The Weekly Journal January 8-14, 2020

Puerto Rico and the Caribbean

Wednesday, January 8-14, 2020 / no. 037

www.theweeklyjournal.com

P.R. Governor Declares State of Emergency After 6.4 Quake P8 Population Increases, but Experts Warn of Migration Trend P6

Major Economic

Marina Puerto Chico Invests $4 million in Renovations P12

Challenges Ahead >Archive

Economists foresee possible tax hikes, stalled debt restructure and population decrease in Puerto Rico

D Giovanna Garofalo

Draco Rosa: Blessed and Embarking on New Adventures P20

ggarofalo@wjournalpr.com

@giopgarofalo

espite moderate financial growth reported in the several facets of Puerto Rico’s economy and a positive outlook echoed among the public sector, the island faces a series of challenges that point to a grim scenario in the near future.

One of the main concerns shared among several economists is the eventual elimination of Act 154 of 2010, the Foreign Corporations and Partnerships Tax,

which allows foreign corporations that operate on the island to claim a 100 percent credit on monies paid to the local government. Under this law, foreign companies pay a 4 percent tax on their transactions between the parent company and its local affiliates.

Since the act’s implementation, this tax has represented at least 20 percent of the General Fund’s budget, amassing about $1.8 billion annually in contributions that are, in turn, disbursed for government payroll, the GO TO PAGE 4

The Weekly Journal > Wednesday, January 8, 2020 >

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/ Wednesday, January 8, 2020

a week in review U.S. Army Reserve-Puerto Rico Ready to Assist The U.S. Army Reserve Multifunctional Geographic Command for the Caribbean, the largest federal U.S. Army command in the region, is ready to assist local civil authorities as needed after 6.5 quake strikes Puerto Rico.

“We are in contact with local and federal authorities in Puerto Rico to coordinate any help, if needed. We are ready to assist the people of Puerto Rico during this emergency,” said Brig. Gen. Jeffrey W. Jurasek, senior federal Army officer in the Caribbean.

It is important to note that, as a federal force, the Army Reserve is not considered a first responder. The responsibility to provide the first response resides in the local authorities and the National Guard. However, the State government can request the Army Reserve assistance through federal channels.

“If the local authorities need federal military assistance, there is no need to wait for resources to arrive from outside Puerto Rico. Our command is already here on the island, prepositioned and ready to assist immediately,” said Jurasek. >Archive

Tourist Attractions Report Damage After Quake Strikes Puerto Rico Grijalva: Trump Administration Must Immediately Release Aid to Puerto Rico Following Recent Earthquakes

The Puerto Rico Tourism Company informed the collapse of Punta Ventana, a coastal rock formation that had formed a sort of rounded window in the southwestern town of Guayanilla. This popular tourist destination collapsed after a 5.8 magnitude earthquake struck Puerto Rico on Monday.>AP

The chairman of the House Natural Resources Committee Raúl M. Grijalva (D-Ariz.) called on the Trump administration to disburse still unused Hurricane Maria disaster recovery funding and prepare to release earthquake disaster aid without delay.

“The Trump administration’s indifference and incompetence have already cost residents of Puerto Rico their lives and their livelihoods, and continuing that pattern now is completely unacceptable. When Congress appropriates disaster recovery funds, they need to be used wisely as soon as possible. I urge this administration to remember that lives are at stake and the public is watching.” >Archive

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/ Wednesday, January 8, 2020

CONTINUED FROM PAGE 1 University of Puerto Rico, the Department of Health and other key agencies.

Although Act 154 was initially designed as a temporary benchmark to be eliminated by 2016, different administrations have modified it in order to keep the tax at 4 percent. However, the U.S. Department of Treasury recently announced that the local government needs to start taking the appropriate measures to eliminate this law—an issue that economic consultancy firm Inteligencia Económica labeled “a monumental task.”

Gustavo Vélez, president of Inteligencia Económica, affirmed that without that tax revenue, “we believe that the government would face serious pressures for liquidity, which could, in turn, force reductions in public spending, including essential services and payroll.”

Heriberto Martínez, president of the Puerto Rico Economists Association (AEPR by its Spanish initials) told THE WEEKLY JOURNAL that there is no “real applicable tax” that could be implemented to generate the same revenue as that collected under Act 154, and concurred that its eventual elimination will lead to reduced allocations to government agencies that offer essential services. Thus, the economist warned that the government would most likely increase the Sales and Use Tax (IVU by its Spanish acronym), which currently stands at a whopping

11.5 percent, the highest in any U.S. jurisdiction.

“Each point from the IVU is roughly $220 million to $230 million, so with a 2 or 3 percent hike to the IVU, there is the expectation that we could collect between $670 million and $700 million…

What that does, at the end of the day, is further pressure the economic agents in Puerto Rico who already pay a lot in taxes… which could contribute to emigration,” he warned. He emphasized that

There is so much instability right now that we don’t know what could happen.

–Alba Brugueras, economist and professor at Sacred Heart University in San Juan.

this would result in “the worst of all possible worlds” with under-financed government instrumentalities and a lower population.

In this regard, Alba Brugueras—economist and professor at the Sacred Heart University in San Juan—said that a higher IVU is within the realm of

possibilities, but she believes that the government would most likely introduce other proposals for the island’s tax system. She stated that perhaps the public sphere will reconsider establishing a value-added tax (IVA by its Spanish acronym), which garnered a heated debate in 2016.

Brugueras observed that the conversation didn’t have a final conclusion, adding that this particular tax has been successful in other countries.

“The studies are there, as are examples from many countries that follow this tax system… I think that [the conversation] could take off at any given time, but I believe that [it will] in a more relaxed discussion and in a discussion with different economic sectors on the island,” Brugueras said.

In any case, the elimination of Act 154 threatens to hinder Puerto Rico’s economic development and quality of life, as well as taxpayers’ pockets.

“The new payment sources generated on the island must be based on new forms of business, on new investment sources and we must be creative in that regard. There will be negotiations with the federal government to see what relief or what assistance can be created so that the impact is not too big,” Brugueras asserted.

Stalling in Debt Restructuring Agreements Because the 4 percent collected under Act 154 represents a sizable portion of the government’s budget, its elimination could also dismantle any progress relating to the debt restructuring agreements of multiple agencies, such as the Puerto Rico Industrial Development Co. (Pridco), the Aqueduct and Sewer Authority (Prasa), the Electric Power Authority (Prepa), and the Sales Tax Financing Corporation (Cofina by its Spanish acronym).

Brugueras explained that the estimates considered in debt restructuring agreements were inflated because their respective adjustment plans were counting on the revenue from Act 154.

“This will definitely affect any future agreement,” she stated.

Moreover, its impact would also be reflected in the Plan of Adjustment proposed by the Financial Oversight and Management Board (FOMB) as a means to exit bankruptcy and restore access to capital markets. Chief Financial Officer Omar Marrero said in an interview with THE WEEKLY JOURNAL that this adjustment plan marks a step toward improved relations between the government and the federally-appointed fiscal entity, but Vélez observed that the process is lagging.

“The Plan of Adjustment and the restructure of the rest of the debt appear to be stalled, largely due to opposition by creditors, insurers and the local government,” Vélez said.

Underwhelming Progress in Opportunity Zones Economist Alba Brugueras said that a higher IVU is within the realm of possibilities, but she believes that the government would most likely introduce other proposals for the island’s tax system.>Gabriel López Albarrán

Ever since the government incorporated the Opportunity Zones (OZ) program into the Puerto Rico Incentives Code in 2019, a big chunk of the discussion surrounding economic development

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“That is the challenge that we have in the country, with the exception that we’ll have elections in November. The expectation that I have as president of the AEPR is for economic plans to be done seriously and to allow the Association to evaluate it with economists from all [political inclinations],” he said.

Also related to rebuilding efforts, Vélez chastised the delayed disbursement of disaster relief funds, which are key to improving the island’s infrastructure and assisting distressed communities. The most recent data displayed in the Transparency Portal by the Central Office of Recovery, Reconstruction and Resilience (COR3) indicates that the U.S. Congress approved $48.3 billion of these funds for the island, but only $41.6 billion have been obligated and $14.9 billion disbursed.

“The famous but simultaneously far $40 billion remain stalled in federal bureaucracy and Puerto Rico seems to be an easy target for federal political sectors that don’t want that money to flow,” Vélez opined.

Emigration a Shared Concern Heriberto Martínez, president of the Puerto Rico Economists Association, said that there is no “real applicable tax” that could be implemented to generate the same revenue as that collected under Act 154. >Gabriel López Albarrán

has centered on attracting local and foreign investment through its tax incentives. However, the government has not yet attracted significant investment through this measure, seemingly stemming from a lack of knowledge regarding this incentive, even among elected officials.

As reported by THE WEEKLY JOURNAL, the government released a list of eligible commercial activities under the OZ program and announced that a second list will feature specific activities with further incentives by region, but the central government is presently waiting for mayors to outline which economic sectors they want to endorse in their respective municipalities.

