The Weekly Journal - Wednesday, September 1, 2021

Wednesday, September 1-7, 2021 - // no. 123

Puerto Rico and the Caribbean

www.theweeklyjournal.com

Ponce Health Sciences Expands Stateside P6 End of FOMB Oversight of PRASA? P7 Launch of Viva Puerto Rico P9

Future of Gyms Post-Pandemic is

Uncertain >Courtesy of Cataclysm Wine Co.

Virtual and outdoor options take center stage

A Giovanna Garofalo

Delicious Wine and Fruit Pairings P14

ggarofalo@wjournalpr.com

@giopgarofalo

s the United States and Puerto Rico continue to grapple with the coronavirus (COVID-19) pandemic and its devastating effects on the economy, gyms are being overshadowed by online apps and workout programs, raising the question of whether fitness centers will survive the shift.

John Foley, founder and CEO of Peloton, thinks it’s inevitable that technology-driven home fitness will become

dominant, much like how streaming services have changed movie watching, as he called the idea of going to a gym “a broken model of yesteryear.”

Peloton provides a streaming service for fitness classes in addition to selling stationary bikes.

Foley said that demand surged so much during the pandemic that some Peloton customers had to wait months for their bikes. “Fitness is one of the few remaining categories that is going to be massively disrupted by a digital experience,” he stated.

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The Weekly Journal > Wednesday, September 1, 2021 > 2

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a week in review Puerto Rico Imposes New Pandemic Restrictions Gov. Pedro Pierluisi announced new restrictions to fight COVID-19, including closing some businesses and banning alcohol sales after midnight. Social activities such as concerts and weddings will be banned after those hours, and people will be required to wear masks outside if there is a crowd of 50 or more. The dry law does not affect hotel food operations. People are now also required to start showing proof of vaccination to enter restaurants, gyms, casinos, beauty salons and other places.

Puerto Rico Senate Approves Minimum Wage Hike Bill The Puerto Rico Senate approved a consensus bill with the House and La Fortaleza that will soon increase the island’s hourly minimum wage.

Senators approved House Bill 338, which will raise the minimum wage to $8.50 an hour starting Jan. 1, 2022. Currently, the minimum wage in Puerto Rico is $7.25 an hour, the same as the federal minimum wage.

The consensus bill proposes another staggered increase to $9.50 by July 2023, and a third raise to $10.50 by July 1, 2024. However, the latter must be assessed by the soon-to-be-formed Minimum Salary Evaluating Committee.

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

President Salvador Hasbún shasbun@elvocero.com Vp of Marketing and Business Operations Michelle Pérez Miperez@elvocero.com

PUA and Pandemic Unemployment Aid to End The Department of Labor and Human Resources announced the culmination of benefits from temporary aid programs such as the Pandemic Unemployment Assistance (PUA) and the Pandemic Emergency Unemployment Compensation. According to federal regulations, the last payable week will be Sept. 4, so after this date, claimants will not receive additional benefits. In 18 months, Puerto Rico’s Labor Department has disbursed nearly $9.6 billion in unemployment benefits due to the impact of the pandemic on workers, officials said.

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

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

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

VP of Production Eligio Dekony edekony@elvocero.com

Traffic Director Ilia M. Pérez Centeno iperez@elvocero.com

Managing Editor Rosario Fajardo rfajardo@wjournal.com

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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 In fact, the “Fitness Trends 2021: New Trends in Fitness” global report by RunRepeat found that active American adults saw significant increases in both at-home fitness equipment (up 218.3 percent) and online fitness (up 134.7 percent) as the best way to achieve fitness goals in 2021. Likewise, gym members also saw significant increases in both at-home fitness equipment (115.9 percent) and online fitness (93.3 percent) as their best solution for staying fit.

And it’s not just online modalities that are propelling the switch - 59.1 percent of active adults chose outdoor activities like running, training, hiking and walking as the best way to stay fit in 2021, up 14.6 percent from the start of 2020. Also, 39.4 percent of gym members worldwide are switching to running and other outdoor activities in 2021. Furthermore, 60.5 percent fewer active adults see gyms, health clubs and group exercise classes as the best way to stay fit in 2021.

