant natural areas, and (v) restoration purposes. -25- (2) Environmental Policies Direct Indirect (A) To conserve significart natural areas fcr their - Protects significant natural areas such as - Benefits commercial and re- contribution to marine productivity and value as reefs, mangroves, marine meadows and salt creational fishing habitats for endangered species and other wildlife. ponds - Maintains water quality, - Natural buffers are maintained important visitor-attractions (8) To protect complexes of marine resource systems of - Maintains a balanced ecosystem and activities such 'as snor- unique productivity, and assure that activities in or keling, swimming, diving adjacent to such complexes are designed and carried out - Protects rare and endangered so as.to minimize adverse effects r, 'n marine productivity, species habitc'.t value, storn buffering capabilities, and water - Protects the educational and quality of the entire complex. research value of natural systems (C) To preserve the function and integrity of reefs, - Lessen losses from beach marine meadows, salt ponds, mangroves and other natural erosion, flooding systems, (G) To preserve and protect the environments of offshore Islands and cays. (K) To protect environmentally sensitive habitat areas especially those of endangered species, against significant disruption. (L) To assure that development In areas adjacent to en- vironmentally sensitive habitat areas, significant natural areas, and parks and recreation areas, is sited and designed to prevent Impacts which would significantly degrade such areas. (D) To consider use impacts on marine life and adjacent and May result In higher initial development Protects water'quality and related coastal environments when assessing recommendations costs as a result of required mitigation marine habitat and for development within the first tier of coastal zone. measures productivity r Benefits fishing, tourist (H) To control construction in water bodies to minimize industry and local recreation interference with water circulation and sediment transport Protects the public's safety and to preserve water quality and marine productivity. -26- Direct Indirect 0) To assure that dredging and disposal of dredged material will cause minimal adverse effects to marine and wildlife habitats and water circulation. (M) To evaluate the impact of refinery and deepwater ports and sites on the coastal environment, and to ensure that .such facilities utilize technology that minimizes public health and safety risks. (E) To assure that siting criteria, performance standards, May result In higher Initial development Encourages the use of new and activity regulations are stringently enforced and up- costs and Innovative techniques graded to reflect advances In relatbd technology and knowledra Encourages higher quality design and Affords maximum protection of adverse effects on marine productivity and public health. construction to valuable resources, (F) To assure that existing water quality standards for Protects water quality Benefits fishing, recreation. all point source discharge activities are stringently tourism, public health and enforced and that the standards are continually upgraded to marine life achieve the highest possible conformance ioith federally promulgated @iater quality criteria. (1) To accomodate offshore sand and gravel mining needs In Allows sand and gravel mining with Lowered cost of construction areas and'in ways that will not adversely affect marine appropriate mitigation and protective materials will benefit all resources and navigation. Towards this end, sand, rock, measures sectors of the economy mineral, marine growth (including coral), natural materials, Will reduce the Illegal sand or other natural products of the sea, excepting fish and mining on beaches wildlife, shall not be taken from the shoreline without first obtaining a coastal zone permit, and no permit shall be granted unless it Is established that such- materials or products are not otherwise obtainable at reasonable cost, ant that the removal of such materials or products will not materially alter the physical characteristics of the area or adjacent areas on an immediate or long term basis, or unless the Commissioner has determined that a surplus of such materials or products exists at particularly designated locations. -27- Direct Ind I rect (N) To assure all bf the foregoing development must be - May result in higher development costs - Marine productivity, habitat, designed so as to assure that adverse impacts on marine - Minimizes the "social costs" of divelopment. natural buffers and water productivity, habitat value, storm buffering capabilities quality are protected and water quality are voided to the maximum extent - Long-run benefits Is to all feasible; so as to assure structural integr'ity and sectors of the economy neither to create nor contribute significantly to erosion, sediment transport, land settlement or the environmental degradation of the site or surrounding areas; and, to the raxir,um extent feasible be designed, constructed, cperated and maintained in a manner which mitigates or avoid the significant negative environmental effects of the development. Said effects shall be identified in the environmental assessment form prepared for, or used in the review of the development, or described in any other study,'report, test results orcomparable documents. (3) Amenity Pol'icies (A) To protect and, where feasible or appropriate, - Increases recreational opportunities - Less competition between hotels enha'nce and increase public coastal recreational uses, - Increases public expenditures for management, and residents for beach areas and facilities. clean-up, lifeguards, acquisition, etc. recreation - Assures that the public's rights to shoreline - Promotes equity in the social. (D) To assure that development does not encroach upon use are protected system or adversely affect the use of public recreational areas. (H) The Commissioner may require that public access from - Protects public rights to use shoreline Benefits local residents the nearest public roadway to the shoreline be dedicated - May require modification of site designs Protects beach'resources in new development projects requiring a major coastal - Increase employment in beach maintenance Increased employment In zone permit. Factors to be considered in requiring - Additional expenditures for maintenance, etc. beach maintenance such dedication of public access include whether (I) it is consistent with public safety or protection of fragile coastal zone resources; (ii) adequate access exists nearby; and (III) agricultural or other similar .uses would be adversely affected. Dedicated accessways shall not be required to be opended to public use until a public agency or private association agrees to accept -28- 1"M = = = = M = = = = == M M M M M M Di rect Ind I rect responsibility for maintenance and liability of the accessway. Nothing inthis subsection shall restrict existing public access nor shall it excuse the performance of duties and responsibilities of public agencies as provided by law to acquire or provide public access to the shoreline. (8) To protect and enhancethe characteristics of those - Protects scenic and environmental quality - Locally importipnt scenic areas coastal areas which are most valued by the public as - May condition or restrict development will be protected amenities and which are scarce, or which would 'be - Tourist attractions will be significantly altered ir. cbaracter,by development, or protected which would cause significant environmental degradations if developed. (C) To preserve agricultural land uses in the coastal - Protects open space Visual quality Is protected zone