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En nuestras 27 modernas sucursales nuestro compromiso es brindarle un servicio confi able y de excelencia By John Marino pages 22-31

TOP STORY INSIDE SPECIALREPORTS Bayamón • Caguas • Cayey • Cidra • Dorado • Guaynabo • Gurabo Hato Rey • Humacao • Río Piedras • Santurce • San Lorenzo Prepa: Vía Verde Housing Stimulus Act boosts will be open mortgage originations page 41

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Continued from previous page to a separate inspection area outside performance for the container-se- funneled into only one inspection the processing line. curity programs; therefore, it will SATOUR to fulfi ll machine could conceivably create Despite the port director’s assur- be diffi cult to assess whether or not havoc. ances, the fact that 100% container 100% scanning achieves increased The slowing of cargo fl ow out scanning has not been implemented security. of a shipping company’s yard can anywhere else in the world creates Logistics: Space constraints at the San Juan’s economic potential adversely affect the logistics of the uneasiness among those affected. ports are a big concern. supply chain, which in turn can “This initiative hasn’t been Technology and infrastructure: drive up the cost of doing business implemented anywhere else. Environmental conditions have for all involved. If the shipping Studies by federal agencies and damaged equipment and caused Light-rail project is ‘backbone’ of $3 billion project to company runs out of ground space international security agencies delays, and infrastructure capacity at its facility, one of its few options show that inspecting 100% of the and equipment compatibility have transform city into world-class host destination is to stack containers one on top cargo is not a practical solution to presented diffi culties in the SFI pilot of another. The high labor rates the smuggling issue,” said Joselin program. involved in such contingencies Ramos, senior vice president of Consistency with risk manage- drastically increase operational CaribEx, an airfreight and maritime ment: Many in the security indus- costs, compromising already thin shipping company. try have said that 100% scanning is profi t margins. Moreover, by having One of the studies Ramos referred not consistent with accepted risk- to wait longer to pick up a container, to was conducted by the GAO on Puerto Rico Ports Authority management principles and diverts the trucking company’s costs also behalf of the U.S. Customs and Bor- Director Alberto Escudero resources away from other essential go up because now it is performing der Protection Agency (CBP), which security measures. fewer pickups and deliveries in the falls under the umbrella of the U.S. According to the GAO study, inci- same amount of time. These costs Department of Homeland Security. dents of technological breakdowns will be passed on to the distributor, The Security & Accountability for causing delays have occurred. In which might respond by increasing Every Port Act (SAFE) of 2006 discerned from the report that some Southampton, England, a piece of its inventories. All these cost called for testing the feasibility of of the objections raised by the GAO radiation-scanning equipment failed increases will eventually be passed scanning 100% of U.S.-bound cargo would not apply to Puerto Rico’s because of rainy conditions and on to the consumer. containers and implementing the inspection initiative. These are re- had to be replaced, resulting in two Despite the concerns shared by recommendations of the 9/11 Com- lated to the international trade and weeks of diminished scanning capa- most in the industry, Escudero insists mission Act (9/11 Act), which re- inspections being done in foreign bilities. Additionally, Port Qasim in 100% inspections shouldn’t be an quired full inspection of U.S.-bound ports where the incoming cargo Pakistan has experienced diffi culties issue because of the scanning-speed cargo containers by 2012. To fulfi ll would originate. with scanning equipment because of capabilities of the equipment. these requirements, CBP created the Nevertheless, other initiatives extreme heat. Both of those condi- “These machines will scan a Secure Freight Initiative (SFI) and objected to by the GAO would tions would be present locally. box in six to eight seconds,” he launched a pilot program at seven certainly apply to the local plan. The Ports director said the project said. “Boxes don’t move out of the seaports. The general conclusion of These are: can be carried out in spite of such shipping lines’ facilities all in one the report is that this initiative has Workforce planning: Increased trepidations. day. This should not be an issue.” many challenges and that overall it data generation would require ad- “The fact that this initiative hasn’t Escudero added that when would not be effective in accom- ditional personnel to handle the in- been implemented in any other place the machine detects something plishing the initial goal of curtail- creased volume. is not a valid reason for us not to requiring physical inspection of a ing drug and arms imports into the Measuring performance: There try it locally,” said Escudero. “We container, the container is removed country. CARIBBEAN BUSINESS have been diffi culties defi ning Continued on page 52

BY JOHN MARINO BUSINESS in an exclusive inter- The mayor believes there is a lot teams, the three-term mayor said. [email protected] view. In fact, the train’s fi rst phase riding on the train—namely, the Already known by its Spanish name should be nearly complete by the end future economic aspirations of San SATOUR, the San Juan Automated an Juan Mayor Jorge Santini is of this four-year term. Juan, and by extension, all of Puerto Urban Transportation System will Spledging to begin construction of “I am going to build this train. I Rico. The train, combined with the make existing facilities, from the a $400 million light-rail train proj- don’t care what anybody says or existing Urban Train and other fu- Puerto Rico Convention Center to ect through San Juan next year that who says it,” Santini said. “We are ture mass-transit extensions, will the Puerto Rico Coliseum, not to will be coming to a station near you undertaking the necessary fi nancial provide San Juan the necessary in- mention the city’s vast hotel and sooner than you might think. steps so that we can contribute more frastructure to really enter the league tourism districts and Old San Juan, Financial and permitting hurdles if things get tight. of world-class cities, like Seattle, much more viable, Santini told are no obstacles, and the construc- “If the federales get real technical, New York City or Chicago, able CARIBBEAN BUSINESS. And tion project is less complex, costly I will build it myself,” the mayor to attract thousands more visitors it fi ts in with central government and time-consuming than most peo- said. “Find a municipality that can each year, and able to host world- plans to emphasize professional ple think, Santini told CARIBBEAN tell you that.” class events and professional sports Continued on next page 50 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010 FRONT PAGE 23 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010

Continued from previous page

services, trade & exports and tour- ism in the island’s future economic Does P.R. need 100% development. Moreover, it will be the driver to fi nally get underway a decades-long, container inspection at its ports? $3 billion dream to remake the entire Isleta de San Juan and the neglect- ed Puerta de Tierra neighborhood connecting Old San Juan with the BY JAIME SANTIAGO Although everyone unanimously [email protected] Condado tourism district into a vi- agreed that any effort to curtail the brant waterfront sector with coastal importation of illicit drug and arms is parks and promenades, public the- gainst heavy odds and despite welcome, many concerns were raised aters and attractions, and new hotels, Aindustry critics, the Puerto Rico about the intention, effectiveness and retail and housing space. Ports Authority (Ports) is moving full need for 100% container inspection. The train line will run from the speed ahead with the implementation Many in the maritime industry feared existing Urban Train Station in Economic Development & of 100% container inspections at is- the implementation of this initiative San Juan Mayor the Sacred Heart area of Santurce Commerce Secretary San Juan Deputy Mayor land ports. Once completed, the new would disrupt their day-to-day Jorge Santini to Old San Juan. It will run along José Ramón Pérez-Riera Lourdes Rovira inspection program will affect every operations by slowing the dispatch Fernández Juncos Avenue through single incoming container not previ- of full containers when vessels Santurce and Miramar, loop around ously scanned by federal authorities, discharge cargo at their facilities. the Puerto Rico Convention Center medical care to high fi nance to legal initiatives and the pursuit of major group holds regularly scheduled pro- a CARIBBEAN BUSINESS inves- The fi rst scanning machine is due to District, and then run along an ex- expertise. league sports and other international tigative report has found. grams to discuss project plans and be installed at the Crowley maritime isting Metropolitan Bus Authority- “We are going to do all the things events (see sidebar). updates, San Juan Deputy Mayor Since Ports currently only scans facilities at Isla Grande in December. dedicated street through Puerta de that you see in other places that However, he also acknowledged a handful of containers, there are Lourdes Rovira said. José Nazario, director of fi nance and Tierra into Old San Juan. you fall in love with and say, ‘How that during his fi rst eight years Santini is thankful for the support, concerns that the program will sig- administration at Crowley, showed The project will impact tourism, come here and not in Puerto Rico?’” in offi ce, the opposition Popular nifi cantly burden shipping compa- which he says also is working to get CARIBBEAN BUSINESS the two- investment, the creation of jobs and Santini said. “We are breaking that Democratic Party (PPD)-controlled momentum behind the ambitious nies’ operations once Ports takes on acre lot adjacent to its outbound lanes the repopulation of the city, while barrier of saying Puerto Ricans are La Fortaleza and much of the the oversight of millions of dollars plans. where the machine will be installed. serving as the platform for future not capable of doing these things.” Legislature slowed down progress “The Fortuño administration has worth of import cargo previously not He has concerns that the operation development, the mayor said. And on both the train and his more ambi- scanned by local authorities. a large interest in seeing that we will slow his cargo-dispatch fl ow. it will be the salvation of the Urban A CAPITOL PARTNER tious plans for the Isleta de San Juan are successful,” the mayor said. On the other hand, it also will give “We have fi ve outbound lanes Train, which is losing millions each Santini’s thinking is in line with that contained in the San Juan Walkable retail sales report of the Puerto Rico the commercial community remain “Fortuño is very supportive of the Ports the responsibility of scanning, dispatching 350 to 400 boxes [trailers year as it fails to attract adequate of Gov. Luis Fortuño, who fi rst gave City project. Trade Co. As for the logistics of high. Many complain that the project project and is doing what he can with on an annual basis, an estimated and containers] daily. They will all ridership. birth to the Isleta de San Juan proj- Fortuño’s support has translated moving cargo and merchandise was conceived and decided upon limited resources to move this proj- 340,000 containers that have