The Weekly Journal January 1-6, 2019

Wednesday, January 1-7,2020 - // no. 036

Puerto Rico and the Caribbean

www.theweeklyjournal.com

PARADORES: AN ALTERNATIVE FOR DISCOVERING THE ISLAND P10

LOCAL RECOVERY FUND TO SPEED UP SMALL-SCALE RECOVERY PROJECTS P17

“GOVERNMENT STABILITY” AS MAIN ACCOMPLISHMENT OF 2019 Chief Financial Officer Omar Marrero discusses fiscal wins and challenges

W Giovanna Garofalo

PUERTO RICAN DRIVERS EXCEL IN THE RACING WORLD P20

ggarofalo@wjournalpr.com

@giopgarofalo

ith 2019 finally over, Chief Financial Officer Omar Marrero looks back at the achievements and challenges experienced since the beginning of his tenure at the Fiscal Agency and Financial Advisory Authority (Afaaf by its Spanish acronym), as well as his vision for the new year.

Marrero, who started working as Puerto Rico’s CFO in August, affirmed that some of the most climactic events that Afaaf has documented since then have

>Carlos Rivera Giusti

PUERTO RICO ECONOMIC ACTIVITY INCREASES FOR FIRST TIME IN FIVE MONTHS P7

been maintaining stability during and after an administrative transition, following through with multiple restructuring agreements for various public corporations, and incentivizing investment.

Last summer, Puerto Rico garnered international attention due to the arrests of former high-ranking government officials and the historic protests against then-Gov. Ricardo Rosselló after a leaked Telegram chat led to widespread controversy.

Following Rosselló’s resignation in late July, thenSecretary of Justice Wanda Vázquez became the island’s new governor and, with that change, came a dire need to assure residents, investors and the GO TO PAGE 4

The Weekly Journal > Wednesday, January 1, 2020 >

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It's your moment to shine.

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/ Wednesday, January 1, 2020

A WEEK IN REVIEW FEMA AND COR3 OBLIGATE AN ADDITIONAL $20 MILLION FOR RECOVERY WORK IN PUERTO RICO The Federal Emergency Management Agency (FEMA) and the Central Office for Recovery, Reconstruction and Resilience (COR3) have obligated over $20.5 million in additional funds for 37 projects related to the recovery and reconstruction of Puerto Rico. These funds were obligated between Dec. 20 and Dec. 26. To date, over $6 billion has been approved for Puerto Rico under FEMA’s Public Assistance program.

The latest grants obligated are as follows: • Over $6.7 million for administrative costs • Over $6 million for emergency protective measures

• Over $5.1 million for repairs to roads and bridges • Nearly $1.3 million for repairs to public buildings and equipment

• Over $1.2 million for work related to parks and recreational facilities • Nearly $50,000 for repairs to public utilities. >Courtesy FEMA

BAHÍA BEACH RESORT AND GOLF CLUB INAUGURATES A DOG SHELTER The St. Regis Bahía Beach Resort made an investment of over $250,000 for the development of a dog shelter within their grounds.The shelter rescues homeless dogs in the hopes of placing them in a ‘forever home’. Fahad Ghaffar, a partner at Paulson and Co., explained that, thanks to the support of airlines and the community, once rescued dogs are ready for adoption, they are flown to the mainland to be adopted by pre-screened families. >Courtesy Bahia Beach Resort

SLIGHT POPULATION GROWTH IN PUERTO RICO Puerto Rico’s population increased slightly this year as the Island braces for the 2020 Census. As of July 1, 2019, there were an estimated 3,193,694 people in Puerto Rico.

Compared to 2018, the total population is estimated to have increased by about 340 inhabitants. After a considerable population reduction from 2010 to 2018, which ranged from -1.1 percent to -3.9 percent in the post-hurricane year, it is estimated that there was a slight increase of 0.01 percent from 2018-2019. Previous annual estimates had reflected a continuous population decline for 15 years since 2005. >Archive

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CONTINUED FROM PAGE 1 federal government that Puerto Rico’s public sector remained stable and functional.

“I believe that if we were to summarize everything, the most important thing has been how we have been able to maintain stability in the government’s financial spheres, particularly with our most important stakeholders, which are the federal government and the Financial Oversight and Management Board (FOMB), as well as state and municipal agencies. For me, I think that is the most important part. If I were to highlight something, it is the fact that the government continued to function,” he told THE WEEKLY JOURNAL. He and a delegation of public officials—including Vázquez—had their first visit to Washington, D.C. for Congressional meetings, which Marrero described as “highly significant,” meant to provide an update on the local government’s status after the transition and its ongoing agenda to bolster economic development. Marrero and the delegation also met with the Federal Emergency Management Agency (FEMA) and the U.S. Department of Housing and Urban Planning (HUD)—the agencies that allocate disaster relief funds as recovery means from Hurricane Maria— as well as the U.S. Departments of Energy and Treasury. According to Marrero, these federal entities did not express concerns over Puerto Rico’s management but were assured of its continuity regardless.

During that visit to the U.S. capital, Marrero

Prepa’s debt restructuring process remains a top priority, as well as providing structure to Afaaf, and reinstating an internship program akin to the initiative in the now-defunct Government Development Bank. > Josian Bruno Gómez

also held talks with the Treasury concerning Act 154-2010, which establishes a 4 percent excise tax on foreign corporate subsidiaries based on the island. As reported, this excise tax contributes approximately $2 billion to Puerto Rico’s public funds and accounts for roughly 20 percent of the General Fund’s revenue. U.S. Treasury Secretary Steve Mnuchin stated that the local government needed to take the steps necessary to end this provision and Marrero replied that the U.S. Treasury had not demanded a plan per se, or established a due date for the government to present alternatives. As such, the conversation is currently ongoing.

Progress in Restructuring Agreements, With Criticism

The CFO recalled a series of restructuring agreements for multiple government instrumentalities, such as the Puerto Rico Industrial Development Company (Pridco), the Aqueduct and Sewer Authority (Prasa), the Electric Power Authority (Prepa), and the Sales Tax Financing Corporation (Cofina by its Spanish acronym).

“In terms of restructuring, which was one of my priorities, we were able to retake Pridco’s restructuring agreement, starting with the requestfor-qualification (RFQ) process of a professional operator for Pridco’s properties; that is, a real estate manager. As part of Pridco’s restructure and reorganization, there needed to be a private operator that could manage Pridco’s real estate portfolio in a much more professional and efficient manner,” Marrero said. The official said that the RFQ, which began last August, could result in economic development.

Likewise, Prasa’s restructuring agreement was completed, allowing the entity to restructure roughly $1 billion and “get up to date with two federal programs from the Environmental Protection Agency and the U.S. Department of Agriculture,” Marrero stated.

Moreover, another issue he saw through in September was amending Prepa’s restructuring support agreement to include additional insurers.

According to Marrero, “with that, we already have more than 90 percent of bondholders represented in that agreement.”

However, this RSA has been laden with criticism, particularly from nonprofits who noted that the agreement entails electricity rate hikes during the next five years, with economist Daniel Santamaría Ots calling it a “regressive tax that affects lowincome families and local businesses.” Marrero acknowledged that it will be a challenge to convince all affected parties to support the RSA, but claimed that dismissing it would lead to an “apocalyptic” scenario.

Meanwhile, after Cofina reached its own restructuring agreement last October, the government was able to complete the agency’s debt payment for the 2019-20 fiscal year with $436 million, leaving a surplus of $17.3 million that was transferred to the General Fund. This payment marked the government’s first compliance with

Cofina’s adjustment plan.

“This speaks to the government’s credibility, that we are back on the market in Cofina’s case, so that was also positive,” the CFO commented.

Last July, the government started redistributing 5.5 percent of the revenue from the Sales and Use Tax (IVU by its Spanish acronym) to Cofina’s repayment fund, while the local Treasury Department distributed the remaining 6 percent of IVU revenue between municipalities, the treasury and the Film Industry Fund.

“Every time something is purchased with the IVU, 5.5 percent goes to Cofina’s pot. Once you fill it, the payment is processed. Then, everything collected by the IVU proceeds to the government of Puerto Rico because [the debt payment] was already issued,” he added.

Nearly $50 Million in Accumulated Interest

Shortly after becoming CFO, Marrero asked the Department of the Treasury to consider the possibility of analyzing the market to assess whether the central government could achieve greater financial performance by redistributing its funds in different banks that would provide greater interest. Originally, “a great sum of money” was stored at Banco Popular, but now there is an allegedly less disproportionate distribution.

“Now I can say that we have had a highly positive performance and we have been able to generate… roughly $49 million, and we hope to be able to generate a greater sum as the process continues. As long as we are in bankruptcy, the account will keep growing because we are not paying the debt. If we aren’t paying the debt, then the most responsible thing for Puerto Rico’s money is to generate interest,” he stated.

Delayed Advancement in Opportunity Zones

Marrero also highlighted that last August the Opportunity Zones Priority Projects Committee, in which he serves as president, published a list of eligible commercial activities under the federal Opportunity Zones (OZ) program that was incorporated in the Puerto Rico Incentives Code last summer.

The list will eventually be updated and include further incentives based on geography, as the Committee is waiting for mayors to provide a list of the types of activities and sectors that they want to prioritize in their respective municipalities, which will then be awarded additional municipal patent exemptions of up to 25 percent.

Secretary of Economic Development and Commerce Manuel A. Laboy informed THE WEEKLY JOURNAL in late August that the updated version of that list would be available within four to six weeks, but the Committee has yet to receive detailed strategic plans from all municipalities. Some, like Bayamón, already know what type of economic activity they want to incentivize, but there is no set date for the Committee to publish the update, which could, in turn, delay economic and community development.

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Omar Marrero pointed to the FOMB’s Plan of Adjustment as a first step toward improved relations between the government and the fiscal entity appointed by the U.S. Congress under Promesa to oversee the island’s finances. > Archive

In addition to this setback, the original list of eligible activities has been criticized because only one of four items focuses on the development of low-income housing projects. Critics have thus denounced the OZ program as either a tool to displace marginalized communities or as oblivious to the housing needs of the population.