by encouraging either maintenance of such present - May re-,trict development Benefits local consumers agricultural use or use as open-space areas. Benefits tourist Industry (E) To incorporate visudl concerns into the early stages - Visual quality protected Benefits tourist Industry and of the planning and design of facilities proposed for - May increase initial development costs local residents siting in the coastal zone and, to the extent feasible,, - Will result in a long-term enhancement expand and maintain visual access to, and provide views of property values of, the coastline and coastal waters. - Can lower energy costs for air conditioning, etc. (G) Development shall not interfere with the public� - Increases recreational opportunities Will Insure public rights right of access to the sea where acquired through use, - Maintains access legislative authorization or dedication, Including without limitation the use of beache.s to the landward extent of the shoreline. -29*- The Land and Water Use Plan The Coastal Land and Water Use Plan constitutes a suggested comprehensive plan for the development of the first tier of the coast al zone. Ideally, all zoning amendments, capital improvement programs or projects, government land acquisition programs, land subdivisions, and other development activities should be.consistent with the Coastal Land and Water Use Plan. A pla'n of this type is intended to serve as a policy guide for decision-@making relative to development activities in the first tier-of the coa-stal zone. The proposed Land and Water Use Plan,represents an attempt to identify those areas of the shorelines which should be reserved for certain water-dependent, industrial uses, environmental protection uses, and public use areas. In its present state of development, this land and %'later use plan is offered as a recommended guide to the public and to public decision-makers concerning future development in the coastal zone. The proposed legislation clearly identifies this plan as a working plan which is to be futher refined within one year of the passage of the proposed act. It does not and will not modify the prope'rtv development rights that presently accompany the existing zoning law. Under the proposed law(Bill NO. 766:5), the Planning Office, the Legislature and the interested public will be afforded an opportunity to review the existing zoning law and make recommendations within a year regarding any zoning changes. Until such thme as zoning changes are approved bythe Legislature, the present zoning requlatlon5 remain in full force and are unaltered. The principal mechanism which has been used to allocite and manage land uses in the Territory is the Zoning Law. Since nany future land and water uses will be dependent in part upon development @atterns associated with the present zoning, the existing system is an integral part of any future planning or economic development process. The Virgin Islands Zoning Law establishes seventeen separate zoning districts, ranging from agricultural, residential, industrial, and waterfront to public use classifications. rn ell of the districts a variety of uses are permitted as a matter of right, as accessory, ur under specified conditions, The present Zoning Law was enacted in 1972 (Act. No. 3284). All zoning changes or amendments require public notice and hearings in addition to legislative and gubernatorial approval. Under the present zoning, most, if not all, of the remaining sandy recreational beaches not presently developed are zoned for high or medium intensity uses (W-1 or R-3), while the vast majority of the shoreline is zoned for low density residential uses(R-I or R-2). If the shoreline were to be developed strictly in terms of present zoning, local r6creational needs would have to be met using -30- owned shoreline areas, The growing population existing publicly centers in eastern St, Thomas and central north-central St, Croix presently have limited recreational areas and even in the absence of additional population growth in these areas, additional beach/ recreation areas are needed, With the exception of National Park Service lands on St. John, very little of the shoreline is protected for conservation, or wildlife habitat or as natural buffer zones. In addition, the existing zoning law makes no provision for allocating scar.ce shoreline areas for water dependent uses. Economic Aspects of the Proposed Action S-ince the Land and Water Use Plan will be superceded by the existing zoning, there is, in effect, no change from the present situation. What the Land and Water Use Plan does do is to clearly establish the intent nf the Legislature and the Planning Office to carefully review existing shoreline u'ses and needs including local recreation needs to determine if zoning changes or other actions are required. It is unlikely that this one year study period will affect the economy in any way. Should any development occur during this period, the applicable zoning regulations are in full force. Areas of Particular Concern The detailed examination of all the coastal a reas of the Territory has revealed that there.is a definite need for guidelines to be established for development in certain limited locations in order to assure that proper development occurs. Presently, there is no com- prehensive development plan for the Virgin Islands. As a result, priorities and recommendations for future development of the coastal zone must be clearly identified through the Coastal Zone Management Program. Just as the proposed land and water use plan is an advisory plan, the identification and recommendations for "areas of particular concernLI also function as advisory plans for development of specific geographic areas. Existing zoning regulations will remain in full effec.t f6rthese areas also. The proposed Coas-tal Zone Management Act includes provisions for the adoption of the recommendations and priorities for areas of particular concern as a guide for evaluating future development in these areas (section 905'(b)@ These recommendations are detailed in Chapter 7 of the Preliminary Coastal Zone Management Program, and as an appendix to the.proposed Legislation. These areas are identified in Figure 1. FIGURE 1 AREAS OF PARTICULAR COINCERN 10 3 0 0. 10 3 10 10 ST. THOMAS ST. CROIX 1. St. Thomas Hirbor and Waterfront 1. Christiansted Waterfront 2. Botany Bay 2. Southgate Pond - Cheney Bay 3. Magens Bay and Watershed 3. Green Cay 4. Mandahl Bay 4. Isaac Bay - East End 5. Vessup Bay - East End 5.' Great Salt Pond Say 6. Mangrove Lagoon - Benner Bay 6. Southshore Industrial Area 7. Sandy Point ST. JOHN 8. Frederiksted Waterfront 9. Salt River - Sugar- Bay 1. Enighed Pond Cruz .Bay 10. St. Croix Coral Reef System 2. Chocolate Hole - Great Cruz Bay 3. Lagoon Point - Coral Harbor 07 r4, -7, -32- The specific recommendations are an outgrowth of the coa5tal zone planning prrocess and represent a synthesis of many diverse considerations. In most cases, the recommendations reflect a refinementcf the policies and use recommendations included in the p.roposed legislation. A brief examination of the recommendations for each of the areas is included in the following section. -33, SUMMARY OF RECOMMENDATIONS AND IMPACTS FOR AREAS OF PARTICULAR CONCERN Recommendations Direct Indirect St. Croix I Christiansted Waterfront a) Fort Christiansvaern*to Vicinity of Antilles Airboats It Is recommended that pedestrian access to the downtown -'Improved access to waterfront - Encourages waterfront area be improved by constructing a p@destrian walk-way along - Relocated Parking development the waterfront. *Safe, continuous lateral movement should be - Restricts further development of - Expanded business oppor- provided by extending and Improving