never go through just one inspection lane,” “It saves the Urban Train. The ect as former Gov. Pedro Rosselló’s into a commitment of $200 million from the ports to store shelves, local without previous consultation with ect forward.” been scanned before. A study by the Nazario said. “I am worried that this Urban Train doesn’t get 40,000 riders Tourism Company executive director to the train project alone, Santini told distributors and general opponents of those affected. The light-rail train also is an es- U.S. Government Accountability will slow our process.” a day, why? Because it comes from and Economic Development chief. CARIBBEAN BUSINESS. the initiative estimate the 100% scan “The decision to implement this sential ingredient of the existing Offi ce (GAO) has concluded this is Bayamón, Guaynabo, the suburban Then called the Golden Triangle, The Fortuño administration also system will not only increase the cost project has been made. There is a Urban Train and other related mass- neither necessary nor effective. MAXIMUM EFFICIENCY towns, and it leaves you at Stop 26, the project always has sought to take has tempered a central government of moving merchandise, but also will great need to improve security and transit initiatives contemplated by From a practical standpoint, in- ESSENTIAL AT PORT FACILITIES in the middle of nowhere,” Santini advantage of the natural beauty and plan to redevelop the San Juan Bay signifi cantly delay the length of time detect the smuggling of drugs and the Fortuño administration. dustry experts estimate that the Because of a scarcity of avail- said. “With SATOUR, you can still cultural and historical richness of waterfront, fi lled with underutilized it takes merchandise to reach its fi nal arms into our island,” Escudero told Transportation Secretary Rubén new 100% scan system, slated to able land in Puerto Nuevo and Isla come from these areas and continue the entire Isleta de San Juan. It has and decaying commercial port space, destination. CARIBBEAN BUSINESS. “If it Hernández Gregorat is banking be implemented at one San Juan Grande, maritime shipping compa- through all of Santurce, Miramar, undergone several name changes into a new development project “If inspections are proven to help, had been brought up for discussion on establishing bus rapid-transport port facility next month, will im- nies in Puerto Rico have traditionally Puerta de Tierra and into Old San and the plans have evolved over the called Bahía Urbana that fi ts into we will support this plan,” said Ned with everyone before a decision was (BRT) routes from the Caguas, Caro- mediately affect the operations of lacked suffi cient space to handle their Juan, round trip. This will increase years, but if the vision still laid out San Juan’s master zoning plan for Lagoy, vice president & general made, nothing would have happened, lina and Manatí areas to feed into the local maritime shipping companies, operations effi ciently. It is important the ridership of the Urban Train in a on the drawing board can even be the entire area, which is called The manager of Sea Star Line Agency. and this has to be done.” Urban Train system running between thereby disrupting the fl ow of cargo for them to be able to dispatch from gigantic way, adding thousands more somewhat approximated in reality, a Walkable City. “The challenge we face here is the Late last year, Ports announced Bayamón and Santurce in metropoli- to local importers and distributors their facilities as many containers riders every day.” renovated San Juan will indeed join The central government has al- fl ow of cargo in and out of our that it had signed a contract with tan San Juan. Those routes are aimed across all consumer-product sectors. as possible as quickly as possible, City planners estimate daily rider- the ranks of the most vibrant cities ready transferred key facilities in facilities; if it is slowed down, the a multinational company affi liated at feeding about 100,000 riders daily In other words, containers including in order to clear space for incoming ship at 72,000 within two years of in the world. the area to City Hall that also will supply chain will be affected and with local investors that would install into the Urban Train system, which everything from food, liquor, bever- ships to unload. Not every customer startup, a fi gure that takes into ac- Santini said he spent much of his facilitate Santini’s Walkable City the burden will fall on the customer scanning equipment at port facilities has a ridership of about 30,000, well ages and general merchandise like picks up his cargo on time. On oc- count other developments aimed at time during his fi rst two terms in development plan. The sites include through a slow fl ow of cargo and to scan 100% of the containers below its original target of 112,000 soap, trash bags and light bulbs, to casion, containers are left in the fa- the area, such as increased entertain- offi ce undertaking other changes the Carnegie Library, Sixto Escobar increased inventories.” coming into Puerto Rico. This daily riders. name a few essential products, will cilities long after the allowed time, ment, tourism and residential areas in the city, from creating huge rec- Park and the Paseo de los Enamora- While Ports Director Alberto would not include cargo previously He also is backing the SATOUR be affected. compounding the congestion. If the that will drive up demand. reational facilities and programs to dos, the oceanside promenade along Escudero has assured everyone inspected by federal customs. The project, which he also believes will The combined economic activity dispatch process is slowed down, Santini believes the train, com- expanding the public school system, the north coast of Puerta de Tierra, that the implementation of the new initial purpose of the initiative was signifi cantly boost ridership. Resi- of all the consumer sectors that space constraints are further aggra- bined with the wider San Juan rede- which has prepared the groundwork all of which will play a key role in initiative would be coordinated the detection of drugs and illegal dent Commissioner Pedro Pierluisi will be affected by the new 100% vated, creating costly operational is- velopment project, is what is needed for the light-rail train and San Juan the ambitious renewal of the area. with everyone involved and would arms smuggling. also has been drumming up support scan initiative is estimated to range sues. Having various dispatch lanes to bring San Juan to a new level as redevelopment project. That effort The municipal and central govern- not hinder processing of cargo, The local commercial community within Congress and the Obama ad- between $40 billion and $50 billion, a host destination, for tourism, en- also includes the Río Piedras 2012 ment also have signed a memoran- according to Info Ventas, the monthly skepticism and resistance among didn’t delay in reacting to this news. ministration for the six-mile train, Continued on next page tertainment, professional sports redevelopment project, which also dum of understanding regarding the and sophisticated services from is getting off the ground, and other SATOUR project, and a joint working Continued on page 24 FRONT PAGE 24 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010 HEALTH 49 CARIBBEAN BUSINESS NOVEMBER 18, 2010

Continued from page 23 San Juan,” Fortuño recently said Fernández Juncos Avenue to Stop 26 funding for the project. while discussing the project. “We is the “simplest” part to build. The federal government is put- Phoenix to announce Breast which he said is a cost-effi cient and not only seek the redevelopment of However, the SATOUR line also ting more emphasis on mass-transit streamlined project because it will the Isleta de San Juan, but also the requires a redesigned Intersection feeder systems, such as the BRTs Cancer Awareness Scholarship use existing dedicated bus lanes, old Miramar Base area—where the 5, which is the bridge from Puerta and electronic buses, than on full- winner Nov. 29 which should make it easier to sell Convention Center is now located— de Tierra to Miramar, a $45 million fl edged mass-transportation projects, in Washington, D.C. and the Condado area. project also slated to break ground which might make getting funding Full tuition scholarship will be awarded to P.R. Santini said the SATOUR plans in- “We can expect to have a better this term. The central government for SATOUR more diffi cult. resident affected by the disease clude the construction of a large park- quality of life and more livable city is handling this renovation. Also, the experience of the Urban ing area in the Convention District, with the redevelopment of the area,” Train, which was plagued by de- BY CB STAFF attend classes at the local campus in which could serve as another point to Fortuño said. The Fortuño adminis- COMING DOWN THE TRACKS lays and huge cost overruns, has Guaynabo. pick up the new light-rail train, espe- tration plan makes the SATOUR a The SATOUR, and the wider Isleta compounded the diffi culty of get- reast cancer patients and survi- The scholarship award winner cially for people coming to San Juan necessity, Santini said, because you de San Juan redevelopment project, ting more funding from the federal Bvors or immediate relatives of must be a Puerto Rico resident. The from the island. This also would sup- just can’t keep bringing more people are closer to reality than most people government. breast cancer patients or survivors application deadline was Oct. 31. port the central government’s mass- to Stop 26, without allowing them to think, Santini said. “In Washington, they told us, will be able to pursue their dreams Jorge Rivera, Puerto Rico campus transit objectives, he said. go to more places, like the Conven- While the city, in coordination ‘After what you did with the Urban of a higher education when the win- director, and Yarixabeth Jiménez, Fortuño has said that the idea of tion Center and Old San Juan. with the Department of Transporta- Train, don’t come to us looking for ner is announced Nov. 29 for Uni- 2009 Breast Cancer Awareness the Golden Triangle project always The mayor not only predicts that tion and Public Works, is following even one dollar,’” Santini said. “So versity of Phoenix’s Puerto Rico Scholarship recipient, will be included linking Old San Juan with the fi rst section of the SATOUR, the U.S. Department of Transporta- because we are paying for what oth- Breast Cancer Awareness Scholar- conducting the interviews. the Urban Train. from Old San Juan to the Convention tion’s Federal Transit Administra- ers have done badly, we have gone to ship program. Launched in 2009, the Breast “Our goal now is to do so with District, will be largely complete by tion guidelines to seek funding for the private sector and are in conver- this light train from Stop 26 and the end of this term, but he also said the project, the mayor and his team sations with large, prestigious fi rms to the piers at the entrance of Old the rest of the project, running along said they are not counting on federal Continued on next page

The Puerto Rico campus will Cancer Awareness Scholarship award a full-tuition scholarship to is part of University of Phoenix’s attend University of Phoenix to an Puerto Rico campus commitment individual who has struggled with to raise breast cancer awareness and breast cancer diagnosis. Recipients assist individuals and families on will be able to select a bachelor’s or the island who have been affected master’s degree of his/her choice and by the disease. Ⅲ HEALTH 48 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010 FRONT PAGE 25 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010 Government action needed for medical tourism development Continued from previous page