Prompted by THE WEEKLY JOURNAL to comment on this issue, Marrero explained that the reason why there is only one item that focuses on low-income housing on this particular program is because there already are multiple other programs and funds that directly target this segment, such as funds provided by the Community Development Block Grant for Disaster Relief (CDBG-DR).

“If you look at the 26 programs included in the HUD’s action plan for those $1.5 billion [in funds], I’d say that 90 percent are for housing. Therefore, the rationale behind it… was that it will basically be addressed with federal funds,” he said. As such, the Committee decided that the principal direction with the OZ program would be geared toward addressing commercial and industrial development, as well as “assets recycling,” in which developers revitalize damaged properties.

With the latter in mind, the CFO also highlighted that he reorganized the Real Estate Evaluation and Disposal Committee (CEDBI by its Spanish acronym) and assigned more human resources so that the entity would be able to consolidate its rulings and update the public asset inventory, which should be updated in the first quarter of 2020 and incorporated into Afaaf’s homepage.

Working with the Oversight Board

Marrero pointed to the FOMB’s Plan of Adjustment as a first step toward improved relations between the government and the fiscal entity appointed by the U.S. Congress, under the Puerto Rico Oversight, Management & Economic

Stability Act (Promesa) of 2016, to oversee the island’s finances.

“That improvement doesn’t mean that [the FOMB] is aligned with our principles and punctual beliefs. Alas, we were able to attain a better relationship where, acknowledging its power under Promesa, but also acknowledging our power under the Constitution of Puerto Rico and the power of democracy, we were able to collaborate respectfully,” the official said, adding that he is personally opposed to the existence of the Board—labeling it “undemocratic”—but accepts its legality as a federally-established organism.

“We have to work. The most responsible way to work, and ensure that the Board leaves as soon as possible, is by complying with the law and complying with the rules… In that sense, both the governor and yours truly began to develop a work agenda where the priority was to exit bankruptcy,” he added.

Moreover, he observed that the adjustment plan will be amended, while the government enacts other initiatives to counter the fiscal plan’s impact on certain sectors, such as the University of Puerto Rico (UPR) and the retirement funds.

In that regard, Marrero noted that the government unveiled a new UPR scholarship fund. Because the FOMB required the UPR to increase its cost per credit, students who benefit from scholarships will have less money to buy necessities or academic materials because a higher amount will be spent on tuition. Thus, the new fund—to be made available this year—is intended to assist low-income recipients of other scholarships.

As for the FOMB’s proposed cuts to pensions, Marrero affirmed: “we will mitigate any measure implemented by the Board.” Furthermore, he claimed that one of the amendments for the Plan of Adjustment is to include language that will allow

the government to restore eliminated benefits— applicable to all impacted sectors—if it has a surplus, as is the current case.

As for retirees themselves, the official said that he and Puerto Rico Government Employees Retirement System Administrator Luis Collazo have taken the first steps to allow employees in the public sector to access their retirement plans online or through a 24/7 call center service.

“Employees are receiving their passwords, they are receiving training and, for the first time in history, they will be able to see how much money they have in their retirement plans,” he said. With this new service, employees will be able to see their balance, perform money transfers and selects investments, among other benefits. Marrero likened it to the 401(k) plan offered by employers in the private sector.

2020 Vision

Asked about what he visualizes for the new year, Marrero said that Prepa’s debt restructuring process remains a top priority, as well as providing structure to Afaaf, and reinstating an internship program akin to the initiative in the now-defunct Government Development Bank. Apart from Prepa and Pridco, he noted that other agencies need restructuring as well, as is the case of the UPR and the Department of Public Works and Transportation—specifically, the Highway Authority.

On a personal note, he said that he intends to return to the private sector after performing his duties as CFO. “My goal is to comply with my commitment to Puerto Rico. That is the most important thing to me… My intention is to return to the private sector, but I made a four-year commitment and I intend to see it through. I won’t go back on the commitment that I made,” he affirmed.

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Private Sector Reports Higher Interannual Employment Numbers Education and health services experience greater growth

N Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

on-farm wage and salary employment in the island’s private sector maintains its best levels in five years, as revealed in the most recent study conducted monthly by the Puerto Rico Department of Labor and Human Resources (DTRH by its Spanish initials).

The data collected in Nov. 2019 for the public agency’s Non-Farm Wage Employment Survey highlights that the number of jobs in the private sector grew to 873,600 employees—an increase of 6,300 employees, or 0.7 percent, when compared compared to Nov. 2018.

When comparing Nov. 2019 numbers to the previous data collected throughout that year, that month documented the lowest level of total nonfarm employment, the highest being Sept. 2019 with 875,900 jobs. However, in terms of interannual comparisons, October reported the smallest growth (0.3 percent).

Some of the sectors that experienced growth in the interannual comparison for November were: education and health services, with 5,000 new jobs (4.3 percent growth); leisure and hospitality, with an increase of 2,200 jobs (2.9 percent); mining, logging and construction, with 800 more jobs (3 percent); and manufacturing, with 700 new jobs (1 percent). Other sectors that experienced an upsurge in employment were information (3.4 percent) and financial activities (1.7 percent).

Moreover, entrepreneurship spiked with 3,000 more jobs than in Nov. 2018, with 12,000 persons reporting self-employment in Nov. 2019. According to the DTRH, this is the highest month-to-month growth documented so far in 2019.

Meanwhile, the sectors that reported job losses were trade, transportation and utilities, with 1.6 percent less compared to Nov. 2018; professional and business Services (-0.2 percent);

and other services (-2.2 percent). The latter two experienced steady declines throughout the year, whereas employment in the trade, transportation and utilities sector grew by 0.8 percent compared to Oct. 2019.

While the private sector mostly celebrates wins, the government continues to face an employment decline. The most recent survey showed that there were 202,200 jobs in the public sector, 0.1 percent less than in Nov. 2018. The DTRH confirmed that this represents 3,600 fewer employees compared to the previous year, and 800 fewer than in Oct. 2019.

The agency stated that this drop falls in line with its policy of “lowering the payroll and expenses without dismissals,” but could be attributed to other factors, such as the relocation of government employees to the private sector via public-private partnerships, among others.

Regarding labor force data, the civilian labor force overall stands at approximately 1,071,500 participants, the lowest number documented in 2019, with December pending. Roughly 986,800 people said they were employed, while 84,700 reported unemployment.

The unemployment rate is estimated at 7.9

percent for Nov. 2019, which represents 0.2 percent more than Oct. 2019 but 0.5 percent less than Nov. 2018. According to the DRTH, this data entails the “best month of November in the history of these statistics, and maintains the [unemployment] rate below the year’s average.”

“We need to continue reinforcing the labor force conditions both from the public and private sectors to ensure that the numbers remain in these historically low [unemployment] levels, but it is equally important to set the bases for a considerable rise in the participation rate,” DTRH Secretary Briseida Torres Reyes affirmed in a missive.

Torres Reyes pointed out that despite higher unemployment in general terms, the Nov. 2019 survey showed that women’s participation in the labor force stands at 33.4 percent, or 7,000 more employed women than the previous month.

“Women’s participation in the labor force is vital for Puerto Rico’s economy. Thus, any change in that direction validates the efforts that we perform to open more and better job opportunities for our [women] workers,” the secretary said.

The DTRH surveys are available on www.bls.gov in English.

November represented the highest month-to-month growth documented so far for 2019. >Archive

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Economic Activity Index Maintains Onward Movement Indicators show a boost during the current fiscal year

A Cynthia López Cabán

clopez@wjournalpr.com

@cynthia_lope

fter six consecutive years of slips, the economic activity index (EAI) maintained a slight growth pattern during the 2019 fiscal and calendar year.

However, the increment is still below the level reached prior to

Hurricane Maria.

The EIA offers a short-term projection of the economy. It measures non-farm payroll employment, electric power generation, gasoline consumption and cement sales.

The Puerto Rico Economic Development Bank (EDB) released its monthly report, highlighting the fact and claiming the “positive impulse” responds to the measures promoted by Gov. Wanda Vázquez’s economic plan, who was sworn in as the constitutional governor four months ago.

The report revealed that, in October, the island’s EAI reached 121.6 points, about 0.4 percent higher compared to October 2018, the first positive growth after four year-over-year consecutive declines, and a 0.3 percent rise when compared to last month.

This mark, however, remains beneath the 124.2 points it reached in 2016 or the 133 achieved in 2011.

EDB President Luis C. Fernández Trinchet explained that in cumulative terms, the EAI average for the first 10 months of last year settled on 121.1, about 1.2 percent higher than the same period in 2018 when the island was recovering from the havoc caused by Maria.

Fernández also detailed that the cumulative average for fiscal year 2019 reached 121.2 points,

The increment observed during the fiscal year 2019 is the first positive growth after six consecutive declines.

-Luis C. Fernández, president of the Economic Development Bank

>Source: Puerto Rico Economic Development Bank

In October, the island’s EAI reached 121.6 points, about 0.4 percent higher when compared to Oct. 2018. >Archive

5.8 percent higher than fiscal year 2018.

“The increment observed during fiscal year 2019 is the first positive growth after six consecutive declines,” he said.

The report also recognized other mixed results and fluctuations. The EAI cumulative average declined by 0.3 percent during the period of July to October of fiscal year 2020, but it rose by 1.2 percent during the period of January to October in fiscal year 2019.

Although total nonfarm payroll employment for

Oct. 2019 averaged 869,900 employees, a downturn of 0.4 percent when analyzed on a month to month basis, there was a 0.3 percent annual increase.

Electric power generation and cement sales also had monthly decreases and annual increases.

