(a) An approved hotel for the purposes of this chapter shall be a hotel providing qualifying sleeping units, qualifying public indoor space and casino space in accordance with this section. Nothing in this section shall be construed to limit the authority of the Commission to determine the suitability of facilities as provided in this chapter, nor shall anything in this section be construed to require a casino to be larger than the minimum size or smaller than the maximum size provided herein.
(b) An approved hotel shall be located on property with zoning designation which accommodates public gaming facilities, pursuant to Title 29, sections 228, 229 and 231, and shall contain a single casino with maximum square footage limited by the number of qualifying sleeping units and amount of qualifying indoor public space in the hotel in accordance with the following formula:
(A) A Hotel located within the Enterprise Zone of Christiansted or Frederiksted providing a minimum of 75 qualifying sleeping units that have been renovated or newly constructed and a minimum aggregate of 2,500 square feet of qualifying indoor public space, banquet facilities for a minimum of 400 persons, with an onsite casino room with a minimum area of 2,000 square feet; provided that the persons controlling the hotel shall be obligated to make qualifying Enterprise Zone Investments in an amount equal to sixty percent of the Net Cash Flow generated by their Consolidated Enterprise Zone Investments during the first ten years following the opening of their casino. If, as of the end of any calendar year, the persons controlling the hotel have not made Qualifying Enterprise Zone Investments, in the amount required by the previous sentence, they shall deposit any shortfall into an interest-bearing escrow account acceptable to the Commission. Sums held in the escrow account may be withdrawn at any time by the persons controlling the hotel for the sole purpose of making Qualifying Enterprise Zone Investments. All sums held in the escrow account at the expiration of fifteen years from the opening of the casino must be paid over to the Virgin Islands Casino Control Commission and used for its general purposes. The Virgin Islands Casino Control Commission shall prohibit table games in any such casino.
(B) As used in this paragraph:
(i) “Persons controlling the hotel” means the persons holding fee simple title to, or a leasehold interest in the hotel.
(ii) “Qualifying Enterprise Zone Investments” means the acquisition or renovation of any property located within the Christiansted or Frederiksted Enterprise Zone.
(iii) “Net Cash Flow for any year” means the net cash provided by “operating activities”, as defined by the Financial Accounting Standards Board, less principal payments on debt and capitalized lease obligations, and less distributions for the satisfaction of tax obligations.
(iv) “Consolidated Enterprise Zone Investments” means all of the property within the Enterprise Zone owned or leased by the persons controlling the hotel as of the effective date of this paragraph, or at any time thereafter.
(c) Three “hotels are allowed under the Casino I Establishment category; two hotels under the Casino II Establishment category; two hotels are allowed under the Casino III Establishment category and a minimum of one hotel in each Enterprise Zone within the Casino IV Establishment category. However, hotels in the Casino III Establishment category must be newly constructed or newly renovated hotels that have increased in total number of rooms to the next higher tier designation.
(d) Once the hotel is initially approved, the Commission shall thereafter rely on the certification of the casino licensee with regard to the number of rooms and the amount of qualifying indoor public space, and shall permit rehabilitation, renovation or alteration of the approved hotel even if the rehabilitation, renovation, or alteration will mean that the casino does not temporarily meet the requirements of subsection (b) of this section, so long as the licensee certifies that the rehabilitation, renovation or alteration shall be completed within one year.
(e) The Commission shall not impose any additional requirements regarding contents of the hotel, apart from the criteria or requirements regarding the quality and maintenance of the hotel.
(f) In the event that the Government of the Virgin Islands or Government Employees Retirement System (collectively, “government entities”) should hold an interest of at least 25% in a hotel of no less than one hundred and fifty rooms with a convention or banquet center, and where at least 20% of the casino operation is owned by the hotel in which the government entities has an interest, such hotel, by virtue of the government entities involvement shall be an “approved hotel building” for the purposes of this chapter, provided the hotel adheres to the requirements of section 435(b), notwithstanding the provisions of subsection (a) of this section. The government entities interest must have been in existence prior to September 30, 2012. The location of such hotel(s), excluding historical districts within the towns, shall be deemed appropriate for the purposes intended under this chapter, and all fees, rules and regulations promulgated by the Commission, shall be applicable to its operation.
(g) Notwithstanding any other law and for the purposes of this chapter, shoreline shall be defined as the area along the coastline from the seaward line of low tide, running inland a distance of 300 feet or to the extreme seaward boundary of natural vegetation which spreads continuously inland or to a natural barrier whichever is the shortest distance. Whenever the shoreline is extended into the sea by filling or dredging, the boundary of the shoreline shall be the boundary established before the filling or dredging.
(h) In addition to the provisions established under Title 12, section 403 of this code and for the purposes of this chapter, an approved hotel shall provide a point of ingress and egress within its main building for the public to have access to the shoreline.
(i) The Commission may waive any requirement in this section for a Hotel in the Enterprise Zones as needed to facilitate prompt commencement of the development on the condition that:
(1) The Licensee posts a performance bond in an amount equal to 60 percent of the total projected cost of the development; and
(2) All requirements of this section must be met no later than 18 months after the date the license was issued.