When asked to evaluate the OZ program’s implementation, Martínez labeled it as “deficient and harmful to the general economy.” He added, “there is no transparency, there is no diligence and there is not a single person whom I know to have economic planning expertise to ask where the OZ are headed.”

Brugueras stressed that the government must carefully assess which economic activities are suitable to the island’s priorities and to the potential of each municipality or region. She listed tourism, agriculture, innovation technology, infrastructure and manufacturing as some of the sectors with the most opportunities, but warned that any ventures must be tied to strategic planning.

Meanwhile, Martínez scrutinized the present administration for reportedly lacking a team of economists to assist in developing an economic public policy to address claims by residents and corporations.

Another issue that poses a hindrance to the island’s economic development is the emigration trend that has seen the exodus of 600,000 people between 2010 and 2017, Vélez commented.

The economist explained that, during that time, Puerto Rico lost 18 percent of its population, with an average of 1.7 percent fewer residents every year since 2010.

Recent data collected by the U.S. Census Bureau indicates that the population grew by 0.01 percent in Fiscal Year 2018-2019, but economists agree that the emigration trend largely surpasses immigration, even considering the residents who are returning to the island after a temporary absence caused by Hurricane Maria in Sept. 2017.

Vélez and Martínez affirmed that the slight increase reported in the last fiscal year was prompted by federal recovery funds but they warned that if the population were to perceive stagnancy in this regard, emigration would return to pre-Maria numbers, which would result in more local economic struggles.

“As long as we are in this parenthesis of positive economic impact due to additional federal funds… we will see that positive macroeconomic data and demographically as well. […] What will happen if those additional federal funds stop arriving in Puerto Rico? Simple answer, we will return to the trends of population loss and wealth loss that we had until 2017,” Martínez said.

U.S. Issues’ Impact on the Island

Given that Puerto Rico is a U.S. jurisdiction, issues affecting the mainland reflect on the local economy, sometimes at a larger scale. This year kicked off with flaring tensions between the U.S. and Iran, causing a wave of uncertainty that has stirred political and financial discussions worldwide.

Regarding this particular conflict, Martínez noted that certain investment areas could make a profit but Puerto Rico is largely excluded from

Gustavo Vélez, president of Inteligencia Económica, affirmed that without that tax revenue, “we believe that the government would face serious pressures for liquidity, which could, in turn, force reductions in public spending, including essential services and payroll.” >Archive

potential growth opportunities.

“In countries that do not export petroleum, as is Puerto Rico’s case, this has a negative impact because it will be reflected on Prepa and it will be reflected in gas prices, which for many families in Puerto Rico who are already drowning because of the economic situation… will be very difficult, more so in an island where we don’t have effective public transportation,” the AEPR president said.

Apart from military conflicts, both Brugueras and Martínez concurred with economists’ warnings that when there is overinvestment, historically low unemployment, and outstanding market stock exchange indexes—as is the current state in the U.S. economy—a recession is likely to follow. The economists concluded that a major obstacle to predicting economy performance is the uncertainty that is reigning over the mainland’s short-term performance.

“We are currently living in such an uncertain landscape about what is going to happen with U.S. trade relations, with what is happening in Europe, what is happening in Latin America, what is happening in the Middle East and Russia… There is so much instability right now that we don’t know what could happen,” Brugueras stated.

For his part, Martínez said, “if we want a healthy economy, we must enter the realm of expectations, but where we are, both in Puerto Rico and at a global scale, is in the realm of uncertainty. We don’t know if the economy will drop at a given time and we don’t know, in terms of Puerto Rico, if the federal funds will be disbursed.”

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>Archive

/ Wednesday, January 8, 2020

Too Early to Declare Victory in Battle Against Emigration Despite a slight population increase, experts warn against the ongoing migration trend

A Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

lthough the most recent population estimates collected by the U.S. Census Bureau indicate that Puerto Rico’s population saw a slight increase throughout fiscal year 2018-2019 (FY 2018-19),

several experts warn that there is not enough data to determine the reason for this gain or if it represents a new migration trend.

According to the federal institution, whose estimates are based on migratory movements on the island between July 2018 and the end of June 2019, Puerto Rico’s population amounted to 3,194,694 residents, 340 more than at the end of the previous fiscal year, for an increase of 0.01 percent. In net terms, the Bureau estimated that there was an in-migration of 8,000 people.

Some economists have said that this number is the product of a growing economy, particularly with regards to the labor force index. As previously reported, the Puerto Rico Department of Labor & Human Resources (DRTH by its

Spanish acronym) indicated that non-farm wage and salary employment in the island’s private sector maintains its best level in five years, with roughly 873,600 employees. Regarding unemployment, Nov. 2019 was “the best month of November in the history of these statistics, and maintains the [unemployment] rate below the year’s average,” the DRTH said.

Meanwhile, Heriberto Martínez—president of the Puerto Rico Economists Association (AEPR by its Spanish initials)—asserted that the driving factor for a higher population is the economic development stirred by federal disaster relief funds that have been disbursed to rebuild the island after the impact of Hurricane Maria in Sept. 2017.

/ Wednesday, January 8, 2020

“The only reason we are seeing a positive parenthesis [in the economic crisis] is because of the federal recovery funds… As long we are in that parenthesis of positive economic shock from the additional federal recovery funds to come, we will see those positive macroeconomic data demographically as well,” Martínez told THE WEEKLY JOURNAL. The economist warned that this “parenthesis” is only temporary and the island will see future population dips after all federal funds all disbursed.

“The real question, which has an obvious answer, is what will happen when those additional federal funds stop arriving in Puerto Rico? Simple answer: we will return to the tendency of population losses and wealth losses that we had until 2017,” Martínez stated.

For his part, demographer Raúl Figueroa, author of “Beyond the Census” and manager of http://www.demografiapr.com, observed that any positive numbers are most likely due to the recovery process from Hurricane Maria, which

The only reason we are seeing a positive parenthesis [in the economic crisis] is because of the federal recovery funds.

-Heriberto Martínez, president of the Puerto Rico Economists Association

prompted a mass exodus that to many, he argued, was only temporary. He explained that when comparing migration tendencies between FY 2017-18 and FY 2018-19, the estimates for the latter present a higher number of residents only because the people who had to evacuate their homes during the hurricane’s aftermath are returning to the island.

Demographer Raúl Figueroa observed that any positive numbers are most likely due to the recovery process from Hurricane Maria, which prompted a mass exodus that to many, he argued, was only temporary. >Archive

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“When you look at emigration data… in 2018 there was still a strong effect due to what happened with Hurricane Maria. Throughout 2018, a lot of people who had left in 2017 returned… So, if you see the previous estimate, it reflects a greater emigration among the population. That is why all these new data showcase a slight population increase,” Figueroa told THE WEEKLY JOURNAL. Regardless, the return of these individuals is not sufficient to mitigate the negative impact of emigration, he noted, adding that the population increase does not imply that emigration is no longer a cause of concern.

He pointed to the data collected in the first semester of 2019, which constitutes half of the time frame for the published report, which states that, in net terms, nearly 5,000 people emigrated. Therefore, while emigration was lower than it was in 2018, it still compares to pre-hurricane numbers.

During the first half of FY 2017-18, roughly 232,000 people relocated outside of Puerto Rico.

Considering the returns seen during the second semester of the fiscal year, the island lost a total of 131,932 residents for a 3.9 percent dip in the population. While this number represents one of the greatest drops in recent history, the island had been facing a spike in the last years. Since 2010, the population has decreased an average of 1.7 percent every year and this tendency shows no signs of stopping in the near future.

“If you look at the data for 2019 we are already observing… that we are returning to a similar pattern of more people leaving the island than coming. […] One must also consider that the estimates are changed annually… They are adjusted often and the population that they adjust to tends to be smaller,” Figueroa said, stating that the population estimate for 2018 was higher than the actual number of residents at that time.

Despite the current trend, Figueroa affirmed that he and other demographers estimate that emigration will eventually recede but more so as a result of demographic changes than economic development. He argued that Puerto Ricans are an aging population and most people who emigrate fall under younger generations like Gen-Z or Millennials.

“If the economy improves… then the panorama might improve slightly, but one wouldn’t expect it to improve to the point of reversing [emigration effects] from one year to another… Unless something super outstanding is happening in economic terms, you will never see a reversal of the highest emigration in the history of Puerto Rico. That is highly unlikely,” Figueroa said.

Martínez concurred that older generations are less prone to emigrate, but he noted that an unevenly aged population, combined with lacking services for senior citizens, would give Puerto Rico’s elderly enough reasons to leave the island should they require certain services or treatment.

“I agree with [Figueroa], but there is no guarantee that the emigration issue will be stabilized in the long term,” he asserted.

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/ Wednesday, January 8, 2020

State of Emergency Declared in Puerto Rico After Earthquake

The state of emergency declaration is important to access federal funds and aid

P

Yennifer Álvarez Jaimes

yalvarez@wjournalpr.com

@yalvarezjaimes

uerto Rico Gov. Wanda Vázquez signed an executive order declaring a state of emergency throughout the island, and an order that activated the National Guard after a 6.5 magnitude earthquake struck Puerto Rico before dawn on Tuesday.