Electric power generation for Oct. 2019 totaled 1,593.0 million kWh, a 1.6 percent decrease when compared to the prior month, but an annual increment of 6.6 percent. Preliminary information revealed that gasoline consumption for October reached 77.2 million gallons, 6.3 percent above last month’s mark and a 2.9 percent decrease when compared to Oct. 2018. Finally, 1.2 million of 94-pound bags of cement were sold, which represents a 9.5 percent monthly increase and an annual growth of 5.1 percent.

Aside from the EAI, home sales in November reported a 14 percent increase and nonfarm private payroll employment “remains at its best levels in five years,” according to the Labor Department.

Last July, when EAI’s small emerging trend first surfaced, economists cautioned against the perils of excessive economic optimism and warned that the economy was still showing signs of weakness.

The slight fluctuation in the index, the economists argued, wasn’t enough for the economy to regain its strong footing after more than a decade in recession and in the midst of the restructuring process of its $70 billion-plus debt load.

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Auto Sales in Puerto Rico Decline, but Showing Recovery Nov. 2019 reports the fifthhighest sales total out of every month since 2013

T Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

he United Group of Automobile Importers (GUIA by its Spanish acronym) informed that Nov. 2019 ended with a total of 10,503 units sold in Puerto Rico, which constitutes a 5 percent

increase from the 10,001 units sold in Nov. 2018.

The organization, which represents the island’s automotive industry, published its Automotive Sales Report to analyze this economic sector’s performance and how it compares to previous months and years.

Although last November outperformed its 2018 equivalent, more sales had been reported between January and Nov. 2018 than the cumulative of 2019 in that same timeframe, with a 1.2 percent difference.

However, there were more auto sales documented in Nov. 2019 than in nearly every month of 2018, with the exception of December’s 12,702 units sold. Moreover, its

sales total is the fifth-highest reported out of every month since 2013. Compared to Oct. 2019, there was an increase of 1,907 units sold (22.2 percent).

“After observing the third quarter with negative results compared to 2018, causing considerable concern in the automobile sector, the fourth quarter has been above [the third quarter] and those are encouraging news because we are headed toward a new decade, although the accumulation is slightly lower [than in 2018],” GUIA President Ricardo M. García said.

The segments that reported growth last November when compared to Nov. 2018 were SUVs (19 percent), mini-compacts (11.4

The SUVs segment reported the greatest growth in the interannual comparison of November 2018 and 2019, with a 19 percent increase in units sold. >Archive

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Auto sales experienced a 1.2 percent decline in 2019, but Nov. 2019 saw a 5 percent upsurge when compared to Nov. 2018. >Courtesy GUIA

percent), sub-compacts (4.1 percent), and sports cars (1.2 percent). In contrast, the segments that reported lower interannual numbers were midsize sedans (-79.4 percent), vans (-47.8 percent), minivans (-36.6 percent), compact sedans (-31.6 percent), and pick-ups (-11.4 percent).

Regarding the performance of brands per country of origin, sales of American cars grew 9.2 percent in Nov. 2019 compared to Nov. 2018, and 0.5 percent in 2019 versus January to Nov. 2018. Both GM and Ford reported lower numbers, but Chrysler drew in 33.1 percent more sales in November and 5.1 percent more sales overall in the established timeframe for 2019.

Japanese unit sales were 8.2 percent higher in Nov. 2019 but experienced a 3.4 percent drop in 2019 overall, excluding December numbers, which have not been documented.

Toyota was the only Japanese brand that drew in larger sales in November and the cumulative of 2019. Likewise, European vehicles grew 12.8 percent in sales in November but decreased by 3.3 percent in the sum of 2019. Jaguar, Mercedes, Porsche and Volvo brands reported

After observing the third quarter with negative results compared to 2018, causing considerable concern in the automobile sector, the fourth quarter has been above [the third quarter] and those are encouraging news because we are headed toward a new decade, although the accumulation is slightly lower [than in 2018].

Ricardo M. García, GUIA President

higher numbers of sold units in both the interannual and yearly comparisons.

As for Korean vehicles, there was a 5.4 percent decline in sales in Nov. 2019 versus Nov. 2018, but an increase of 3.3 percent in the year-to-year comparison. Of the three registered brands, only Genesis reported growth in both November and the sum of 2019.

According to García, rental companies continue to show positive results, highlighting that the segment ended November with a 13.7 percent increase in their vehicle purchases, for a cumulative 1.5 percent year-on-year. “By the purchases of this sector, we understand that the demand for car rental is increasing, contributing positively to the island’s economy,” he explained.

GUIA is an independent, non-profit organization that was created in 2006 to assess issues that directly concern the automotive industry, as well as other issues concerning the general economy of Puerto Rico. GUIA members represent 23 car brands and more than 96 percent of total sales of new vehicles on the island.

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The historic Parador Guánica 1929. > Courtesy Discover Puerto Rico

Small Hotel Occupancy Takes a Dip While demand for lodging and the total revenue surged this year, not all paradores are feeling the growth

W Cynthia López Cabán

clopez@wjournalpr.com

@cynthia_lope

ith a few exceptions, occupancy at paradores dipped during the holiday season, with a surge in home-sharing or short-term rentals shouldering some of the blame, according to an industry official.

Paradores of Puerto Rico is a network of 13 family-owned small inns located outside the metropolitan area of San Juan. These paradores offer the value of resort-like amenities at affordable prices and are near some of the best attractions on the island.

“In general terms, bookings for Christmas have fallen short when compared to 2016, the year prior to Hurricane Maria, which is the benchmark that we use since 2017 and 2018 were extraordinary years,” indicated Tomás Ramírez,

vice president of the Puerto Rico Small Inns Owners Association. “Until November, the average occupancy rate for 2019 was 6 percent lower than in 2016. This past summer was slower than prior years.”

The hospitality sector experienced a high demand for temporary accommodations after Maria due to the high number of displaced residents and the arrival of relief workers lending a hand to help during the emergency.

Two years later, lower occupancy could

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be explained by the rise of Airbnb and other home-sharing platforms. In the last five years, independent short-term rentals have increased their share of the lodging industry from 15 percent in 2017 to 29 percent in 2019.

“According to data from the Tourism company, during the summer season (May to August), accommodations from international tourists increased by 18 percent. However, in hotels and small inns outside San Juan, it only grew an additional 2 percent. Why? Because of the exponential growth of independent lodging in the metropolitan area, in part a result of the 3,000 rooms that are still in repair,” he told THE WEEKLY JOURNAL. “The DMO is doing a good job in luring tourists to the island, but we need to work on a strategy to move part of that traffic to other locations,” added the co-owner and general manager of the Combate Beach Resort in Cabo Rojo.

This has been a banner year for tourism.

Passenger arrivals are the highest on record, while demand for lodging and the total revenue surged this year, according to data gathered by the Destination Marketing Organization (DMO).

But tourists are staying in San Juan with a few exceptions, pointed out Ramírez.

For instance, Combate Beach Resort is set to outpace its revenues when compared to 2016 and 2017, hosting visitors from Iowa, Montreal, Toronto, Texas and Colombia during the holiday season.

“October and November were our best months ever. Dec. 2019 and Jan. 2020 look pretty good with lodging numbers higher than the period prior to Maria,” indicated Ramírez, whose resort nabbed

Whether you want to relax, celebrate or soak in the sun, small hotels give you an affordable option to enjoy the holiday season. >Carlos Rivera Giusti

an environmental excellence award last year. “Our New Year’s Eve Party is sold out. We had to add more tables due to the high demand.”

However, other small inns still have space. So, if you are looking for a venue to celebrate the

beginning of a new decade, say goodbye to 2019 or simply get away for the long weekend of Three Kings Day, check out the paradores list and dare to explore the island beyond the boundaries of the San Juan.

List of Paradores: Parador El Faro (787) 882-8000 Combate Beach Resort (787) 254-2358 Parador Boquemar (787) 851-2158 Parador Costa del Mar (787) 266-6276 Parador Guánica 1929 (787) 821-0099 Parador Mauna Caribe (787) 861-3330 Parador Palmas de Lucía (787) 893-4423 Parador Turtle Bay Inn (787) 899-6633 Villas Sotomayor (787) 829-1717 YunqueMar Beach Hotel and Parador (787) 889-5555 Parador Villas del Mar Hau (787) 872-2045 Parador Villa Parguera 787) 899-7777 Parador El Buen Café (787) 898-1000 Source: Destination Marketing Organization

One of the most lauded small hotels on the island is Combate Beach Resort, located in a pristine area of Cabo Rojo. >Courtesy

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HiPPOs Versus Geeks:

Rethinking the Business Playbook As in baseball, data analytics is the new driver

M Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

IAMI—Baseball was revolutionized in the early 2000s when the Oakland A’s started to use data driven analytics to make decisions about their ballplayers.

Today, the time has come for businesses to do the same, according to Andrew McAfee, a research scientist at MIT’s Sloan School of Management.

He believes the era of the traditional business playbook, in which the top executives make the decisions and judgement calls, is over. Today, in the digital world, it’s about technology and analytics—in other words, crunching out numbers and data to help businesses succeed.

McAfee explained his vision during Mastercard’s Innovation Forum 2019 in Miami. Typically, in most companies, decisions are made based on the Highest-Paid Person’s Opinion, or HiPPOs. “They went to fancy schools. They have the experience.

They have the knowledge. They make decisions based on their past experiences and intuition,” he said.

Today, Geeks are challenging this business playbook, as they use data to make decisions.

“They give evidence. They conduct analyses. They follow the evidence, even if it seems contradictory to their gut feeling or experience,” McAfee said.

Analyzing 136 case studies of business leadership and decision making, researchers found that 48 percent of the time, HiPPOs added nothing over the Geeks’ data driven approach. In fact, 46 percent of the time, HiPPOs “destroyed value” by making worse decisions. HiPPOs were only clearly better in 8 percent of the cases reviewed.

In other words, in the debate of HiPPOs versus Geeks, the Geeks are winning.

