The stairway that leads up to Virgilio's Restaurant at 18 Dronningens Gade has been the entrance to a string of well-known downtown restaurants since the 1970s. In 2026 it needed an act of the Legislature. Crystal Blue Operations, the developer behind the Historic Area Revitalization Project, asked the Historic Preservation Commission to approve updates to the stairway, the awning, the trash area, the propane storage and a small generator serving the restaurant. The commission said no construction could happen until the legal right to that ground was established.
A formal survey showed the problem. According to testimony summarized by the Legislature, the stairway and storage area extend about 156 square feet onto Store Tvaer Gade, a public right-of-way owned by the Government of the Virgin Islands. The owner of the building had used that strip for years without a formal agreement. Bill No. 36-0252 would ratify a perpetual access easement to cure the encroachment. It went before the Committee of the Whole on June 26, 2026, and that committee can't vote, so the decision goes to a later legislative session.
In Charlotte Amalie's historic district, design review is the final step. Before it come ownership, the boundary line and the physical limits of the street, and those are where projects stall.
Why Design Review Comes Last
The Virgilio's stairway shows how the review process is built. The commission reviews proposed changes. It does not settle who has the right to make them. The St. Thomas–St. John Historic Preservation Committee application asks for owner authorization or proof of legal interest, along with photographs and drawings. A complete package is due at least two weeks before the meeting, and meetings are normally held on the second Tuesday of each month. The application also expects the applicant to attend.
If the paperwork can't show a clean right to the building and its footprint, the review never starts. On a downtown parcel, that can come down to a staircase that has carried foot traffic for fifty years without anyone formally owning the right to it.
Before the Easement, the Deed
The encroachment problem is the small version. The larger one is title itself.
On January 29, 2026, the Senate Committee on Disaster Recovery, Infrastructure and Planning heard testimony on heirs' property, prolonged probate, and vacant and abandoned historic properties. Presiding Judge Jessica Gallivan of the Superior Court reported about 801 active probate cases across the territory at the close of Fiscal Year 2025. The oldest dated to 1985 on St. Thomas, which means some estates have been open for more than forty years. She said the delays often come from complex multigenerational estates, contested wills, and heirs who are missing or incapacitated.
Sean L. Krigger, Director and Deputy State Historic Preservation Officer, connected those cases to vacant and deteriorating buildings in the territory's historic towns. According to the Legislature's account of the hearing, he testified that the commission does not cause probate delays and can act only after a lawful owner applies. While title is unclear or in probate, no permits can be issued, and the building decays in the meantime.
His proposed fixes went after timing. They included court-approved interim repairs and estate sales during probate, magistrate handling of uncontested probate matters, wider use of Transfer on Death deeds, legal aid for clearing titles, and a conservatorship or receivership law that would let courts stabilize abandoned buildings while protecting the owner's equity. These were recommendations made at a hearing. Our research found no bill introduced to carry them out as of October 2026.
Put together, a downtown historic building moves through these gates in order:
- Title. A lawful owner with clear title, which an open estate cannot supply.
- Footprint. Legal rights to every part of the structure, including stairs, awnings and equipment that may sit on public land.
- Zoning. The right use for the parcel, which for some sites means rezoning by the Legislature.
- Design review. The Historic Preservation Committee's approval of exterior work, which comes before building permits.
- Construction. Building in streets that were laid out long before trucks and dumpsters.
Then the Street Itself
Clearing the first four gates still leaves the fifth, and it is the one the people doing the work describe most.
Fifteenand9Main LLC took two long-abandoned buildings, 15 Main Street and Wimmelskaft Gade 9, and turned them into five one-bedroom apartments for long-term rental. The Main Street building is listed on the National Register of Historic Places. The Back Street building dates to the late 1980s or early 1990s and also sits in the historic district. Preservation work was overseen by Krigger's office, and co-owner David Shear told the St. Thomas Source that everything "from, you know, the choice of paints to the choice of plasters … had to meet federal requirements."
He didn't put the delay on that review. "The biggest challenge is not the historical committee. The biggest challenge is just doing something downtown where, unlike a house … you can't put a dumpster," Shear told the Source. He said most of the work, including clearing debris, had to be done by hand, and parking was another constraint.
