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Area Analysis 19 All real estate transactions also require a Government Transfer Tax (stamp tax), which can be paid by the buyer or seller. 2% for property valued up to $350,000 2.5% for property valued from $350,001 to $1,000,000 3% for property valued from $1,000,001 to $5,000,000 3.5% for property valued over $5,000,001 Notable News and Developments e On January 18, 2012, it was announced that the Hovensa refinery would be permanently shut down. This has had a major impact causing an economic downturn on the island, leaving 1,158 former Hovensa workers unemployed and many more employed by the company’s contractors according to the United States Department of Labor. Recently, an auction of Hovensa’s assets was conducted in New York City with multiple qualified bidders, and the assets were awarded to Limetree Bay Holdings, a subsidiary of ArcLight Capital Partners. Pending approval by the Virgin Islands legislature, ArcLight’s operation of the oil storage facility will create a minimum of 80 jobs, with the possibility of more in the future. ArcLight indicated there could be a possibility of a limited restart of some refinery units at some point in the future. e Both the Senate and the US House of Representatives passed the Coast Guard Reauthorization Act, and President Obama signed the act into legislation in the fiscal year 2015 which should help level the charter yacht industry playing field. Prior to 1993 and the imposition of a six- passenger limitation on US uninspected vessels, the charter yacht industry in the US Virgin Islands was thriving, contributing over $100 million in annual revenue and hundreds of jobs to the local economy. A large chunk of the industry moved to the British Virgin Islands after the six-passenger rule limitation was initiated by the US Government. The bill has recently been enacted into law, and the ability of the USVI to compete in this industry should be significantly improved. e After an extensive search and vetting process, the USVI Government has selected a group of local and regional investors to develop a hotel resort on Water Island, just off of St. Thomas. There are apparently eight hotel brands in discussions with the developers for branding the property. e A Texas-based EB-5 Regional Center has announced an EB-5 funded commercial project known as the Port of Mandahl Caribbean Conference Resort. When completed, the development is reportedly planned to include two full-service hotels, a golf course, a state of the art conference center, retail and commercial space, and high-end residential units. EB-5 is a type of economic citizenship program whereby the United States grants citizenship to investors of certain approved projects in areas where the economic boost is needed. Regional Centers are tasked with selling the investments such as limited partnerships to international buyers. e The Margaritaville (Wyndham) Vacation Club is under construction in Water Bay on the East End of the island of St. Thomas. The project is a renovation of the 290-room Renaissance ire IGY American Yacht Harbor Marina fire! HOUSE_OVERSIGHT_018829