The most successful business leaders today are actually HiPPOs who are also Geeks, based on research by Harvard Business Review Analytic Services. According to the Nov. 2019 research paper, “Innovators Become Leaders,” 73 percent of successful innovative leaders in the business world draw insights from multiple data sources and use advanced analytics. About 20 percent of these

In fact, Analyzing 136 case studies of business leadership and decision making, researchers found that 48 percent of the time, HiPPOs added nothing over the Geeks’ data driven approach.

In fact, 46 percent of the time, HiPPOs “destroyed value” by making worse decisions. HiPPOs were only clearly better in 8 percent of the cases reviewed.

successful leaders use “internal” data sources and standard analytics, while only 5 percent use intuition or “gut feel.”

The lessons learned from McAfee’s insights is that the choice is not an unavoidable “either or.”

In today’s world, it’s best to be both the HiPPO and the Geek, à la the likes of the late Steve Jobs, Bill Gates and Mark Zuckerberg.

Over a six month period, Harvard Business Review Analytic Services (HBRAS) asked more

than 1,000 executives how their organizations approach innovation across five key areas – process, human capital, funding, customer experience and data and technology.

Additionally, more than 1,000 global consumers were surveyed to see whether businesses are properly prioritizing what matters most to their customers.

After analyzing the responses, HBRAS developed the Business Innovators Index, where 100 of these represented the peak of innovative strategy, frameworks and behaviors. The study revealed that while most organizations understand the importance of innovation for growth and success, the majority do not effectively execute on their ideas.

The study found that besides data, speed also matters. Successful innovative leaders bring new ideas and solutions to the market quickly. They also promoted a culture of entrepreneurship to expand the pipeline of ideas, and they prioritize these efforts at the highest levels.

“It’s more important than ever for companies of any size to be innovative and creative. It’s our lifeblood,” said Ajay Banga, president and CEO of Mastercard. “This study offers insights and experience from several of the world’s leading thinkers to help others spark the creativity and culture to drive their businesses.”

When it comes to business leadership, it’s best to be both the HiPPO and a Geek, à la the late Steve Jobs. >Courtesy of Mastercard

13 < The Weekly Journal > Wednesday, January 1, 2020

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/ Wednesday, January 1, 2020

Guawa:

Puerto Rico’s First Transportation App

In the beta stage, the application is available for download on the Apple Store.

The android version will be ready by the end of the month

N Cynthia López Cabán

clopez@wjournalpr.com

@cynthia_lope

ew York, Boston, Buenos Aires, Paris and Rome have it. Now, San Juan joins the growing group of cities with its own application to navigate the public transportation system in the metropolitan area.

The name? Guawa, an app launched three weeks ago by the creators of the Tren Urbano application.

Still in the beta testing phase, Guawa is available free of charge in the Apple Store, while the Android version should be available by the end of the month.

The beta stage is the last testing period prior to the official release of a computer program or application.

“The app is simple to use. The map resembles the Uber map. Based on your location, it tells you the available routes,” explained Giancarlo González, one of the creators of Guawa.

As of now, the island’s first transportation app includes the ALSA route from Caguas to San Juan and Isla Verde, the First Transit route from Santurce to Old San Juan, the Tren Urbano stops (San Juan’s train system) and the free shuttle bus service from Plaza Las Américas to the Hato Rey area dubbed “Pon de Plaza”.

Besides helping you find bus and train stops in the metropolitan area, Guawa offers an estimated waiting time and the cost of the ride. For instance, a bus ride from the Covadonga Station in Old San Juan to the Caguas Terminal costs $2.50.

“The idea is to continue adding routes and developing the application to make it economically viable,” González told THE WEEKLY JOURNAL. Guawa follows the path of popular apps like Moovit and Transit, trying to make it easier to move around the city in public transportation. However, along the way, its developers have had to overcome

The idea is to continue adding routes and developing the application to make it economically viable.

-Giancarlo González, one of the creators of Guawa.

>Snapshot Guawa

some obstacles.

González explained that while over 162 cities around the world adopted a Global Positioning System (GPS) policy to make data available to citizens, on the island this information has remained under wraps.

To bypass this hurdle, Guawa installed its own GPSes on the Pon de Plaza shuttle service and the free trolley system in Old San Juan. Because of its unreliability and the poor shape of the vehicles, Guawa removed the GPSes from the trolleys and eliminated the information from its app. The Pon de

Plaza schedule remains on the application.

“Initially, the Metropolitan Bus Authority (AMA by its Spanish acronym) installed GPSes for fleet management purposes, to track routes, speed, fuel consumption and mileage... But it has been waiting for over a year for an app that is not ready yet,” indicated González, who has discussed his concerns with AMA’s executive director Santos Delgado.

“You can pay with the app that creates a record of passengers. The application could retain a 20 o 30 percent [of the fare],” he stated.

Despite the challenge of accessing official information, González indicated that the island’s ecosystem promotes the development of new technologies.

As part of his argument, he noted that Puerto Ricans are increasingly connected to the world of digital information via smartphones and adapt easily to new technologies. According to the Puerto Rico Telecommunications Regulatory Board, the island has more cell phones than people. In November, the agency reported 3,380,477 mobile connections for a population of 3.1 million inhabitants.

Last year, Guawa won a $20,000 subvention from the Small Business Innovation Grant program at the Department of Economic Development. It also received a $15,000 grant from StartUP Puerto Rico.

“People deserve reliable and accessible transportation,” González said.

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/ Wednesday, January 1, 2020

Credit Metrics for Small Businesses in Puerto Rico Show Improvement in 2019

Small business owners in Puerto Rico’s rural areas often need access to capital to grow their enterprises. >Carlos Rivera Giusti

Positive outlook for the coming year

I

Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

t is no secret that access to capital is important for the success of many small businesses, such as startups.

Of the 29 percent of startups that fail on any given year, the second mostcommon reason is cash flow problems, which means access to capital and credit, according to CB Insights, a research firm in New York that focuses on innovative industries and startups.

The first most-common reason for failing is that there is a “lack of product-market fit,” which basically means there is no need for the product or service in the market.

The good news for Puerto Rico is that many small businesses have a positive outlook, as evidenced by the number of loans that the U.S. Small Business Administration (SBA) has approved in the past year.

The SBA approved 439 loans for $78.2 million to small businesses in Puerto Rico and the U.S. Virgin Islands (USVI) during the federal government’s 2019 fiscal year, a 35 and 28 percent increase, respectively, over the previous year. Of the total approved, 189 loans for $39 million were for small businesses in rural areas.

“After Hurricane Maria, what we have seen is that people had many difficulties getting what they needed. This showed us the need for local

providers,” said María de los Ángeles de Jesús, the business owner; and the revenue trend for the deputy district director of the SBA’s Puerto Rico and business.

USVI Office.

The SBA expects the upward trend to continue Many people also lost jobs as businesses were in the coming year. “We already have a number of forced to close for various loan approvals for 2020 and reasons, she indicated. we expect these numbers to “This represented an continue,” she said, noting opportunity for those with that the federal agency is also the entrepreneurship spirit to focusing on approving more start their own businesses,” business loans in rural areas, she said to THE WEEKLY as these places have been hit Among the credit JOURNAL. particularly hard by Puerto metrics that lenders use to Since most budding Rico’s economic challenges analyze the financial health entrepreneurs do not have and continuing outmigration of a small business are: debt sufficient savings to start to the mainland United coverage and the ability to their own businesses, the States. pay new debt; the business SBA loan guarantee program According to the SBA, small owner’s personal debt gives them the opportunity to businesses borrow for four obligations; the respective access capital. She adds that, principal reasons: to start a credit scores of the business for lenders, it is also important business, purchase inventory, and the business owner; to have this government expand a business and and the revenue trend for guarantee. strengthen the firm’s financial the business.

“In order to have a loan, foundation. the startups, the businesses “Fiscal year 2019 brought need to show that they are with it many challenges, but financially sound, have the also much success,” said ability to pay and fit in the local market. This is part SBA Puerto Rico and USVI District Director Yvette T. of the lender’s analysis to help ensure a successful Collazo. “While it is true that our economy continues business,” De los Ángeles said. to recover two years after the devastation left Among the credit metrics that lenders use to behind by hurricanes Irma and Maria, it is also true analyze the financial health of a small business that our entrepreneurs are resilient and persevering. are: debt coverage and the ability to pay new debt; Our results speak for themselves. Small businesses the business owner’s personal debt obligations; continue to start and grow, and they look to the SBA the respective credit scores of the business and to help meet their financial needs,” she added.

In fact,

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/ Wednesday, January 1, 2020

Kosher Meats to be Produced in Puerto Rico Borges Meat is paving the way in the kosher market

S

The Weekly Journal Staff

newsroom@wjournalpr.com

Borges Meat is the first company in Puerto Rico to be certified as a producer of kosher meats. >Courtesy Borges Meat

@Wjournalpr

ecretary of Agriculture Carlos Flores Ortega informed that, in 2020, Puerto Rico will have a new line of kosher meats that will be both exported and sold locally.

“We went to inspect Borges Meat in Naguabo and were able to see how they’ve expanded their operations and are servicing farmers while at the same time providing 120 jobs,” said the secretary.

Flores Ortega went on to say that this will be the first company in Puerto Rico to be certified as a producer of kosher meats.

“In order to produce kosher meats, one has to follow very specific guidelines. It requires a separate infrastructure, different methodology and equipment to the one commonly used for traditional meats.

This family-owned enterprise wishes to be the first

In order to produce kosher meats, one has to follow very specific guidelines. It requires a separate infrastructure, different methodology and equipment to the one commonly used for traditional meats.

- Carlos Flores Secretary of Agriculture

Borges Meat in Naguabo expanded their operations and are servicing farmers while at the same time providing 120 jobs. >Courtesy Borges Meat

to serve the Jewish community in Puerto Rico, and hopes to export their products to New York, where there is a larger Jewish community,“ he explained.

“This endeavor will allow the local kosher market to be well tended to, while at the same time helping to improve the economy. It fills me with great pride to see a Puerto Rican family get involved in this market,” added Flores Ortega.