the existing waterfront Protestant Cay tunities along waterfront cornercial develcpment. Existing parking areas along the - improves visual quality In waterfront near the Scalehouse should be relocated to insure Historic Area that the 'integrity of the Historic Site Is maintained and - Protects tourist attraction that s-afe and adequate access to the entire waterfront Is - Will require additional expend- available. Any raintenance dredging which may be required iture for development of should be und@rtaken only after careful study. In order to alternative parking areas protect the remaining habitat fot the endangered wildlife May restrict expansion of and to maintain the scenic quality of the waterfront, It is existing hotel development on recommended that no further development activities be Cay permitted on Protestant Cay. Provisions for maintenance dredging will benefit boating industry b) Fort Louise Augusta-Altona Lagoon-Gallows Bay It Is recommended that the Gallows Bay area be redeveloped - Increased facilities for recreational - Promote local and tourist- for recreational boating upon completion of the new Southport. boating oriented boating through New or expanded marina sites should be developed within this -Local trading vessels insured space provision for marinas area. All heavy cargo operations should be relocated to the -Enhance sc@'nlc and recreational potential - Increased employment in new Southport location. Adequate facilities for the small of Altona Lagoon recreational boating inter-island trading vessels should be maintained. - Traditional uses maintained The southshorecf Altona Lagoon 'should be an area for - Improve water quality In Lagoon preservation and restoration. The remaining perimeter of Area the pond should be devoted to conservation, recreation, and - Less congestion In Christiansted -34 Recowendations Direct Indirect traditional use. It Is recommended that the lagoon Itself as a result of relocated retain its function as a scenic and wildlife area. The freight handling drainage of Altona Lagoon should be restored by Improving Increased boating use may water flow from the lagoon to the bay. affect water quality c) Western Christiansted Habor It is recommended that the development of this area for Area reserved for local recreation/ Will require ex@endlture recreational use be undertaken as expeditiously as possible. open space needs funds The C7M program endorses the preliminary plans for the area Will provide space for future which have been developed by the Department of Conservation recreational use and Cultural Affairs. Enhance N;Isual quality 2) Southgate Po'nd-Cheney Bay The eastern portion of the former Southgate pond should Increased recreational opportunities - May require expendl-ture of funds be preserved as a wildlife-educational area. Public access Eastern portion of pond protected for for access'acqulsltlon to the Cheney Bay Beach should be secured. The impacts wildlife/educational use - May restrict development of having opened the western portion of the pond should be Establishes potential for boating use - May benefit local boating Investigated. If no severe Impacts are found, the western in western portion by p@ovldlng space portion of the pond could be devoted to a protected anchorage for recreational boating. Green Cay Green Cay should remain In its present undeveloped state. Area reserved for wildlife protectJon - May require expenditure-of The inclusion Into the Territorial Park System would protect and limited recreational use funds for acquisition this Important resource. The report "Potential National - Protects endangered species Natural Landmarks" strongly recommends that Green Cay be and valuable habitat entered into the Registry of Natural Landmarks. The CZM - Will restrict development Program concurs with this recommendation. - Enhances scenic quality -35, Ilion M HIM m M M m Recommendations Direct Indirect 4) Isaac Bay-East End Isaac Bay-East End should remain in its present undeveloped - Recreational opportunities protected - Restrict develooment state. Inclusion of this area into the Territorial Park - Scenic quality protected - May result In Increased System would be the best means to preservethis wild scenic - Protects eer:cational/sclentific values recreational use to detriment area. of resource values 5) Great Salt Pond and Bay The Great Salt Pond and Bay area should bii preserved as a Protects wildlife/educational value for Restricts development wildlife, educational, and natural area. future enjoyment Protects scenic natural buffer attributes 6) Southshore Industrial Area It is recommended that special procedures be established - Will require additional expenditures for - Will benefit long-term aspects for monitoring the environmental impacts, especially water constant monitoring and impact evaluation of water quality and air quality impacts associated with the shouthshore - Additional expenditures for oil spill - Provisions for minimizing industrial area. Therefore, future development should be contingency and environmental restoration risk and loss from Industrial In close coordination with the EPA. Oil spill contingency pollution. plans should be formulated and reviewed regularly for Benefit tourist industry by adequacy. Any future dredging activity, such as that protecting beaches from oJI spills between the Hess and Martin Marietta channel or the dredging and backfilling necessary for the proposed submar I ne p i pe I i nes , shou I d be ca ref u 1.1 y mon i tored to insure that undue damage does not occur. Mangrove restoration should be undertaken along the southern boundary of the Martin Marietta site. Recommendations Direct Indirect 7) Sandy Point This important recreation, scenic, and wildlife Protects important natural area -May restrict development value of Sandy Point and the West End Salt Pond need -Beneflt*s In terms of wildlife protection. Therefore, this area should be managed habitat, recreation, scenic for conservation, recreation and traditional uses. quality, natural buf 'fer, educational and scientific value 8) Frederiksted The Coastal Zone Management Program endorsesthe --Establishes priorities for revitalization -increased employment major proposals for Frederiksted as'outlined in the - Pier improvements and expanded visitors opportunities 1974 Port Authority Study "Plans for Seaport facilities -Will require additional Development and Relocation". It-is recommended - Protect distinctive character of town expenditures that a revitall.zation plan for Frederiksted include - Protect scenic quality -increased recreational the following elements: opportunities -Protect and enhances visitor (a) Active encouragerrent of cruise ships to attractiveness visit Frederi.ksted, repairs and improvements to the existing pier, construction of a visitor center plus other waterfront amenities for both visitors and residents; (b). Development and improvements of Frederiksted beach and the waterfront'park with special emphasis upon integrating of historical areas (especially Fort Frederik) into the shoreline park areas; and (e) Relocation of all cargo shipping to the Southport with any future marina con- struction encouraged to locate adjacent to the cruise ship area. -37- Recommendat Ions Direct Indirect 9) Salt River-Sugar Bay The Salt River-Sugar Bay area should be utilized - Protects Important natural area for future - Enhances visitor attrac- for preservation and conservation. Inclusion of this enjoyment tiveness area in the Territorial Park System Is recommended. - Protects visual quality -May restrict development - Protects historic site 10) 'St. Croix Coral Reef System This portion of the St. Croix coral reef system Protects water quality and natural buffer - Bnefits In terms