The increase in the prices of Crown Land has been explained as being due to leases not being reviewed as per the conditions within them over the years. Photo: Internet Source

The Crown Lands Management Bill was assented to by Governor Daniel Pruce on August 27, 2024, and set out the criteria and processes for the disposal and leasing of Crown Lands. Photo: Government of the Virgin Islands

Permanent Secretary, Ministry of Environment, Natural Resources and Climate Change Mr Ronald F. Smith-Berkeley said processing time for Non-Belonger Land Holding Licenses is usually 2 months. Photo: GIS

During the Standing Finance Committee (SFC) held in November and December 2024, Minister for Health and Social Development Hon Vincent O. Wheatley (R9) queried the price increase since the passage of the Crown Lands Management Act, which he described as having “escalated exponentially”. 

The Crown Lands Management Bill was assented to by Governor Daniel Pruce on August 27, 2024, and set out the criteria and processes for the disposal and leasing of Crown Lands.

Hon Lorna G. Smith, OBE (AL) also asked how the Ministry of Environment, Natural Resources and Climate Change had arrived at the prices and how it was going to be managed. 

Mrs Tessa Smith-Claxton, Assistant Secretary in the Ministry of Environment, Natural Resources and Climate Change, explained that every lease document was based on the unimproved market value and not the improvements. 

She also referred to an example of a 99-year lease which may state that the rent is fixed for ten years, and then there's a rent review after every five years. She said what had been seen over the last couple of years was that some leases had not been reviewed for the last 10 or 15 years. 

Crown Lands Management Act asking for enforcement- Mrs Smith-Claxton 

Mrs Smith-Claxton also said the Act is now asking for “enforcement”. 

She also explained that what was done in reality was just review the leases in accordance with those registered contracts. 

Some leases, Mrs Smith-Claxton Smith said, are set at 5% of the unimproved market value and so do not take into consideration the improvements on the land. 

Following Hon Smith’s inquiry as to whether or not a realtor was being used, Mrs Smith-Claxton informed that an “independent appraiser” was being used for the reviews. 

She also stated that modern lease documents made provisions for lessees to negotiate with the government, adding that there was a provision in the lease allowing for them to make a counteroffer. 

Long wait times for Non-Belonger Land Holding Licences

Meanwhile, on the issue of complaints regarding the length of time to process Non-Belonger Land Holding Licenses, Permanent Secretary in the Ministry of Environment, Natural Resources and Climate Change Mr Ronald F. Smith-Berkeley said each case had to be looked at on its merit. 

According to the SFC Report, he stated that with the new policy, they would be sending the entire package back to individuals and not have the documents sit on their desks waiting for information. 

Mr Berkeley also spoke to persons forgetting to provide information or being unwilling to supply information because they think it may not be necessary. 

He advised that the documents would then "sit there" and the complaints would come that they had been waiting for months but they may never hear that they did not supply the information. 

The process, Mr Berkeley advised, generally takes about two months.