Roughly 9,000 health clubs - 22 percent of the total nationwide - have closed since the beginning of the coronavirus pandemic and 1.5 million workers in these companies lost their jobs in the U.S. mainland, according to the International Health Racquet & Sportsclub Association (IHRSA).

As such, the industry group is lobbying Congress to approve a relief fund for the fitness industry because many clubs are struggling to recover from months of lost revenue and membership declines and still owe back rent.

The bipartisan Senate bill, known as the Gym Mitigation and Survival (GYMS) Act, was introduced

will be fully recovered by the end of the year,” he

by U.S. Sens. Tammy Duckworth (D-Ill.) and Jerry said, noting that the gym chain’s $10 monthly fee Moran (R-Kan.) in Feb. 2021 to provide $30 billion is one of the key elements in its recovery, as well in recovery funds, through the U.S. Small Business as its “unintimidating” environment.

Administration, for health and fitness centers.

“Our recovery is so far ahead because In Puerto Rico, gyms were forced to close people want to work out in a socialized, friendly temporarily after the coronavirus was detected environment. Human behavior has changed from in mid-March 2020. During that time, these buying a piece of equipment establishments were not only that’s associated with an app suffering revenue losses but had or not, and working out at your trouble retaining staff, some of home requires a particular whom opted to quit their jobs to discipline that is embedded in receive unemployment benefits. that human. Human behavior Rick Scaccia, the CEO of Planet According to a does not like to work out at Fitness Puerto Rico, explained nationwide U.S. poll, home; they want to be inside a that “a large portion of our 60.5 percent fewer gym,” Sciacca told THE WEEKLY employee base had migrated active adults see JOURNAL. However, he noted away from working and we had to gyms, health clubs that “high-cost gyms are, in fact, significantly restaff our customer and group exercise suffering that problem, because service employees” when they classes as the best the economic impact is still were allowed to reopen in June way to stay fit in keeping people at home.” last year, but because they were 2021.

Sciacca’s assessment on health forced to close again in July clubs with pricier memberships until September, they lost their actually reflects the reality of new staff and had to undergo the U.S. mainland. A 2020 survey published by TD the recruitment process all over again. But while Ameritrade, a financial services company, found the company has persevered, other smaller, that 59 percent of Americans had no intent to independent gyms do not have the same financial renew their gym memberships once the pandemic backing. is over. Of the 2,009 survey participants, more than 56 percent claimed that the reason for Looking for Cleanliness, Affordability this was because they found “more affordable” Sciacca affirmed that Planet Fitness Puerto Rico has recovered about 85 percent of its membership, ways to exercise and achieve healthier lifestyles and expects a full recovery within the next months. throughout the worldwide health crisis.

Respondents indicated that they would typically “We have conservatively picked June 2022 as the date we’re fully recovered and the reality is that we spend roughly $177 a month or $2,124 annually on gym memberships, personal training and fitness classes. With a diversity of free and low-cost apps and online programs now available for people of different fitness backgrounds, however, those expenses could be drastically cut.

On the other hand, the threat of COVID-19 is a deterrent to some. Yahaira Agosto, a former bodybuilder and part-time personal trainer from Puerto Rico, affirmed that she is no longer going to the gym every day, opting for in-home workouts most days of the week. She said that the independent fitness centers she has been to have not been diligent in government-approved health protocols and have reportedly even failed to report outbreaks in their establishments.

Because she likes to work directly with the clients to ensure they’re exercising safely and correctly, and because a number of her client base are within high-risk age groups, Agosto said she would not feel safe training clients until the pandemic is contained.

In fact,

Adapting is Essential

More people are using online fitness programs as an alternative to gyms.

While more business closings are likely this year and could number in the thousands without government help, the emergence of the workout-from-home trend won’t spell doom for fitness centers, said Helen Durkin, the executive vice president of public policy at IHRSA. Plenty of exercise fanatics, she said, will still do both.

In fact, 40 percent of Peloton users have gym memberships, according to the company.