BY CARLA LEWIS seeking medical care here. that are experts in the development [email protected] “No one is going to get involved and management of mass-transpor- in medical tourism if it means mini- tation systems.” rmando Rodríguez, executive mizing one’s daily capacity to see The city is undertaking all the nec- Avice president of Grupo HIMA- local patients,” he said. essary steps to qualify for federal San Pablo, said that by 2012, around Rodríguez added that most of the funding while it continues to pursue 2 million people will be involved in top medical tourism destinations private investment, and it is design- medical tourism, and to create eco- started out as successful tourism ing the project according to federal nomic impact on the island, only destinations. regulations so that it will qualify for between 2% and 4% of this total is Segarra said a medical tourism federal funding either now or in the needed. model is certainly viable for the future. “The revenue hotels make have an island, but government action is “What we don’t want to do is wait impact on 17 other industries,” he needed to exploit it. for the indeterminate process of fed- said, adding that medical tourism is “The problem with the government eral regulations. We want to start one of the island’s few areas of oppor- is that they cannot come to an agree- this now,” San Juan Deputy Mayor tunity for economic development. ment,” he said, adding that having Rovira said. “We are in constant Rodríguez said that the savings the Health Secretary as a regulator communication with federal authori- produced by choosing Puerto Rico as of these initiatives is problematic, ties about our plan, and everything a medical destination instead of the and industry leaders are working is being coordinated with the state The push to redevelop the Isleta de San Juan, contained in the Walkable City and Bahía Urbana projects, seeks to capitalize Department of Transportation & on underutilized assets in Puerta de Tierra, like the Capitol Building, large parks and ocean and bay coastlines, and weave mainland are so large that patients From left, Milton Segarra and Armando Rodríguez toward having the Tourism chief could stay in a suite at one of the serve as regulator instead. Public Works.” them into a seamless whole with the historic and cultural richness of Old San Juan. island’s top hotels and it would still said. “Tourists are no longer only Rodríguez added that one of the Also, in order to develop medi- Santini said San Juan offi cials are be less expensive. visiting the island for the casinos, challenges the local health fi eld cal tourism, Rodríguez said it is in discussion with two Spanish fi rms, Once that is approved, Rovira said island railroad and is now used ex- “In Orlando, there are four differ- “Puerto Rico may seem expensive hotels and beaches, but also to seek was facing before the adoption of necessary to have a signed bill that a British fi rm and one of the devel- actual construction permits should clusively for bus traffi c. ent types operating on the same sys- as a destination, but when it comes medical care. The cost of medicine the latest technology was the migra- establishes public policy. Senate opers of Denver’s light-rail sys- be issued promptly. The light-rail system itself is much tem,” the mayor said. to medical tourism, it is a global on the U.S. mainland is very expen- tion of Puerto Rican doctors to the Bill 1131 establishes a public policy tem about investing in the project. The city plans to begin work in Old less invasive than a heavy-rail sys- The light-rail stations also are competitor,” he said. sive, so they opt to come here for mainland. of promoting and developing medi- Several models are under consider- San Juan, constructing a major ter- tem such as the Urban Train, Santini much less complex and costly than Although Puerto Rico does not treatment.” “We analyzed a lot of the important cal tourism and directs the Health ation to fi nance and contract out the minal for the SATOUR in the area of said, which also will keep construc- the Urban Train stations: simple, have to compete internationally Grupo HIMA-San Pablo is cur- medical facilities on the mainland Department secretary to prepare a remaining design work, construction the Old San Juan cruise-ship docks, tion costs and time down. The mayor smaller structures that will dispense because it is under the U.S. model, rently negotiating with several and almost always there is a Puerto strategic plan toward these ends. and operation of the SATOUR. and then working backward toward said the rail system on which the tickets and protect passengers from Rodríguez said Puerto Rico stands large employers on the mainland Rican leading it,” he said. “A lot of “Puerto Rico’s potential is unimag- The mayor said the city will look the Convention Center District, train will run is narrow and requires the elements. out globally because of its economi- over arrangements that would doctors want to work on the island, inable,” Segarra said. “The problem for the best deal, whether one fi rm or which will comprise the project’s an excavation of less than two feet. The exception will be the main cal healthcare while meeting the make Puerto Rico their employees’ but with the technologies they have lies in identifying where the funds several undertake the whole project. fi rst phase, Santini said. “The most expensive part of the terminal at Old San Juan, which highest quality standards. destination of choice for medical available on the mainland.” are going to come from.” The city also is preparing to fi nance The mayor said basic infrastruc- project is the train cars,” he said. will have several amenities and be Milton Segarra, executive director treatment. Although some have speculated Rodríguez added that it is impor- the project on its own if it has to. ture and demolition work also can Light rails are urban rail systems much larger than most stops. Larger of HimaHealth, Grupo HIMA-San Rodríguez noted that the availabil- that bringing medical tourism to the tant for the government to identify “I will build it even if I have to use be started before the entire project with lower speed and capacity than stations also will be built at the Pablo, said that due to the sluggish ity of some advanced medical tech- island could limit space for local a niche within the market where my own funds,” Santini said. “This wins approval. heavy-rail systems. While most oper- Convention Center and the start of economy even U.S. mainland resi- nologies depends on a developed patient services, Segarra said he is Puerto Rico can specialize in. is very quick, very easy. The wheel “We want to get started on this ate on their own private rail systems, the line at Stop 26 in Santurce. dents are looking for alternatives system of medical tourism. confi dent the local medical industry “The private sector is doing its has already been invented.” right away, by next year,” Santini these systems sometimes run along While the train systems may be dif- where they can get the same quality “Some specialized machines, such can support it, and he pointed out part by promoting itself, but posi- The Master Zoning Plan for the said. “This is a very simple, very roadways shared by vehicular traffi c. ferent, the SATOUR project will be treatment at lower costs. as the cyber knife, cannot pay for that Puerto Rico has long had med- tioning Puerto Rico as a destination Isleta de San Juan has already been fast, very easy construction job.” The cars are narrower and shorter integrated into the Urban Train and “Puerto Rico is no longer lim- themselves if only local patients use ical tourism, with the tradition of is the Tourism Company’s job,” he approved by the Planning Board, than traditional heavy-rail systems. bus systems, so that its passengers ited to the services it can offer,” he them,” he said. people from other Caribbean islands said. and the design of the train line is in A DIFFERENT KIND OF TRAIN The San Juan system is being con- can transfer to the other transporta- process, with more than 10% of the Because the project is being structed so that the rail tracks can tion options. At the Sagrado Corazón route completed, Rovira said. planned along the existing dedicated accommodate both light-rail cars and stop, passengers will be able to “I can close the streets tomorrow, Metropolitan Bus Authority lanes, smaller, streetcar or tram systems. walk from the Urban Train to the but fi rst we have been fi xing up there are not the usual headaches with These are even lighter, narrower SATOUR tracks within a common Old San Juan,” Santini said, point- expropriation associated with these and less invasive than even light- facility, the mayor said. ing to ongoing work to repave the massive projects, which drive up rail trains, but have less speed and “It will have its own terminal, but Old City streets with its iconic blue costs and prolong work schedules. capacity. it will be connected to the Urban cobblestones. Santini said the project would re- The mayor said the idea was to Train,” Santini said. City planners also are working on quire “almost no expropriations.” build a fl exible system that can be Regardless of which of the fi nanc- the project’s Environmental Impact That is one reason the route along expanded in the future, so that, for ing and development alternatives the Statement, which should be ready for Fernández Juncos Avenue was cho- example, a tram line can be extend- city fi nally decides on, a private op- delivery by next summer. City Hall sen, because it was wider than Ponce ed from the SATOUR line to areas erator will administer the train. offi cials, who already have discussed de León and did not present the prob- where light-rail trains might not “Any government that dares to the project with the Environmental lems of having to expropriate several fi t. For example, a tram line might operate a train is doomed to failure. Quality Board, don’t see major properties, Rovira said. be a better choice than light rail to No matter what, the private sector problems because the train is run- From the Convention District into run from Fernández Juncos Avenue will operate the train,” Santini said. ning through an area that already has Old San Juan, the light-rail train will across Santurce to Loíza Street, been substantially impacted. travel the corridor that once held an Santini said. Continued on page 26 RONT PAGE F 26 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010 47 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010 Continued from page 25 “The train is the backbone of the running along the entire coast of communities, as well as the revital- “We need people with experience Walkable City. The train is what Old San Juan and Puerta de Tierra, ization of the marginalized La Perla “unreal revenue projections” and the “irrespon- on Nov. 8 and the Senate passed it in an 18-4 vote and know-how. Otherwise, you feeds all this,” he said. “It’s proven for use by pedestrians, joggers and and San Agustín neighborhoods. sible” signing of a collective bargaining agree- two days later. Because the Senate approved the fail. Look at the Metropolitan Bus that if you don’t have an adequate cyclists. It also envisions “strategi- While the project envisions mov- ment, while its operational defi cit jumped 150% measure without amendments, it moved on to the Authority. It’s a simple system, and mass-transportation system to pro- cally restricting” vehicular access to ing all the loose cargo-shipping to $42.8 million during that period of time. governor’s desk to be signed into law. it’s a disaster. It’s a source of shame mote the rest of the larger project, Old San Juan to increase its livability services located in the area, Santini Continued from previous page The bill also accuses ASEM of failing to make for the country.” then no one will invest.” for residents and visitors. emphasized