The state of emergency declaration is important to access federal funds and aid.

“It’s important for the people of Puerto Rico to remain calm and to safeguard their lives and property,” Gov. Vázquez said in a press conference held on Tuesday. “Citizen security is a priority for me, so we are inspecting vulnerable areas and taking all the necessary measures to guarantee the safety of Puerto Ricans.”

According to Judd Deere, White House press secretary, U.S. President Donald Trump has been briefed on the earthquakes that have been occurring in Puerto Rico over the past month, including the one on Tuesday.

“Administration officials, including FEMA Administrator Pete Gaynor, have been in touch with the governor and her team today, and we will continue to monitor the effects and coordinate with

Puerto Rico officials,” Deere said on Tuesday.

At least one man is known to have died in the quake when a wall collapsed on him at his home in Ponce. Eight people were injured in Ponce, Mayor María “Mayita” Meléndez reported.

The Electric Power Authority (Prepa) reported an islandwide power outage after the power plants shut down in accordance with their safety protocol.

Authorities urge residents to stay calm as they evaluate damage reported at the Costa Sur power station and the power infrastructure.

All ports in Puerto Rico and the U.S. Virgin Islands remain open until further notice, the U.S. Coast Guard said in a news release.

Gov. Vázquez suspended labor for all government agencies so employees “can be with their families, implementing their emergency plans.”

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It’s important for the people of Puerto Rico to remain calm and to safeguard their lives and property. Citizen security is a priority for me, so we are inspecting vulnerable areas and taking all the necessary measures to guarantee the safety of Puerto Ricans.

- Gov. Wanda Vázquez

In Guayanilla, the Parroquia Inmaculada Concepción lay in ruins Tuesday. Part of an exterior wall collapsed and piles of rubble lay on the ground. >Carlos Rivera Giusti

The quake was followed by a series of strong aftershocks, part of a 10-day series of shakes spawned by the grinding of tectonic plates along three faults beneath southern Puerto Rico.

Seismologists say it’s impossible to predict when the quakes will stop or whether they will get

stronger.

Although a tsunami alert was issued on Tuesday for Puerto Rico and the U.S. Virgin Islands after the initial quake, it was canceled soon after.

In the historic district of Ponce, some 15 miles east of the quake’s epicenter, authorities evacuated

more than 150 people from two buildings they said were in danger of collapsing. Workers at Damas Hospital evacuated all patients except for those in intensive care, I order to ensure their safety.

As of 5 p.m. on Tuesday, the Puerto Rico Department of Housing had reported that 721 people were already in shelters within affected municipalities.

In Guayanilla, piles of rubble lay on the ground as an exterior wall of the Parroquia Inmaculada Concepción gave way and parts of it tumbled down.

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/ Wednesday, January 8, 2020

Purchasing Managers’ Index Takes a Dive After rising a few points in October, the index lost 5.2 points in November, the second-lowest point of the year

T Cynthia López Cabán

clopez@wjournalpr.com

@cynthia_lope

he Purchasing Managers’ Index (PMI) kicked off 2019 showing signals of strength in the manufacturing industry. For the first three months of the year, it exceeded the threshold level of 50 points, continuing the pace of the previous year.

Then, after the first quarter, the indicator of economic activity in the manufacturing sector adopted a hesitant mode, moving forward a few points and retracting without reaching the 50-point

>Source: Institute of Statistics

mark again, a symptom of economic decline.

Despite the ups and downs, the index remained below the margin of expansion from April to November.

While the PMI for December won’t be ready until next month, the latest report issued by the Institute of Statistics reveals the index dropped 5.2 points in November, descending to 43.2 points, and achieving the second-lowest point of the year.

“A reading below the threshold level suggests a contraction in the manufacturing sector with respect to the previous month,” stated dryly the report.

Last October, the PMI climbed to 48.4 points from 43.8 in September, following a timid trend of two months of improvement. It increased to 46 points in August, up from 42.20 in July of 2019, the lowest reading of the year so far.

In broad terms, the index has averaged 50.88 points from 2010 until 2019, reaching an all-time high of 61.70 in March 2013 and a record low of 33.10 in Sept. 2017, the month Hurricane Maria struck the island causing damages of over $100 billion as well as over 3,000 deaths.

A reading below the threshold level suggests a contraction in the manufacturing sector with respect to the previous month.

-Report by the Institute of Statistics The PMI is based on five major categories: new orders, production, new inventories, employment, and supplier deliveries. A PMI reading under 50 represents contraction and a reading above 50 represents expansion. The island’s PMI is available only on a Non-Seasonally Adjusted basis which means that seasonal fluctuations can affect its performance. Acknowledging this handicap, some economists have called for an adjustment in the methodology so the index can offer a more accurate assessment of economic activity in the manufacturing sector.

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A Glance at the Subindexes

Like the overall PMI, the new orders, production, employment, and own inventories subindexes slipped when compared to October. Only the supplier deliveries category reflected an upward movement that surpassed the threshold level by 2.3 points, while recuperating from the 3 points it lost in September.

After reaching 50 in October, the new orders category registered a reading of 43.2 points in November, the month that marks the beginning of the holiday season. The production PMI declined to 38.6 in November, after having climbed to 52.6 in October, and the own inventories fell to 43.2 points, dropping 4.2 points when compared to the previous month.

Last November, the Employment PMI shrank to 38.6 when compared to the reading of 44.7 points in October. These numbers contrast with statistics offered by the Labor Department. The agency indicated that, in November, jobs in the private sector rose to 671,400, a year-over-year increase of 6,600 jobs when compared with November of last year, but similar to last month’s numbers.

In a change of direction, supplier deliveries rose to 52.3 in November after dropping three points in October. This is the only indicator above the threshold level.

While the PMI is contracting, the economic activity index maintained a slight growth pattern

The Purchasing Managers’ Index (PMI) has remained below the margin of expansion from April to November. >Archive

during the 2019 fiscal and calendar year, after six consecutive years of slips. However, the index is still below the level reached prior to Hurricane Maria.

According to economists, these mixed indicators reflect that the economy continues to lag as the

island struggles to emerge from a twelve-year recession, navigates the restructuring process of its $70 billion-plus debt load and deals with the aftermath of Hurricane Maria, among other circumstances.

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Marina Puerto Chico Eyes Luxury Yacht Market With $4 Million Renovation

Injecting economic activity to Fajardo area

A Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

s part of efforts to boost the luxury yacht market in Puerto Rico, Bacalia Group, the owners of Marina Puerto Chico in Fajardo, has invested $4 million in renovations and is launching a new VIP marina for well-

heeled sailors.

Newly branded as The Reserve, the VIP marina

for luxury yachts features completely revamped facilities, as well as concierge, cleaning and maintenance services for boats.

Marina Puerto Chico currently has about 1,300 boats on a regular basis, among its wetslip, drystack and boatyard facilities.

However, the marina will soon reach its goal of accommodating 1,500 boats on a regular basis.

“The demand that we have for our marina is very high; we have a waiting list of about 200 boats, including many people who have their boats in the San Juan area. People know that this area [in Fajardo] is unique,” said Marlon Mellado, CEO of Marina Puerto Chico.

Investment firm Bacalia Group acquired Marina Puerto Chico in 2016, with the aim of boosting

nautical tourism on the island. While Puerto Rico is a Caribbean island, nautical tourism is fairly small, especially compared with that of the British and U.S. Virgin Islands.

This represents an opportunity for growth in the sector. The tourism industry plays a big role in Puerto Rico’s new economic model, and nautical tourism is a key area within the island’s touristic offerings, indicated Sebastian Rebolledo, a spokesman for Bacalia Group.

“The upper economic classes of the island have expressed an interest in investing in luxury yachts in recent years, whether for recreational use and commercial use. There is also the new market of investors on the island who have shown great interest in this hobby,” referring to Act 22

/ Wednesday, January 8, 2020

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The demand that we have for our marina is very high; we have a waiting list of about 200 boats, including many people who have their boats in the San Juan area. People know that this area [in Fajardo] is unique.

-Marlon Mellado, CEO of Marina Puerto Chico

investors, according to Rebolledo.

The economic potential of nautical tourism represents “millions of dollars in rentals and repairs just in this area of the industry,” he said to THE WEEKLY JOURNAL. “This implies the generation of new jobs and a greater degree of specialization of workers. This means Puerto Rico will become increasingly expert in nautical tourism, [which is important] when facing more demanding consumers. This is a positive evolution,” Rebolledo added.

The marina is located in Puerto Chico Bay, where visitors can enjoy the beautiful beaches and nearby cays, just 20 minutes by boat. There are also two restaurants on site: Cinco Nudos and El Yate. Other activities in the area include sport fishing, snorkeling, diving and experiencing the spectacular bioluminescent lagoon of Fajardo on kayak excursions.

