Mapp Approves EDA Benefits For Three Companies
CHARLOTTE AMALIE — Gov. Kenneth Mapp approved tax benefits for a medical laboratory and three financial services firms. He recently signed off on agreements reached by the V.I. Economic Development Authority with Castle Medical, CD Paradise Holdings, Alpha Mortgage Advisors and Prosperitas Holdings.
Castle Medical on St. Thomas will offer laboratory services, to include DNA testing, as well as provide consulting and management services in the medical field. They are required to hire 10 full-time employees within the next two years and invest $100,000 within the first year.
CD Paradise Holdings will provide business management and financial advisory consulting to companies throughout the hemisphere. As a financial services firm, CD Paradise must maintain at least five full time employees. The EDA indicates that the company will receive $4 million in tax benefits over a five-year period, however during that same period the company is expected to contribute $9 million directly and indirectly to the local economy.
Alpha Mortgage Advisors is a firm primarily dedicated to providing support to the local mortgage service industry. Its agreement with the EDA specifically prohibits tax benefits from being passed on to Virgin Islands clients. Alpha must invest at least $100,000 in the business in the first year and it must meet the minimum standard for financial services firms of maintaining five full-time employees.
Prosperitas is an investment and wealth management firm that also provides private merchant banking and consulting services. Like Alpha, Prosperitas must invest at least $100,000 in the business in the first year and it must meet the five employee minimum standard for financial services firms.
All four companies must make charitable contributions and provide benefits for their employees, to include health insurance, paid leave, retirement plans and tuition reimbursement. They each must also pay $2,500 annually toward maintaining the Department of Labor’s database of Virgin Islanders living abroad who desire to move back home if they can obtain suitable employment.