Moreover, because online workouts are here

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Planet Fitness has recovered 85 percent of its local membership and will continue opening new gyms in Puerto Rico. >Courtesy

to stay, some gyms and industry professionals In addition, Planet Fitness developed the have boarded on the digital bandwagon by initiative ‘United We Move’ – a series of free ‘worklaunching their own fitness programs and lessons outs’ turned to ‘work-ins’ with daily, 20-minute on the web, which complement their in-gym exercise classes for members and non-members memberships and services. For instance, Planet that was broadcasted daily on Facebook Live Fitness launched a mobile app several months into and YouTube. This initiative started before the the pandemic - well before its initial 2023 release nationwide lock downs began, as a way to keep date - to provide members and nonoptions, as gyms members moving were forced to shut and to maintain a down and people much-needed focus on sought ways to stay personal health and active while safe from well-being, as evidence COVID-19. has shown that The app, called exercise can have huge Planet Fitness benefits to mental - Rick Scaccia, CEO of Workouts, contains health, especially Planet Fitness Puerto Rico a library of workout during stressful times. videos and tutorials More than 18.5 million people in 39 countries divided into beginners, and the United States intermediate and tuned in during that period,” explained Ginny Jove, advanced levels. It is free to download and use, marketing manager at Planet Fitness Puerto Rico. while members have access to exclusive content.

Likewise, Carlos “Cholo” Ayala, a former Scaccia asserted that by launching a mobile tool, bodybuilder and prominent personal trainer in the company “opened up our field of membership Puerto Rico, explained that he is seeing clients at growth because the person who wasn’t a member a small gym in Bayamón, as well as developing and they used the app is becoming a member… workout routines for customers at a distance.

They are growing our membership from a growth base, not a recovery base.”

For the latter, he asks clients to send pictures of

Human behavior does not like to work out at home; they want to be inside a gym.

themselves from different angles and indicate their fitness goals, as well as where they would exercise and what type of equipment they have access to.

He also inquires about their culinary proclivities and allergies and based on all that information, he designs personalized exercise and nutritional plans.

Despite the success he’s found, amassing customers from different countries as well as locally, Ayala asserted that gyms, as a concept, will not be pushed out of the picture entirely.

“Exercising outside of your home is an escape as well, a mental therapy session,” he said, confident that a number of people will always seek health clubs despite the variety of online options, although he lamented that many of these establishments were forced to close permanently over the economic crisis caused by the pandemic.

For his part, Scaccia asserted that the company will continue to invest in Puerto Rico, having opened its 13th club on the island earlier this summer and en route to open its 14th later this year, with plans to reach 19 units by 2023. “From that point, we’ll readjust our development plan from 19 to 30, and that 30 endpoint will happen over a seven-year period,” he said, adding that each gym costs about $2.5 million to build.

- The Associated Press contributed to this story.

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There is a big need in the U.S. for more doctors who are Hispanic or African Americans.

Ponce Health Sciences University Will Expand to St. Louis

Medical program will have 30 new students stateside for Aug. 2022

W Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

ith Puerto Rico’s demographic trends showing that fewer and fewer young people are being born and residing on the island, many educational institutions have had to look beyond the island’s shores for new students.

The latest case is that of the Ponce Health Sciences University’s School of Medicine, which has announced that it will expand its doctor in medicine program to St. Louis, Missouri, with 30 students, which will begin in Aug. 2022.

With this expansion, Ponce Health Sciences will increase its enrollment in its medicine program from 150 to 180 students.

The expansion has been approved by the Liaison Committee on Medical Education, which is the entity that accredits medical schools in the United States and Canada.

“Expanding our medical program to St. Louis will add to the institution’s undeniable record of graduating physicians from diverse backgrounds and gaining admission to highly

variety of backgrounds around the world, “said competitive medical residency programs such Dr. David Lenihan, president of Ponce Health as radiology, orthopedics, dermatology and Sciences University. ophthalmology, while providing to doctors “That is a new way of visualizing what the the cultural competencies that are critical to experience should be like in medical schools. developing a medical workforce that represents Furthermore, it is essential to develop an communities across the nation and around the experienced and highly qualified medical world,” said Dra. Olga Rodríguez de Arzola, dean workforce, which is so necessary of Ponce Health Sciences’ School today and will be even more so of Medicine. in the future,” he added.