of fishing should be preserved as an underwater park and placed - Less beach erosion in the Territorial Park System. - Protects visitor attraction St. Thomas 1) Charlotte Amalie Harbor and Waterfront a) West Indian Company and Vicinity It Is recommended that any dredge and fill activities - Provisions to protect environment With adequate safeguards, which may be undertaken by the West Indian Company be - Provisions to protIct concession rights expanded facilities will carried out In a manner which will minimize long-term of company and public Interest result In Increased business adverse impacts to the water quality of the harbor. It opportunities with minimum Is recommended that close coordination between the environmental losses Company and the coastal zone management agency-be maintained in order to insure that all future development activity will be consistent to the maximum extent feasible with the coastal zone management plan. b) Long Bay and Downtown Waterfront Future development activity west of the proposed landfill - Maintains traditional uses Restrict development at Frederiksberg Point and extending to the vicinity of Antilles - Protects scenic quality Benefits local fishermen, Alrboats operation should be restricted to maintain this area In Its Inter-island traders, tour boats -38- Recommendptions Direct Ind Irect Ensures safe, adequate access io - Protects tourist attraction present use. Any shoreline alterations for this area should waterfront - Protects public safety and be minimal. The native fishing boat uses, recreation uses public rights to waterfront and traditional waterfront commerce activities should be protected from encroachment by other uses. Any public service facilities for this shoreline area, including land transportation, public buildings; utilities, or public recreation, should be designed in such a way that the public's physical ardvisual access to the waterfront is enhanced, not hindered. Safety measures s 'uch as cross- walks should be utilized to insure safe and adequate access to the waterfront. cY Frenchtown and Vicinity It is recommended that the waterfront area of Frenchtown Maintains traditional uses - May restrict development and vicinity be maintained in its present use. Continued - Benefits local fishermen attention to'congestion and safety problems In the marine and consumers area is warranted. - Minimal controls may result In congestion and serious safety problems d) Crown Bay It is recommended that the general Crown Bay redevelopment Establishes priority for development - Will require large expen-. plan suggested by the Port Authority be endorsed. Specific ditures configurations and facility plans for.the filled lands - Additional land for commercial- should be decided upon after consultations with the coastal industrial uses, port facilities, zone management agency, the Port Authority, and the marina Department of Commerce. The marina facility should be - Benefits consumers*, promotes included in the Crown Bay redevelopment with additional indusrlal development attention given to the need for a lbrger facility than that - Restricts non-water dependent outlined In the Port Authority plan, uses - Enhances cruise ship potential - Benefits recreatlonal boatlng -39- Recommendations Direct Indirect e) Krum Bay It is recommended that this area be maintained for heavy Protects water and power supply May restrict development industrial type activities such as those which presently operate here. The quality of the water in the bay which is processed by the desalinization plans should be protected from industrial pollution. f) Hassel Island Hassel Islands should be preserved It Its present state. Protects scenic quality, historic area Restricts development The best use of the island as a historic park, recreation for future enjoyment area and nature@ study area. It Is further recommended that the entire is-land be considered for possible inclusion in the Territorial Park System. Water island Based up@n the finding that Water Island development does Fstabllshes ticed for controlling Impacts May limit development not involve the "national interest", and the finding that direct impacts may occur, it is recommended that Water Island be developed in a manner consistent with the CZM Land and Water Use Plan and policies. 2) Estate Botany Bay It Is strongly recommended that Estate Botany Bay, Protects historic, educational value of area May restrict development Including the offshore reefs, be included in the Territorial Park System. The archaeologic and historic sites should be protected from degradation and serve as an outdoor classroom for students. The basic natural character of both the terrestrial and marine portions of this site should be protected. -4o- Recommendations Direct Indirect 3) Magens Bay vie,,.,shed/Watershed Management The viewshed (the - Protects scenic quality -Protects valuable tourist- area of Lerkenlund, Misgunst, Canaan, Lovelund and - Protects water quality scenic resource Peterborg Peninsula) from Drake's Seat seaward should - Restoration of degraded arboretum -May restrict development receive careful managerent. The view should be protected -Will require additional and e nhanced. Watershed manager-ent of this area is expenditures for general needc.,' to protect Magens Bay, the beach, and the management, clean-up, archaeological sites. Upland development should be restoration held -at a minimum, and conducted in a manner that will -Increased access and usage prevent erosion of the hillsides and subsequent siltation may result In degradation and sedimentation of the Bay. of resource Improvement o f Public Access to the Beach and Park - Magens is difficult to-reach wit*h ut a car. Public bus service,- especially on weekends, should be developed from Charlotte Amalie and Estate Tutu. Arboretum Restoration - The coconut grove and entire arboretum area should be restored and managed. 4) Mandahl Bay The recommended use for the area Is as a wildlife and Restricts development Protects wildlife and scenic scenic park. Accessibility should not be significantly quality improved. While It Is not feasible to restore the salt pond to its original condition, a "lagoon" may be created by replanning and restoring damaged vegetation. Vessup Bay-East End The expansion of boating facilities at Vessup Bay should - Expands port and marina area -May degrade water quality. be encouraged. The salt pond adjacent to the ferry dock should - Requires additional expenditures -Better port facilities benefit be utilized as the site for future expansion of marine - Removes natural buffer and wildlife St. John residents V terminal and associated facilities. habitat -Maximum efficiency of use requires Improvements on St. John also Recommendations Direct Indirect 6) Jersey Bay: Mangrove Lagoon /Benner Bay The overall policy for Jersey Bay should be one In which - Limited marina exp-insion benefits - May restrict development the mangrove area receives either protection or restoration boating industry - Protects Important .