He went on to say that the Department of Agriculture is committed to the further development and evolution of all the business within this sector.

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/ Wednesday, January 1, 2020

Local Government Creates Fund for Small Permanent Projects in Municipalities

$100 million expenditure to be reimbursed by FEMA

G Yennifer Álvarez Jaimes

yalvarez@wjournalpr.com

@yalvarezjaimes

ov. Wanda Vázquez Garced has announced the establishment of the State Recovery Fund, under the supervision of the Central Office for Recovery, Reconstruction and Resilience (COR3), with the aim of enabling small projects around the island.

These small projects are defined by the Federal Emergency Management Agency (FEMA) as those whose cost is $123,100 or less.

The fund has been assigned $100 million, which have been reprogrammed from other areas.

The Financial Oversight and Management Board (FOMB) has approved the initiative.

Once the works have been completed, FEMA will reimburse the central government.

La Fortaleza said an initial 1,316 small projects have been identified as eligible. Another 2,200 pending projects could also be deemed eligible, once there is agreement between FEMA and COR3 on the damage estimates.

“It is imperative that the government establish and implement strategies and initiatives that provide appropriate liquidity as necessary to guarantee that the recovery projects are developed and begun on time,” Vázquez Garced said.

The governor said the initiative will also help generate economic activity in much of the island.

COR3 has identified 3,516 small projects, that do not exceed cost estimates of $123,100, which have been targeted for the State Recovery Fund cash advances, COR3 Executive Director Ottmar Chávez said.

The State Recovery Fund would function as a revolving fund, he said, given that it would be reimbursed by FEMA as the projects are completed.

The first 1,316 projects, with estimated costs of $54 million, should receive funding within three

COR3 Executive Director Ottmar Chávez alongside Gov. Wanda Vázquez Garced. >Brandon Cruz González

to five months, the COR3 chief said. He went on to add that these projects have already cleared the first stages of the joint COR3-FEMA project eligibility process, which involves site inspections and damage estimates. Of these, 1,228 projects entail infrastructure and property repairs in 71 municipalities, while the other 87 projects involve reconstruction of damaged properties belonging to nonprofit organizations.

“This is not going to be complicated,” Chávez said, adding that fund recipients will sign a contract with the state agreeing to FEMA reimbursements being deposited in the State Recovery Fund.

“They will get cash advances based on costs.

They only have to follow compliance rules. This was designed to fund small projects quickly,” he concluded.

The monies to be used for the State Recovery

Fund had initially been meant to cover the 10 percent of funds required to match the 90 percent provided by the federal government under FEMA’s Public Assistance Program and Federal Community Development Block Grant-Disaster Recovery (CDBG-DR) grants, Chávez said.

In contrast to other U.S. jurisdictions, Puerto Rico, which is undergoing a debt restructuring process, lacks access to capital markets and other financing sources that may have been able to cover cash advances during the reimbursement process, he said As previously reported by THE WEEKLY JOURNAL, although emergency recovery funds for Puerto Rico after the devastation of Hurricane Maria in Sept. 2017 have flowed in, much of the federal funds for permanent projects have yet to be disbursed.

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/ Wednesday, January 1, 2020

Cruising into the Real Estate Market in 2020

By Rosi Alonso, CCIM

As happens every year, economists, investors, politicians and regular folks venture into making predictions for the upcoming year. With reliable data in hand, analytic techniques can be used to make predictions with a certain degree of precision. However, precise, verifiable data is hard to come by in Puerto Rico. Thus, local predictions rely heavily on observation, intuition and trust that the government, both local and federal, will fulfill their promises.

Residential Real Estate

As we observed earlier this year, demand for high-end real estate continues. Luxury properties in Condado and surrounding areas, Old San Juan, Dorado and resort development continue strong.

The need for Airbnb units is on the rise and condominiums that allow for short-term rentals are in high demand.

Although the “suburban” areas of San Juan and Guaynabo were slower to catch on, sales in neighborhoods such as Santa María, San Francisco, Los Paseos, Garden Hills and Torrimar have increased, prices have stabilized and may be starting to go up.

The need for accessible housing has not yet been met. It is expected that CDBG funds will provide the injection this market needs for new construction to replace unrepairable, hurricanedamaged housing.

Metro Office Park, Ideal for Call Center From 5,000 up to 21,000 RSF / All the parking you need! rosi@puertoricoproperties101.com / (787)309-6814 / Lic. 16224

Commercial Real Estate

Commercial real estate is largely dependent on the economic environment of an area. Our already fragile economy faced unprecedented political instability during this year, making 2019 a very tough year to maneuver. Considering that we are facing an upcoming election year, good governance will be essential to our economic growth. Wise decision making and adequate and transparent management of public resources is required to provide the stability new investment requires.

Despite all the challenges, the government has continued its efforts to establish new programs and incentives meant to promote Puerto Rico as a low-tax jurisdiction offering a highly-skilled, bilingual work force attractive to investors.

Opportunity zone legislation was a newcomer to the island in 2019. With almost the entire island eligible as an OF zone, local government officials are expecting a $600 million impact in the economy.

The most notable trends in commercial real estate continue to be adaptive reuse and the reinvention of retail. Existing structures fallen into disuse or no longer economically viable are being repurposed. Malls are being redesigned to lure the customers in by providing an experience, not just a place to shop.

2020 promises to be a year of opportunities and investing in real estate continues to be one of the safest investments available.

STELLA MARIS, CONDADO Beachfront gem! Fully furnished and equipped.

Short term rentals allowed. $825,000 giselle@puertoricoproperties101.com / 787-420-4799 / Lic. 17560

GRANDIOSE! 9,901 SF CONDADO HOME Uniquely extraordinary! $1,250,000 giselle@puertoricoproperties101.com / 787-420-4799 / Lic. 17560

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/ Wednesday, January 1, 2020

By Teresita Fuentes CPA

I

Fixated on Fixing—The Tales of Perpetual Tax Reform

f it seems as repetitive as the bedtime story your parents read you as a child, its because it is.

We are, once again, less than one year away from a general election and, as it stands, it appears that both parties will be holding primaries to choose a candidate for governor. This comes after the historical resignation of a governor and a large number of his staff, the swearing in as governor of a secretary of state in contravention to the island’s constitutional requirements and the eventual swearing in of our current governor, Wanda Vázquez.

Puerto Rican voters spoke out and demanded change—and they got it.

However, the island’s main political parties don’t seem to agree on who will be entrusted with leading that systematic change. Although we have to wait and see how these potential primaries turn out, one thing is clear: our electorate is savvy

and is not willing to tolerate corruption and ‘dime a dozen’ reforms designed with the same care as the toys found in a kid’s cereal box.

As we enter a new year, we can only hope that political candidates—whether they are facing primaries or not—give serious thought to their platforms and ensure that their policy proposals are not framed as magic pill reforms, but true examples of sound governance. Abraham Lincoln once asked, “If you call a dog’s tail a leg, how many legs does it have?” and then answered his own question by saying, “Four, because calling a tail a leg doesn’t make it one.”

Puerto Ricans want to see sensible, simple and sound examples of government efficiency. We must turn the page on untenable reform promises presented at events with fireworks, loudspeakers and pop music. Overthe-top promises that ensure booming economies in four years or full statehood

By Ricardo Álvarez-Diaz

Architect & Vice Chairman Board of Directors of Invest Puerto Rico

F

Not in my Backyard

or years, a common and strong objection to affordable housing development has been that it lowers the real estate value of homes in the surrounding areas.

That, it turns out, is a myth. A recent report published contradicts the ageold “Not in my backyard!” argument.

The report tracked housing prices and affordable projects developed during a 10-year span in the 20 most expensive U.S. metro areas—cities in dire need of affordable housing—and found no significant effect on nearby home values.

The report looked at 3,080 projects

financed through the federal LowIncome Housing Tax Credit (LIHTC) program between 1996 and 2006 and compared the values of buildings located within 2,000 feet of the projects with a control group located further away at 2,000 to 4,000 feet. The property values of the first group were nearly identical to those in the second group, showing that proximity to affordable projects did not have a negative impact on real estate values.

Still, property values do not exist on their own. They are a product of perception. It is extremely difficult to persuade homeowners to let go of a deep-seated belief that affordable

in 90 days are simply unacceptable.

Rather, our leaders need to walk in the shoes of the average Puerto Rican who is late to work because their car’s tire blew into pieces after hitting the 101 pothole that month, or the single parent who has to choose between paying the electric bill or their cellphone bill because the small business they work for cannot afford to give them enough hours in a month.

As for us, the voters, we need to make sure that we vote for the candidates who make honest promises and keep them. Let’s make them talk about road maintenance and adequate traffic and highway lighting systems. Let’s ask them to discuss the conditions of public hospitals and focus on schools that lack basic equipment and supplies. We all use these services and facilities directly or indirectly. We all pay taxes, so we all do OUR part to ensure that they function. It is precisely the excessive amount of tax reforms that our leaders propose that end up impacting our economy and distracting from these pressing issues.

Candidates have to focus on public safety, education and health. Without reliable services in these areas, the economy will not go anywhere.

These three final points may help some aspiring leaders to focus or refocus their campaigns, and help guide them before they present themselves in all of the pomp and circumstance of long motorcades and trucks with loudspeakers that announce their presence in communities throughout the island.

I- Don’t Call it a Tax Reform. Our system does not need another reform to reform the previous reform. If something needs fixing, it’s the system that allows for the excess of legislative proposals that add layer upon layer of procedural mumbojumbo that no one understands, no one can explain and that businesses have no idea how to comply with. If it requires another bureaucratic form, or that a taxpayer dedicate more time to serving the government rather than pizza at their pizzeria, IT’S A BAD IDEA! Lets all work together to simplify our tax system.

II- Don’t Offer Additional Tax Credits.