In a statement sent to THE The expansion of the WEEKLY JOURNAL, Rodríguez university’s medical program indicated that by 2033, it is to St. Louis will help promote expected that there will be a In 2018, only the university’s commitment shortage of more than 55,000 5.8 percent of to educating a robust pool of primary care physicians and physicians in the future medical students, capable 86,000 specialist physicians U.S. identified of demonstrating high academic (surgeons, pathologists, as Hispanic and potential and who in turn come radiologists, psychiatrists 5 percent of from diverse communities that and others) in the U.S., if the physicians identified are often underrepresented in issue of medical training is not as Black or African the medical profession, Lenihan addressed.

American. indicated.

The expected shortage is even During the past 44 years, more stark among Hispanic the Ponce Health Sciences physicians and physicians University’s School of Medicine of color, as there is a lack of has graduated more than 2,600 physicians, diversity in the medical community. For example, biomedical scientists, and master’s degrees in in 2018, only 5.8 percent of physicians in the U.S. medical sciences. identified as Hispanic and 5 percent of physicians Other local universities that have expanded identified as Black or African American. beyond Puerto Rico’s shores include Albizu “Today’s medical students need two things: University and Inter American University, both with first, a high-quality education that prepares them campuses in Miami, Florida. Inter American has to serve patients adequately, and second, the also recruited many students from outside Puerto kind of cultural education that enables them to work successfully with patients from a diverse Rico, particularly for its School of Optometry.

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Calls for End of FOMB Oversight oF PRASA

As gov’t-owned utility has successfully returned to the market

W

THE WEEKLY JOURNAL Staff

ith the Puerto Rico Aqueduct and Sewer Authority’s (PRASA) second capital market transaction that was successfully completed about a week ago, the Puerto Rico government is arguing that the public water utility should no longer be under the purview of the Financial Oversight and Management Board (FOMB).

PRASA never declared bankruptcy, unlike the Puerto Rico Electric Power Authority (PREPA), but under the federal PROMESA law, all Puerto Rico government instrumentalities are under the FOMB’s oversight.

The Puerto Rico government is now arguing that the FOMB should not wait until the whole shebang is completed, but should pull out little by little, as government entities achieve solvency and obtain market access.

“Thanks to the successful implementation of fiscal, financial and operational measures over the past few years, PRASA has managed to navigate the challenges that have affected Puerto Rico since 2017 without resorting to a bankruptcy process or financial restructuring under the procedures available under PROMESA (Title III and Title VI),” said Omar J. Marrero, executive director of the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF by its Spanish acronym).

“This transaction is yet another example that, despite our differences, we can work together and collaborate to achieve great results and continue moving in the right direction for the benefit of the people of Puerto Rico, including setting the stage for the Oversight Board to eliminate PRASA’s status as a covered instrumentality,” he said.

“This bond issue is one of the biggest financial achievements since the enactment of PROMESA, as it demonstrates that PRASA once again has been able to access the institutional capital markets at reasonable rates and regained market confidence,” Marrero added.

THE WEEKLY JOURNAL requested a reaction from the FOMB, but officials there could not be

PRASA will generate average debt savings of $22 million annually under the latest transaction. >Archive

reached as of press time.

During a press briefing, PRASA Executive President Doriel Pagán Crespo reported that all of PRASA’s 2012 Series A and B bonds - known as the 2012 AB Series - were successfully refinanced.

Specifically, nearly $1.8 billion from the 2012 AB Series are being refinanced through the issue of nearly $1.7 billion in bonds, as well as $209 million in premiums obtained from selling new bonds.

Among the benefits of this transaction, Pagán

This transaction is yet another example that, despite our differences, we can work together and collaborate to achieve great results and continue moving in the right direction for the benefit of the people of Puerto Rico, including setting the stage for the Oversight Board to eliminate PRASA’s status as a covered instrumentality.

-Omar J. Marrero, AAFAF executive director

highlighted average debt savings of $22 million annually and debt service relief to PRASA of $570 million over the life of the refunding bonds, without increasing the total amount of its debt.