-local with lir-Ated marina expansion. - Esteblishes protected'areas and tourist boating activities A I I of the manaSerent guide I ines and recommendations set - Provisions for limited dredging - Protects fishing industry forth in the "Pernissible Land and Water Uses" section of - Provisions for environmental monitoring through habitat conservation Chapter Five should be stri.ngently enforced in the Mangrove - Maintains natural buffer .Ta-Soonarea (for more detailed information, See VICZM, - Increased use may affect Marine Environnents, 1577). water quality and habitat A portion of the Mangrove Lagoon area should be preserved. In some areas The proposed boundary of the mangrove preservation zone is as follows. A line from the coastal road through parcel no. one, to the northeast point of Bovoni Coy shall divide the mangrove preservation zone from the area of per- mitted marina development. Land to the west of this line will be within the mangrove preservation zone (this boundary approx,imates the line dividing the present W-1 zone from P zone on the zoning map). The preservation zone should extend west to Long Point. A second preservation zone should consist of an area from Corpass Point north to the existing marina. A program of mangrove restoration should be initiated for the old race track area near the Lagoon, and for the former lagoon area between Antilles Yachting and Compass oint Road. The area of Brenner Bay east from the preservation boundary to Compass Point should be a area where marina development is permitted If it is consistent with the provisions for the protection or restoration of mangroves. Limited dredging of Benner Bay should be permitted contingent upon an environmental impact assessment. Ancillary marina facilities (e.g., parking, -42- Pecommendations Direct Indirect boat cleaning, solid waste disposal, fueling) has had significant ir-pzct on the water quality of the entire bay. Therefore, careful attention should be given to the Impacts of fueling, runoff, and other related activities. A public dock should be constructed and rrarina owners should be encouraged to construct public facilities in return for various tax concessions. Those who moor boats within the preservation area, and who cannot afford commercial docking space, should be given first priority in relocating to any new public docks. Watershed management of Turpentine Run gut and other water courses is needed to protect the water quality of both the Lagoon and Benner Bay. St. John 1) EnIghed'Pond-Cruz Bay In addition to these activities, a wastewater Provisions for marina and related - Expanded employment treatment faci.lity is planned for the Enighed Pond port facilities at Enighed Pond will opportunities area. If Is recommended that 'the general concepts benefit local consumers and boating - Will'encourage development of the proposed master plan suggested by the Port industry - Loss of pond areamayaffect Authority be endorsed. Plans for the wastewater Increased recreational opportunities water quality treatment plant should be reviewed to insure that Iticreased expenditures for relocation - Increased activity In Little this activity will not interfere with future and development Cruz Bay"may degrade water development. It is also recommended that ferry quality boat docking be relocated to Little Cruz Bay. Dredging may adversely Impact ( Creek Area). This measure would enable the water quality water quality In Cruz Bay to improve and in Increased development may turn make Cruz Bay Beach a more viable recreation detract from character of area resource. In addition, the area surrounding Little Cruz Bay can better accomodate taxis and tour buses. All detailed site plans should be subject to review by the coastal zone management agency. As a -43- Recommendations Direct Indirect condition for any %..ork in Enighed Pond, the constraints on development of Salt Pond areast must be considered. Protection of themr-arine env;ronemnt must be given high priority during construction of any proposed irrprove-ents. Strong erosion and drainage control r-easures must be taken to replace the salt pond's function as a sedir-ent trap. 2) Chocolate Hole-Great Cruz Bay Generally, the policies outlined in this plan Protects visual and environmental quality May restrict development should suffice to insure that development of Great Cruz Bay and Chocolate Hole will not destroy the amenities that the area presently enjoys. The Coastal Zone management recommendations with respect to salt ponds, mangroves, beaches, and steep slopes development should be strictly applied to these areas. Future development of Great Cruz Bay and Chocolate Hole should be done in such a manner as to minimize environmental and visual impacts. 3) Lagoon Point-Coral Bay The Coastal Zone Management Program strongly endorses Protects valuable sceintific and Protect scenic quality the inclusion of Lagoon Point into the Territorial Park educational resources May restrict development System. Careful park management to balance utilization with protection will be needed. It Is strongly recommended that Lagoon Point serve as an Environmental Studies Program out- door classroom to expose students to the lessons to be learned from th'is area. It Is also-strongly recommended that development In the upland watersheds adjacent to Lagoon Point be monitored and contrblied to minimize adverse impacts to coastal water quality. The on-going mangrove restoration project should be encouraged and Its success monitored. The use of Hurricane Hole for fishing, recreational boating, and as a storm anchorage should be maintained. -44- Intergoyernmental and Public Involvement One of the most beneficial socio-economic impacts of the proposed program is that it encourages citizens to become involved in.the management of coastal resources. The Program exhorts and/or requires the direct involvement of Federal and local government agencies as well as further efforts from the public and private sectors, Public involvement measures are found in the development and continual revision of rules and regulia-tions, the'issuance of- permits, appeals procedures and the process for making program amendments and zoning changes. Because of the Federal consistency requirements of Section '07 of the federal act, actions of Federal agencies must be ccnsistent with the provisions of the management program. The Planninc., Office, and the Department of Conservation and Cultural Affairs v,611, be developing rules and regulations both immediately to iripleflent the program, and from time to time to revise standards. Working on these guidelines will entail public input and participation In the development stages. Furthermore, the VICLZMA re(-u;r--s that public hearings be held before formal adoption of the rules and reguiat-ic'ns. These rules and regulations are of course subject to review at any time by the Legislature (VIC, Title 3, Chapter -35).. Activities which will recuire a major permit will require public notification and hearing at which time public views conct@,rning the possible consequences of the activity can be voiced. In s---Jdicion, section 906 of.the VICZMA require-, review of major perimits by releva@,t Virgin Islands public and private groups and Federal agenci-es. There is clearly defined appeals procedures for any aggrieved person (Section 910). The Board of Land Use Appeals is a citizen board which may overide the action of the Commissioner of Conservat*;or and Cultural Affairs. Furthermore, the Board is required to hold public hearings on appeals to provide a public forum for discussion of the appealed permit decision. Amendments to the Management Program must follow the same procedures as amendments to the zoning law. Public notification and public hearings must be held and the Legislature must act on the proposed change. Any zoning amendments must follow the prescribed procedures in the Virgin Islands Code (Title 29, Section 238). Each individual, as well as adjacent property owener, must be notified of the proposed amendment. Public hearings must be field and the Legislature must act on the amendment. Public Access/Acquisition The policies for access-are one of the most unique to coastal zone management since,they deal with the problems of social equity, the benefits of which are not'easily quantified. The issue is directed toward the responsibility of a society to protect the -45- rights of all of its citizens. Despite the provisions of the Open Shorelines