Persy Rier, who runs Kayaking Puerto Rico, noted the importance of ecotourism in Puerto Chico Bay, as motorized boats are not permitted in the bioluminescent lagoon. “Our excursions are in natural reserves, where we mix recreation with education. In that sense, our nighttime excursion to the bioluminescent lagoon in Fajardo is one of the principal attractions [in the area,” he said.

Visitors at Marina Puerto Chico can also charter private boats, raft, book diving and snorkeling tours and engage in recreational fishing.

Marina Puerto Chico supports several hundred jobs and is an example of businesses supporting each other. “Coexistence is fundamental to our activity, as it not only helps to diversify our offerings as a marina, but we also integrate ourselves into a virtuous circle where each of the companies that operates here empowers the other. We are a great family of entrepreneurs,” Mellado said.

Bacalia Group’s diverse $50 million investment portfolio on the island includes Marina Puerto Chico; Da House Hotel in Old San Juan with 45 rooms; Metro Medical Center in Bayamón, featuring doctors’ offices and various office spaces; and several car parking lots, totaling 4,000 parking spaces between Hato Rey, Fajardo and Bayamón.

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Bill to Facilitate Access to Mitigation Aid Clears House The legislation was introduced to address FEMA’s slow disbursement of prevention funds

T Cynthia López Cabán

clopez@wjournalpr.com

@cynthia_lope

hree weeks after Hurricane Harvey blasted Texas and the Gulf Coast, inflicting an estimated $125 billion in damages, Maria wrecked Puerto Rico causing over $100 billion in losses.

More than two years later, hazard mitigation assistance to prevent future disasters flows slowly and, due to the cumbersome

reviewing process, officials from the Lone Star State and on the island have warned of the impossibility of accessing the funds allocated by Congress for the implementation of prevention plans.

To change the “glacial pace” with which FEMA administers the Hazard Mitigation Grant Program, Rep. Lizzie Fletcher (D-TX 7th District) introduced last summer the Hazard Eligibility and Local Projects (HELP) Act that modifies the eligibility requirements for mitigation assistance initiatives that don’t need an environmental waiver. Other 29 representatives, including Resident Commissioner Jenniffer González Colón, co-sponsored the bill passed by the House of Representatives on Dec. 17.

The proposed bipartisan legislation is now under review of the Senate’s Committee on Homeland Security and Governmental Affairs.

“In many cases, like in the Houston area, local municipalities want to move quickly after a natural disaster on projects like land acquisition for water detention and other small mitigation efforts that

can have a tremendous impact,” Fletcher indicated last June while introducing an amendment meant to clarify the bill’s scope.

“The one size fits all approach to reviewing projects through the Hazard Mitigation Grants Program needlessly delays this mitigation work.

That is why I have introduced the HELP Act, to allow land acquisition projects and simple construction projects that do not require an environmental impact statement under the National Environmental Policy Act (NEPA) to commence immediately without the risk of losing potential federal matching funds which are essential for these projects,” she added.

The Stafford Disaster Relief and Emergency Assistance Act stipulates that the Hazard Mitigation Grant Program can fund up to 75 percent of effective mitigation projects, with local municipalities and states matching the remaining 25 percent.

When the draft was debated in the House, González highlighted that its approval would “clear the path to make things happen.” In a press

Hurricane Maria knocked out the island’s power, battered infrastructure and toppled or stripped bare millions of trees. >Josian E. Bruno Gómez

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/ Wednesday, January 8, 2020

While local governments tried to quickly embark on recovery initiatives, FEMA’s bureaucracy and the number of large-scale emergencies that it handled -at the same time- partly gave way to the slowness of recovery.

With this legislation, we seek to correct the weaknesses of the process.

-Resident Commissioner Jenniffer González

Due to the damage inflicted to the power grid, it took almost a year to restore electricity to all homes on the island. >Josian E. Bruno Gómez

release after the lower house passed the bill by a vote of 407 to 9, the resident commissioner advocated for the bill’s passage.

“In the past three years, Puerto Rico, like other jurisdictions in the United States, suffered a series of unprecedented catastrophes that FEMA struggled to manage. While local governments tried to quickly embark on recovery initiatives, FEMA’s bureaucracy and the number of large-scale emergencies that it handled -at the same timepartly gave way to the slowness of the recovery.

With this legislation, we seek to correct the weaknesses of the process,” she explained.

Long Road to Reconstruction

The long wait for promised federal funding goes beyond FEMA and its convoluted processes. The Department of Housing and Urban Development (HUD) has deliberately delayed the disbursement of funds citing concerns over government corruption and financial mismanagement.

Despite these allegations, only a FEMA official and a contractor involved in the recovery process are facing corruption charges. Last September, U.S. prosecutors accused Ahsha Tribble, who oversaw the agency’s efforts to restore electrical power after the hurricane, of accepting helicopter rides, hotel rooms and other bribes from Donald Ellison, who was the then-president of Cobra Acquisitions, which was contracted to do the work.

After Maria, Congress allocated $40 billion for the island’s recovery and reconstruction. Up to now, $21 billion have been obligated, but only $14.8 billion have been disbursed, according to a report by the Fiscal Agency and Financial Advisory Authority (Afaaf, by its Spanish acronym).

The analysis was presented to Judge Laura Taylor Swain, who presides over the island’s bankruptcy-like process under the P.R. Oversight,

Management and Economic Stability Act (Promesa) since the current condition could further thwart Puerto Rico’s ability to service debt.

The report noted that $6 billion from FEMA’s Public Assistance program were obligated and $4 billion were disbursed, mainly for temporary projects for the P.R. Electric Power Authority, public buildings and housing. The Individual Assistance Program for Households also approved $2.6 billion, of which $2.48 billion has been disbursed.

Hazard mitigation assistance, the issue that the HELP Act intends to fix, has not been disbursed.

The Afaaf report calculated that Puerto Rico could receive approximately $3 billion through the program.

The deadly storm caused over $100 billion in damages. >Carlos Rivera Giusti

When it comes to HUD, CDBG funds earmarked for permanent projects for damaged housing, businesses and infrastructure have barely been disbursed. Congress allocated close to $20 billion, but just $1.5 billion have been obligated, and less than $400,000 have been disbursed. Lawmakers also granted $1.9 billion in CDBG funds for the improvement of the electric grids in Puerto Rico and the U.S. Virgin Islands, but no funds have been obligated so far.

In order to pressure HUD to release the funds appropriated to the island, in mid-December, House Democrats tucked a provision into the $1.4 trillion budget that denies the agency access to $19 million until the hold on the U.S. territory’s aid is lifted, reported Newsweek.

Two weeks before this move, a group of leading Democrats held a press conference to denounce the Trump Administration for illegally delaying the federal disaster aid allocated to Puerto Rico, and anticipated its intention to use mechanisms such as defunding or seeking a mandamus to compel Secretary Ben Carson to disburse the monies.

At the time, Resident Commissioner González, chair of the Puerto Rico Republican Party, announced in a press release that she had spoken with Carson to address the issue personally.

“The secretary informed the commissioner that the notices will be issued in the coming weeks, releasing the $8.2 billion in mitigation funds in tranches,” indicated the written statement.

The notices establish the guidelines for requesting the funds, and are just the first of many steps before HUD actually awards the money.

However, the wait continues. Without regard for the deadlines and rules set by Congress, Carson announced at the beginning of August that HUD would defer the disaster prevention funds to Puerto Rico, distributing the money separately from aid for nine states, due to worries over government corruption. The former neurosurgeon also revealed a plan to appointment a monitor to oversee the administration of disaster relief, a designation that is still pending.

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/ Wednesday, January 8, 2020

Prepa’s RSA Hearing Still On Hold FOMB has filed a motion requesting a date for the hearing

T Christian G. Ramos

cramos@elvocero.com

@cramossegarra

he Federal Oversight and Management Board (FOMB) has filed a motion for U.S. District Court Judge Laura Taylor Swain to approve the date of March 30 for a confirmation hearing on the Puerto Rico Electric Power Authority’s (Prepa) Restructuring Support Agreement (RSA), after requesting its postponement five times.

Just two weeks ago, the judge agreed to postpone a Jan. 14 hearing on the RSA, which is meant to reduce a $9 billion debt down to $3 billion in eight months. So far, the judge has granted a grand total of eight postponements.

“The involved parties want to postpone the meeting so that Prepa has adequate time to work on its transformation, and so that the legislature can conclude its process on certain aspects of the RSA,” stated the FOMB in their motion.

The RSA’s confirmation depends on the legislative assembly being able to approve laws that would allow for an effective implementation of the plan, something that has yet to happen, and that the FOMB’s lawyers claim is the main reason for the delay. The process of approval may be delayed further because this is an election year, aside from the fact that several legislators already said they oppose the RSA. “Both parties are actively participating in the legislative process necessary for Prepa’s exit from Promesa’s Title III bankruptcy process and all of the transactions that the RSA entails. The government understands that Prepa’s needs are best served by allowing the legislative process to advance further, as opposed to them being addressed at a hearing,” added the FOMB. Martin Bienenstock, the FOMB’s lawyer, said that the holdup in the legislative process may affect Judge Swain’s approval of the RSA. If the legislation needed to approve the agreement is not enacted before March 30, the FOMB may file another motion to delay the hearing.