The deal also provides additional support from PRASA’s bondholders towards allowing the utility to prioritize operating expenses over other obligations, including its debt. She reported that PRASA has obtained support from 74 percent of holders of its senior debt.

By combining the savings achieved following the refinancing of most of PRASA’s 2008 bonds in Dec. 2020 with the savings achieved by this transaction, the public utility is reducing its annual debt service by an average of $35 million every year and roughly $920 million in total debt service through maturity.

Pagán stated that “this refinancing of close to $1.8 billion in senior debt represents all of the bonds issued by PRASA in 2012. It is important to emphasize that this transaction does not increase our debt or extend its maturity. On the contrary, it reduces the current interest rate and outstanding balance because the bonds were issued at a premium.”

Marrero pointed out that the latest agreement “joins a previous transaction, particularly with the bonds issued in 2008, which were refinanced in Dec. 2020. Both transactions occurred at a historic moment in the market where there was high demand for this type of credit. There were not many offers for this type of product and, at the same time, there are historically low rates. “[These are] institutional investors who not only believed in Puerto Rico and the Authority, but who redoubled and increased their financial position in PRASA, which definitely denotes the financial success that the Authority has had,” he added.

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Romark, with manufacturing facilities in Puerto Rico, is awaiting U.S. approval for the first oral tablet available to treat COVID-19.

12 Emerging Pharma Companies Show Interest in Puerto Rico Private sector touts the island’s added value

T Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

he Alliance for the Economic Development of Puerto Rico, founded and directed by Rodrigo Masses, who is also president of Synergi Partners PR, held a round table with 12 emerging companies from the pharmaceutical industry that are interested in establishing or have chosen Puerto Rico for operations.

“The objective of this round table was to get to know the companies that are considering or have chosen Puerto Rico for their growth, their projects and challenges, and what motivates them to select our island. We wanted to provide the appropriate forum to discuss their vision of development, as well as to know the areas of opportunity that we have as an island to attract and retain these industries that see us as an option to develop and establish their operations,” Masses said.

Among the important points discussed, the companies agreed that establishing themselves in Puerto Rico represents added value. The island has exceptional talent trained and experienced in the pharmaceutical industry as well as the ideal ecosystem for the development of the industry, Masses indicated. As a U.S. commonwealth, U.S. laws and the dollar also apply to Puerto Rico, which provides the island with a “privileged location” and access to global markets.

Organizers also noted that Puerto Rico has a

long history in the production development of pharmaceutical of pharmaceutical drugs that drugs in the field of infectious has created a great deal of local diseases. Currently, Romark, knowledge and expertise. These which has local facilities in Manatí, include contract manufacturing is awaiting U.S. approval for the Organizers organizations (CMOs) that have first oral tablet available to treat noted that Puerto the capability to manufacture COVID-19. The approval of this Rico has a long finished products in large product may represent a “game history in the volumes, and a well-educated changer” in the treatment of this production of workforce. terrible infection, especially given pharmaceutical However, challenges remain the current variants and the slow drugs that has for Puerto Rico. Among the vaccination process in many created a great deal challenges mentioned to continue countries, Ayers indicated. of local knowledge the development of the industry Based on the findings of and expertise. These are high energy costs and several clinical trials, Romark include contract reliability, as well as possible is seeking Emergency Use manufacturing changes in U.S. tax laws that Authorization on its NT-300 organizations could impact Puerto Rico, the release tables from the U.S. Food (CMOs) that have ongoing COVID-19 pandemic, and Drug Administration (FDA). the capability research and development (R&D) “Given the enormous toll of to manufacture infrastructure, and access to the COVID-19 pandemic and the finished products investment capital. continued public health risk, we in large volumes, “We want to carry the message are pleased that these clinical and a well-educated that there is a great opportunity trial results show a compelling workforce. for economic development for reduction in progression to the island, as well as possible severe COVID-19 with early NTsolutions for the health and well300 treatment,” said Jean-François being of humanity. The [pharma] industry needs Rossignol, M.D., Ph.D., chief medical and scientific the support of both the government and private officer of Romark. investors to carry out this great task,” said Elizabeth “Along with vaccines and treatments for severe Plaza, a member of the Alliance. illness, oral treatments that can be administered outside of a hospital setting to effectively reduce disease progression are urgently needed. Our results Romark’s Advances in compare favorably with therapeutics that have been COVID-19 Treatment granted Emergency Use Authorization for use in a During the event, Marc Ayers, CEO of Romark, hospital setting in patients at high risk of developing presented a case study on their experiences serious COVID-19,” he added. in Puerto Rico, as well as R&D advances in the