Puerto Rico has a myriad of tax incentives all carefully packaged in a Tax Incentives Code. Most of these incentives have ceilings in the amount of tax credits that can be awarded, but they bear a high cost, and some have not proven their worth in promoting economic development. Before approving legislation, the legislature needs to commit to commissioning studies of every incentive and benefit that is proposed. Puerto Rico’s credibility is on the line every time one administration offers a tax credit and another cuts it.

III- Develop Alternatives to the Excise Tax on Puerto Rican Manufacturing.

This is a challenging issue that requires a committed and coordinated effort between all of Puerto Rico’s government entities. Any serious process that analyzes realistic alternatives to the excise tax must involve the federal government, the Fiscal Oversight and Management Board and the governor.

housing will ruin their neighborhoods by lowering real estate values and by attracting the “wrong kind” of people who will damage property and drive crime rates up. They fear the worst, but their fears are unfounded.

A literature review of quantitative studies conducted by University of North Carolina’s Department of City and Regional planning showed that affordable housing’s impact on property values is less significant than other variables and that its influence grows when projects are clustered.

A 2015 study by the Stanford Graduate School of Business revealed that affordable housing development could be an effective policy to help revitalize and integrate low-income areas. After pulling data on 16 million transactions from 15 states, as well as homebuyer race and income information over a 10-year span, they found that new LIHTC projects in poorer neighborhoods increased surrounding home prices and reduced crime.

A 2014 report on the relationship between affordable housing and

home values prepared by Maxfield Research for the Family Housing Fund in Minneapolis showed little or no evidence to support the claim that affordable or low-income rental housing has a negative impact on owner-occupied housing in the surrounding area.

A 2012 study conducted for the Delaware Housing Coalition concluded that proximity to a project did not affect home values. According to the study, which analyzed data on home sales between 1970 and 2011, any correlation between lower property values and the presence of affordable housing was due to projects being built in areas where the property values were declining or already low.

Negative attitudes about affordable housing are deeply ingrained in our society. The “not in my backyard” way of thinking will continue to linger until enough people are convinced— through educational initiatives by local governments, housing advocates and real estate associations—that affordable housing helps build, not destroy, communities.

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/ Wednesday, January 1, 2020

Three young men putting Puerto Rico’s name front and center in the racing world

T Carlos Narváez Rosario

Kings

of the Track

>Photos by Manuel Vélez

cnarvaez@elvocero.com

@cnarvaezcorner

hey are great friends who share in life’s moments and experiences. Together they celebrate the good times and console each other through the bittersweet moments that are part of their career.

Puerto Ricans Bryan Ortiz, Sebastián Carazo and Victor Gómez IV share the same passion: speed and cars. Among them reigns great camaraderie.

Although Puerto Rico already has a solid reputation within the drag racing world, these young drivers managed to place the island in a great position during 2019, earning the local flag a spot at the International Motor Sports Association (IMSA) closing ceremonies.

30-year-old Ortiz won the Global Mazda MX-5 cup at the Weathertech Raceway in Laguna Seca, Ca. So far, he has captured seven victories and 18 podium finishes.

“This is a very complicated sport. You could have the best car and the best team and there will always be something beyond your control,” said Ortiz, who was sub-champion of the MX-5 in 2018.

“This year, as opposed to previous ones, I didn’t feel like I had the fastest car so my strategy was to always be among the top six drivers and it worked, we took home the first-place prize. My series is very competitive and there are a lot of cars; a lot of young men trying to take off. It’s like the difference between playing college basketball and playing for the NBA. In my series, everyone is giving it their all in order to be able to make the jump into the NBA,” he explained.

This year was a special one for Ortiz not only because of his wins, but also because he was made Mazda’s Factory Driver.

“Not only did I win my series’ championship, but I am also the first Puerto Rican to become a Factory Driver for Mazda. This means that in 2020 I’ll be racing with the company’s resources, engineers and designers as part of my team. It’s a very all-encompassing endeavor,” added the driver that is also sponsored by Bella Group in Puerto Rico.

In 2020, Ortiz will move to IMSA’s TCR series.

“The car is different; it has more traction in the front, it’s more aerodynamic. It’s very different,” stated Ortiz.

Ortiz, the oldest of the three drivers, has been a key part of Carazo’s development. This year Carazo surprised everyone by participating in every race of the Porsche GT3 Gold Cup, as opposed to last year when he only partook in half of the series.

“I owe so much to Sebastián’s dad, Rhamses Carazo. He gave me a chance to race for them and

/ Wednesday, January 1, 2020

Bryan Ortiz won the Global Mazda MX-5 cup at the Weathertech Raceway in Laguna Seca, Ca. So far, he has captured seven victories and 18 podium finishes.

This is a very complicated sport.

You could have the best car and the best team and there will always be something beyond your control.

Bryan Ortiz, winner of the Global Mazda MX-5 Cup

I helped train Sebastián, someone who’s trajectory I’ve always followed. We are like brothers, it makes me happy to bear witness to his accomplishments and all the things he does to better himself,” said Ortiz.

21-year old Carazo has taken the risky sport of racing seriously ever since his dad got him involved with go-karts.

Even though he is a rising star, Carazo never forgets where he comes from, even in the midst of the champagne celebrations so characteristic of his sport. He is very well aware that this is just the beginning.

“I have learned a lot this past year,” recalled

21

Víctor Gómez IV is a fan of sports car endurance races like the Rolex 24 at Daytona and the 24 Hours of Le Mans, at which drivers use gran turismo and prototype cars.

Due to a crash in which his car was totaled during the first race of 2018, Sebastián Carazo’s debut that year did not go as planned. In 2019, however, Carazo won 12 of the 16 races he participated in.

Carazo. “Throughout the beginning of the season, from April to October, I learned a lot about limits, how to push the car to its limits. It was a lot to learn and I still have much more to learn. This year got me out of my comfort zone, all the races presented different challenges but we always managed to place in the first three places,” he said.

Due to a crash in which his car was totaled during the first race of 2018, Carazo’s debut that year did not go as planned. In 2019, however, Carazo won 12 of the 16 races he participated in.

“The accident made me realize that this was hard to do. I studied the accident like a thousand times, it was a test and I learned a lot from it.

From then on everything changed. Today I can say that the accident was my best moment because it was then that I learned when I needed to be more competitive,” claimed Carazo.

In 2020, Carazo plans to race the Platinum GT3 series in which Victor Gómez IV raced during 2019.

His rise to this series was imminent, he already has his new car.

“I will be racing the platinum series and we already have the car. I’ve already practiced in it. I’m also trying to lose weight while also strengthening my body so that I can give it my all in 2020. I want to look good so I’m working hard at that,” he stated.

Carazo was also pleased about how things

unfolded for him, Gómez IV and Ortiz during 2019.

“Puerto Rico is highly respected in the drag racing world, and we are slowly gaining ground in circuit racing even though the island doesn’t the facilities we need to train safely. I am very happy with everything that’s happening to us,” continued Carazo.

Gómez IV is a fan of sports car endurance races like the Rolex 24 at Daytona and the 24 Hours of Le Mans, at which drivers use gran turismo and prototype cars.

“I could stay in the Platinum series but my goal is to make it into endurance racing,” said Gómez.

“2019 was a year of learning. I raced in a new category with a faster car. The competition was hard but I have to say that I am very attracted to endurance races like the 24 Hours at Daytona and the Le Mans. Those are my goals and the reason why I am training my body so hard, at those levels the G force is different,” said a smiling Gómez IV. Gómez IV, Ortiz and Carazo are no longer unknown within their sport. The public showing of support was evident during this past season.

“Everybody knows who we are already. Puerto Ricans know who we are and that is really important to us. Seeing our flag waving in the wing at the races is just an added benefit,” said Gómez, who mentioned that he has a special announcement he will make at a later date.

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/ Wednesday, January 1, 2020

Creativity Galore at Ariel Restaurant in Miramar

Tasty dishes and unexpected combinations delight the palate.

S

Marimar Rosario

newsroom@wjournalpr.com

@Mmar1212

oft-mannered and friendly, with a smile on his face and eyes that crinkle when he speaks of food, Ariel Rodríguez certainly sets the tone for his restaurant Ariel, located inside the Courtyard San Juan Hotel in Miramar.

Simple lines, white décor and a minimalist vibe help setup the culinary delights that Ariel personally makes in the kitchen. The décor is a perfect representation of the dishes available to patrons, they look simple but are far from it.

Upon arriving, customers are greeted by the very friendly maître d, Hugo Otiniano. The captains, the bartenders and the rest of the staff are equally as friendly, proper and polite; they instantly make you feel comfortable in the posh setting. The staff, always eager to please, have even gone as far as to establish a WhatsApp group to keep their regulars informed of activities and events at the restaurant.

“We have over 200 regular customers in our group. We can seat, on an average night, around 30 to 40 tables, though sometimes there are more,” said Otiniano.

The menu at Ariel has a bit of everything, from a house salad made with tomatoes, serrano ham, parmesan cheese and green goddess dressing, to the braised beef cheek served in its own juice over polenta.

The beef cheek is delight at pure sight. The presentation is simple but appetizing; the meat is so tender that a knife is not needed to cut it, a fork will do. The meat basically melts in your mouth and its juices add to the already tasty meat, further enhancing the flavors. The polenta it is served with is rich and creates a very welcome contrast to the meat’s intense flavor.

“The beef cheek is a fatty meat, and that lends it the delicious taste it has,” said Rodríguez.

Also available at Ariel are gnocchi served with escargot in a pastis sauce and garnished with a bit of parsley and shaved parmesan cheese. The dish catches your attention even from afar with the lovely and perfectly placed pieces of cheese. The taste is very peculiar, something feels familiar and one doesn’t quite know what, until realizing that

Chef Ariel attended the Culinary Institute of America in New York. >Brandon Cruz González

the sauce is butter-based with a hint of Pernod, an anise liqueur. The gnocchi are soft in texture, and the potato in the pasta comes through as a perfect companion to the escargot, which are finely complemented with the pastis sauce. A glass

of pinot grigio and this meal is complete.