The RSA is meant to reduce a $9 billion debt down to $3 billion in eight months.>Archive

P3 in Negotiations

“The Puerto Rico Public-Private Partnerships Authority (P3) has received several offers from companies interested in Prepa’s operation, transformation and distribution. We are working with these entities, analyzing their offers and negotiating terms. We are looking to finalize negotiations and the selection of an entity at the beginning of 2020,” read the document filed by the FOMB. They went on to state that P3 performed a market study on the outsourcing of Prepa’s energy generation.

“This market study was the first step toward the outsourcing of energy generation. The idea is to transform and improve Puerto Rico’s electricity,” claims the FOMB. The Puerto Rico Official Committee of Unsecured Creditors (CUC) has said that they do

not oppose the hearing’s postponement, although they do worry about the government’s evidence in favor of the RSA being obsolete by the time the hearing is held.

“Although the committee does not oppose the reparations requested in the motion, any delay or repercussion of the postponement is solely the government’s responsability. The committee did not request the postponement and reserves its right to file additional motions pertaining to the scheduling of the hearing and the effects that any delay in litigation may have on the reparation requested,” they emphasized.

According to the CUC, they have a right to request additional discovery processes because of events and developments that have transpired in the months since the hearing started being delayed.

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/ Wednesday, January 8, 2020

Manuel Martínez Arbona, president of the dairy sector of the Puerto Rico Farmers Association. >Josian E. Bruno Gómez

Dairy Industry Claims Win

Against Agriculture Department Reaffirms the autonomy of the Dairy Industry Regulatory Office

L Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

ast week, Puerto Rico Gov. Wanda Vázquez held a meeting with members from the island’s dairy sector to address their disputes with the secretary of the P.R. Department of Agriculture, Carlos Flores Ortega.

Manuel “Ricky” Martínez Arbona, president of the dairy sector of the Farmers Association, affirmed that in the meeting—which lasted more than one hour— he and his peers advocated in favor of stripping the secretary of agriculture from the authority to interfere in the processes pertaining to the Dairy Industry Regulatory Office (ORIL by its Spanish acronym).

Martínez Arbona affirmed that ORIL is the entity in charge of overseeing the industry’s standard mechanisms and establishing fines, as established under Act No. 34 of 1957, as amended, also known as the Dairy Industry Regulation Act. Tensions flared between the dairy

sector and Flores Ortega after the latter ordered a payment settlement formula for farmers in which their dairy products would be grouped according to their use.

More specifically, on Nov. 26, the secretary increased the number of payment levels that farmers receive from two to three—a measure that, according to the Farmers Association, had a negative impact on 75 percent of farmers.

Representing his sector, Martínez Arbona lambasted against the secretary’s decision, claiming it severely hindered the local dairy industry, its production capacity and constituted an unlawful intervention on ORIL’s role.

“One of the points that we raised was the payment method for farmers. We are requiring for the farmers’ payment settlement method to be managed by the Regulatory Office, which should determine what formula will be implemented, and has always been the office to take care of that and other studies. That is the office empowered under Act 34 to do said task,” Martínez Arbona told THE WEEKLY JOURNAL. Prior to the meeting with the governor, this discrepancy between the parties involved resulted in a legal dispute between the dairy sector and the Department of Agriculture, where Martínez presented his case via a mandamus resource so that the court may rule against Flores Ortega’s administrative order. While he asserted

that Vázquez listened to their claims and agreed to reverse the secretary’s involvement, there is still uncertainty on whether the legal process is still ongoing.

“It wouldn’t hurt for the court to ratify it but we will clarify that with our lawyers, although there is already a commitment from the governor with us that [Flores Ortega] will not interfere,” he said.

Ultimately, the sector seeks to reduce the number of payments for all dairy produced down to one, regardless of its use.

Meanwhile, the governor reportedly requested the local dairy sector—which represents 30 percent of Puerto Rico’s farming industry—to stop decommissioning products.

“She listened to us and understood us, and she also presented her point of view and was very firm in that stance. She didn’t want us to continue decommissioning milk; she wanted us to find a way [to stop], make the proper arrangements to process it, and to reach an agreement amongst ourselves to work on that,” Martínez Arbona said.

He added that he and his peers agreed to meet the governor’s demands, and pledged to reach a consensus so that eventually their goal may be reached. Said goal would mean “innovating the industry, suspending decommissions and creating other products.”

THE WEEKLY JOURNAL Reporter Ayeza Díaz Colón contributed to this story.

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/ Wednesday, January 8, 2020

Sun West:

A Mortgage Institution Betting on Local Talent The company continues to expand services on the island, while amplifying its strategy of exporting financial services to the U.S.

T Cynthia López Cabán

clopez@wjournalpr.com

@cynthia_lope

he executive vice president of Sun West Mortgage, Luis Raúl Padilla Alemañy, is not your average banker. He’s warm and engaging. Doesn’t like the stiffness of suits or ties. Prefers, instead, to walk around the office in jeans and a short-sleeve shirt. Aside from the computer screen crowded with numbers and the folders on the desk, his working space displays family photos, crafts, art and some sports collectibles.

Padilla also discusses the dull nitty-gritty of the mortgage business with the same passion a writer describes the characters in a new novel.

But don’t be fooled by the charm. He’s dead serious about transforming the mortgage business and turning Puerto Rico into a talent pool for the industry.

So far, the man who wanted to be a doctor, like his dad, but along the way discovered the thrill of closing a deal, has done well. He leads one of the fastest-growing mortgage institutions on the island. Sun West, a mortgage institution founded in California four decades ago by real state agent Hari Agarwal, opened in 2011 with 23 employees and one office at Metro Office Park in Guaynabo.

Eight years later, the company employs 125 workers and has four branches aside from the main headquarters at the Maramar Building in Guaynabo.

The operation extends beyond the boundaries of the island. A team of local engineers developed the software the company uses to provide services online to clients in Puerto Rico and

Luis Raúl Padilla has been at the helm of Sun West Mortgage since it opened its doors in 2011. >Brandon Cruz González

the U.S. From a call center in Guaynabo, Sun West Financial employees answer questions from borrowers on the mainland and the commonwealth, and resolve other banking matters.

Sitting in his office in Guaynabo, Padilla chatted with THE WEEKLY JOURNAL about the challenges of doing business here and initiatives in the pipeline. Unlike other businessmen, who tiptoe around hard questions, the banker spoke without qualms about the pitfalls of Acts 20 and 22.

“Many mortgage banks in the states don’t want to come because they don’t understand the system... but the real problem is the absence of data,” Padilla noted. “If you are an investor and you want to invest, there isn’t data available to determine how many units or households are in P.R. The lack of statistics is incredible.”

It doesn’t help matters that for some purposes -such as taxes and some banking services- the

island is treated as a foreign jurisdiction.

“But Pavan (Hari Agarwal’s son) saw an opportunity because P.R. has a very peculiar situation. The culture here is more focused on ownership of property rather than rentals,” Padilla indicated.

Since Sun West concentrates on mortgages, it works closely with developers and real estate agents. The number of refinance loans is low due to the high cost of the transaction in comparison to the U.S. “When former Gov. Luis Fortuño extended Act 20 and 22 to include financial services, it opened the door for the expansion of Sun West in Puerto Rico as a real Act 22 company,” Padilla pointed out.

19 19

/ Wednesday, 20, December / Wednesday, November 2019 11, 2019 / Wednesday, January 8, 2020

By Edgardo Edgardo Vicenty Vicenty Rafael “Tatito” Hernández Entrepreneur and & Financial Entrepreneur FinancialAnalyst Analyst

By Inteligencia Económica ByBy Anthony Maceira Anthony Maceira

House of Representatives Minority Leader

Tax IncentivesOwners versus Restaurant ity Trust andNext StabilTaxi are the Breaking Chains Drivers

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II T

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et me offer you a invest hundreds of millions of t’s election year and is in a significantly better condition deal, come to opposition intensifies dollars in multi-year projects that it used to be, complies with my beautiful against a P3 process that to build their manufacturing FAA regulations and has received island, invest has been more than two plants, are specially warry of hundreds of millions in investment. lame is defined figures resigning because hekeeping 2019 Report Following lends through with the adeq ood delivery startups n with our they don’t even of do takeouts, only infrastructure the north your savings years undergoing with investing in unstable places People may have forgotten are taking over, business intelligence deliveries. of Puerto Rico an advantage as holding others investigations by they federal Card for Puerto the condition closureofofour non-compliant landfil in a promising stakeholder involvement because can’tagencies just pick up airport back will to disproportionate model, we have By sharing space and only overbut thethe south, which relies venture throughout its entire their equipment and leave if then, main international responsibleand forthey and anddothe hiring Rico’s Infrastructure, utilizing private capacity and ava restaurant owners conditions developed workingchange. with delivery apps, on the PR-52 payour no misfortunes. personal or corporate course. Political figures have an in damaged Puerto Rico (SJU) needed or contracting of “talented” prepared by the airport federal funds is D’area’s Opportunity t what Uber did to taxi ample amount virtual kitchens massively lower highway.

