The Weekly Journal - Wednesday, January 26, 2022

Wednesday, January 26 - February 1, 2022 - // no. 144

Puerto Rico and the Caribbean

www.theweeklyjournal.com

Federal funds to clean up Martín Peña Channel P6 Minimum wage increase: more pros than cons P7 GM to open battery plants for EVs P9

Debt Adjustment Plan is finally approved

but not all creditors are satisfied Debt is reduced by almost 80% and more than $50 billion in debt payments are saved

A

Juan A. Hernández

New dinning alternatives in Condado P14

jhernandez@wjournalpr.com

fter five years of bankruptcy, the Debt Adjustment Plan (DAP) presented by Puerto Rico’s Fiscal Oversight and Management Board (FOMB) was finally approved by US District Judge Laura Taylor Swain last week.

Swain’s ruling reduced Puerto Rico’s central government, the Public Buildings Authority (PBA) and the government employees’ Retirement Systems $33 billion outstanding obligations to $7.4 billion. The ruling

reduces by almost 80% Puerto Rico’s public debt, saving the island more than $50 billion in debt payments for the term of the DAP. Starting next March, if the DAP is not challenged by creditors, the administration or the Legislature, the Commonwealth will resume payments to its creditors in the amount of $1.5 billion a year, for the next 30 years.

“For me [the plan], is completely fair and completely sustainable for Puerto Rico. Puerto GO TO PAGE 4

The Weekly Journal > Wednesday, January 26, 2022 >

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La verdad es que no podemos ensenarles a ser buenos, tratandolos mal.

La verdad te necesita para cuidar el futuro.

La verdad no tiene precio.

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/ Wednesday, January 26, 2022

a week in review The Spanish Monarch Receives the Key to Old San Juan The Mayor of San Juan, Miguel Romero, presented the King of Spain, Felipe VI, with the key to the old city as a token of gratitude for visiting the city on the occasion of its 500th anniversary since its foundation.

“With deep affection and emotion, I receive the key to the very noble and loyal city of San Juan, which has kept the hearts of Puerto Ricans open to all Spaniards for 500 years,” said Felipe VI. The Monarch’s strict itinerary included a visit to Governor Pedro Pierluisi at La Fortaleza, a greeting to the sisters at the Convent of the Servants of Mary, a visit to the San Juan Museum and the San José Chapel.

His Majesty’s visit concluded with a state dinner.

The last time Felipe VI visited the island was in 2016, for the inauguration of the International Congress of the Spanish Language.

>Archive

Puerto Rico Now Part of International Color Palette

Iconic Normandie Hotel to be Restored The iconic Normandie Hotel, located in Puerta de Tierra, was recently acquired by The Ishay Group, a New York-based real estate firm, for $8.6 million. The firm bought the property under regulations of Act 60. The Normandie opened its doors for the first time in 1942, but has been closed since 2009. The structure was added to the National Register of Historic Places in 1980. The Ishay Group presented their proposals for the hotel’s renovation to the Institute of Puerto Rican Culture and the State Office of Historic Conservation (OECH, for its Spanish Acronym), which included renovations to maintain the property’s historical elements and original architecture.

Powered BY El Vocero de Puerto Rico, 1064 Ave Ponce de León 2nd floor San Juan, PR Postal Address: PO Box 15074, San Juan, PR 00902

Pantone Color Institute unveil earlier this month a new color inspired by the hue of the Puerto Rican sunlight. An exuberant

President Salvador Hasbún shasbun@elvocero.com

VP of Accounting Félix A. Rosa frosa@elvocero.com

Human Resources Director Arlene Rolón, PHR arolon@elvocero.com

Vp of Marketing and Business Operations Michelle Pérez Miperez@elvocero.com

VP of Production Eligio Dekony edekony@elvocero.com

VP of Editorial Content Juan Miguel Muñiz Guzmán jmuniz@elvocero.com

and exotic vibrant redorange hue, Puerto Rico Sunshine is infused with energizing warmth and radiates excitement.

As of last week, those

looking to incorporate a dose of tropical warmth into their life will be able to purchase the limited edition of the Puerto Rico Sunshine paint from ECOS Paints, an eco-friendly waterbased paint that uses sustainable ingredients.

“As the gloomy winter is upon much of the United States, we’re sharing the color of our sunshine to energize and revitalize people, especially during these coldest and darkest months. We want to encourage travelers to keep Puerto Rico in their plans for 2022 as the Island’s tropical charm is just a short plane ride away,” said Leah Chandler, CMO of Discover Puerto Rico.

Multi-Platform Graphic and Technology Director Héctor L. Vázquez hvazquez@elvocero.com

Phone: 787-622-2300, 787-721-2300

Multi-Plataform Digital Director María Arce marce@elvocero.com

Customer Service: 787-622-7480

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CONTINUED FROM PAGE 1 Rico is not going to have any difficulties meeting its obligations under this plan,” said FOMB president David Skeel.

According to Skeel, what distinguishes Puerto Rico’s debt restructuring from other public restructuring cases is that it is the first to be carried out through a mechanism applicable to an entire country. “In that sense,” he pointed out “it is much more complicated and three times bigger than the restructuring of the city of Detroit in 2013.”

For me [the Plan], is completely fair and completely sustainable for Puerto Rico.

Puerto Rico is not going to have any difficulties meeting its obligations under this plan.