that there was plenty payments on its electric power and water sup- SENATE BILL 1895 The train resolves perhaps the big- A big part of the plan calls for of room for them in the ports area The debt will be guaranteed with liens upon ply bills, and also failing to pay suppliers and to Purpose: To create a special fund to provide THE ‘BACKBONE’ OF gest barrier to development in the reconnecting the northern Atlantic near Kennedy Avenue, and that they ASES’ real and personal property, including real transfer income taxes withheld from wages to the fi nancial aid to University of Puerto Rico (UPR) THE WALKABLE CITY area—the massive vehicular conges- coast with the southern San Juan would not have to be relocated out estate, deposits, securities, investments, credits, Treasury Department. students “who lack economic resources.” Santini is the fi rst to tell you that tion caused by the entry of 77,220 Bay and San Antonio Canal shore- of San Juan. overdue accounts receivables or other assets. The bill criticizes the previous government’s The measure does not specifi cally say it is the decades-long plan to redevelop vehicles daily onto the Isleta de San lines. While it is just a 10-minute The debt will be repaid with annual allocations attempts to solve ASEM’s ailing fi nances with intended to cover the whole or part of the new the Isleta de San Juan “has had fi ve Juan. walk from coast to coast in Puerta BAHÍA URBANA by the Management & Budget Offi ce in each nonrecurring income and “isolated transactions.” $800 tuition fee, but it caps the individual aid to different names but not one nail has That is why the train is the fi rst of de Tierra, such a stroll is currently Much of the new development fore- year’s budget and approved by the Legislature. It then authorizes ASEM to incur new debt. students at $800. been hammered in.” 10 strategic actions established by the impossible because there are no di- seen in the master plan would take Those allocations will last 12 years, from fi scal The bill orders that the money resulting from The bill establishes that 10% of net revenue However, he lays the blame for the San Juan municipal government to rect roads or pathways. place along the San Juan Bay coast, year (FY) 2013 to FY 2024. ASEM’s new debt should be deposited in a from electronic lottery games would be trans- failure of previous administrations to enact the Walkable City plan, which This will be accomplished by new with the central administration lead- In the fi rst two years, the allocations will equal Government Development Bank (GDB) special ferred to a newly created University of Puerto “sell” the project to investors on the aims to preserve Old San Juan, the vehicular and pedestrian corridors ing the efforts to remake the area. interest. Starting in FY 2015, allocations will account, where it will be shielded from embar- Rico Grants Special Fund. Individual student lack of a clear plan. The redevelop- oldest city under the U.S. fl ag and and the abundant use of open spaces Now called Bahía Urbana, the equal $20.6 million plus interest. If in any given gos or restrictions arising from any legal claim. fi nancial aid, however, will depend on the avail- ment plan may also have lacked a the second-oldest in the Americas, like plazas, small lakes and fi nger long-term project aims to revamp year the allocations and ASES’ own resources are GDB also must oversee to ensure the money is ability of monies under the new special fund. cohesive vision for many years, be- as well as remake the islet on which parks to connect the various assets the San Juan Bay waterfront stretch- not enough to repay the debt, the difference will not misused. The measure creates an 11-member evaluation cause the PDP-led administrations it sits. in the neighborhood, including the ing between Old San Juan and the come from the General Fund. The new debt will be guaranteed with liens board to decide eligibility based on the student’s plans for the area were often in con- Currently, much of Puerta de Tierra coastlines, the existing parks and the Miramar Convention District. “For years, ASES has failed to budget its real upon ASEM’s real and personal property, includ- “academic index, leadership, rendering of com- fl ict with Santini’s ideas. is underutilized, or poorly used, with cultural assets of Old San Juan. Bahía Urbana is a long-term proj- total costs according to the lives it insures, creat- ing real estate, deposits, securities, investments, munity service, proposals or essays that promote “Now we have a master plan that abandoned buildings and fenced-in The Walkable City also aims to res- ect to transform the battered San ing recurrent defi cits,” reads the bill, which notes credits, overdue accounts receivables or other community development, creativity, level of is complete, profound and exact, lots blocking access to the waterfront cue the Isleta de San Juan’s eroding Juan Bay coast, an abandoned or that in Dec. 2008 ASES’ defi cit amounted to $481 assets. innovation of proposals and acknowledgements and the administration has decided and its parks and beaches, a lack of coastline by developing beach areas underutilized industrial area, into a million. The debt will be repaid with annual allocations obtained in their majored fi elds,” reads the bill. to insert itself into our plan,” Santini sidewalks, shade and public trans- through protective coastal reefs and vibrant and renovated district featur- Author: La Fortaleza from the Management & Budget Offi ce in each It also requires that the aid be used only to pay said. portation services, and decaying in- storm-surge barriers, as well lining ing housing, businesses, restaurants, Status: The House passed the bill in a 37-17 year’s budget and approved by the Legislature. the costs of tuition, student housing and books Even more important than the plan, dustrial and residential areas. them with public-use areas. It also hotels and cultural activities. It will vote on Nov. 8, and the Senate passed it in an 18-4 Those allocations will last 12 years, from FY related to studies. however, is the train itself, Santini In addition to the train, the plan calls for the repopulation of the area require an estimated $1.5 billion vote two days later. Because the Senate approved 2013 to FY 2024. The bill also directs 2% of net revenue from said. calls for a waterfront promenade by creating a mix of new residential the measure without amendments, it moved on to In the fi rst two years, the allocations will equal electronic lottery games to the Catastrophic Continued on next page the governor’s desk to be signed into law. interest. Starting in FY 2015, allocations will Diseases Services Fund. This is a special fund equal $31.5 million plus interest. If in any given created in 1996 to help those facing a life-threat- HOUSE BILL 2961 year the allocations and ASEM’s own resources ening disease or medical condition who cannot Purpose: To authorize the Medical Services are not enough to repay the debt, the difference afford to pay all their medical costs. Administration (ASEM by its Spanish acronym) will come from the General Fund. Author: Senate President Thomas Rivera to incur new debt up to $285 million to pay off The bill also orders ASEM to implement an Schatz its utilities debts and accounts payable with the aggressive plan to collect its accounts receiv- Status: The Senate passed the bill with 28 Treasury Department and suppliers, to increase its able. According to the measure, those accounts votes in favor, none against and the abstention medical malpractice insurance reserve, and to pro- receivable amounted to $87 million by the end of NPP Sen. Melinda Romero, on Nov. 8. The vide urgent cash fl ow for its regular operations. of FY 2008. It also orders GDB to take all nec- House passed it by a unanimous vote on Nov. 11 ASEM is the operational arm of the Río Piedras essary measures to make ASEM a self-fi nanced after introducing amendments. The bill went to Medical Center. agency. conference committee to hammer out differences The bill accuses ASEM of increasing its spend- Author: La Fortaleza between the Senate and House versions. No ing 14% from FY 2004 to FY 2008 through Status: The House passed the bill in a 53-1 vote results had been announced at press time. Ⅲ

staff: José I. Gerena Presidente Eric L. Rivera VP y Asesor de Recursos Humanos Lisandra Rojas Dir. Recursos Humanos y Presidenta de la Junta de Directores Juan M. Fragoso Dir. Mercadeo y Ventas Tania K. Rivera Auditora y Tesorera de la Junta de Directores Mariluz Serrano Asistente Administrativa y “Somos la solución que necesitas” Secretaria de la Junta de Directores Francheska Rodríguez Asistente Recursos Humanos Todo patrono que realice negocios con HR Solutions PT, economizará en el área de PO Box 1470 Bayamón, PR 00960-1470 Costos Operacionales de Nómina “Overhead” Tel. 787-778-0303 Fax 787-778-0304 y de los Recursos Humanos. Calle 7 Blq. 6 #25 Santa Rosa Bayamón, PR 00959 RONT PAGE 46 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010 F 27 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010 Continued from previous page closest to Old San Juan, is Capitolio Electoral reform bill shelved until next session Sur, an extension of the existing investment, largely from the private Capitol District, which will serve as Bill authorizing ASES, ASEM to incur new debt for accounts payable clears sector, over the next decade or so to a civic and cultural center, boasting House and Senate; student fi nancial aid measure in conference committee pull off. a bayside park. Next to it is Villa Economic Development & Com- Mercado, which planners believe BY MARIO SANTANA • Orders the establishment of electronic • Extends the campaign contribution caps merce Secretary José Ramón Pérez- will be the heart of the Bahía Urbana, [email protected] voting to independent candidates and candidates in Riera said the project had the poten- with hotels, restaurants, galleries and • Orders the electronic counting of ballots primaries tial to create 20,000 jobs during its boutiques and bayside dining and SUBSTITUTE TO HOUSE BILL 1863 • Requires voting candidates to cast ballots • Eases requirements for absentee voting construction and more than 7,000 entertainment. Purpose: To revamp the 1977 Puerto Rico prior to the general election day • Conditions a third vice presidency in the SEC permanent jobs once completed. The Its two residential communities, Electoral Law. • Establishes that gubernatorial candidates on the existence of a third political party with central government will invest some with a diverse range of offerings, Originated in the House of Representatives, this must receive at least 3% of the overall vote for SEC certifi cation $300 million in critical infrastruc- are called Parque San Antonio and measure underwent numerous amendments in the their political parties to keep their State Elections • Changes the name of the Electoral Law ture, including roads, utilities, public La Marina. Senate. Both versions repeal the Voluntary Fund Commission (SEC) certifi cation to Puerto Rico Electoral Code for the 21st parking and ports projects. Pérez-Riera said the project would for Financing Electoral Campaigns created under • Establishes that parties that lose their SEC Century Bahía Urbana, formerly known as not replace existing communities in former Gov. Sila Calderón. The Voluntary Fund certifi cation have to wait a year before beginning Author: House Speaker Jenniffer González the San Juan Waterfront redevel- the area, but would instead comple- matches private funds raised by gubernatorial to take steps to get recertifi ed, and prohibits the Status: The Senate passed the bill in a 20-8 vote opment project, will be comprised ment them. candidates and their political parties with public use of public funds for that purpose Nov. 10, the House in a 