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Meanwhile, promote economic development and the users’ experience while at the to Hatillo. Taken as a whole, app, the new brand could be placed commerce and the presence couple of times a year.

Fourth, some opposing the transaction and in Puerto Rico, the industry’s job creation just as the improvement t years under welfare of our even decades, the if we appropriately manage of two hurricanes an alread same time, creating a massive area enjoys relative at people, no cost, as the when top search result leaders inaggravated the coop figuringtoout howbytobuilding get permits promising to “revert the privatization” assets have barely changed ofmovement, the airport has done. Iand trust that barrier entry out economic stability because of and offer customers exactly what Coopaca osselló. Much to confronting our own leadership. In the recovery funds destined to Puerto difficult fiscal and operational is close to centers, impossible; you will if elected; different stakeholders are over thewant sameatperiod and this administration will continue fulfillment same day like the PR-22 highway, they aright. lower price.

Zeno Gandía. pointment, we can the end, time proved us Rico and things facilitate private investment. situation for our water managem be better off paying a local with genuinely afraid of change and some our economy has remained doing what must be delivery. Delivery startups are doing the management of which is History doesn’t repeat itself, but it Hatillo remainsdone, an addressing t the this government Puerto Rico deserves much Investors don’t need political favors, Closing the P3 concession in PRA government ties to expedite the with private interests use this to their stagnate. legitimate concerns and securing by creating “cloud or virtual” outsourced to Metropistas, tends to rhyme. Restaurant owners agricultural town and process and, even then, it might advantage in the public opinion.

In this new decade, Puerto the best result for Puerto Rico; and Vázquez Garced is more. It deserves the policies thatecosystem are favorable and the continuation of adequa kitchens. and its diverse of shouldthat learn from the mistakes they need epicenter of the milk industry. take months.

Still, a great deal, The truth today is that the Rico has an opportunity to learn hope that someday everyone may Virtual kitchens are restaurant anchor firms. made by taxi drivers and consumer The town’s government ntinuation of that interests of our political leaders for business, stability and the political management of recovery funds, right? Maybe not. designed for opposing party won the 2012 from Ireland.selling Our government understand that neither projects, nor locations explicitly products online if they want continues to feed its have cy. No protection be focused on the needs of the willelection, to do what needs tothing be done.

Opportunity to a more res I wrote this story to expose and did no such as can kickstart economic the people, should be used as political deliveries. These kitchens are to survive the 2020s. As an industry, tourism industry with the Economic Assets in the unicipalities or people. deserves transparency Some solutions, such those water for our people. how taxin incentives areareas, close to It development process, on the as contrary, ontake the island tools to push system personal agendas. located high-traffic are they need to controlbyof their revert the establishment of hotels and May Northern Region useless in an unstable political they did what had to be done and making the tough decisions in some years we have one more niversity of Puerto and accountability.

It deserves drinking water, The wheel like hasitsbeen “déjà invented shared by multiple restaurants, and distribution platform or harder for solid waste, through activities The transportation environment.

Industries closed the deal.

Today, we can agree necessary to create stability and vu” when we get to see the results of been proposed by seating area; newinand opportunities to don’t have any fact,better ports, and energy, are already at and this is not managing the sto times will come. emblematic mask festival. like pharma, which have to that, although not perfect, our airport another bold and necessary project. trustworthiness.

nment to avoid tation that the tation of the Fiscal Plan

obtain a better quality of life for all – better education, security, affordable housing and the

an advanced stage on their road to completion. Government simply should remove any roadblocks that

market. Puerto Rico can build better infrastructure and suppo economic growth. Adequate

20

Photos by: Manuel Vélez

/ Wednesday, January 8, 2020

Draco Rosa Celebrates Every Single Day as a Miracle

I

Yaira Solís Escudero

ysolis@elvocero.com

@yairasolis

t is only when you have been to the edge of existence that you can understand the need and desperation of wanting to celebrate every single day as if it were a miracle. This is precisely how Puerto Rican singer and songwriter Draco Rosa has felt since he beat cancer in 2011.

The diagnosis shook him up but it also taught him about “feeling your life”.

The songwriter talked to us about how he had to learn to silence his intellect and his ego in order to give way to his intuition, something he has been arduously working on lately because, for him, both of those lead men to perdition.

“I realize that intellect is important when it

comes to making decisions, but at this time in my life I am more focused on feeling alive, which keeps me in tune with my intuition. I am right where I want to be, I feel very connected to nature and my present,” said Draco to THE WEEKLY JOURNAL. Last November, Draco’s latest album, Monte Sagrado, won the Latin Grammy for Best Rock Album of 2019.

Although Draco continues excelling, he assured us that his life is about more than just that, it’s about being blessed and embarking on new adventures. He went on to tell us an anecdote that to him is the epitome of “daring to live”.

In 2019, he was flying to Nevada to film a music video when he was given the chance to meet with a shaman. He described the experience as incredible and went on to say that in his journey to

wellness, serenity and growth he had realized that as one ages, one starts losing the will to explore.

“Sometimes, when you are in a relationship, you feel like you are in possession of something or like your partner is killing your intuition, and the truth is that nothing lasts forever. The only thing we have, and the only thing that exists is the now, this moment, thinking about the future… what for?

Nobody knows what the future will bring, the past is gone and the future will never be because if you live in the present you live your life at its fullest,” he stated, convinced that the soul doesn’t die and that what’s important in life is to live without fear while sharing every good moment with the people around you.

Nowadays, Draco spends most of his time at his farm, Hacienda Horizonte, in Utuado. He says he’s enjoying having energy and “humbly wandering

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/ Wednesday, January 8, 2020

The ego is disastrous to men, I want to be rid of it forever. I am looking for healing. I am in a desperate search for light and a happy life.

–Draco Rosa

around, exploring and understanding more about plants and spending time with the family, “ he said, while also noting that he wants to continue enjoying ordinary, every day moments.

“I am so happy with this life; riding horses, driving my bike and sharing my energy. This is a blessing, to be able to recapture my innocence.

Just yesterday I was walking with the horse around the farm and eating rambutan and said to myself ‘Wow, this is life!’,” he said, also adding that he no longer takes sleeping aids.

Do you think that having cancer and living through so many difficult moments had as its ultimate purpose to awaken your spirituality?

You know, it was a crazy time…I lived so many moments filled with uncertainty, with doubt and horrible fear. Of course, I started to believe that this all happened so that I could work on my spirit, my soul. I had to be there, in that moment; it was necessary because I was a mere seedling until I turned 50, and now I am a flower in the field. Do

you understand that metaphor? There will be storms and a thousand problems even when you are just a flower in a field but I am alive and, to me, that is incredible, merely being able to get up in the mornings. I feel the voltage, the energy.

He realizes that there are those who may think he wants to live in a bubble.

Yes, I am desperately searching for light and trying to live in my happiness. Little by little I gain more satisfaction out of living happily and in plenitude. I live that bubble!,” he said.

How have been dealing with the recent separation from your wife of 28 years, Ángela Alvarado?

She is the love of my life. Knowing that 90 percent of the diseases come from our minds, I needed to find my truth, my healing, what are you supposed to do if your partner doesn’t understand that? It was a hard decision to make.

He went on to add that his search took him all the way to a silent retreat in California at the beginning of 2019, and later to a yoga retreat in Costa Rica. He describes these as his attempts at rescuing his soul, as enriching experiences that help him “live his life”.

What did you learn from these experiences?

Although It was hard to be silent, I got used to it. I read a lot about saints and Kundalini yoga, a discipline that works on your body through exercise and meditation, developed by yogi Bhajan. I learned to breathe, a natural process that we give no mind to but that means life to our whole body. I now know how important it is for my body to breathe every morning, to be hit with life that way. I also learned a lot about self-healing and gratitude. I really want to achieve self-healing, I am not looking for a religion. We all have feelings

and dreams and cannot go against what we feel, there’s only one life and we are in this paradise so we can live it.

Staying Busy

Aside from undertaking new projects on his farm – he wishes to produce other organic products aside from coffee – Draco is currently working on his new show, to take place at District Live! on Nov. 2020.

Another project he wishes to keep working on is his foundation, Vox Fort Alliance. To him this is another one of his life’s missions, to contribute to the healing of other cancer patients, especially those who may need monetary assistance with their bone marrow transplants.

“It’s one of the easiest ways to give life, and it is important to let other patients know that the process is not as painful as it is made out to be,” added Draco.

He’s aware that he was able to fight his cancer because he had the financial resources to do so and, through his foundation, he wishes to assist those that are not so lucky.

We will start seeing more of him at events like his “Larga Vida” festival in Dorado, where he promoted holistic methods, offered talks and yoga lessons.

Because healing is of utmost importance to him, he also published a book titled “The Secret to Life Based on Plants”, a collaboration with nutritionist Nena Niessen.

He is also dedicating himself to composing music that will bring about healing.