David Skeel President, FOMB

For FOMB executive director Natalie Jaresko, now that the DAP has been approved, Puerto Rico’s government will be in a better position to improve the conditions of public employees, and public services.

The DAP states that General Obligations (GOs), PBA and Retirement Systems bondholders will receive $7.4 billion in cash; the exchange of the current bonds for new ones, and the possibility of some $4.5 billion in additional revenues through Capital Appreciation Bonds (CABs) and Contingent Value Rights (CVRs).

CVRs are instruments committing the acquirer to pay additional consideration to a target company stock/bondholder on the occurrence of specified payment triggers. In this case, the extra money will depend on the revenues from the Sales and Use (IVU, for its Spanish acronym) and the rum taxes exceeding the certified Fiscal Plan estimates.

Ripple Effect

According to the FOMB, once the DAP is in place, some $21 billion of the Commonwealth’s debt would be wiped clean, leaving $7 billion in outstanding debt. Another $17 billion would still be outstanding for public corporations and other government agencies, but the central government is to keep $2 billion in cash.

The restructuring of the PBA, the Retirement Systems and the GOs also liberates the government from clawback claims of creditors from the Transportation and Highways Authority (ACT, for its Spanish acronym) and the Conventions District Authority (CDA). These claims, as well as the restructuring of the debt of both of these authorities will be settled separately following Title

getting less than 20% of the billed amount for merchandise and services rendered to the government. That is unless they The Flip Side opt to reduce their invoiced totals But, while creditors seemed to $20,000. to be guaranteed at least part of The only exceptions their investment, not all will be allowed in the ruling were the paid equally. eminent domain and inverse GOs and PDA bondholders will The court’s condemnation cases –such as be receiving up to $7.04 billion ruling reduced the ones submitted by the coconsisting of cash and debt Puerto Rico’s central ops.

According to Judge Swain’s exchange bonds, and additional government debt interpretation it would be a revenues from CVRs –should from $33 billion violation of the US Constitution the island’s economy recovers in outstanding to modify, or otherwise alter, said enough to exceed tax estimates. obligations to $7.4 debt.

But Retirement Systems billion.

Much was speculated last bondholders will only be getting month about the possibility 14 cents per dollar invested. of the dismissal of the inverse Other, smaller government condemnation motions creditors would only be submitted since the FOMB had receiving about half of what the previously notified that, under the new DAP, some government owed them. Meanwhile, government creditors’ claims –specifically those under eminent contractors with outstanding bills would be

III and Title IV of PROMESA.

In fact,

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In fact, Government contractors with outstanding bills would be getting less than 20% of the billed amount for merchandise and services rendered to the government. That is unless they opt to reduce their invoiced totals to $20,000.

When they [public employees] retire, they will receive the defined benefit that they had accumulated up to before the system was frozen. They will receive Social Security benefits, assuming they qualified, and they will receive whatever they accumulated in their defined contribution accounts.

Natalie Jaresko Executive Director, FOMB

domain– were considered “uninsured.” The situation prompted the U.S. Department of Justice to announced it would submit its position on the matter, but it still hasn’t.

All the debt acquired by inverse condemnation – estimated to be $400 million– will be paid in whole when a federal court rules to do so.

Government Pensions

Even though the pensions of government employees already retired remain untouched by the DAP, as of next March 15, all fixed benefits plans for teachers and Commonwealth judges will be frozen, and fixed contribution accounts will

be created, so they can qualify for Social Security benefits.

“When they retire, they will receive the defined benefit that they had accumulated up to before the system was frozen. They will receive Social Security benefits, assuming they qualified, and they will receive whatever they accumulated in their defined contribution accounts,” Jaresko explained.

Labor unions and grassroots organizations decry Debt Adjustment Plan Juan A. Hernández

jhernandez@wjournalpr.com

Several labor unions and grassroots organization strongly criticized the Debt Adjustment Plan approved by Federal District Court Judge Laura Taylor Swain and characterized it as a “disaster” for the people of Puerto Rico, particularly retired government workers.

“This is the beginning of a disastrous chapter in the history of the people of Puerto Rico. The Debt Adjustment Plan (DAP) approved by Judge Swain far from being good for Puerto Rico is a death sentence for a dignified future for those who live here. This plan is neither viable, nor sustainable,” said Eva Prados, attorney at law and spokesperson for the Citizens Front for the Auditing of the Debt, which groups the Teachers Federation, the University Professors Association and the Front for the Defense of our Pensions,

among other organizations.

For his part, Teachers Association president Víctor M. Bonilla coincided in calling the judge’s decision “disastrous.”

“This decision puts thousands of active teachers at the edge of indigence when they reach retirement age,” Bonilla said.

Teachers are one of the government workers group affected the most by the DAP. While the pensions of currently retired teachers will remain untouched by the DAP, as of next March 15, all fixed benefits plans for teachers and Commonwealth judges will be frozen and a system of fixed contribution accounts will be created, so they can start qualify for Social Security benefits.

When teachers reach their retirement age they will receive the defined benefit that they had accumulated up to before the system was frozen, which in many cases would be a fraction of what they could have originally

This is the beginning of a disastrous chapter in the history of the people of Puerto Rico.

Eva Prados Lawyer

received.

