CHARLOTTE AMALIE, St. Thomas -- A deal has been struck for a $150 million redevelopment project of the former Yacht Haven Hotel and surrounding waterfront property near the cruise ship piers in downtown Charlotte Amalie.

The hotel has stood as an eyesore on the waterfront since being damaged by Hurricane Marilyn in 1995.

The agreement between Insignia Nautica-USVI, a development company, and the Save Long Bay Coalition, a citizens group that had challenged Insignia's Coastal Zone Management permit to develop the area, commits Insignia to improvements that include a park and public housing properties near the hotel, more pedestrian walkways to the waterfront and improvements to downtown Charlotte Amalie.

The redevelopment project will raze the derelict hotel and build a 160-slip marina, a yacht club, a 120-room hotel, a conference center and retail and office space.

No timeline has been set for construction, but all parties are anxious to "move forward as quickly as possible," according to an Insignia spokesperson.

To contact reporter Gay Nagle Myers, send e-mail to [email protected].

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