“After “Vagabundo” in 1996 and “Monte Sagrado” in 2018, I wanted to get closer to that type of music. I read about mantras, Gregorian chants, about things that have always been around but that are new to me. I’m still at the beginning of this journey, of this awakening, and am humbly waiting to feel and to share what I’ve learned: to

live life,” he concluded.

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Calling All Burger Lovers!

>Courtesy Burger Fest

/ Wednesday, January 8, 2020

The Puerto Rico Burger Fest promises to offer the best hamburgers on the island

T

Yennifer Álvarez Jaimes

yalvarez@wjournalpr.com

@yalvarezjaimes

his weekend people will have a chance to bestow the “People’s Choice Award” to their favorite hamburger as Puerto Rican gastronomy once again takes the main stage at a fun event in San Juan.

The simple hamburger is not so simple anymore. Chefs are taking a shot at reinventing or improving the classic dish, from the precise beef grind, with creative fillers like different kind of cheeses, chorizo, bacon or ham, to a reformulation of the bun.

If you love burgers then be sure to check out the first edition of the Puerto Rico Burger Fest on Saturday, Jan. 11, from 3 - 10 p.m. at Eco’s Sports Park in Hato Rey. The event promises to be a blast for foodies,

Víctor Curet and Jaime Villamil, the creators of the Pizza & Beer Fest annual event announced the debut of the Puerto Rico Burger Fest. >Courtesy Imagenda

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/ Wednesday, January 8, 2020

For the past six years we have been at the forefront of culinary events, and we wanted to start this year with a festival for everyone to enjoy in a family-friendly environment and with a versatile and favorite food.

-Jaime Villamil, co-producer Burger Fest

showcasing over 25 local restaurants. There will also be lots of activities for children, live music and games.

Attendees will also have the opportunity to vote for the best hamburger. In the event’s final stage, a panel of celebrities and renowned chefs will choose the best burger out of those voted on by the public.

The Burger Fest will have a wide variety of hamburgers and combinations.

“Get ready for some of the juiciest and succulent burgers,” the Imagenda group said.

“For the past six years we have been at the forefront of culinary events, and we wanted to start this year with a festival for everyone to enjoy in a family-friendly environment and with a versatile and favorite food.” said Jaime Villamil, the event’s co-producer .

Víctor Curet, who is also a co-producer, said that it is necessary to continue producing familyoriented events.

“Our experience with the Pizza and Beer Festival has been unique, and everyone’s satisfaction has been immense. In 2020, we wanted to

start strongly, we bet that it will be an important year for us, as we continue working with the productions that have made us gain the trust of the public that follows us,” Curet added.

Admission to the festival costs $11 and all the sliders will have a fixed cost of $3.

This year’s line-up consists of Burger Lab, Burgers & Waffles, BRGR Shop, Dondesea, El Truco de Guin, HP Tavern, Little Taste of Heaven, Mochilero, Puttanesca, Senderos, Waldos Food Truck, Xtreme Burguers, Pa’l Hamburger, Buns,

Cosechas, Koko’h Burgers, Parada del Sabor, Lucky Black, On the Road, Fillie’s, and La Local, among others.

On the vegan side, Comida Restaurativa and Maui will showcase plant-based burgers.

Burger Fest Line-up: Burger Lab Burgers & Waffles BRGR Shop Dondesea El Truco de Guin HP Tavern Little Taste of Heaven Mochilero Puttanesca Senderos Waldos Xtreme Burguers Pal Hamburguer Buns Cosechas Koko’h Burgers Parada del Sabor Lucky Black On the Road Fillie’s La Local Comida Restaurativa Maui

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/ Wednesday, January 8, 2020

Dulzura Borincana

Going Beyond Puerto Rican Candy Continued innovation and exporting at the root of their plan for 2020

D

>Tito Ortiz

Stephanie Gómez Álvarez

sgomez@elvocero.com

stephaniegomeza

ulzura Borincana revolutionized the Puerto Rican candy industry by turning them into more than just occasional candies and into tropical snacks that can be enjoyed all over the world.

Now, in 2020, they will start selling nutritious snack bars and organic products.

Dulzura Borincana’s owners, Carlos Rivera and Carmen Ríos, are betting on their innovative ideas and their exporting know-how in order to continue growing the company they acquired from Rivera’s father in 1998.

THE WEEKLY JOURNAL had the opportunity to visit their completely automatized, 30,000-squarefeet factory in Moca, where a staff of 40 employees takes care of every aspect of the enterprise, from sales to production.

“We knew that if we didn’t automatize the factory we wouldn’t be able to break down barriers. It was an essential part of our growth and development plan,” said Ríos, while noting

that, in the beginning, everything was done by hand.

The factory, which initially produced only three candies, “marayo”, sesame, their best-seller, and coconut, now sells an assortment that includes coconut and chia; coconut and guava; coconut pineapple and Stevia sweetened sesame, among others. All in all, they produce a million pieces of candy a week, all of them based on their original 30-year-old recipe.

Making their Candies Marketable Worldwide

In Puerto Rico, their products are known as candies. However, in order to succeed in marketing their product worldwide, they had to

25

resort to labeling them as tropical snacks of high nutritional value.

“In Puerto Rico, these products will always be seen as candy because they are a part of our culture. I grew up with them, as did my grandparents, and it is a healthy and natural product, but we had to market it differently so we could address what consumers were looking for. We advertise them as a fruit and seedbased snack in individual portions for those who monitor sugar and caloric content,” said Rivera, president of the company.

The clever marketing, in combination with the ability to offer an array of different packaging alternatives, has allowed the company to sell their products at more than 3,000 places in the United States and the Caribbean. Their products are available at places like Wal-Mart, TJ Maxx, Homegoods and Ross in the U.S.; Pricemart stores in the Caribbean: and Dufry in the Dominican Republic. They also have distribution centers in Florida, New Jersey and Maryland.

Amongst their biggest accomplishments in 2019, was the addition of 500 new Wal-Mart stores to their roster of points of sale.

For 2020, they hope to increase their export sales by 10 percent, they currently export 30 percent of what they produce. They are betting on Latin America to reach this number, and have already started talking to companies in Costa Rica, El Salvador and Colombia.

“We always knew we wanted to do something different… I want to take this company and this industry to places it has never been before. I want the entire world to know what we do here.

Although are products are decidedly Puerto Rican, they are enjoyed all over the world,” said Ríos.

>Stephanie Gómez Álvarez

>Stephanie Gómez Álvarez

/ Wednesday, January 8, 2020

say that this was a process which required an investment in machinery and packaging, as well

as entailing a learning process on the logistics of exporting.

Innovations Ahead

I want to take this company and this industry to places it has never been before. I want the entire world to know what we do here. Although are products are decidedly Puerto Rican, they are enjoyed all over the world.

–Carmen Ríos

In 2020, they are focusing on nutritious snack bars and new line of organic products.

“We will be elaborating 40g bars to enter into the nutritious snack bar market. There’s nothing in the current market like what we are creating. It is the only one made in Puerto Rico and the first Latin one,” said Dulzura Borincana’s president.

Ríos went on to add that there is a great need for this type of product, an alternative to granola. Dulzura Borincana’s bars will have quinoa, pumpkin seeds, sunflower seeds and cashews.

The company is also in the process of getting their factory organic-certified, at a cost of $600,000 in equipment and infrastructure, so that they can sell different types of seeds.

Since its inception, the company has tried to revolutionize the industry. Aside from globalizing a Puerto Rican product, they were also the first to sell them individually wrapped.

“We were betting on small portions. When we began, the standard was five ounces. We bet on smaller portions because people would have to buy the bigger one and cut it up a home, and sometimes it would go bad,” expressed Rivera.

Ríos, Dulzura’s vice president, went on to

>Stephanie Gómez Álvarez

Changes in the Industry

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/ Wednesday, January 8, 2020

Step by Step :

Activities for Children

R

Hallee Patterson

newsroom@wjournalpr.com

eading THE WEEKLY JOURNAL’s story about “Christmas at Piedra Dura Water Park” in San Lorenzo sparked my interest. I have young grandchildren and am always searching for things to do with them when they visit. I started to ask all my friends with young children what types of activities their families enjoy doing together.

This Step by Step article is to help anyone with children find great and memorable activities.

Museo del Niño, Carolina. >Archive

These ideas are organized into categories:

Parks and Horseback Riding:

1. Parque Colón in Aguadilla There is a beach but the wooden treehouse is probably the most notable feature of this attraction.

2. Arecibo Lighthouse and Historical Park There is a small display about the discovery of Puerto Rico, a pirate’s cave, aquarium and small water park. Bring bathing suits and towels.

3. Carabalí Rainforest Park This adventure park features a go-kart track, horseback rides, zip lines, mountain biking and ATVs.