“Even though the DAP protects today’s pensions, it dismisses adjustments for the cost of living, which effectively imposes a gradual decrease to our pensions,” said Sonia Palacios, spokesperson for the Pensions Defense Front.

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In fact, The cost to restore the area is estimated at $250 million, with $163 million coming from the federal government and the remaining $88 million to be provided by “Proyecto ENLACE.”

Senate Majority Leader Chuck Schumer (D-NY), visited the site past November. >Archive

G-8 Communities Get Environmental Justice The severely polluted Martin Peña Channel received $163 million in federal funding

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By Zoe Landi Fontana, The Weekly Journal

he U.S. Army Corp of Engineers (USACE) has chosen the Martin Peña Channel, connecting the San Juan Bay and Laguna San Jose, as one of the projects to receive funding from President Biden’s Infrastructure Investment and Jobs Act after vigorous advocacy

by U.S. Rep. Nydia Velázquez (D-NY) and Senate Majority Leader Chuck Schumer (D-NY).

The cost to restore the area is estimated at $250 million, with $163 million coming from the federal government and the remaining $88 million to be provided by the “Corporación del Proyecto ENLACE del Caño Martin Peña” (known as ENLACE for short).

A History Of Unfulfilled Promises

For years, the Martín Peña Channel has been filled with debris and human waste, flooding often and causing problems to the communities around it and to the nearby Luis Muñoz Marín Airport. It sits severely polluted after years of accumulated debris, mismanaged residential and commercial development, and the emptying of raw sewage directly into the water. The channel’s polluted condition affects the health of the entire estuary system, including the San Juan Bay and the San

The project is vital for us because it revives, it gives life back to the channel, but also to all of us who live around the body of water.”

Lucy M. Cruz Rivera President, G-8 group

José Lagoon which it connects.

In the 1950s, impoverished rural migrants set up communities along the Martin Peña Channel’s mangrove swamps, as they transitioned to urban living. Now, approximately 26,000 residents live in eight communities (Las Monjas, Israel-Bitumul, San Ciprian, Buena Vista-Santurce, Marina, Buena Vista-Hato Rey, Parada 27 and Cantera), composing what is now known as the G-8 Group.

“The project is vital for us because it revives, it gives life back to the channel, but also to all of us who live around the body of water. It will help mitigate flooding, and people will be able to live in peace, with better health,” G-8 group president Lucy M. Cruz Rivera said to THE WEEKLY JOURNAL. The Martín Peña Ecosystem Restoration Project will clear debris and dredge the channel to 10 ft. deep and 100 ft. wide, restoring stormwater flow, stabilizing the waterway and alleviating the ongoing public health risks and environmental problems caused by decades of neglect and

mismanagement. The entire process may take about seven to eight years if efficiently managed.

Dredging the channel will also give back to the community the ability to use it for recreational activities like kayaking and sport fishing.

“This is a great achievement for the communities. They had to overcome a lot of hurdles to get here… The key is perseverance,” Rivera said.

The ecosystem restoration project is only one of many that need to happen. For instance, the IsraelBitumul and Buena Vista-Santurce communities completely lack sanitary infrastructure - raw sewage is released directly into the channel. A proposal by ENLACE is currently under review

by FEMA to address this, but multiple stages are required in the process of completely restoring the area.

To fully revive the channel and the communities around it, the G-8 and ENLACE have compiled a comprehensive development plan that includes sanitary infrastructure, systems for stormwater and potable water, transportation infrastructure and community-based housing for those displaced by these projects.

Under the Trump administration, calls to finance the restoration of the channel went ignored, but U.S. Rep. Nydia Velázquez (D-NY) and Senate Majority Leader Chuck Schumer (D-NY) have been fighting for funding to restore the area for years.

“The Infrastructure and Investment Jobs Act is a clear opportunity to right the great social and environmental injustices that those living along this polluted canal in Puerto Rico have suffered for decades. I thank the Biden Administration for showing up for the island, and it has been an honor fighting for these funds alongside ENLACE and the G-8,” said Rep. Velázquez.

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Increased minimum wage brings uncertainty

Inflation exacerbates a system that eats away workers’ limited resources.

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Zoe Landi Fontana, The Weekly Journal

n Jan. 1, 2022, the Puerto Rico minimum wage rose to $8.50 from $7.25. Signed into law by Governor Pierluisi on Sep. 21 of last year, Act 47-2021 is a long-overdue attempt to bring the minimum wage into line with the cost of living through a series of periodic increases.

Unless disputed by the Minimum Wage price of a barrel of oil went from $17 to $70, and Evaluation Commission, the minimum wage will the price of natural gas almost doubled - rising to rise incrementally every year until it reaches $4.57 per million BTUs. $10.50 on July 1, 2024. Act 47-2021 is the first minimum wage increase to be authorized by the local government. Prior to this, the minimum wage Possible Side Effects Of Raising The Minimum Wage had not been raised since 2009, and only ever by Approximately 70% of federal mandates. businesses on the island are Increased Cost Of Living categorized as small and Cited as the most pressing medium-sized enterprises, justification for increasing for which a $1.25 hourly wage minimum wage, the U.S. increase is no small deal.