30-11 vote March 15. of four interconnected neighbor- “The project includes a range of funds, making it possible to spend up to $11 mil- • Establishes that to be counted as valid, split In both chambers the vote fell along party lines, hoods. The neighborhoods will be residential products with a diverse lion in a general election year. ballots must include a vote for a candidate of the with New Progressive Party (NPP) lawmakers in connected by a meandering green range of prices, including rental The House version substitutes the Voluntary political party the voter voted for. In other words, favor, and the Popular Democratic Party (PDP) walkway and a bayside promenade units,” he said. “The project seeks Above, the fi rst project to break ground as part of the new SATOUR light- Fund with a $3 million taxpayer-fi nanced Special the proposed amendment would declare null “tri- delegation voting against. that planners envision as a kind of to improve connections and access rail system will be the main terminal in Old San Juan. The plan also calls for Fund for Access to the Media for each gubernato- ple-X” ballots such as the so-called pivazos that Because the House did not concur with the urban beach, with welcoming spots between the different communities connecting historic Plaza Colón with the waterfront district and the light-rail rial candidate, and his or her political party. fi gured in Aníbal Acevedo Vilá’s narrow victory Senate amendments, a conference committee of shade, stone and wooden lounge of the Isleta.” terminal through an open promenade. Below, a project to turn Piers 7 and 8 However, the Senate amended that to allow in the 2004 gubernatorial election. will be convened to hammer out the differences. chairs for relaxing, along with out- into a recreational area for the whole family will get underway early next year. Plans call for an observation balloon, trapeze school and docking facilities for tall gubernatorial candidates and their political par- • Orders that ballots be printed in both Spanish House Speaker González, however, said that the door rooms. Continued on page 29 ties to raise up to $5 million from private con- and English fi nal outcome of the bill would have to wait for The westernmost area, and the one ships, as well as a pedestrian bridge running to Old San Juan. tributions and to match each private dollar with • Increases the anonymous individual campaign the next regular legislative session, slated to begin public funds up to $5 million, making it possible contribution cap from $50 to $200 in January. to spend up to $10 million in a general election • Allows restricted use of campaign money to year. buy real estate HOUSE BILL 2959 As amended by the Senate, the substitute to • Extends campaign-contribution caps and dis- Purpose: To authorize the Health Insurance House Bill 1863 would divide political parties closure rules to representation expenses Administration (ASES by its Spanish acro- into three categories: • Allows private corporations and labor nym) to incur new debt up to $187 mil- • Main party—A political party whose guber- unions to spend from their own resources in lion in order to pay its debts with insurers, natorial candidate obtains 25% or more of the advertisements directly in favor of or against a healthcare providers and suppliers. votes in a general election. candidate The bill orders that the money resulting from • Party—A political party whose gubernatorial • Schedules party primaries for the fi rst Sunday ASES’ new debt should be deposited in a candidate obtains at least 3% but less than 25% in May of the general election year Government Development Bank (GDB) special of the votes in a general election. • Moves the period to fi le candidacies and account, where it will be shielded from embar- • Party by petition—A political party that com- request endorsements to run for elective offi ce gos or restrictions arising from any legal claim. plies with the requirements to participate in a closer to primaries GDB also must oversee to ensure the money is general election. • Delays the start of political campaigns to not misused. The Senate substitute bill also includes the fol- no earlier than January of the general election lowing provisions: year Continued on next page

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Santini defends management of San Juan fi nances Continued from previous page

Blames ex-mayor Calderón for defi cits PUBLIC BUILDING INVESTMENT ON THE RISE The increased effi ciency that the BY MARIO SANTANA have already been paid. were $1.8 million above the previ- PBA has been able to achieve has [email protected] Some 1,200 employees retired ous fi scal year. In FY 2010, collec- resulted in its ability to undertake the with a $5,000 bonus and pensions tions from property taxes amount- most signifi cant amount of invest- an Juan Mayor Jorge Santini equal to 75% of their latest salaries, ed to $216.5 million; in FY 2009, ment in its facilities in years, and Sdistanced himself from defi - he said. Another 300 retired with a $214.7 million; in FY 2008, $217.7 Méndez believes this will improve cits shown in Comptroller’s Offi ce $10,000 bonus. million; and in FY 2007, $217.5 satisfaction and demand for PBA data, insisting they are the remain- San Juan still employs more million. facilities. ders of the $49 million cumulative people than any other city on the Municipal taxes on businesses While Méndez’s fi rst year was defi cit he inherited a decade ago island. Almost 12% of municipal (patentes), meanwhile, have con- consumed by stabilizing the enti- from former Mayor Sila Calde- employees in Puerto Rico work for tinued to grow, despite the eco- ty’s fi nances, he is now focused on rón. “Since I became mayor, ex- the island’s capital city. nomic downturn. In FY 2010 they improving the PBA infrastructure. cept for one year, we have closed amounted to $157 million; in FY “For the past eight years, there has every fi scal year breaking even or MUNICIPAL REVENUE, 2009, $156 million; $149.9 million been basically no maintenance done with a surplus,” he told CARIB- EXPENDITURES AND DEBT in FY 2008; and $145.6 million in on our buildings, and our custom- Metro Offi ce Park than Minillas, BEAN BUSINESS. Among municipal governments, FY 2007. ers weren’t satisfi ed,” Méndez said. and there is even a gym being built According to the Comptroller’s San Juan has by far the highest Collections from the municipal net “We are investing. We have 40 proj- for the benefi t of employees, who Offi ce, at the end of fi scal year (FY) revenue and the largest budget. Its share of the IVU also have stayed ects going on right now.” also will have kitchenettes at their 2009—the most recent data avail- consolidated budget for the cur- relatively stable during the past The PBA chief said several gov- disposal for the fi rst time. able—San Juan, with the largest mu- rent fi scal year amounts to $763.4 three fi scal years. In FY 2010, col- ernment centers used by towns have The renovation, however, goes nicipal budget on the island by far, million. No other city hall comes lections from this source amounted fallen into disrepair, with eleva- far below the surface. Top on the had the second-largest defi cit among close to San Juan’s income—or its to $54.5 million; in FY 2009, $54.7 tor and air-conditioning problems agenda is introducing energy-effi - the municipalities, amounting to expenditures. million; and in 2008, $54.8 million. especially acute. Schools and court- cient systems to hold down power $18.4 million and surpassed only “San Juan is a central government In FY 2007,when San Juan initiated houses are another priority, while costs, and a state-of-the-art data by Ponce’s. in miniature,” Santini said. IVU collections, revenue from this Police headquarters in Hato Rey is and communications system that At the end of FY 2008, San Juan’s Of the $763.4 million consoli- source was $41.4 million. also due for improvements. will improve quality and save the defi cit of $19.5 million was the dated budget, $444.3 million—or Collections from municipal excise The biggest project, however, is government millions in annual tech- largest among all municipalities. 58%—comes from the city’s own taxes on construction, however, have the $32.5 million renovation of the nology costs. While the work is taking place on a the permitting process. But the San Juan mayor said sources of revenue, not including suffered a sharp decline during the Minillas Government Center, which Rather than each agency having section-by-section basis, a big debut Méndez said the improved con- that the defi cits shown in the $51 million from the municipal net past two fi scal years, as they have in all is focusing on the north tower and its own data and communications will take place next month when ditions of public buildings, and Comptroller’s Offi ce reports do not for FY 2009. Salinas’ $8.7 million share of the sales & use tax (IVU municipalities. In FY 2010, income proceeding on a fl oor-by-fl oor system, they now will share a single the new Permits & Endorsements the Minillas renovation, which has refer to operational but to cumula- defi cit (the third largest) represented by its Spanish acronym). Another from this source amounted to $17.3 basis. system, which will improve quality Management Offi ce opens next vacated about four fl oors, is driving tive defi cits. 63% of its $13.8 million FY 2009 $117.6 million—15.4% of the con- million, and in FY 2009 collections The building has come to be a and cut down costs. The same strat- month on the ground fl oor of the up demand for PBA facilities. He said that those defi cits are the budget. solidated budget—is composed of totaled $29 million, both marking a symbol of government bureau- egy is being employed with confer- Minillas Center North Tower. The “We are attracting new tenants. remainders of the $49 million cu- San Juan has been paring its federal funds. sharp decline from the $48.3 mil- cracy and the renovation is aimed ence rooms and training areas. By agency will be the administration’s In Minillas, we will have a fi rst- mulative defi cit he inherited from cumulative defi cit, according to In FY 2010, which ended June lion collected in FY 2008. In FY at showcasing what government can having agencies share such facili- one-stop spot for permits, and its class building. It is a very attractive Calderón, who was San Juan’s Comptroller’s Offi ce data. The 30, San Juan revenue from its 2007, collections from excise taxes accomplish. The renovated offi ces, ties, space also is being freed up design, heavy on glass and open rental space at a third of the price mayor from 1997 to 2000. $19.5 million defi cit registered at own sources amounted to $519.9 on construction amounted to $29.6 with modern earth tones and attrac- that will allow additional tenants to space, aims to refl ect what offi cials of expensive rents in private offi ce “I have been able to reduce the the close of FY 2008 represented million. When federal and state million. tive fl oors and walls, look more like move in. say will be a new transparency in buildings,” Méndez concluded. Ⅲ cumulative defi cit because I have a sizable 54% bite out of the $30 transfers are added, the amount Federal and state transfers to San closed most fi scal years with sur- million dollar defi cit registered at increases to $723.3 million. Juan amounted to $136 million in pluses,” he said. the close of FY 2007. FY 2011’s consolidated budget is FY 2010; $141.9 million in FY He said many of the mayors who Vieques’ budget gaps, by contrast, larger than the previous one; how- 2009; $146.7 million in 2008; and have inherited defi cits, even those have widened over time. The island ever, projected collections from its $136.3 million in FY 2007. belonging to his New Progressive municipality’s cumulative budget own resources are down from what Party (NPP), have increased their increased 18.7% to $11.4 million the city collected during the previ- SPENDING IN SAN JUAN defi cits, while he has been able to in FY 2008 from $9.6 million in ous fi scal year. How does the city spend its in- reduce San Juan’s. FY 2007, when it skyrocketed FY 2010’s consolidated budget come? The biggest chunk goes to Also, San Juan defi cits are propor- 500% from the $1.6 million budget was larger than the $692.5 million the city’s health system, consisting tionally lower than those of many shortfall in FY 2006. consolidated budget in FY 2009, of the municipal hospital at the Río other municipalities. San Juan’s Santini recalled that when he but smaller than the $793.6 million Piedras Medical Center, a network defi cit represented just 4.5% of its began as mayor in January 2001, consolidated budget of FY 2008, of health centers and several health FY 2009 unconsolidated $425.6 the city had more than 10,000 the largest in the city’s history. programs, according to data provid- million budget. employees, and now has around Collections from property taxes— ed by the city. All told, around one- By contrast, Vieques’ $11.4 mil- 7,200 as a result of two early the city’s main source of municipal third (34%) of the budget is spent on lion defi cit ranked second among retirement programs he established income—have stayed relatively providing healthcare services. all municipalities and represented at a cost of $130 million, which stable during the past four years, General Municipal services 88% of its $12.9 million budget although in FY 2010 collections Continued on next page 44 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010 FRONT PAGE 29 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010