In fact,

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Viva Puerto Rico: A New Short-Term Rental Alliance

Short terms now 40 percent of lodging demand

W Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

ith Puerto Rico’s tourism industry continuing to boast strong numbers, a group of owners and operators of independent rental properties have established an alliance to represent the interests of this growing segment.

Viva Puerto Rico Short-Term Rental Alliance (VPR) unites and represents the short-term rentals tourism segment. According to organizers, VPR will give a voice to its diverse membership by providing formal representation, education and resources for these types of accommodations – seeking to provide quality hospitality to guests, as well as owner satisfaction. An important part of the VPR mission is identifying and implementing best practices to rent responsibly and enhance the traveler experience – to inspire travelers to discover and fall in love with Puerto Rico, and everything the island has to offer.

VPR is a coalition of professional independent rental property owners and managers and other tourism-related business owners and service providers. Founders Rene Acosta, owner/ administrator of Martineau Belle Playa, and Alma Bair, CEO of Paradise Villas & Vacations, formed the alliance to fill a need for adequate representation of this growing economic sector.

“As shared by Discover Puerto Rico, the island’s destination marketing organization (DMO), the independent rental market has been growing steadily with an increase of 235 percent over the last five years and now make up 40 percent of lodging demand in Puerto Rico. In addition, the changes in traveler behavior, motivated by the pandemic, and the search for privacy and security, took independent rentals to another level,” Acosta said.

VPR will provide a voice in discussions about the industry, its laws, regulations and any issues affecting independent rentals. In addition to professional owners and managers of short-term accommodations - including studios, apartments, houses, villas and other unique rentals - VPR will accept other tourism-related business owners who support this growing market.

U.S. Conference of Mayors in Austin, Texas on Aug. 31, 2021. Organizers said the reception will provide visiting mayors the opportunity to understand the positive economic impact of this tourism segment and learn new travel trends.

“We are here to support the tourism economy, travel leaders and government policy makers, by hosting discussions on best practices, sharing resources and continuing to grow this evolving industry,” Bair said.

To join Viva Puerto Rico, register at https://www. vivapralliance.com/registration. Membership is free for 2021.

‘Astounding’ Pace of Tourism Recovery

Meanwhile, Discover Puerto Rico continues to tout the sector’s strong recovery after the immediate impact of COVID-19.

The data shows that June and July’s lodging demand pushed the year-to-date lodging demand beyond all records, with the most hotel demand since before Hurricane Maria and the highest rental demand ever. But in addition to recordsetting demand, July’s average daily hotel rate of $276 was 46 percent higher than in 2019.

Data from STR and AirDNA, two companies that track data in the hospitality sector, show nearly $750 million in lodging revenue in the first six months of the year, 24 percent higher than 2019, the year Puerto Rico welcomed the most visitors to the island. Based on the reported data, Puerto Rico’s return is far outpacing other U.S. states and territories. Tourism Economics finds that in June, Puerto Rico’s travel spending was 28 percent “It is imperative that the higher than in 2019. short-term rentals in our alliance The island’s performance is are registered with the Puerto closely tied to the investment of Rico Tourism Company – and federal resources in the recovery have been assigned a formal of the tourism industry, according ID number. The taxes collected to Discover Puerto Rico. For Since March are critical to the growth of example, the DMO’s marketing 2021, trips to the tourism economy,” Bair campaigns has been generated Puerto Rico, tracked explained. from CARES Act and CDBG-DR by the DMO’s VPR was formed through a dollars. Tourism data provider partner Arrivalis,t collaborative process with the Adara has been monitoring when have increased by Vacation Rental Management consumers are exposed to media 20 percent, and 72 Association, an international using the federal resources and of 78 of the island’s organization founded in 1985 subsequent bookings. Adara municipalities saw an that advances the vacation rental reported that year-to-date, more increase in visitation. industry through education, than $558.8 million in lodging has information, networking, research been booked after consumers and advocacy. were exposed to the marketing As part of their work, the efforts funded by the CARES Act two organizations will host a (COVID-19 Economic Relief) and reception for visiting Puerto Rico mayors at the CDBG-DR (Disaster Recovery).

