ST. CROIX — As the Government Employees’ Retirement System continues to grapple with long-term financial uncertainty, pressure is mounting to find productive uses for its sizeable land holdings on St. Croix and St. Thomas.
The 290 acres of GERS-owned property are now at the center of a critical policy conversation that blends the need for economic stability, workforce retention, and affordable housing.
While GERS leadership confirmed that no commitments have been made, Chairperson Dwane Callwood and Administrator Angel Dawson Jr. said the System is actively evaluating options that include residential development, commercial use, and potential sale of the land.
At the same time, a coalition of lawmakers led by Senate Vice President Kenneth Gittens is urging GERS to take immediate action and prioritize land use for a homeownership program targeted at public sector workers.
“This is more than a housing initiative,” Gittens said in a statement. “It’s a bold strategy to address workforce retention, retirement security, and economic development, all in one.”
Gittens is calling on the GERS board to revisit a previous option to develop its land on St. Croix into independent living facilities for retirees and broaden that concept to prioritize homeownership for both active and retired GERS members.
“This is a smart, people-centered investment in our future,” Gittens stated. “It improves quality of life, keeps essential professionals rooted in the territory, and ensures retirees can live with dignity. I urge GERS members and the wider public to speak up, get involved, and help push this idea forward.”
Callwood acknowledged that the initial vision for the properties on St. Croix and St. Thomas was a planned area development that mixed commercial and residential spaces. Those development plans, however, were put on hold as GERS moved closer to insolvency in recent years.
“The impending insolvency actually pushed it back,” he said, adding that the board is considering different options for the land that are feasible given the financial state of the pension system. “There’s no commitment to do A, B, or C. We’re just exploring what are the options, what would it take, and how would that look.”
Callwood emphasized that GERS is currently only 14% funded, with insolvency projected between 2032 and 2035 if no major corrective measures are taken. That reality constrains what GERS can pursue.
“We’re not in a position to pay to construct anything,” he said.
GERS is evaluating all options for the land, including its potential sale if analysis determines that investing the proceeds in the market would yield greater long-term benefits for the System, Callwood said.
Despite these constraints, Callwood reiterated that the board understands the local housing crisis and is open to contributing if the System’s financial sustainability remains protected.
Dawson clarified that the system is already engaged in serious discussions about the land, including potential partnerships and grant funding opportunities with the Virgin Islands Housing Finance Authority.
“We were already well underway with regards to possible development opportunities,” he said. “This is an aspiration. It’s not a committed path at this point.”
Dawson noted that 170 acres on St. Croix and 120 acres on St. Thomas are being considered for mixed-used development, though the possibility of a full or partial land sale remains on the table. He stressed that any development would require board approval, funding, and a carefully structured plan to ensure the outcome supports the System’s core mission of providing pension security.
“Whatever we do would be the most prudent option for the GERS,” Dawson said. “Our horizon is a longer-term horizon.”
While GERS continues its evaluations, Gittens is calling for action to develop the land for residential use. He suggested the land should be used to build quality, middle-income housing for GERS members, including teachers, nurses, police officers, and firefighters.
“We are seeing a disturbing trend where GERS members are leaving their jobs just before they reach the 10-year vesting period, cashing out their contributions, and relocating elsewhere for better opportunities,” Gittens stated. “This is not just a loss of skilled personnel; it’s a threat to the long-term solvency of the retirement system itself.”
In a letter to the GERS board and during a meeting on Monday with GERS officials and fellow senators, Gittens laid out a vision for subdividing the land and partnering with a reputable developer, potentially with GERS-backed construction financing for members. Several lawmakers expressed support in a press release Gittens issued Tuesday.
Senator Novelle Francis Jr., who has previously voiced support for a GERS housing initiative, stated the importance of ensuring the necessary infrastructure is in place to support any new development.
“That means not only homes but roads, utilities, and community services — the full package,” Francis stated.
Senate President Milton Potter noted the importance of addressing the territory’s “real housing crisis.”
“Monday’s meeting was an excellent opportunity to collaborate with the leadership of GERS to find tangible affordable housing solutions,” Potter stated. “I was very impressed with the caliber of discussions and confident that our efforts will bear fruit.”
Senate Majority Leader Kurt Vialet emphasized the urgency of the initiative.
“We have to act now,” Vialet stated. “We’ve had the conversations, and now we must aggressively follow up and take action to get people into homes. This is the kind of solution our community needs today — not years from now.”
Gittens concluded his statement by affirming his continued commitment to working with the GERS board, the private sector, and the legislative body to move the initiative from concept to execution.
“Together, we can turn this vision into reality, and create lasting benefits for our workers, our retirees, and our economy,” Gittens stated.