Continued from page 27

In fact, the Housing Department has undertaken recently the modern- ization of public-housing projects PBA is investing $335 million in the area with an eye toward the larger redevelopment vision, which calls for the opening up of north- in public facilities south corridors, and better integrat- ing the housing into the neighboring community, as well as decentraliz- After fi nancial turnaround, ing the housing units. THE FUTURE IS NOW Méndez is focusing on infrastructure investment While the redevelopment of Isleta de San Juan is a long-term project that will not be fully complete for BY JOHN MARINO public corporation also stopped pay- [email protected] more than a decade, work has al- ing other government entities during ready gotten underway on it. the Acevedo Vilá years, with signif- Pérez-Riera said that much of the he Public Buildings Authority icant utility and other bills having legwork regarding permitting and T(PBA) has come back from the built up, including a $50 million land-title issues has already been brink of fi nancial oblivion and is par- debt with the Puerto Rico Electric done, and that the government owns laying its hard-fought gains into a Power Authority (Prepa) and a $2 the majority of the land involved in multimillion-dollar investment back million debt with the Government the project’s initial phases, which into its facilities. Employees Retirement System. should speed up the process. The PBA is investing $335 million Méndez said the public corpora- The Economic Development in several projects across the island, tion is now current with its bills and chief acknowledged that the rede- including a $32.5 million project to has entered into payment plans with velopment of the San Juan water- renovate the 40-year-old Minillas big debtors like Prepa. As a result of front was originally conceived so Government Center, aimed at trans- the stronger collections, the PBA has long ago that the private sector may forming the neglected symbol of been able to keep better up-to-date be skeptical of it ever becoming a public bureaucracy into a model of with its suppliers, paying out $63 reality, which is why the govern- effi ciency. million in FY 2010, a 208% increase ment is focused on getting an initial “We have turned around the fi nan- over the $20.3 million paid to suppli- phase of the project completed this cial situation of the agency and trans- ers in the previous fi scal year. term. lated that into increased investment Another component of the PBA’s Work crews have already started into our infrastructure for the ben- fi nancial turnaround involved slash- repairs and improvements along pedestrian bridge, feature an obser- Meanwhile, as San Juan drives where work on the train begins in efi t of our tenants,” PBA Executive ing operational expenses by $14.6 Fernández Juncos Avenue and vation balloon and a trapeze school, ahead with its development of the earnest. Director Jesús Méndez said. million, or a 7% cut in FY 2010. just last week, the Department and serve as the home port for the SATOUR light-rail train, it is si- The plan also calls for connect- When Méndez took over the reigns Most savings stemmed from the of Economic Development & HMS Bounty tall ship. multaneously continuing to put its ing Plaza Colón, the historic square, of the public corporation less than installation of a high-tech security Commerce put out to bid a renova- Another recreational area, a splash Walkable City plan into action. The with the waterfront district and the two years ago, things were so bad the system, which allowed the public tion project for Piers 7 and 8. The park and play and sports area adja- repaving of Old City streets, a key light-rail terminal through an open entity was hard pressed to make pay- corporation to cut down outside government is investing $25 million cent to the Club Naútico marina, will step in allowing San Juan to be- promenade that will wed the new roll the next month, and there was a security contracts, and agreements to begin this fi rst phase. shortly take root on the other end come a pedestrian-friendly city, is vision for Puerta de Tierra and the mutiny among tenants and suppliers with employees to pare health and The initial project will be to re- of the development, the Economic underway. San Juan waterfront to the Old City. over prolonged lack of maintenance other benefi ts, Méndez said. make the area of Piers 7 and 8, cur- Development chief said. Santini also is in discussions This will be the fi rst large Walkable and a failure to pay its bills. For example, health coverage rently a decaying industrial port “The idea is that this will be an with private groups and the own- City project, Rovira said. “We had $248 million of back rent “The offi ces reopened, but a vir- year (FY) 2010, which ended July 30, was costing in excess of $700 per zone, into a large recreational area area where family, visitors, tourists ers of the Sheraton Old San Juan “The train is what makes this in arrears because at that point, the tual closure of government agencies the PBA collected 94% of the rent it employee monthly. Under the revised for the whole family, surrounded by and the public in general can come hotel regarding the development all attractive,” Santini said. “It al- central government, which is our continued with no funds changing was owed, or $311 million of a total plan, costs have been cut to $535 a water and green areas. It would be and have a good time,” Pérez-Riera of the light-rail train’s main termi- lows those who want to invest to main tenant, couldn’t afford to pay hands. It was a concerted effort,” $332 million, Méndez said. That is month, he said. Likewise, the maxi- hooked up to Old San Juan via a said. nal in Old San Juan, which will be invest.”Ⅲ the rent,” Méndez recalled. “We had Méndez said. a signifi cant improvement over the mum Christmas bonus was capped signifi cant operational expenses, and Since then, the PBA has been able 45% collected during the previous at $1,500, well below the previous Continued from previous page we weren’t paying our suppliers or to collect $110 million of the $248 fi scal year. The improved collection cap of $3,700. According to the Government De- at the end fi scal 2006, and 14.8% million in FY 2009, $389.6 million maintaining our buildings.” million it was owed in back rent, and rate has signifi cantly strengthened Méndez said such givebacks, which account for 18% of the budget; 10% velopment Bank (GDB) data for the higher than its $496 million debt at in FY 2008 and $384.8 million in Méndez said that since the two- it expects to collect the rest from the agency’s cash-fl ow situation, also included a three-year freeze on is spent on public works, another end of fi scal 2009, San Juan debt with the end of fi scal 2007, according to FY 2007. week government shutdown in 2006 agencies over the next three years allowing it to increase its capacity salary increases, allowed the admin- 10% on debt service, 8% on secu- the bank stood at $569.4 million. GDB data. Debt service expenditures until he came aboard in January 2009, as part of a fi ve-year payment plan. to pay suppliers and improve main- istration to forego additional fi rings, rity, 6% on urban development, an- San Juan’s debt at that time was The Santini administration’s debt amounted to $57.2 million in FY the PBA stopped paying its bills to its More importantly, the PBA has sig- tenance services. after 160 workers were let go last other 6% on capital disbursements, 0.9% smaller than its $574.6 million data differs from the GDB’s records. 2010, $57.3 million in FY 2009, suppliers and other government agen- nifi cantly improved its effi ciency at Just as government agencies year. 3% on education, another 3% on debt for the end of fi scal 2008. But According to the city data, its debt $50.8 million in FY 2008 and $48.7 cies stopped paying rent to the PBA. collecting current rent. During fi scal stopped paying rent to the PBA, the San Juan’s current debt is 18.3% with the bank amounted to $410.6 million in FY 2007, according to Continued on next page recreation and culture, and 2% on urban development. higher than its $481.2 million debt million in FY 2010, up from $384.2 the city. Ⅲ FRONT PAGE 30 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010 GOVERNMENT 43 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010 Polish ambassador opens honorary consulate in Puerto Rico Río 2012 attracting investors, Santini says BY JOHN MARINO been security and energy issues, he said. Poland Armenia to modernize their systems and mar- [email protected] still has a 2,000-man presence in Afghanistan, kets to participate fully in western democracy, Key construction underway in Río Piedras urban center, more slated for 2011 and had 3,000 troops in Iraq. he added. obert Kupiecki, Poland’s ambassador to the “We want stateside Americans to be involved in Poland also is seeking technical assistance 51 carro público routes will be RU.S., traveled to Puerto Rico last week to Europe and to have a tangible military presence,” and investment from the U.S. as it looks to tap BY MARIO SANTANA [email protected] based in the new environmentally offi cially open an honorary consulate in San Juan Kupiecki said, noting that Poland is slated to host its huge shale deposits for natural gas and to friendly terminal, which will in- and to begin exploring ways to boost commer- a portion of a U.S. missile defense system. develop clean technology to make better use of clude 334 parking spaces for the cial and cultural ties between the island and his Poland also wants the U.S. to continue helping its substantial coal deposits, the ambassador said. ith a new parking facility un- European nation. spread democracy in Eastern Europe to allow Poland is also exploring plans to build a nuclear der construction and a 12-sto- general public. W The terminal is already under “This is a wonderful place and we want to countries like Georgia, Ukraine, Belarus and power plant. Ⅲ ry municipal tower and a new health expand our ties here. Our economic and cultural center slated