For those who love something a bit more classic, during this past week, Ariel was serving up a strip loin cooked over coal. The meat, served medium rare, was perfectly seasoned and smoky, served

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Simple lines, white décor and a minimalist vibe help setup the culinary delights that chef Ariel personally makes in the kitchen. >Brandon Cruz González

with French fries on top. However, as happens with the décor, just because it looks simple, doesn’t mean it is. The delicious, crispy on the outside and silky, creamy on the inside fries, are actually made very differently than your ordinary fry. Firstly boiled, then fried, cooled and fried again, these fries are perfection, especially when topped with a shallot and parsley butter. This cut of meat makes any meat eater’s mouth water.

Ariel has a definite passion for cooking and tries to feature weekly specials. The menu is changed every three months, though some favorites remain. Amongst these favorites is the increasingly popular southern style fried chicken that, once again, sounds like a simple family recipe that one’s grandmother would have, but is in itself another complex and finger-licking delight.

From Humble Roots to Head of the Kitchen Ariel has spent his entire life engrossed in the wonders of the kitchen. From a young age, he enjoyed cooking alongside his mom Milagros and his aunt Gloria; he always knew he wanted to be a chef.

Strip loin cooked over coal. >Brandon Cruz González

The beef cheek is delight at pure sight. The presentation is simple but appetizing; the meat is so tender that a knife is not needed to cut it, a fork will do. >Brandon Cruz González

“Cooking was always part of my family.

Every Sunday we would get together and whip something up, make a recipe. Gastronomy and service has always been a part of my life, my family,” commented the chef.

“My children love the kitchen, they like to make pastas. They have always been cooking, since they were little,” he continued.

In 1996, the same year he started college, chef Ariel joined the staff at Augusto’s, the restaurant housed in the same place that now houses Ariel.

After graduating from the University of Puerto Rico in Rio Piedras with a bachelor’s degree in economics in 2000, he left to attend the Culinary Institute of America in New York. In 2002, he came back to Augusto’s, this time as his sous chef.

Coming back to Augusto’s was familiar and meaningful for chef Ariel, as he had already developed a very special friendship with chef Augusto Schreiner. After having worked with Augusto for so long, even spending summer and winter breaks at the restaurant, honing his skills in his kitchen was the perfect thing to do. In

2005, chef Ariel had the opportunity to take over Augusto’s and he seized the moment.

“One day, Augusto and I were sitting down and he mentioned that he would be retiring soon and that he could teach me and help me improve my skills so that I could continue to flourish. We then started working together more until I decided to purchase the restaurant,” stated the chef.

Chef Ariel decided to keep the restaurant’s name, Augusto’s, until 2017 when the restaurant was remodeled.

“We remodeled to make the restaurant more my style and it made sense, since it was decorated in my style, to give it my name,” commented chef Ariel.

When asked about his recipes and his tenure under chef Augusto, he is quick to point out that there is a clear influence but that, although he has maintained some of Augusto’s original recipes, some are entirely his, like the famous fried chicken, and others are his own personal spin on chef Augusto’s original recipes. Although the current menu is entirely his, chef Augusto remains a presence.

“Every month I change something in one or more dishes. Case in point is our “cochinillo”, it has evolved over ten years and it’s finally at a place where I am satisfied with it. Of course, if someone comes in requesting one of chef Augusto’s dishes we will gladly try to make it or at least offer an alternative,” said chef Ariel.

Chef Ariel’s creativity and passion clearly knows no bounds. After more than 20 years in the kitchen, he is still constantly switching things up.

Ariel even offers a Sunday brunch, from 11 a.m. to 3 p.m., at which delicious jams, “mallorcas” and his own personal spin on the eggs Benedicts are served. He enjoys the kitchen and says that 90 percent of what he produces is made in house, down to their gnocchi and their bacon.

Decidedly timeless, chef Ariel’s creations are a wonder that must be enjoyed. Ariel is located in the Courtyard San Juan Hotel at 801 Ponce de León Ave. and opens Tuesday to Friday for lunch from 12 p.m. to 3 p.m. and dinner from 7 p.m. to 10 p.m. On Saturdays, Ariel opens for dinner from 7 p.m. to 10 p.m. and Sundays they host brunch from 11 a.m. to 3 p.m.

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Rebirth of the eatery after Hurricane Maria

>Courtesy of the Puerto Rico Bagel Co.

Rosario Fajardo

Puerto Rico Bagel Co. Reopens at New Locale in Paseo Caribe

rfajardo@wjournalpr.com

@RosarioWJournal

Bagel lovers in the San Juan metro area will be happy to hear that Puerto Rico Bagel Co. has reopened its doors at a new locale in Paseo Caribe.

The “third time’s the charm” for the small business that began in 2016 as a food truck in the Miramar Food Truck Park.

As with many other local businesses around the island, Puerto Rico Bagel Co. has had to reinvent itself in the past few years and even had to close operations due to electricity problems.

Jorge A. Linares, chef and master bagel maker at the eatery, recounted their saga to THE WEEKLY JOURNAL. “From the beginning we did well at the food truck, but we realized that the place was too small,” he said.

They moved operations to a nearby place in Santurce, but unfortunately a phenomenon known as Hurricane Maria devastated the island in Sept.

2017. “We had no electricity for several months. I went back to the states for a year to work. Then I came back and we reopened, but there were still a lot of problems with electricity,” he said. As a result, they were forced to close again.

Now the company has returned with great enthusiasm to continue its labor of love from Paseo Caribe, which has been very supportive of the endeavor, said owner Alvin Quiñones. “Paseo Caribe has been very generous to us. There was a previous restaurant in the same space and they gave us the equipment. It was basically move in and go,” he said.

>Courtesy of the Puerto Rico Bagel Co.

It was essentially

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a turnkey operation, as Quiñones said they just had to bring in a bagel fridge and oven. “We also did the painting and redecoration,” he noted, adding that all in all, their investment at the Paseo Caribe locale was between $4,000 and $5,000.

“We were very lucky. We didn’t have to rebuild everything again,” he said.

The seven-employee company even has a base of loyal clientele in Dorado who can’t do without their bagels. “We do regular deliveries there at least once a week. We just had a great Christmas run,” Quiñones said.

Puerto Rico Bagel Co. prides itself on being an artisan bagel venue, using local products. “We get our goat cheese from a lady in Juncos who raises her own goats and makes her own cheese,” Linares said. The pulled pork (“pernil” in Spanish) is also local, of course, and is cooked for 13 hours until it is really tender and tasty.

Diners have about a dozen bagel options to choose from, with the Everything and Cheese bagels among the most popular, Linares said. >Courtesy of the Puerto Rico Bagel Co. The eatery’s breakfast and lunch menu is based on a variety of combinations, from traditional bagel offerings to others that are focused on the Puerto Rican palate.

For breakfast, there is the traditional Bagel Benedict and the Wake and Bake (bacon, egg and cheese).

Specialty sandwiches include the Angry Wife (corn beef, sweet plantain and egg); Pernilicious (pernil, pickled onions and the house sauce); and Oso Ruso (smoked lox, cream cheese, capers, tomato, pickled onions and cucumber).

THE WEEKLY JOURNAL was curious about the story behind the name Angry Wife, as it is an obvious conversation starter. According to Linares, when wives make their husbands corned beef, it could mean they are being unfaithful because corned beef is so fast and easy to prepare. >Rosario Fajardo Technically, the term is Cheating Wife, but Angry Wife stuck, so there you have it.

According to traditional lore, bagels have been Vegetarians have options too: the Alto de a Jewish tradition since the early 17th century, Cabro (goat cheese with lettuce, in Krakow, Poland. However, cucumber, tomato and pickled Maria Balinski, author of “The onions) and PRBC Falafel (falafel, Bagel: The Surprising History of a lettuce, tomato, pickles and Modest Bread,” notes that other hummus.) countries, such as China and Italy, Diners have Let’s not forget dessert. The also have their own traditions about a dozen bagel Quesito Bagel is a crowd favorite, of ring-shaped breads, as do options to choose from, particularly for weekend brunch, Finland, Russia and Turkey. with the Everything and with many people requesting In the United States, Balinski Cheese bagels among this Puerto Rican favorite with a says bagels arrived in the late the most popular. The Mimosa.

19th century, with the arrival of eatery’s breakfast and Another great dessert option is lunch menu is based on a Eastern European immigrants, the Last Meal (Nutella and bacon). variety of combinations, but bagels remained largely “Everyone loves Nutella, so why from traditional bagel popular mainly in Jewish offerings to others that not combine it with bacon? The neighborhoods or cities with are focused on the sweet and salty combination is large Jewish communities.

Puerto Rican palate. totally different and very good,” Bagels became popular in the Linares said. mainstream United States in

In fact,

A Brief History of the Bagel

Bagels, which are boiled and then baked, are a staple in many stateside homes. Whether it’s with poppy or sesame seeds, for many, a toasted bagel with cream cheese and smoked salmon, is a beloved choice for a weekend brunch.

the 1970s with “ethnic foods” first became trendy, Balinski recounts. That was the era when “ethnic food” became trendy and Lender’s Bagels started selling frozen bagels in many supermarkets in the northeast U.S. and then to the rest of the country.

Jorge A. Linares, chef and master bagel maker >Rosario Fajardo

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Wrapping Up

On Jan. 6, Puerto Rico celebrates Three Kings Day, a commemoration of the biblical Magi’s visit to Jesus after his birth. >Josian Bruno Gómez

the Christmas Season in Puerto Rico Three Kings Day and the “Octavitas” make the Puerto Rican Christmas season the longest in the world

O Yennifer Álvarez Jaimes

yalvarez@wjournalpr.com

@yalvarezjaimes

n Jan. 5, children all over the island will collect grass for the Magi’s camels and place it in shoeboxes under their beds, hoping to wake to presents the next day. More formally called the Epiphany, Three Kings Day is a tradition that has one of its most storied

celebrations in Juana Díaz, Puerto Rico, a town about 70 miles from San Juan.