Act which reaffirm the customary use of lateral shoreline ac6ess, and the provisions for requiring access found in the Industrial Incentive Act, access to the shoreline is still a coastal issue of consequence.' Physical access is addressed in section 905 (a) policies, as well as in the existing statutes. While the policies will assure the social benefits of physical landward access., it will nctbe required In all instances, Access may be a provision of a major coastal zone permit under certain.circumstances and with certairi stipulations. The rules andregulations will serve to further operationalize these circumstances. It is likely that landward access would be required 6f all new hotel and beachfront condominium developments. In any event, dedicated accessways will not be required to be opened to public use until a public agency or private association aqrees to accept responsibility for maintenance and liability of the accessway. The most likely economic impact of increased access will be the necessity for expending additional funds for.maintenance, life- guards, clean-up, etc. Visual Concerns Perhaps the most apparent impact of human activity on the Virgin Islands roastal zone has been a visual one. In sore areas the visual resource remains naturai , and in others develo-pTnent- has respected the special visual qualities of the coastal e@lvirc!-.,-_ent, but some of the coastline has been degraded by poorly desigred development. In these areas there are buildinas that are obtrusive being inappropriate to nearby landforms and, inconsistent with the pattern and scale of existing development. There are signs and overhead utility lines that block views and create visual clutter. There are visual scars left by cutting, grading, f i 1, 1 ing, and vegetation removal, and this is often accompanied by the erosion that results from the alteration of natural landforms. There are, also, inadequately landscaped developments that detract from their natural setting rather than being enhanced by it. The Territory's coastal zone is a visual, educational, and aesthetic resource of considerable worth. Both residents and -visitors alike benefit from the visual attractions which our natural setting affords. The policies on protecting visual resources will provi,de long-term benefits, and will not be an irretrievable committment of resources, While individuals may resent the permit process regulating the siting characteristics for development (design standards, location, landscaping, etc.) the policies recognize that scenic and visual qualities are resources important'to the public as well as to the economy of the Territory. In some instances, the policies may result in additional development expenses. Long-term benefits in the form of visitor attractiveness and protection of property values will likely occur. -46- Economic Development The management program s impact on employment and other business investments will vary for major industry sectors. Investment and employment potential in, fisheries, certain tourism activities, and commercial recreation, marinas and port facilities will be enhanced through the incentives of the regulatory policies. The long-range viability and security of these industries in the coastal area will be protected and encouraged, but the costs of doing business in the coastal zone may go up for some industries which must allow for public access and environmental protection standards. This added investment stimulates other businesses, but it might also make certain business development or expansion programs questionable. Coastal dependent industries benefit as they have not done. before from the priority siting they are given under the Act. The trend in many areas has been for non-dependent activites which preclude space for coastal dependent industries, such as fisheries, marinas and port facilities that depend on a shoreline location. (1) Construction and Commercial/Industrial Activities One of the primary economic reasons for the manaqement program is that it will promote, through reduced uncertainty and water- dependent siting priorities, an atmosphere which is conductive to the long-run economic development of the Territory. If this economic development does not occur, the construction industry in the islands will be forced to rely mainly upon maintenance and replacement construction actvities for its survival. This industry benefit from construction of port facilities and harbor improvements and sustained growth in residential development which will accompany economic development. The programs policies with regard to sand extraction will lower construction costs and encourage development. The permit process, with its specified time limits for action and reduced uncertainty, will result in cost savings as a result of less delays and clear delineation Of Procedures, This will benefit development activities of all kinds. It is likely that the permit process and some required mitigation measures provided for by the policies result in higher initial construction and development costs. Benefits to all sectors of the. economy will occur as a result of higher quality development. These include protection of water and visual quality, and enhanced property values. Investment in rehabilitation of urban areas will also benefit the construction industry. It is likely that there will still be periods of general economic decline, and growth spurts; however, these impacts cannot be totally attributed to coastal zone management. There are several policies that will impact the commercial/ industrial activities and subsequent employment. Water dependent -47- activities will be assured of sufficient suitable locations. Ports, marinas, and@docking facilities, power and*desalinization pl,@nts and other water dependent activities are given a high priority along the shoreline. This type of commercial/industrial use is necessary for the future economic well being of the Virgin Islands. Subsequent employment benefits will result. These new and expanded activities will bring an increase in the number and quality of job opportunities. The transfer of goodswill be enhanced. This will have the beneficial social impacts of greater availability of consumer goods and increased competition which will tend to lower costs to the consumer. Increased employment will result in.higher tax revenues with resultant positive impacts upon local public services and facili.ties. There are several policies which may impact the manufacturing industries and subsequently employment as well. Jne implementation of the program over the next several years could mean t)at some new manufacturAng 'industries that are not coastal-dependent-must be sited further inland and not near the more accessible waterfront areas. This could increase the costs of transportation for those industries, whereas before they were in a more competitive position as a result of their waterfront sites. The policies and recomme...ndations which relate to development c;f potential industrial areas such as tub-Base in St. Thomas and inland" sites on St. Croix will tend to offset this potential negati,,e if,ipact. (2) Ccnirliercial Fishina and Recreational Boating The Coastal Zone Management Program will, protect and enhance the commercial fishing industry and recreational boatinq. F,shiincj ul@ios have received a high priority use designation ,.jhich ensures that needed facilities will not be lost to non-water dependent uses. Not only does the program support the commercial fisheries by -protecting their harbor and support facilities, but it also protects the waters arid hab'itat necessary to support the fisheries, The continued discharoe off wastes into coastal waters and the alteration of wetlands, which the program