Consumer Price Index (CPI) Minimum Nevertheless, business leaders, experienced a 7% hike last year, wage in Puerto Rico entrepreneurs and even the the largest increase since June will rise incrementally Secretary of the Department 1982. The indexes for shelter and every year until it of Economic Development and for used cars and trucks were reaches $10.50 on Commerce, Manuel Cidre, have the largest contributors to the July 1st, 2024. admitted that the impact of the increase, despite the energy index minimum wage increase has not having decreased by 0.4% and been what many expected. food increased by only 0.5% last Act 47-2021 also establishes December. a Minimum Wage Evaluation For Puerto Rico, though, food Commission, whose job is to determine whether and energy prices are always high. Inflation is the minimum wage needs to be increased up as well, exacerbating a system that eats away after compiling an annual analysis on working workers’ limited resources. conditions, benefits, cost of living, and other According to the U.S. Energy Information factors necessary in determining the minimum Administration, the residential electricity rate wage. in Puerto Rico is 22.64 cents/kWh, while in the The Commission will have to keep in mind continental US, electricity costs about 14.11 cents/ possible effects such as those found by a 2021 kWh. From July 2020 to June 2021, 97% of the island’s electricity was generated by fossil fuel-fired study made in California by Cornell University, Georgia Institute of Technology, and University of power plants, with 44% from natural gas and 37% Washington researchers. The study, conducted from petroleum. Renewables generate only 3% of among low-income workers at fashion retail stores, the island’s electricity. showed that an increase in minimum wage can LUMA’s chief regulatory officer, Mario Hurtado worsen worker welfare by causing unintentional said that from April 2020 to November 2021, the

In fact,

changes in the allocation of labor hours.

Contrary to other studies that theorized that minimum wage improves worker welfare because overall employment stays the same, this study explored what happens when the business’s total labor-hours stay the same, but the allocation of hours changes.

The researchers explained that when the minimum wage is increased by one dollar, the number of workers scheduled to work per week goes up, while the average hours per worker decreases. This is especially prevalent within the retail and service sectors.

In addition to losing eligibility for welfare

“It (the minimum wage increase) should have been approved in two steps to minimize the impact.

José Joaquín Villamil Economist

benefits, decreased hours cause less consistent worker schedules. When worker schedules become less consistent - in terms of total hours per week as well as the timing of shifts – it’s more difficult to coordinate personal life or work a second job. Thus, attaining financial stability is more difficult.

But that is not the case in Puerto Rico because the Department of the Family submitted to the federal government the changes to amend the State Plan for the Nutritional Assistance Program (PAN, for its Spanish acronym) in order to adjust the eligibility levels and prevent those who benefited from the increase in the state minimum wage from losing benefits.

For economist José Joaquín Villamil the salary increase, –although he supports it– considers it should have been carried out in a growing economy and not in an economy “that has not grown as much.”

“It should have been approved in two steps to minimize the impact,” he argued.

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In fact, Beginning in March, and running through summer, Iberia will dedicate the design of one of its aircraft to Puerto Rico.

The delegation from Puerto Rico confirmed over 200 business meetings in Spain. >Courtesy

The International Fair of Tourism in Madrid ends with collaborations

Iberia Airlines will feature Puerto Rico on one of their planes this spring

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Zoe Landi Fontana, The Weekly Journal

he Puerto Rico Tourism Company (CTPR, for its Spanish acronym) used the International Fair of Tourism (FITUR, for its Spanish acronym) in Madrid last week as the launching pad for its marketing strategies to promote the island to European audiences among 250,000 professionals from the global tourism industry.

The delegation from Puerto Rico confirmed over 200 business meetings, amplifying support for touristic and commercial alliances between the island, Europe and Latin America. The PRTC estimates that the economic impact of the collaboration agreements made during the event could surpass $10 million.

“Our main goal at FITUR this year focused on Governor Pedro R. Pierluisi’s vision of continuing to bet and promote Puerto Rico as a first-class and safe destination for vacationing and doing business, which is also notable for its advanced health protocols to combat COVID-19. On the other hand, our ministerial agenda included participating in meetings and forums that would facilitate us the expansion and strengthening of our trade relations with Latin America and Europe,” said PRTC executive director Carlos Mercado Santiago, who was awarded the Medal of Merit for the Internationalization of Tourism in Latin America.

Discover Puerto Rico’s booth exhibited PRTC’s

agro-tourism and sustainable tourism initiatives, hotel developments, tourist attractions and cultural experiences, as well as highlighting the island’s more contemporary attractions: the largest and most technologically advanced Convention Center in the Caribbean and the new entertainment center –“T-Mobile District,” which features concert halls, restaurants, hotels, urban “ziplines” and some of the most modern movie theaters in the Caribbean.

Discover Puerto Rico ended the tourism fair with 35 promotional interviews with the local media and over 31 business meetings with executives from various tourism companies.

in Puerto Rico. Iberia Airlines and PRTC also signed an agreement to continue supporting connections between Puerto Rico and Europe.

The agreement includes a series of initiatives to promote the island through all the airline’s media channels, for instance, the on-board entertainment system, the airline’s Ronda magazine, as well as on its social media channels.