During the popular festival, which has been celebrated since 1884, visitors can enjoy local music, peruse the work of artisans, indulge in Puerto Rican holiday dishes and marvel at the main event: a parade led by about 2000 people dressed as shepherds and heralding the arrival of the kings, Melchior, Balthassar and Gaspar.

Anyone can take part of the two-day festival parade by dressing up as a shepherd.

A Celebration for the Whole Family

The Puerto Rico Government also hosts its own Three Kings Day celebration.

Just last week, Gov. Wanda Vázquez announced that this year’s Three Kings Day celebration will be held on the premises of the Castillo San Felipe del Morro in Old San Juan and adjacent areas.

“This year we willl celebrate the magic of Three Kings Day by going from La Fortaleza to the Morro fort. We want children and their families to enjoy music, games, gifts and handmade crafts. We want

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In Juana Díaz, a parade heralds the arrival of the biblical Magi: Melchior, Balthassar and Gaspar. >Archive

The government estimates that roughly 20,000 people will attend the celebrations at the Morro fort. > Josian Bruno Gómez

them to spend the day together and receive a gift from the three wise men,” the governor said.

The activity will be held on Jan. 6 from 8 a.m. to 3 p.m. and will feature live music in two stages, one located at the Plaza Quinto Centenario and the other at Plaza La Perla.

“I must highlight and thank all the public employees who donated toys so that we could reach the goal of having 56,000 toys to distribute that day at the Morro. The gifts will be at four stations, labeled by age, that will be located in the Morro,” the governor said. The Puerto Rico Tourism Co. (PRTC) also said it will hand out 5,000 kites to attendees.

The Aqueduct and Sewer Authority (Prasa) is in charge of the event’s food and beverage, and they will set up kiosks in Plaza Colón, Plaza Capitolio and Plaza La Perla.

Meanwhile, the Department of Public Works and Transportation (DTOP by its Spanish acronym), in conjunction with the Police Bureau and the Municipal Police of San Juan, is responsible for the coordination and logistics of transportation to and from the activity. Attendees may park at the Puerto Rico Convention Center and in the parking lot near the Sagrado Corazón Urban Train station free of charge. There will also be private parking nearby.

Buses from the Metropolitan Bus Authority (AMA) will pick up attendees from the Convention Center and Sagrado Corazón and drop them off at Plaza Colón. First Transit will provide transportation to people with disabilities.

A 149-person capacity ferry will offer round-trip services from that Bahía de Cataño to Old San Juan as of 8 a.m.

The government estimates that 20,000 people will attend.

Eight More Days

In Puerto Rico, Christmas ends eight days after Three Kings Day, and that period is known as the “Octavitas”. During those days, people keep throwing parties and going on “parrandas”.

The end of the local Christmas period is followed by Puerto Rico’s most vibrant and colorful festival: San Sebastián Festival in Old San Juan, a music-filled cultural jubilee.

Anyone can take part in the Juana Díaz two-day festival. >Archive

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Tips to Make the Best

of Post-Holiday Shopping

Shoppers can take advantage of fatter discounts on clothing, home decor and other items between Christmas and well into January

H

Anne D’Innocenzio, The Associated Press

oliday shopping doesn’t end with Christmas. Shoppers can take advantage of fatter discounts on clothing, home decor and other items between Christmas and well into January.

In fact, a National Retail Federation survey of nearly 8,000 adults conducted Nov. 27 through Dec. 5 found that nearly 50% of consumers plan to take advantage of post-holiday sales and promotions, and 27% plan to use gift cards. And more than half of shoppers say they will return or exchange any unwanted gifts or holiday items within the first month after receiving them.

But just as shoppers should scrutinize the bargains on Black Friday, they need to do the same for post-Christmas deals.

“Don’t assume that a sale is a good deal,” said Julie Ramhold, senior staff writer at DealNews. com, a deal comparison website. “Do price comparisons.”

In addition to DealNews.com, Ramhold cited such sites as Camelcamelcamel.com, an Amazon price tracker, and Honey, a browser extension that searches for coupons and cash-back offers and tracks prices on websites including Amazon.com, Target.com and Walmart.com. She says shoppers need to figure out the price history of the item and whether it’s lower than Black Friday’s deal.

Here are tips for post-Christmas shopping: SHOPPING AHEAD: The post-Christmas shopping period is a good time to stock up on items like wrapping paper, cards and home decor shoppers will need next year. For example, holiday decor is typically slashed by 50%, but those discounts deepen to 80% after Dec. 25, according to Ramhold. She recommends heading to the sales

racks right after Christmas since there won’t be much selection if bargain hunters wait longer.

SHOPPING FOR CURRENT IN-SEASON GOODS: Last year, about one-third of post-Christmas deals was for clothing and accessories, according to DealNews.com. But stores like Victoria’s Secret and Michael Kors also use this period to run semiannual sales. Discounts on sweaters and other winter clothing are about 50%, similar to Black Friday, so it’s best to wait until after Jan. 1 when the deals deepen to 70%, according to DealNews.com.

Still, some retailers like Target start their afterChristmas deals with more aggressive cuts. Target is taking up to 70% off on clothing and shoes for the family starting Thursday.

As for electronics, it’s best to hold off until after the annual Consumer Electronics Show in early January, where new tech products will be displayed. That will help retailers decide which older products to discount. Looking for a new TV? Wait until right after the Super Bowl in early February, according to Marshal Cohen, chief industry adviser of the NPD Group Inc., a market research firm. And shoppers can always count on exercise equipment to be on sale. DealNews.com

saw more exercise equipment deals in January than during any other month this past year.

To get the best deals, look for merchandise sold at stores that differs from their primary selection.

For example, Cohen suggests buying luggage and home appliances at T.J. Maxx.

DISSECTING RETAILERS’ HOLIDAY RETURNS: Don’t expect to buy an item in December and go back to the store to return it in April. Every retailer’s return policy is different, and shoppers need to read the fine print on the receipt or check the retailer’s website.

Still, many retailers offer special extended holiday return deadlines, says Dworsky. That allows gifts purchased in November to be returned until mid to late January, beyond the normal return deadlines in some cases, according to Consumer World. Overall, the return deadlines are shrinking.

At Bed, Bath & Beyond, the deadline to return is now 180 days. Last year, it replaced its no time limit return policy with a one-year deadline.

Dworksy says that stores continue to “slice and dice” their return policies, creating knotty rules for specific products. For example, a TV may have a shorter return window than a sweater.

A National Retail Federation survey of nearly 8,000 adults conducted Nov. 27 through Dec. 5 found that nearly 50% of consumers plan to take advantage of post-holiday sales and promotions. >AP

29 < The Weekly Journal > Wednesday, January 1, 2020

Be on trend... be on trend...

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www.elvocero.com/revistas/zona

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“Día de Reyes”

On January 6th, Puerto Rico celebrates el Día de Reyes (Three Kings Day), which commemorates the visit that the Three Wise Men paid Jesus after his birth. For over 135 years, the town of Juana Díaz has celebrated this holiday with a festival and parade that gathers over 25,000 people. The main attraction during the festivities is the Magi riding on horseback.

When: Monday, Jan. 6 at 6 a.m.

Where: Plaza Román Baldorioty de Castro, Juana Díaz

Lunay Concert

Rising artist Lunay will host his first local concert. In May, Lunay unveiled “Soltera”, a collaboration with two of reggaeton’s biggest artists, Daddy Yankee and Bad Bunny.

When: Sunday, Jan. 5 at 7:30 p.m.

Where: Vivo Beach Club, Carolina

Acro Yoga

Meet behind the playground to practice Acro Yoga.

All levels welcomed.

Free admission.

When: Friday, Jan. 3 at 4:30 p.m.

Where: Parque Barbosa, San Juan

Bailable Víspera de Reyes

Dance the night away with music from Papo Lucca and La Sonora Ponceña, Don Perignon and La Puertorriqueña and Victor García and La Sonora San Juanera.

When: Sunday, Jan. 5 at 8 p.m.

Where: Sheraton Puerto Rico Hotel and Casino, San Juan

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Reyando con la Sinfónica

The Puerto Rico Symphony Orchestra presents the traditional Epiphany concert at the Luis A. Ferré Performing Arts Center in Santurce.

When: Saturday, Jan. 4 at 7 p.m.

Where: Luis A. Ferré Performing Arts Center, San Juan

Saturday at the Shelter

Every Saturday morning, rain or shine, Amigos de los Animales de Puerto Rico, a non-profit organization, cleans the shelter to keep the doggies healthy and happy. The Saturday Shelter Cleanup involves washing the dogs’ kennels, the area where the kennels are kept and the food bowls. Fo more info, call (787) 313-5653 When: Saturday, Jan. 4 at 9:30 a.m. to 12 p.m.

Where: Bo. Torrecilla Baja, Carr. 187, KM 5.2, Sector Piñones, Loíza

Pública Market

Local products, food and wellness.

When: Saturday, Jan. 4 at 2 p.m.

Where: Pública, 1057 Ponce de León Ave., San Juan

Crypto Mondays

Weekly events that are focused on pushing the Blockchain space forward with an emphasis on Puerto Rico. Panelists from all over the globe. Admission is free, donations are encouraged to keep developing the community.

When: Monday, Jan. 6 at 7 p.m.

Where: Red Monkey, 252 Cruz St., Old San Juan

Playa Grande Tour

Tour the Playa Grande Sugar ruins of Vieques, Puerto Rico. Be sure to wear comfortable walking shoes as the terrain is uneven. Reservations are suggested. For more info, call (787) 741-8850 When: Saturday, Jan. 4 at 9:30 a.m. to 12 p.m.

Where: Vieques Conservation and Historical Trust, 138 Flamboyán St., Vieques

Ranger Walks and Talks

You do not need a reservation.

Join the forest ranger and learn more about El Yunque.

When: Every Friday, Saturday and Sunday at 11 a.m. and 2 p.m.

Where: Palo Colorado, Road 191 km. 11.7, El Yunque National Forest, Río Grande