to begin construction construction, and Santini plans to have it completed by the end of the exchange currently is not meaningful and is way next year, San Juan Mayor Jorge below its potential,” Kupiecki told CARIBBEAN SUMMONS AND NOTICE OF OBJECT OF ACTION STATE OF NEW YORK SUPREME COURT: COUNTY OF Santini proclaimed that Río 2012 government term. SUFFOLK ACTION TO FORECLOSE A MORTGAGE INDEX NO.: 2150/10 LNV CORPORATION Plaintiff, The city also plans to build a new BUSINESS in an exclusive interview. “We are has moved from initial doubts to vs. IGNACIO EDILBERTO CUEVAS, ELBA I. GONZALEZ, ET, AL. Defendant(s). MORTGAGED PREMISES: health center for downtown Río combining this diplomatic event with a fact- where it is arousing serious inter- fi nding mission about business opportunities in 25 WALTON STREET BRENTWOOD, NY 11717 SBL #: 50-3-49 TO THE ABOVE NAMED DEFENDANT: est among private investors. Piedras, after dropping earlier plans to make improvements on the exist- Puerto Rico.” You are hereby summoned to answer the Complaint in this action, and to serve a copy of your answer, or, if the Complaint is not “Nobody thought this [project] The diplomatic outreach is part of a national served with this Summons, to serve a notice of appearance, on the Plaintiff(s) attorney(s) within twenty days after the service of was going to make it,” Santini told ing one. An average of 200 people visit the health center’s outpatient strategy by Poland, which is expanding its inter- this Summons, exclusive of the day of service (or within 30 days after the service is complete if this Summons is not personally CARIBBEAN BUSINESS dur- national role as its relative weight in the world delivered to you within the State of New York). In case of your failure to appear or answer, judgment will be taken against you by ing an exclusive interview. “Now clinics on weekdays, and more than 100 use the emergency room in a increases, and more and more Poles travel inter- default for the relief demanded in the Complaint. The Attorney for Plaintiff has an offi ce for business in the County of Erie. Trial to we have more than 20 investors nationally for business and pleasure, Kupiecki be held in the County of Suffolk. The basis of the venue designated above is the location of the Mortgaged Premises. Dated this interested.” given day, according to city hall data. said. 18th day of October, 2010, TO: IGNACIO EDILBERTO CUEVAS and ELBA I. GONZALEZ, Defendant(s) In this Action. The foregoing Río 2012 is an ambitious plan to have been normal purchases, not effi cient building of 180,000 square Kupiecki said the island’s tourism offerings are Summons is served upon you by publication, pursuant to an order of HON. JEFFREY ARLEN SPINNER of the Supreme Court of renovate the historic heart of Río expropriations. feet of offi ce space on Camelia Soto top-notch, and would defi nitely be of interest to the State of New York, dated the 5th day of October, 2010 and fi led with the Complaint in the Offi ce of the Suffolk County Clerk, Piedras. It consists of a master plan “The process has been very Street, at a cost of $38.9 million. PRIVATE INVESTORS STEPPING UP In the area surrounding Plaza de Polish citizens. in the City of Riverhead. The object of this action is to foreclose a mortgage upon the premises described below, executed by designed by Boston-based archi- smooth,” he said. “I haven’t been Santini said that the private sector “Puerto Rico is a great tourism destination and IGNACIO EDILBERTO CUEVAS and ELBA I. GONZALEZ dated the 20th day of January, 2006, to secure the sum of $285,000.00, tect Antonio DiMambro, who has able to buy more, but I have another will build the municipal tower and la Convalecencia, the city has been razing abandoned structures and more people in Poland should know what you and recorded at Liber 21231 of Mortgages at Page 538 in the Offi ce of the Clerk of the County of Suffolk, on the 8th day of Febru- designed major works in Venice, 25 [properties] whose owners want rent it to the city. When the rental have to offer,” he said. ary, 2006; which mortgage was duly assigned by assignment dated the 4th day of August, 2006, and recorded on the 25th day Boston and Dallas, as well as here to sell them to us.” period ends, the building’s owner- preparing plots for redevelopment. DiMambro’s master plan envisions The ambassador said that Poland has a broad- of October, 2006, in the Offi ce of the Clerk of Suffolk County at Liber 21406, Page 818; which mortgage was further assigned by in Puerto Rico. All construction Río 2012 aims to take advantage ship will revert to the city, he said. based manufacturing sector that produces many assignment dated the 10th day of March, 2008, and recorded on the 10th day of September, 2008, in the Offi ce of the Clerk of in the area must follow the master different types of residential and of the sector’s two main advantag- “This means that my disbursement items for local consumption. Its gourmet food Suffolk County at Liber 21749, Page 233; The property in question is described as follows: 25 WALTON STREET, BRENTWOOD, plan’s guidelines. commercial units in this area. es: the presence of the University of for the construction is zero,” he said. commodities, as well as luxury jewelry and hand- NY 11717 SEE FOLLOWING DESCRIPTION District 0500, Section 050.00, Block 03.00 and Lot 049.000 ALL that certain plot, The master plan won an award But these developments, espe- Puerto Rico’s fl agship campus and “I provide the land, they build and made items, will likely fi nd a receptive market piece or parcel of land, with the buildings and improvements thereon erected, situate, lying and being in the Town of Islip, County from the Boston Society of Archi- cially residential projects slated for its status as a transportation hub, rent it for 30 to 40 years, whatever here, he said. of Suffolk and State of New York, known and designated as Lots 35 to 37 inclusive, Block 98 on a certain map entitled, “Map tecture in 2009, which helped spur rent and sale, will ultimately depend with several Urban Train stations, the contract says, and at the end, the During his visit, Kupiecki introduced Poland’s of Brentwood Park Improvement Company” and fi led in the Offi ce of the Clerk of the County of Suffolk on February 5, 1889, as international interest in the project, carro público on private investors willing to take a (public car) terminal tower is mine.” new honorary consul, Bogdan Rogowski, to the Map No. 45. Premises known as 25 Walton Street, Brentwood, New York HELP FOR HOMEOWNERS IN FORECLOSURE NEW Santini said. and a central convergence spot for The municipal tower will re- the risk of building apartments, and local Polish community as well as business rep- YORK STATE LAW REQUIRES THAT WE SEND YOU THIS NOTICE ABOUT THE FORECLOSURE PROCESS. PLEASE READ IT The city expects Río 2012 will bus lines. place the city’s current main offi ce offi ce and retail space for sale or resentatives, elected offi cials and consular corps CAREFULLY. SUMMONS AND COMPLAINT YOU ARE IN DANGER OF LOSING YOUR HOME. IF YOU FAIL TO RESPOND TO THE spur over $1 billion in private in- Río 2012 began with the renova- building on Chardón Street in Hato rental. members. SUMMONS AND COMPLAINT IN THIS FORECLOSURE ACTION, YOU MAY LOSE YOUR HOME. PLEASE READ THE SUMMONS vestment, as it envisions more than tion of Río Piedras’ main square, Rey. That building is owned by the Some of the owners of real estate Participating in the event were Secretary of AND COMPLAINT CAREFULLY. YOU SHOULD IMMEDIATELY CONTACT AN ATTORNEY OR YOUR LOCAL LEGAL AID OFFICE TO two million square feet of new Plaza de la Convalecencia. The ren- Public Buildings Authority and the located in the area have expressed State Kenneth D. McClintock, Archbishop Józef OBTAIN ADVICE ON HOW TO PROTECT YOURSELF. SOURCES OF INFORMATION AND ASSISTANCE The state encourages you construction; 1,124 new residential ovation cost $15 million and includ- city pays rent for its use. interest in selling their properties to the city, but others want to build Wesołowski, who is the Papal Nuncio to the to become informed about your options in foreclosure. In addition to seeking assistance from an attorney or legal aid offi ce, there units; 166,340 square feet of new ed the square’s underground park- The move will bring 1,200 mu- Dominican Republic and Puerto Rico, Senate commercial space; 972,000 square ing facility, which accommodates nicipal workers to downtown Río some of the projects slated in the are government agencies and non-profi t organizations that you may contact for information about possible options, including master plan, the mayor said. Majority Leader Roberto Arango, Dean of the trying to work with your lender during this process. To locate an entity near you, you may call the toll-free helpline maintained feet of new offi ce space; and 1,500 602 vehicles. Since its completion, Piedras each day, stimulating eco- Consular Corps Luis Malpica y de Lamadrid, and new parking spaces. the city holds two or three activities nomic activity in the area. The mu- “The last time I talked with our ac- by the New York State Banking Department at 1-877-BANK-NYS (1-877-226-5697) or visit the department’s website at WWW. quisition personnel, we had around Puerto Rico Chamber of Commerce President BANKING.STATE.NY.US. FORECLOSURE RESCUE SCAMS Be careful of people who approach you with offers to “save” your The goal is to attract 5,000 new there weekly, Santini said. nicipal tower also will house a pri- Raúl Gayá Nigaglioni. residents to the Río Piedras urban “Río Piedras is thriving,” he said, vately managed cinema and other 27 to 30 owners of real estate will- home. There are individuals who watch for notices of foreclosure actions in order to unfairly profi t from a homeowner’s distress. ing to either sell their properties to “The goal of Poland’s honorary consulate in You should be extremely careful about any such promises and any suggestions that you pay them a fee or sign over your deed. center, generating some 3,000 direct adding that so far, the city has in- amenities. Puerto Rico is to contribute to the development and indirect jobs in the process, as vested $25 million of its own re- Santini said that by the end of the us or to develop a project by them- State law requires anyone offering such services for profi t to enter into a contract which fully describes the services they will selves or jointly with other owners,” of the ties between Puerto Rico and Poland, espe- perform and fees they will charge, and which prohibits them from taking any money from you until they have completed all construction gets underway to reno- sources in Río 2012. current government term in 2012, cially in the economic, trade, education and cul- vate the area. the municipal tower construction he said. “We have verbal proposals such promised services. § 1303 NOTICE NOTICE YOU ARE IN DANGER OF LOSING YOUR HOME If you do not respond to this and letters.” tural areas, and to render assistance and consular The city government has bought MUNICIPAL TOWER, should be completed or in advanced summons and complaint by serving a copy of the answer on the attorney for the mortgage company who fi led this foreclosure The housing units Santini wants protection, if need be, to Polish nationals who hap- more than 15 real-estate properties TRANSPORTATION TERMINAL NEXT stages. The project is now in the proceeding against you and fi ling the answer with the court, a default judgment may be entered and you can lose your home. to see developed in the area will be pen to be in a special situation,” Rogowski said. Speak to an attorney or go to the court where your case is pending for further information on how to answer the summons and so far in preparation for the envi- The next phase of Río 2012 in- process of selecting a construction Rogowski, who is in charge of information sioned development. The prop- cludes a municipal tower and a trans- company. for occupants from various income protect your property. Sending a payment to your mortgage company will not stop this foreclosure action. YOU MUST RESPOND levels, not only for low-to-moder- technology at Ballester Hermanos, is married BY SERVING A COPY OF THE ANSWER ON THE ATTORNEY FOR THE PLAINTIFF (MORTGAGE COMPANY) AND FILING THE erties or land parcels are located portation terminal with parking. The transportation terminal will and has a daughter. He said there are around 20 ate-income families. ANSWER WITH THE COURT. DATED: October 18, 2010 Steven J. Baum, P.C., Attorney(s) For Plaintiff(s), 220 Northpointe Parkway along Georgetti, Piñero, Tavárez, The 12-story municipal tower is require a total investment of $13 Polish families living in Puerto Rico. “We will have a quota of low-to- Suite G, Amherst, NY 14228 The law fi rm of Steven J. Baum, P.C. and the attorneys whom it employs are debt collectors who are Vallejo, Arzuaga and Monseñor slated to begin construction next million in municipal and federal Kupiecki has been Polish ambassador to the Torres streets. Santini said all year. It is proposed as an energy- funds. The city expects that around attempting to collect a debt. Any information obtained by them will be used for that purpose. Continued on next page U.S. for the last three years, and his focus has 42 CARIBBEAN BUSINESS AGRICULTURE THURSDAY, NOVEMBER 18, 2010 FRONT PAGE 31 CARIBBEAN BUSINESS THURSDAY, NOVEMBER 18, 2010 Starbucks committed to helping grow local coffee industry