The Future Of Tourism Is Sustainable

The PRTC will go on to participate in the next Sustainability and Investment Forum, which will take place June 14 in San Juan, Puerto Rico at the District Convention Center. Their participation reaffirms Partnership With their compromise to preserve the planet and Iberia Airlines its biodiversity, reduce A partnership the effects of climate between Puerto Rico change, and increase and Iberia Airlines is the tourism sector’s another product of resilience by fostering the networking and sustainable growth and negotiations at FITUR. supporting the local This year, beginning community. in March, and running – Carlos Mercado The World Travel through summer, Iberia Executive Director, PRTC and Tourism Council will dedicate the design will also be present of one of its aircraft at the forum. Julia to Puerto Rico. The airplane will feature designs that pay tribute to the Simpson, president and CEO of the WTTC, praised Puerto Rico’s handling of the pandemic, saying, landscapes and iconic images from the “La Isla del “‘In addition, we acknowledge the great work that Encanto” and is scheduled for short and mediumPuerto Rico has been doing in the face of the length flights to over 90 destinations, including pandemic, as it has implemented strict biosafety Italy, France, the UK, and Germany. protocols to preserve the health of travelers while This initiative is part of Iberia’s compromise to keeping their tourist services open.” continue strengthening its commercial operations

Our main goal at FITUR this year focused on Governor Pedro R. Pierluisi’s vision of continuing to bet and promote Puerto Rico as a first-class and safe destination for vacationing and doing business,

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GM to spend nearly $7B on EV, battery plants in Michigan

Operations will create up to 4,000 jobs

Michigan’s economic development board approved incentives and assistance for General Motors Co. to put electric vehicle and battery plants in its home state, adding as many as 4,000 jobs. >AP Photo/David Zalubowski, File

G

David Eggert and Tom Krisher, The Associated Press

eneral Motors is making the largest investment in company history in its home state of Michigan, announcing plans to spend nearly $7 billion to convert a factory to make electric pickup trucks and to build a new battery cell plant.

The moves, announced this week in the state capital of Lansing, will create up to 4,000 jobs and keep another 1,000 already employed at an underutilized assembly plant north of Detroit.

The automaker plans to spend up to $4 billion converting and expanding its Orion Township assembly factory to make electric pickups and $1.5 Already the company is getting great interest billion to $2.5 billion building a third U.S. battery in the trucks from consumers, she said, without cell plant with a joint-venture partner in Lansing. giving any numbers of reservations.

GM CEO Mary Barra said the investment would The announcement is a critical win for Michigan, make Michigan “the epicenter of the electric vehicle which lost out on Ford Motor Co.’s $11 billion industry.” investment in three battery plants and a new The state’s economic development board vehicle assembly plant that went to Kentucky and approved earlier this week $824 million in Tennessee. incentives and assistance for Detroit-based GM. GM President Mark Reuss said it made sense The package was unveiled and authorized by for GM to locate the battery factory near its the Michigan Strategic Fund Board. It includes large manufacturing footprint in Michigan. The a $600 million grant to GM company’s ability to quickly and Ultium Cells, the venture convert existing factories between the carmaker and LG such as Orion to build solely Energy Solution, and a $158 electric vehicles is a competitive million tax break for Ultium. advantage over companies that The board also approved $66.1 need to costly build brand-new million to help a local electric The State of plants, he said. utility and township upgrade Michigan approved “We’re going to take infrastructure at the battery a $600 million grant advantage of that from an factory site. to GM. assembly plant standpoint, and then we’re going to put the new Bet On Electric Vehicles cell plants in the proximity to Both factories are scheduled supply that footprint,” Reuss to start producing in about two said. years, as GM rolls the dice on whether Americans GM says it will build four battery cell factories will be willing to convert from internal combustion in North America. The Lansing announcement engines to battery power. is its third, but Reuss said more may be needed The Orion plant will join GM’s “Factory Zero” as the transition to electric vehicles continues. facility in Detroit in building new electric Chevrolet The location of the fourth plant has not been Silverados and GMC Sierra pickups. When both announced. plants are making trucks on three shifts, GM will “We’ve said four for now, but the adoption have the ability to build 600,000 electric pickup rate is rapid,” Reuss said. The other battery trucks per year, Barra said. plants are being built in Lordstown, Ohio, and

In fact,

We’re going to take advantage of that from an assembly plant standpoint, and then we’re going to put the new cell plants in the proximity to supply that footprint.

– Mark Reuss President, GM

Spring Hill, Tennessee.

In Michigan, officials realized the critical nature of winning the GM investment after losing out on Ford’s announcement last year.

Gov. Gretchen Whitmer, a Democrat, said the GM announcement shows what can happen when elected officials from both sides of the aisle work together. “We showed everyone that we can compete with transformational projects,” she said.

The announcements, which include another $510 million investment to maintain production at two other Lansing-area GM plants, will generate more than $35 billion in personal income during the next 20 years, Whitmer said.

“The economic well-being of our state isn’t a partisan matter. High quality jobs don’t have party affiliations,” Republican Senate Majority Leader Mike Shirkey said.

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Manuel Laboy

Executive Director, Central Office for Recovery, Reconstruction and Resiliency

I

Hurricane Maria: Puerto Rico’s path to reconstruction and resiliency

remember the day I was appointed Secretary of the Department of Economic Development & Commerce of Puerto Rico (DEDC). For me, this appointment represented the opportunity of a lifetime to contribute in a meaningful way to Puerto Rico’s social and economic development.

We began by facing the reality of having to govern with the existence of the then-recently appointed Fiscal Oversight and Management Board (FOMB), resulting in the Government of Puerto Rico officially filing for bankruptcy protection back in May 2017. On September 20, 2017, Hurricane María made landfall in Puerto Rico, as the worst natural disaster that Puerto Rico has ever faced. Over the next year and a half we engaged in a process that began with the initial response to the disaster, moved on to the eventual stabilization of government operations, and then gravitated towards the beginning of the long-term recovery.