The same constraint shows up in the most recent downtown proposal. On September 21, 2026, the Department of Planning and Natural Resources held a virtual hearing on rezoning two government-owned former school parcels in Queen's Quarter, 3 Commandant Gade and 1 Crystal Gade, from P-Public to B-1 Business Central District. The property has been mostly closed since hurricanes Irma and Maria in 2017. Assistant Commissioner Vincent Richards of the Department of Property and Procurement described a guesthouse with three to six suites. It would have no dedicated parking. During construction the developer would stage work from an eastern courtyard to limit disruption to traffic and nearby businesses.
The St. Thomas Source reported that community members welcomed restoring the property but raised concerns about adding a use without parking, and a nearby property owner called parking in the area "truly a nightmare." Richards said parking is a challenge across downtown Charlotte Amalie. The rezoning still needs a Committee of the Whole hearing and a legislative vote. After that come historic committee review, a fuller assessment of the buildings, and permits. Richards estimated that work could begin six to nine months after approval and take about six months, and he said both figures could change.
Where the Incentives Fit, and Where They Don't
Incentives come after the gates above and don't remove any of them.
The federal historic tax credit lets owners recover up to 20% of qualified renovation costs on projects that meet strict preservation standards. Shear told the Source his group was the first successful applicant in the region, even though the program has existed for more than three decades. To qualify, every phase has to meet federal preservation guidelines, which adds to the cost of a project that already relies on hand labor.
Local incentives are narrower than the headlines suggest. At its December 17, 2024 decision meeting, the Virgin Islands Economic Development Commission denied the Historic Area Revitalization Project's broad application. It granted 20-year benefits to three entities tied to Royal Dane Mall, Berne's Alley and Creque's Alley, and excluded residential, retail and parking activities. The same decision listed six HARP properties that had not yet received Historic Preservation Committee approval, including 30 Dronningens Gade at Creque's Alley and 48 Norre Gade, the Continental Building. The Enterprise Zone program applies only inside designated boundaries, which on St. Thomas include Savanne-Downstreet and Garden Street-Upstreet. Its credits depend on eligibility and Historic Preservation Commission approval.
This is general information about how these programs work, not legal, tax or financial advice. Anyone weighing a credit, an easement or a title question should confirm their own situation with an attorney, tax professional or title specialist.
Where Each Named Project Stands, October 2026
| Project | What is documented | What is still open |
|---|---|---|
| 15 Main Street and Wimmelskaft Gade 9 | Five apartments, occupancy approved, opening planned for November 2025 | No later public update on leasing found |
| 18 Dronningens Gade stairway, Virgilio's | Bill No. 36-0252 heard June 26, 2026 | Legislative vote not confirmed |
| Berne's Alley | Construction described as complete in November 2025, landscaping nearly finished | No 2026 report confirming public opening or named tenants |
| 3 Commandant Gade and 1 Crystal Gade | DPNR rezoning hearing held September 21, 2026 | Committee of the Whole hearing, vote, historic review, permits |
The "still open" column reflects what our research could and could not find in public reporting as of October 2026. The project furthest along is the one with a single ownership group and a small footprint. The others are waiting on a legislative vote or have no reported opening yet. None of the pending items is waiting on the Historic Preservation Committee.
Reading a Downtown Property in That Order
For a buyer, a downtown Charlotte Amalie building is best judged in the order the gates run. Has title passed cleanly, or does the history include an estate? Does a survey show the stairs, awnings, generators or storage within the parcel lines, or partly on a public right-of-way? Does the current zoning allow the intended use? Is the parcel inside an Enterprise Zone boundary? And where would a contractor put debris, materials and a truck?
Those questions decide whether a project ever reaches the committee's second-Tuesday meeting. Design questions like paint, plaster and window profiles come after them.
FAQ
Does the Historic Preservation Committee review a building that is in probate? According to Krigger's testimony as summarized by the Legislature, the commission acts only after a lawful owner applies, and no permits can be issued while title is unclear or in probate.
Is there a receivership law for abandoned downtown buildings yet? It was recommended at the January 2026 hearing. Our research found no bill introduced or enacted as of October 2026.
Do downtown guesthouse proposals have to provide parking? The Queen's Quarter proposal includes no dedicated parking and relies on street and public parking. Parking was a concern community members raised at the September 2026 hearing, and the rezoning had not been voted on as of October 2026.
At Tropical Properties VI, much of our advisory work on St. John involves access, easements and what has to be true about a parcel before anything can be built on it. If you're considering a historic property in Charlotte Amalie and want help working out the title, footprint and logistics questions first, we're glad to talk it through.
