theabove-cited Public Law, only $22,000,000 had been drawn down
by June 1,°1979. An additional $10,000,000 is available to be
frawn down for projects approved by this Department. Of the
$22,000,000 in cash transferred to the Virgin Islands, only
$5,000,000 has been obligated, leaving $17,000,000 umsed.
Only
$3,000,000 has been actually paid out for construction. The Virgin
Islands is paying interest and principal to the Federal Fi
i
Bank on the $22,000,000 but also receiving interest on its deposits.
The Administration recommends a three year extension, until 1982,
and we further recommend that all funds borrowed, but not obligated
by that time, be returned to the lending institution from which they
were borrowed. Such a plan would encourage the early obligation of
funds with the benefit of meeting some of the urgent capital inprovement needs of the territory.
Section 403
Section 403 would transfer to the Virgin Islands property that was
acquired from Denmark by the United States and that was not reserved
or retained by the United States in accordame with provisions of
P.L. 93-435.
In addition, a Committee amendment to the original Administration
proposal includes parcels of land on St. Croix purchased by the
Goverrment of the Virgin Islands from the General Services Administration
(GSA), subject to a mortgage. It is our understanding that the GSA and
Virgin Islands officials discussed the matter of release of approximately
ten, of more than 230, acres mortgaged in order to construct a National
Guard armory.
The amount Owing on the ten acres is appraxdmately
$125,000. The outstanding balance on the 230+ acres is approximately
$2,800,000. GSA is willing to grant such a release upon payment in
full of the amunt owing on the ten acres. The committee amencment
a@ppears to be an attempt to release the 230+ acres from the mortgage.
Section 403, however, mentions nothing about a release from the nortgage, and, in fact, states that the transfer of the 230+ acres would
be “subject to valid existing richts,..." (the mortgage).
of section
The Administration recommends (1) that the substance
in
red
403 be returned to the form in which it originally appea
Hose
the
that
(2)
and
,
section 404 of H.R. 3756 as introduced
to
be added
Committee amendment be stricken and a new section
ws:
follo
as
read
E.R. 3756, at the end of title Iv, to
shall release ~—
° The General Services Administration
Sec.
'*
€xom
dated January ‘26, 1972, given by the Govern-
the mo
rator of the
ane of theViroin Islands to the Administ
y ten acres
atel
oxim
General Services Administration, appr
proposed
the
of
of such mortgaged land for construction
of the
nt
st. Croix armory upon payment by the Governme
Virgin Islands of the outstanding principal due on
such ten acres.
teat!
.
cue
.
ot
,
.
nee pete:
oun,
.
oT.
.
%
{
spats
~
oe
oon
Vege
.