seeks to prevent, could mean a significant loss of jobs for the Territory as a result of decreased fisheri es production, The recreational boating industry will also benefit from the Program. The policies which relate to water quality. water dependency maintenance dredging, wildlife habitat and all of those which positively Ampact the tourist industry will promote boating in the Territory. Because of the increased demand in this activity, it is expected that there will be i.ncreased demands fornew marinas and support facilities. The program encourages-the maximization of use of existing facilities with as little adverse environmental impacts as possible, and where feasible the development of new facilities. The program recommendations with regard to additional marina areas for Crown Bay, Red Hook, Cruz Bay, Christiansted and Frederiksted will increase the available ma.rina facilities on.all three islands. -48- (3) Tourist/Recreation The Virgin Islands Coastal Zone Management Program will protect and enhance tourism, As is the case with fishing (except on a much larger scale), the thousands of jobs and millions of dollars in income from tourism are directly dependent upon the protection and wise use of the coastal resources. This is one of the major reasons for the detailed policies on development, environmental resources, and amenity resources, The permit system and the policies both seek to insure that the Virgin Islands will continue to be an attractive and competitive tourist destination, The proposed permit system will insur@! that all projects are considered in a timely and even-handed manner, with adequate safeguards to protect existing or potential tourist attractions. The program policies will encourage expansion of existing hotel facilities rather than new construction on undeveloped sites. The permit system may resu!t in higher development costs for beachfiront hotels as a result oil required mitigation measures and provisilans for physical, access and visual concerns. The policies, especially those which relate to water quality, reef systems, and mangroves v,l I 11--.ellp protect beaches from erosion as well as protecting and enhancinn f--7 .,:n:ng, snorkeling and scuba diving - al-I Important tourist attracticnz. In addition, policies and recommendat;cns recardiro marine facilities and maintenance dredging wiii have a po-sitive- impact upon charter boat and sport fishinq industries. In effect, the Permit system and the policies promote the development of a div-@-:rsified tourist economy in which special attention is given to the needs of fishing and boating industries, snorkeling and Scuba diving, beach recreation, and cruise ship oriented tourism as wel I as beachfront hotels. Important considerations such as-scenic quality ane beach erosion are also included in the program. The provisions for PUbl;C access and impact mitigation miy result in additional development costs, The cruise ship oriented tourist industry is encouraged by water- dependency policies, maintenance dredginq policies and recommendations for additional facilities in Crown Bay" and Frederiksted, The direct beneficiaries of a successful tourist industry are, among others, establishments engaged in the sale of food and beverages, hotels and guest houses, theaters, sports and other recreational business, automobile services, professional and personal services, clothing, gift shops, taxis, tOUr buses, and travel agents'. 'Indirectly, the entire economy benefits from the industry including the local government through increased tax revenues. The Program policies will continue to encourage the further development of recreation and tourism in the coastal zone to perhaps the disadvantage d private, residential, general industrial, and general commercial development. It must.be recognized that there is a limit to the amount of tourist and recreation growth which can be accommodated by the coastal zone. At some point congestion and resource limitations will bring about unavoidable cumulative impacts -49- and social costs which cannot be satisfactorily mitigated At some poiht in the'future, this issue must be confronted and resolved. While this issue is usually viewed in the context of industrial, commercial, residential and hotel-condominium deveiopment, similar results may occur with beach use, fishing and water sports development. The provisions of the Coastal Zone Management Program including the permit system, the policies, the land and water use plan, shoreline erosion, ane energy development siting will assure that adequate monitoring and mitigation measures are carried out to insure that the greatest possible public benefits will occur while minimizing adverse impacts from worthwhile and necessary uses. The potential economic and social benefits of this activity cannot be valued in dollars and jobs. The policies on shoreline access, recreation and visitor facilities. protect the rights of the public to enjoy access to the coastal en- vironment and increases the opportunity for recreation. Increased access and recreation is especially important for areas such as eastern St. Thomas and Christiansted and central St. Croix where large population concentration occur and which pres.ently have limited re- creational opportunities. AlthQugh numerous attempts have been made, it is difficult to quantify the quality experience of a day at the beach or a look at a view such as from the scenic road on St. Crcix or the Drake's Seat.overlook, or from the highway overlooking Coral Bay. Potential adverse impacts related to access will include increase'i maintenance and public service costs, and negative impacts on private r property holders who prefer exclusive use. There may be additional costs to developers for conveyance of access rights. Many of the policies may be potentially growth inducing, resulting in adverse impacts upon water quality and related environmental and amenity resources, and public infrastructure. There will be heavier use impacts on natural resources especially from the line of vegetation to the coastal waters, and, in some cases, the coastal waters and marine life. Other policies are provided to mitigate these impacts. (4) forts With the exception of some locally produced fruits and vegetables and some seafood, almost all consumption goods and construction materials (including sand) uses in the Virgin Islands are imported. While an increasing amount of imports arrive by air, most bulk materials are shipped to the Territory by ocean freight. Provisions for adequate port facilities are thus absolutely necessary for each of the three main islands. Port facility development is addressed by specific policies and recommendations of the Management Program. In addition, the policies which relate to the maintenance dredging are applicable. Specific recommendations for each island are included in the program. -50- Upon completion of the new Southport on St. Croix, the Man- agement Program recommends that the existing facilities at Gallows Bay be developed'for marine recreation purposes including a marina. Adequate space will continue to be provided for small inter-island-trading vessels which frequent the area presenfly. It is recommended that all heavy freight traffic be shifted to the new public port. The program also recommends that the limited port facilities at Frederiksted be expanded, primarily for cruise ship docking and recreational boating including marina facilities. Positive economic impacts will result from conversion. of the existing areas for cruise ship and recreational. boating. Increased tourist potential and 'recreational opportunities will o,c*cur with resultant increases in employment and overall economic.activity. Economic savings will be achieved by consolidating all heavy port needs in a single, well-equipped and centrally located port. Likely benefits include lc,.