the,above~cited Public Law, only $22,000,000 had been drawn down
by dJume 1, 1979. An additional $10,000,000 is available to be
Srawn 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 ow 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 approximately
$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 amount owing on the ten acres. The committee amendment
@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 rights,...° (the mortgage) .
n
The Administration recommends (1) that the substance of sectio
403 be returned to the form in which it originally appeared in
House
section 404 of H.R. 3756 as introduced, and (2) that the
to
added
be
n
sectio
new
a
Comittee amendment be stricken and
s:
follow
as
read
H.R. 3756, at the end of title IV, to
"*
. The General Services Administration shall release _
Sec.
dated Jamary 26, 1972, given by the Govern-
€fom the mo:
the
ment of theVirein Islands to the Administrator of
General Services Administration, approximately ten acres
osed
of such mortgaged land for construction of the prop
the
of
nt
St. Croix armory upon payment by the Governme
on
l
due
Virgin Islands of the outstanding principa
such ten acres.
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