We did these things while simultaneously regaining credibility and investor confidence to attract foreign direct investment to Puerto Rico.

We retained and expanded our base of existing multinational operations, brought back tourists, and aided in the recovery of our small and medium businesses. Then came what in Puerto Rico has come to be known as the ‘Summer of 2019’—a period of political and administrative chaos and uncertainty the likes of which has not been seen nor felt in a long time. Things eventually settled down and for the remainder of that year Puerto Rico went back to work on its recovery.

On January 7, 2020, a 6.4 magnitude earthquake struck the southwestern region of Puerto Rico in what is considered the worst seismic devastation that Puerto Rico has seen in the last century. Three months later, a state of emergency was declared due to the COVID-19 pandemic, and Puerto Rico went into lockdown mode. The remainder of 2020 was dedicated to dealing with the COVID-19 and its disastrous consequences to our economy and public health.

To say that Puerto Rico has been thrown a few curve balls over the past five years is a massive understatement. However, the DEDC made substantial contributions to Puerto Rico’s economic development. In 2019, prior to the COVID-19 pandemic, our GDP experienced positive growth, with sectors such as manufacturing, tourism, export services and agricultural industries posting the highest number of jobs since 2015. We created a new Incentives Code, Invest Puerto Rico, Discover Puerto Rico and the Single Business Portal, established a service center for small and medium

businesses, programs to support innovative startups, and spearheaded the expansion of transfer

As we finally move away from bankruptcy, the focus must be economic growth and sustainable development.

services at our international airports that was granted by the U.S. Department of Transportation.

We also strengthened our Apprenticeship Program in support of Puerto Rico’s workforce development.

In December 2020, my tenure as Secretary of DEDC came to an end, and a new chapter began when Governor Pierluisi appointed me

as Executive Director of the Central Office of Recovery, Reconstruction and Resiliency of Puerto Rico (COR3). Since January 2021, my main focus has been to accelerate reconstruction projects.

So far, FEMA’s Public Assistance has approved 7,296 projects and $19.5 billion for permanent structures after Hurricane María. Hundreds of these projects have already been completed, and over 500 are currently under construction. We expect that in 2022 at least 2,000 projects, with a construction value of over $4,000 million, will be either in a bidding process or under construction, including the first projects to repair the electrical transmission and distribution system, as well as water and aqueducts, roads, schools and hospitals.

As we finally move away from bankruptcy, the focus must be economic growth and sustainable development. COR3 is doing its part to ensure our infrastructure is modernized and becomes more resilient, a necessary foundation to achieve competitiveness. Our success with Puerto Rico’s reconstruction will not only benefit us; it will also strengthen the US, and it will leave a legacy to future generations.

11 < The Weekly Journal > Wednesday, January 26, 2022

What could be better than visiting Puerto Rico?

Living here.

Puerto Rico has a new name in real estate.

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/ Wednesday, January 26, 2022

Amazon heads to the mall with prototype clothing store

The store will sell women’s and men’s clothing as well as shoes and other accessories Anne D’Innocenzio The Associated Press

F

irst, Amazon competed with malls.

Now, it’s moving inside one.

The online retailing giant announced last week that it plans to open a clothing store in a Southern California mall later this year. It’s the latest foray into brickand-mortar for Amazon, which already sells more than 10% of all clothes in the U.S. The store, which will sell women’s and men’s clothing as well as shoes and other accessories, will open at Americana at Brand, a mall in Glendale, California. The entry into malls could become another threat to traditional clothing sellers because of the data and shopper insights Amazon may gain, experts say.

Amazon is set to open its first-ever physical clothing store later this year at the Americana at Brand mall in Glendale, California. >Greg Montijo/Amazon via AP

more people began shopping online.

According to Wells Fargo, Amazon’s clothing and New Approach footwear sales in the U.S. increased by about 15% Amazon says its algorithms will spit out realin 2020 to more than $41 billion. That’s about 20% time recommendations as shoppers keep scanning to 25% above Walmart and 11% to 12% share of all items that they see. Shoppers can also fill out an clothing sold in the U.S. online survey of their preferences for style and fit.

Amazon has been making a big push into The store will be about 30,000 square feet, fashion in recent years through its own labels and similar in size to a Kohl’s, but about one-third the in September 2020, it launched an online shop size of other department stores called Luxury Stores. like Macy’s. However, it will offer Shoppers at the Amazon more than double the number Style store can browse items on of styles as traditional stores do display and scan a QR code to because only one of each piece see sizes, colors and customer of clothing will be on display, According to ratings. Shoppers can send items with the rest in the back room.

Wells Fargo, Amazon’s to fitting rooms or directly to the Items are chosen by Amazon clothing and footwear store’s counter. Once in a fitting curators who also use feedback sales in the U.S. room, customers can request provided by millions of customers increased by about other items using a touchscreen. shopping on Amazon.com.

15% in 2020 to more “Amazon Style completely Simoina Vasen, managing than $41 billion. reimagines what’s possible in director of Amazon Style, declined the fitting room, turning it into to comment on rollout plans of a personalized space where the new store concept or sales customers can continue to shop a projections. Amazon didn’t give a seemingly endless closet of great precise date for the opening of the Glendale store. styles,” Vasen wrote in an Amazon blog.