BY CARLA LEWIS Harvey did not have information Santini unveils political plans [email protected] on how much additional green coffee has been purchased for other Says he will likely seek re-election, touts public works record tarbucks Coffee Co. stores in markets. places such as Japan and New When CARIBBEAN BUSINESS S BY MARIO SANTANA the New Progressive Party (NPP) adding that “people of all levels, only government entity that “is York City currently offer Puerto Ri- contacted Harvey for an exclusive [email protected] can coffee to their customers, and interview, she was in the middle ticket. from people in public housing moving forward” is his city hall, Cheryl L. Harvey, managing direc- of opening Starbucks’ fi rst store He said that when he fi rst projects to bankers, ask me every although he clarifi ed that the prob- tor of Starbucks Coffee Interna- in El Salvador as part of the an Juan Mayor Jorge Santini launched his key projects, some day to run for governor. lem with the Fortuño administra- tional in Puerto Rico, said the café company’s expansion in Central Ssaid he will likely seek re- labeled them as crazy. “I think that the political world tion is a lack of money. chain plans to export even more of America. Puerto Rico has not been election, but also said that every “What we began some time ago has turned its eye on me and is say- “Fortuño does not obstruct me, the local product. the exception when it comes to day he receives petitions to run for had no other purpose than to lay the ing: ‘Hey, this guy, who is one of but he does not have much to give, “We are very proud to have Puerto expanding the brand and access governor, adding that he can beat foundation for what we are doing the warriors, a gladiator, has stayed besides his cooperation, because Rican coffee at our stores,” Harvey to the famous Starbucks coffee anybody because he has a record now, which will lay the foundation focused on doing his projects,” he there is no money to do what [for- said, adding that although the products. of accomplishment in public works for what we will do tomorrow,” he said. mer Gov. Rafael] Hernández Colón island-grown coffee the company “We are looking for new locations that can only be compared to that said. For Santini, no other politician did in Ponce and allocate $50 mil- buys is actually roasted in Seattle, from Ponce to Mayagüez, as well of former Gov. Pedro Rosselló. but Rosselló can claim a work re- lion in San Juan.” Starbucks would consider roasting as to add locations that include “I am the mayor of San Juan, and SUPPORTS FORTUÑO cord more robust than his. Santini said he opposes any inter- locally if it could fi nd someone on drive-thrus. Once we fi nd the right I want to keep being the mayor of Santini said that he supports “Even though I am an ardent nal challenge to Fortuño. the island to do it within company sites, we will expand,” Harvey said, San Juan and see my projects get Gov. Luis Fortuño’s re-election “if politician, I have a work history “I asked my fellow politicians in completed,” was his fi rst reaction standards. adding that this also means adding 21 locations, although it has had Harvey said that even she had he decides to be the [NPP] candi- that backs me. In the past 20 years, other positions to do the same as I when asked about his political Starbucks purchased 2,800 pounds to the already 340 jobs Starbucks to shut down operations in seven no idea what it took to get coffee date” for governor in 2012. nobody in Puerto Rico, and I say do: focus on their work and on co- plans. “I need to institutionalize of green coffee from local farmers provides on the island. others. into a cup. “I can now have a new “Who will be the candidates for this with conviction, nobody but operating with the administration, my projects in a way that prevents last year for sale at local stores. Since 2002, Starbucks has opened Meanwhile, Harvey said, the brand appreciation for it,” she said. governor in the next election? I Pedro Rosselló has had a cata- because the changes Fortuño wants future mayors from knocking aims to increase its exposure as well Since Starbucks opened on the don’t know,” he said, adding that log of works like mine,” he said. to make are good for everybody,” them.” as focus on different strategies, island, Harvey said, its customers he “could defeat any of them.” “Nobody, not even in the House he said, dismissing the notion that Santini has been mayor for a de- which include social responsibility have become more and more “What happens is that I am not or the Senate or in another city his message is especially intend- cade, after winning the past three and community initiatives. educated about coffee quality and in that game, unlike other politi- hall.” ed for Senate President Thomas elections, each time running on Ⅲ “We are looking for ways to diversity. cians from my party,” Santini said, The mayor further said that the Rivera Schatz. be more green and more energy- “We provide coffee tasting daily effi cient,” Harvey said, stressing the and coffee seminars weekly,” she Continued from previous page company’s interest in implementing said. “We help customers understand families that qualify for the federal Santini also noted as one of his built on municipal land as part of a recycling program in 2011. So far, how the taste varies by geographical program will get the subsidy. administration’s greatest achieve- another deal that will transfer their however, it has been hard to fi nd characteristics. There has been a Other incentives include exemp- ments the Casa Cuna of San Juan, ownership to the city after 40 or 50 someone on the island who can noticeable increase in the education moderate-income units in order to tions in the payment of municipal a shelter for abandoned or abused years, he said, adding that the ho- recycle their products. of consumers.” promote an integration of people business taxes, and real and person- babies and toddlers at the former tel operator also will be in charge Harvey also said the coffee- For the fourth quarter ended Oct. with different income levels,” he al property taxes, and reduction and U.S. Naval Radio Station in Puerta of developing and running an 18- picking event Starbucks launched 3, the Seattle-based coffeehouse said, adding that the quota could deferment of municipal construc- de Tierra. He said the project led hole golf course. Other projects on the island fi ve years ago has declared an 86% increase in be 15% or 20% of all new housing tion fees. to the reform of the island’s adop- in the area include a new central been growing ever since, and that profi ts, and upgraded its outlook units. tion law. food market that will use renew- customers cherish the experience. for 2011 based on strong full-year But he also said housing units to OTHER PROJECTS “I have searched for similar proj- able energy. “This initiative helps our custom- results. Of Starbucks’ 16,858 units be sold at market-value prices “will Santini also highlighted other city ects around the world, and ours is The city also is seeking a private ers understand more about the qual- worldwide at the end of the quarter, still be affordable and attractive.” projects during his interview with unique,” he said. investor to build and run a waste- ity and the work that it entails, and 11,131 were in the U.S. Next year, A mix of municipal, common- CARIBBEAN BUSINESS. The mayor recalled that in to-energy plant on municipal land. the number of hands it takes to fi n- Starbucks plans to open about wealth and federal incentives are He touted the fact that the city man- February the city hosted the Latin Such a plant would represent sav- ish the product’s process,” she said. 500 new stores around the world, available for developers who invest ages its own education system. American Special Olympic Games ings in the city’s solid-waste-dis- “When they come back to the stores including 100 in the U.S. and 400 in the area. “Nobody thought that a city could and is curently competing to be- posal expenses. they understand how challenging it internationally, most of which will The incentives available in- have its own education system, but come the host of the 2015 Special The city government also has really is.” be licensed. Ⅲ clude interim loans provided by we have it. It is a reality today,” he Olympics. To that end, last month acquired property near PR-1 in the municipality with its HOME said, adding that the city schools’ he attended seminars in Athens, a Río Piedras, for $55 million, and Investment Partnerships Program test results are above 92% of all requirement for fi ling the formal pe- has plans to acquire adjacent land funds. HOME is a federal assis- other island schools, public and tition. San Juan is competing with parcels to offer this real estate to “Although the island-grown coffee the company tance program of the U.S. Housing private. cities in Australia, South Africa, private investors willing to develop buys is actually roasted in Seattle, Starbucks would & Urban Development Department He also said the city is now in India, the U.S. and Morocco to host state-of-the-art fi lm and recording aimed at providing decent and af- charge of considering permits the event, he said. production facilities. That project consider roasting locally if it could fi nd someone fordable housing, particularly for within its boundaries. In mid-July Santini also said the city desig- is envisioned to include a school, on the island to do it within company standards. low-income families. of 2009, the Regulations & Permits nated a redevelopment district near to be run privately or by the city, Starbucks purchased 2,800 pounds of green coffee The program is expected to pro- Administration (ARPE by its Span- the Kennedy Avenue expressway that would offer training in motion vide from $7 million to $8 million ish acronym) and Planning Board that includes the construction of picture lighting, staging and set de- from local farmers last year for sale at local stores.” to subsidize the mortgages of the transferred most of their permit two hotels next to the city’s wild- sign, and special effects, Santini fi rst 77 housing units built. Only powers to the city’s permits offi ce. life museum. The hotels will be said. Ⅲ