-@er handling cests, lessened traffic conaestion in Christiansted, more timely scheduling for imports and exports, and a greater var@ety of avai-lable goods, all.of which should lead to [email protected] consumer Costs. The port related reconmendat ions for St_ Thomas are directed mainly toward the Crown Bay-SubBase area. The program endorses the Port Authority proposal for dredge'and fill activity in the Crown Bay area for thE. purpose of cruise ship docking, freight and related uses. A marina prop .9sal for the area is also endorsecL, Presently, the existing facilities of the West Indian Company docks and the limited shallow draft facilities near Aspinall Sc@ool are ina'dquate to accommodate an increase in the number of cruise ships. Thle Crown Bay propcsal would provide benefits in terms of additional docking and warehousing and bulk storage facilities and also in terms of encouraging the redeyelopment of the entire SubBase arfa for industrial and commercial uses. Additional benefits include those resultina from .the proposed marina and repair and maintenance facilities. Potential adverse impacts could occur as a result of lowered water quality and construction impacts. Construction of the project would result in the displacement of several businesses along the shoreline including 2 restaurants, and existing dock ard boat storage, several auto,-,)Obile sales and service operations, and warehouses. These activities would be forced to find other locations inland. Existing businesses %..,ould be adversely affected. Mitigation measures provided for in other policies would lessen possible negative environmental impacts. The program also 'recommends additional facilities for Red Hook including use of an existing salt pond for expansion. @ince the primary use of the Red Hook facilities is for St. John traffic, the additional facilities recommended br Cruz Bay and Enighed Pond are directly related. Most of the economic benefits from these projects would accrue 'to residents of St. John in the form of better service at less cost, In addition, positive impacts from well planned development of the Cruz Bay beach and the recommended marina and recreation facilities at Enighed Pond would also occur. Potential adverse environmental impacts from destruction of the salt pond at Red Hook and Enighed could occur. Mitigation measures called for in other policies could 1-essen these impacts. .4 ADDITIONAL PROVISIONS OF THE FEDERAL COASTAL-ZONE MANAGEMENT (1) CEIP Program The Coastal Energy Impact Program (CEIP) was created by one of the 1976 Amendments to the Coastal Zone Management Act of 1972. The purpose of the program is to assist states and local communities to meet the needs arising from new or expanded coastal energy activities. To be eligible for assistance under the CEIP, a coastal state must be receiving a grant under section 305 of the Coastal Zone Management Act, must have an approved management. program, or must be making satisfactory progress toward the development of a management program. There are four forms of assistance available under the CEIP: a). Planning grants, 80% federal match - these can be Used to help plan for socio-economic or environmental consequences of coastal energy activities. The amount of the planning grant available is based upon.relative need of a particular area including considerations such as new employment from energy activities, population density, safety and environmental factors, and local planning costs. b) Credit assistance, federal loan guarantee - these funds can be used to help finance new or improved public facilities or public services necessitated by new or expanded coastal energy activities. The amount of credit assistance available is determined by a process similar to that of planning grants. Use for funds could include schools, roads, hospitals. police and fire protection, etc. c) Repayment assistance - this is available to states in case they cannot meet obligations incurred under credit assistance program. d) Environmental amelioration grants, 100 % federal grant These are primarily to help prevent, reduc'e,cr repair damage to environmental or recreation resources; This allotment is made on basis similar to planning' grants. The Virgin Islands allotment for FY 77 (beginning October 1, 1976) was made on May 16, 1977. Only one new or expanded energy activity qualified for allotment purposes- Hess Offshore Terminal. Based upon this single facility expansion, the Virgin Islands was allotted: $ 59,423 planning grants 1,794,200 credit assistance 24,466 environmental grant -52- The exact amount of next year's allotment is unknown, Recent action by the Legislature in ratifying the propo-.ed VIRCO agreement will allow for the inclusion of this project in the calculation of the amount we may receive. If VIRCO had been inciucied iast year, the amount of the planning grant and environmental grant would have doubled and the credit assistance would have been 't8-1G million. Next year's funding may reach this higher amount. The expenditure of approximately S85-.000 in planning and environmental grants this year will have a beneficial impact upon the economy. More importantly. this planning money will allow the financially strapped Virgin Islands government to continue planning on vital issues k%hich would not otherwise occur, F,:! credit assistance funds are of the utmost importance to the Territory and especially St. Croix. The present need for a@,ditioral schools, hospitals, police and fire, roads, eiater etc., is nbvicus. Employment and population impacts of the VIRCC project wili add to this need. These funds will allow for the much needed economic expansion on St. Croix, while at the same time, insuring that necessary public facilities are avilable. The economic ir,,pacts of this program are clear. (2) Interstate Grants Program This program provides federal matching funds (90% federal share) for planning and coordination between two or more coastal states (for example Puerto Rico and the Virgin Islands). The exact arnounL of next year's funding is unknown. The amount the Virgin Islands can receive will depend upon the total budgeted by Congress and the nature of the proposal. (3) Research and Training Grants Program This program can provide 80% federal matching funds to undertake further research studies related to coastal zone management problems. Possible uses of funds include: (a) erosion problems (both first and second tiers) (b) beach access problems (c) a complete study of the impact of the boating industry (d) locat,'on of off-shore sand deposits suitable for mining (e) marine productivity studies relating to the fishing industry. Benefits from this kinds of studies would accrue to the entire economy in the form of better information upon which to make decisions and actual recommendations for future courses of action. The provision for training funds is an issue of vital concern for the Virgin Islands. The economic and social development of the Territory cannot occur without adequate training programs. Potential positive in@pacts wauld occur in the form of increased employment opportunities and provisions for upgrading the local work force skills. The total amount of funds available is not known. (4) Beach Access and Preservation of Islands Program This program provides 50% matching grants for the purchase of beach access and preservation of islands. The use of-these funds to acquire important beach lands will benefit all residents. Total amount of funding for next year is unknown. -54- I -A I I I I I I I 11 I I I I I I I 1 4 -- --- ----T- :1 - - 11 It I I IIN 1100111 11110111111 3 3 6668 14'07 6366 11