Neil Saunders, managing director of GlobalData Retail, said the prototype store could deepen Helped By The Pandemic Amazon’s influence in the sector, especially among Amazon unseated Walmart as the largest clothing shoppers who love the experience of clothing seller last year during the pandemic as

In fact,

Amazon Style completely reimagines what’s possible in the fitting room, turning it into a personalized space where customers can continue to shop a seemingly endless closet of great styles.

-Simoina Vasen Managing director, Amazon Style

exploring and browsing physical stores. And it could empower Amazon with more shopping data.

But he also cautioned that Amazon’s success depends on execution.

“Traditionally, it is not all that good at creating a great in-store experience,” said Saunders. “It tends to be very solid at technology and operations but can fall short on spirit and soul — both of which are particularly important in fashion where consumers love inspiration, curation, and personal services.”

13

/ Wednesday, January 26, 2022

Bobsledder Aja Evans models the Team USA Beijing Winter Olympics opening ceremony uniforms designed by Ralph Lauren. >Photo by Evan Agostini/Invision/AP

Ralph Lauren unveils Team USA’s opening Winter Olympic uniforms The garments include new warming technology

T

Leanne Italie, The Associated Press

eam USA’s opening ceremony uniforms for the Beijing Winter Olympics include some sneaky new warming technology, along with a handy front pouch and a cinch waist on anoraks in navy and white.

The jackets by official outfitter Ralph Lauren include a smart, honeycomb-like fabric layer built-in that expands or contracts in response to temperature changes — all without the use of a battery or wired technology.

The assist by a company called Skyscrape follows battery-powered cooling and heating tech

I know that, you know, with the COVID restrictions, there won’t be as much interacting and mingling or even going to other events. That’s going to be a bit disappointing and unfortunate.

But the fact that the Olympic Games are going on is a blessing.

- Aja Evans, bobsledder

the company used for some previous looks for the Tokyo Summer Olympics and the Pyeongchang Winter Games.

Bobsledder Aja Evans, a bronze medalist at Sochi and an alternate this time around, was pleased with the new gear that she modeled for media at the Polo Ralph Lauren store in Soho downtown.

“This is my favorite look,” said the threetime Olympian, who didn’t medal at the 2018 Pyeongchang Games. “It feels good and can go from indoor to outdoor.”

bobsled and when we get to Beijing, we’ll be testing every single day,” she said.

The 33-year-old Evans said she’ll miss the camaraderie of Olympic Village life, exchanging Olympic pins, meeting fellow athletes from all over the world and attending events in other sports.

“This Olympic Village life will be a lot different than my previous Olympic Games. I know that, you know, with the COVID restrictions, there won’t be as much interacting and mingling or even going to other events. That’s going to be a bit disappointing and unfortunate. But the fact that the Olympic Games are going on is a blessing,” she said.

Parading In Style Evans, from the south side of Female athletes will parade The jackets that the Chicago, grew up in track and Feb. 4 at the start of the games U.S. will wear include field with Olympic hopes. At in China wearing red boots a smart, honeycombthe urging of a college coach, and red fleece pants with like fabric layer builtshe switched to bobsled after predominantly navy jackets. in that expands or graduation.

Though she lives in The men’s looks are mostly contracts in response Atlanta, she returns to Chicago white. Both will be wearing to temperature often to encourage other navy knit beanies, and both changes. kids like her to reach for their get the large bonus pouch on dreams. the front of their jackets to go Vonetta Flowers is another with roomy side pockets and reason Evans turned to bobsled. graphic touches on sleeves.

At the 2002 Winter Olympics, Ralph Lauren went with navy for their gloves, Flowers and driver Jill Bakken won the gold medal and all athletes will be provided with masks to help in the two-woman event.

Flowers became the first guard against COVID-19. Team USA’s paralympians African American woman to win a gold medal in will receive the same gear. The uniforms were the Winter Olympics. made in the U.S. The team’s closing ceremony “My journey through sports has shown me that looks in a buffalo plaid design were unveiled in my purpose is to help continue to inspire young October. women and children,” said Evans, who is one of many African American athletes now in the sport.

Different Feeling “I go back home and talk to the kids where I sat Evans, who competes in two-person bobsled, in those same seats in the Chicago public school wasn’t particularly nervous about soon heading system, and to see someone like myself who to China while the Omicron variant still poses looks exactly like them have an Olympic medal challenges. The host country has severely in a Winter Olympic sport just shows you that it’s restricted spectators and taken other precautions. possible.”

“We test every other day within the sport of

In fact,

14

/ Wednesday, January 26, 2022

The Condado Ocean Club provides new dinning alternatives Monthly events are designed to impress the most discerning palates

H

Juan A. Hernández The Weekly Journal

ow many times have you looked for “something different” than your basic “dinner and a movie” weekly outing or date?

Look no more. As part of its new year’s calendar of events, the Condado Ocean Club Hotel has designed a series of monthly culinary experiences that pair food with exquisite wines and liquors to impress the most discerning palates.

The SOCIAL Gastro Series, hosted by the hotel’s SOCIAL Restaurant, is a monthly event where the menu is inspired on international cuisines and flavors, and will be accompanied by an exclusive list of wines selected by Master Sommelier Will Costello.