4. Castillo Del Niño in Guaynabo Amusement park that only opens on weekends.

5. Villa Campestre Petting zoo and rides in Guaynabo. It is a popular spot for birthdays and summer camps.

6. Hacienda Campo Rico Horseback riding and local food.

7. Ponylandia Pony riding in Luquillo. The small horses are lead around a ring. Good place for small children.

Trampoline Parks:

8. Altitude: Located at 950 Carr. 189 in Gurabo and PR-2 in Bayamón.

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/ Wednesday, January 8, 2020

Ponylandia is a riding place in Luquillo. >Courtesy

Carabalí Rain Forest. >Courtesy Carabalí

9. Bounce: Located at Victoria Industrial Park in Carolina.

10. Summit: Located at the Mayagüez Mall.

Water Parks:

11.. Aquasol Barrazas Water Park in Carolina.

12. Las Cascadas Water Park in Aguadilla.

This Park is one of the largest water parks in the Caribbean region.

Educational Experiences:

13. Aerostatic Balloon (Globo Aerostático) Located in Jayuya, this is the first Aerostatic Balloon in Puerto Rico. It sits on a hill 3,200 feet above sea level. The balloon rises about 500 feet to reach 3,700 feet above sea level. The view is spectacular.

14. El Bastión Cultural center in Old San Juan that hosts a variety of activities throughout the month.

15. Martínez Dairy Spanish language tours offered Saturdays and Sundays at 10:30 a.m. and 2 p.m., by appointment only.

16. Guánica’s sunflower farm Take a stroll through this field and snap away with your camera. Maybe even buy some flowers for yourself.

17. Museo del Niño de Carolina Children’s museum with hands-on educational exhibits, go-karts, a colorful outdoor play area and petting farm.

18. San Juan Botanical Garden Also know as the “Jardín Botánico de San Juan” , it is located in Rio Piedras.

19. Caguas Botanical Garden Also knows as the Jardín Botánico y Cultural William Miranda Marín, it is locate in Caguas.

20. Castillo San Felipe del Morro I highly recommend the movie to learn about the history and construction of the two San Juan

Altitude is a trampoline park in Gurabo. >Courtesy

forts. You can fly kites in the wide open expanse leading to the fort.

Zip Line:

25. Toro Verde

Glamping:

21. Pitahaya Glampling Eco retreat in Cabo Rojo.

22. Finca Oro Rojo in Orocovis.

23. Finca Viernes in Utuado

Go-Karts: 24.Sector Sixty6 Go-karts, drag racers, an arcade, bowling alley and rope course.

Additional activities: 26. Dave and Buster’s in Bayamón.

27. Chuck E. Cheese in Caguas and Bayamón.

28. Movies 29. And of course, the many fabulous beaches of Puerto Rico.

Please note: Always call ahead before going to

any of the ideas listed above.

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/ Wednesday, January 8, 2020

How To Prepare Before An Earthquake When stocking up on supplies for an earthquake, the most important thing to get is water

A Yennifer Álvarez Jaimes

yalvarez@wjournalpr.com

@yalvarezjai-

fter a 6.5 magnitude earthquake shook Puerto Rico before dawn Tuesday, THE WEEKLY JOURNAL gathered expert tips on how to be prepared in case another quake rocks the island.

Authorities reported landslides, power outages and severe damage to homes and roads in the Southwest. It was one of the strongest earthquakes yet to hit the U.S. territory, which has been shaking for the past week.

The most damaging earthquake to happen in Puerto Rico occurred on Oct. 1918, when a 7.3 magnitude quake struck near the island’s northwest coast, causing a tsunami and killing 116 people.

Víctor Huérfano, director of Puerto Rico’s Seismic Network, said at a press conference held on Tuesday, that shallow quakes were occurring along three fault lines in Puerto Rico’s southwest region: Lajas Valley, Montalva Point and the Guayanilla Canyon.

He said the quakes come as the North American plate and the Caribbean plate squeeze Puerto Rico, and that it was unclear when they would stop or if bigger quakes would occur.

Earthquakes can happen anywhere, but the Department of Homeland Security says higher risk areas include: California, Oregon, Washington, Alaska, Hawaii, Puerto Rico and the Mississippi Valley.

The best time to prepare for any disaster is before it happens. When stocking up on supplies for an earthquake, the most important thing to get is water. Experts recommend a supply of 1 gallon of water per person per day for at least three days.

When you feel the ground begin to shake, experts recommend you drop onto your hands and knees, cover your head with your arms, crawl

A home collapsed in Guánica after an earthquake hit Puerto Rico on Monday, Jan. 6. >Carlos Rivera Giusti

under a table and hold on to a steady structure near you, or simply hold on to your head and neck with both arms if no shelter is available.

• Don’t run. Don’t try to get out of the building because you could move toward falling objects or structures or get thrown around. If you are out and away from a building, you will be safe.

• Practice Drop, Cover and Hold On with family and coworkers. Drop to your hands and knees.

Cover your head and neck with your arms. Crawl under a sturdy table or desk if nearby. Hold on to sturdy furniture until the shaking stops. If a table or desk is not close, crawl next to an interior wall.

• Secure items, such as bookcases, refrigerators, televisions and objects that hang on walls. Store heavy and breakable objects on low shelves.

• Create a family emergency communications

plan that has an out-of-state contact. Plan where to meet if you get separated.

• Make a supply kit that includes enough food and water for at least three days, a flashlight, a fire extinguisher and a whistle. Consider each person’s specific needs, including medication. Have extra batteries and charging devices for phones and other critical equipment. Do not forget the needs of pets and service animals.

• Consider obtaining an earthquake insurance policy. A standard homeowner’s insurance policy does not cover earthquake damage.

• Consider making improvements to your building to fix structural issues that could cause your building to collapse during an earthquake.

For more information you can access: https:// www.ready.gov/earthquakes

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< The Weekly Journal > Wednesday, January 8, 2020

If it’s happening now, it’s on our online journal.

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/ Wednesday, January 8, 2020

Pro Arte Musical: Lisa Pegher

Lisa Pegher is an American drummer and solo percussionist featured in Symphony Magazine as one of the top six performers of her generation. She has performed throughout the world as a soloist, recitalist, and chamber musician.

When: Saturday, Jan. 11 at 8 p.m.

Where: Pablo Casals Symphony Hall, Luis A. Ferré Performing Arts Center, Santurce

Holiday Season Celebration at Dos Marinas

Enjoy music, dinner and drinks waterside.

You can also bring your own drinks and food.

Appetizer donations welcome!

When: Saturday, Jan. 11 at 7:30 p.m.

Where: Dos Marinas, Marina View avenue, Fajardo

Speaker Series: Search Engine Marketing for Beginners

Is doing more search engine marketing part of your New Year’s resolutions? Then you’re in luck. Francine Rodriguez is an expert on the subject and will give you tips and tricks on how to succeed.

When: Thursday, Jan. 9 at 6 p.m.

Where: 1250 Ponce de León Ave., 4th floor, San Juan

Sustainable Recreation Site Design Review the Sustainable Recreation Site Designs for El Yunque National Forest.

When: Saturday, Jan. 8 at 5:30 p.m.

Where: Portalito HUB, Palmer, 54 Principal St., Río Grande

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/ Wednesday, January 8, 2020

San Juan Salsa Nights

If there is one thing that Puerto Ricans are known for worldwide, it’s our music! Immerse yourself in a culture of rhythm, swing and sensuality during the San Juan Salsa Nights experience. Because here in Puerto Rico, Salsa is more than a dance - it’s a way of life! For more information, http://sanjuansalsanights.com When: Friday, Jan. 11

Back to the ‘80s

The Puerto Rico’s Symphonic Orchestra will be starting 2020 with an homage concert to popculture’s golden decade— the ‘80s! The night’s repertoire will include symphonic versions of the decade’s best songs. Some of the artists honored will include Queen, Elton John, Bon Jovi, Phil Collins, Van Halen, and Michael Jackson.

When: Saturday, Jan. 11 at 8 p.m.

Where: Luis A. Ferré Performing Arts Center, Santurce

Beach Clean Up

Celebrate the first full moon of the year with a beach clean-up of land and water at Esperanza beach. Once we finalize the clean-up, there will be music, barbecue and Crab Island Rum. Put on your swimsuit and let’s leave Esperanza beach clean. For more information, http://www. salty-spirit.com When: Friday, Jan. 11 at 4 p.m.

Where: Barrio Esperanza, 996 Flamboyan St., Vieques

Dog Walks at the Beach

Join Amigos de los Animales for one hour of morning exercise and swimming! Walk or swim with our shelter dogs at Piñones beach.

When: Wednesday, Jan. 8 at 9 a.m.

Where: Piñones beach, Loíza

San Juan Ghost Walk

Pirates, ghosts, miracles, the Fountain of Youth, the Bermuda Triangle, and much more! Learn the unique haunted heritage of beautiful Old San Juan, Puerto Rico.

When: Friday, Jan.10 at 7:30 p.m.

Where: Plaza Colón, Old San Juan

RanCanCan Burlesque Show Puerto Rico

Experience RanCanCan Burlesque in the Chico Cabaret Theatre located at the legendary El San Juan Hotel.

When: Friday, Jan. 10 at 8 p.m.

Where: El San Juan Hotel, 6063 Isla Verde Ave., Carolina