The first event of the SOCIAL Gastro Series will be a five-course dinner with a first entrée scheduled for tomorrow, January 27th at 7:00pm. consisting of a cauliflower crème with truffles oil It has a cost of $165 per person (taxes and gratuity and focaccia accompanied by a glass of Miquel not included).

Pons Cava Gran Reserva Brut Nature, 2015, followed by a mache salad with Manchego cheese, green apple bourbon and toasted nuts that can The Japanese Influence be accompanied by Kinsy Bien Nacido Pinot Blanc A second monthly event are the Omakase Santa Maria Valley, 2019 or a Miller Family Optik dinners, hosted by the Jade Whiskey Bar. Chardonnay (Block N.11), 2019.

Stemming from rich Japanese tradition, the word The third course will be a red wine risotto and omakase means “I leave it up to you.” So, in beets, with whipped goat’s milk this context, dishes are left to and chives, along with a glass the chef’s culinary knowledge of Kinsy Bien Nacido Pinot Noir and expertise, and are usually Santa Maria Valley, 2018, or a subjected to the ingredients’ Miller Family Optik Pinot Noir taste, availability (seasonality) (Block 42B), 2019. and cost.

Omakase The main course will be a In his book The Story of Sushi, means “I leave it up New Zealand’s grass-fed beef academic and writer Trevor to you.” So, in this tenderloin with mashed potatoes Corson states, “[Omakase is] context, dishes are and leeks in a Port sauce and what the sophisticated customer left to the chef’s crisp shallots, accompanied by a says to the chef when settling culinary knowledge Miller Family Optik Syrah (Block down at the sushi bar.” Sushi and expertise.

49A), 2019 or a Bien Nacido La XO connoisseurs seldom order off a Reserva Syrah Valle Santa Maria, menu.

2018.

The first Omakase dinner at Dessert - chocolate cake and Jade will be prepared by Chef truffles with cashews and honey, apricot gel and Ramón Cruz and will consist of 10 courses made coconut ice cream - will be served alongside a glass with wine and whiskey. Even though omakase of Mont-Rubí Gaintus Sobremaduro, 2016. refers mainly to sushi, other dishes, such as salads, This first edition of the SOCIAL Gastro Series is tempura and soups will find their way in this

In fact,

[Omakase is] what the sophisticated customer says to the chef when settling down at the sushi bar.

-The Story of Sushi by academic and writer Trevor Corson

dining experience. Guests must be prepared to be surprised.

Entertainment for the evening will be provided by saxophonist Janice Maisonet The first Omakase dinner will be next Friday, January 28, at 7:00pm and seating is limited for only 10 guests. It has a cost of $225 per person (taxes and gratuity not included).

“The hotel has taken all necessary precautions and is in compliance with all sanitary regulations to guarantee its guests welfare,” said Condado Ocean Club’s general manager Albert Charbonneau.

Those participating in these events must present must be vaccinated against COVID-19.

15

/ Wednesday, January 26, 2022

El Portal de El Yunque has 6,200 square feet of office space and collaborative workrooms, conference rooms, stockroom, partnermanaged store, restaurant, movie theater, an exhibition pavilion, and a hall for social and/ or corporate events.

El Portal del Yunque reopens

focusing on collaborative management Partner organizations will have different roles in the new operation

A

Juan A. Hernández, The Weekly Journal

resources, and will serve as a collaboration and meeting hub among partners inside and outside El Yunque.

“The Forest Service at El Portal will now provide education and engagement opportunities for the public, and our partners will leverage the space to improve our communities’ social well-being. This is the Caribbean’s premier visitor & community center; we would love for all Boricuas to come experience it”, said Forest Supervisor Keenan Adams.

fter almost four and a half years since the devastation caused by Hurricane Maria and a A Whole New Experience $20 million Partner organizations will investment have different roles in the new of federal operation. Vitrina Solidaria funds, El Portal de El Yunque will manage the co-working reopened last week to renew space; Fundación Amigos It is estimated the interest in the exploration de El Yunque will coordinate El Portal could and discovery of the only and promote events and generate as much as tropical rain forest under the educational activities, and $3M during a regular U.S. jurisdiction.

Eastern National will manage tourism year.

Closed since 2017, the the entrance station and the renewed visitor center now store. showcases new interactive With El Portal’s reopening, exhibits, artworks, accessible the U.S. Forest Service will trails and interpretative panels in Spanish and also premier a movie showing visitors distinctive English to promote the conservation of natural aspects of the forest, its ecosystems, and its

In fact,

historical legacy. Puerto Rican filmmaker María Falcón directed the production and Academy Award winning actor Benicio Del Toro narrates the English version and collaborates in the Spanish version, narrated by actress Cordelia González.

“I feel proud to be part of the effort of this group.

We inherited a legacy of reverence and respect for El Yunque that unites all Puerto Ricans and connects us to the rest of the world,” said Del Toro.

Before it closed in 2017, more than 600,000 people visited El Portal each year. Based on those statistics, it is estimated El Portal could generate as much as $3,000,000 during a regular tourism year.

Revenues are expected to cover operation and maintenance costs for the first year.

We inherited a legacy of reverence and respect for El Yunque that unites all Puerto Ricans and connects us to the rest of the world.

– Benicio Del Toro, Puerto Rican actor

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