In fact,

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Importance of Connecting Investors with Promising Projects Impeller designed to facilitate capital investment on the island

I

Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

nvest Puerto Rico (InvestPR), the nonprofit entity with the mission of attracting capital investment to the island, announced the release of Impeller, an online platform that is designed to connect companies and investors with a variety of projects islandwide.

Rodrick Miller, CEO of InvestPR, detailed that Impeller diversifies Puerto Rico’s investment portfolio by showcasing a variety of projects from every municipality and region beyond the San Juan - Metro area. In addition, the website facilitates queries by identifying opportunities by economic sector or industry, as well as capital ranges. That is, this platform may be used by both small and large enterprises, with no minimum investment required. Furthermore, Impeller may be used to attract angel investors as well.

“With the ability to surpass the boundaries of traditional outbound and inbound deal sourcing and marketing, investors and issuers are better able to connect at scale, better leveraging opportunities with the most relevant industry pairing,” the CEO asserted.

THE WEEKLY JOURNAL asked how this new website provides a solution to some of the problems that affect individuals and corporations that want to invest on the island. According to Miller, because of Puerto Rico’s robust incentives, “we have a lot of investors coming with money, but they didn’t necessarily have company intel, so they would come to us and say ‘what project can I invest my money in?’”

Impeller thus bridges investors with issuers by helping them identify value-added partnerships and strategic opportunities for investment. “The most powerful piece of this is that it’s a level of access to investors that local companies and projects historically haven’t had, and it’s a way for investors who are trying to understand the island to actually see what’s happening on the island,” Miller said.

From the investor’s perspective, Impeller provides a wide-ranging list of investment deals seeking recapitalization and economic growth for Puerto Rico. From the issuer’s perspective, Impeller helps companies increase awareness of their

Rodrick Miller, left, explained that Impeller may be used by both small and large enterprises, as well as issuers. >Courtesy of InvestPR

operational footprint among credible investors looking to close capital investment transactions on the island.

Opportunity sectors available on Impeller run the spectrum from healthcare and tech to clean energy, visitor economies and commercial real estate. The tool’s intuitive interface can provide a wealth of information about issuers, including financials, company background, executive leadership, performance, needs and more. ​ Brian Bourgerie, Enterprise manager at InvestPR, informed that the three categories that have generated the most interest thus far are early-stage ventures, Opportunity Zones, and renewable and alternative energy sources.

However, “there are at least a couple dozen investors interested in every category,” he said.

Bourgerie reported that 286 “unique” individuals have registered on the website so far. These represent more than 100 individual investors, over 30 institutional investors, and more than 50 people who have created accounts to find projects.

Impeller is free to use for investors, while those who want to raise capital are charged a simple listing fee that can range between $500 and $2,000. “The fee to post a project on Impeller varies according to the size of the project and investment projections. The fees, re-invested in the operation and management of Impeller, are tax deductible donations to Invest Puerto Rico, which

is a 501(c)3 not-for-profit organization,” InvestPR explained in a missive.

One-of-a-kind Website

As for what sets Impeller apart from similar tools in other markets, Miller said “this is the first economic development organization, based on our research, that has this kind of platform. So, I don’t know of any other destinations that have this.”

He added that “this is important for InvestPR because there are pretty much two main metrics for us, which are jobs - how many jobs are created in the market - and how much private investment comes to the market. This is one of the things that’s going to shoot the private investment figures in Puerto Rico by a lot because companies or investors are coming, and they say ‘we got money but we don’t know how to find the deals’… This should help Puerto Rico be an easier place to invest those dollars.”

The platform was designed by WealthBlok.AI, but it is managed and maintained internally by InvestPR. The platform’s creation and its initial promotion cost $55,000. “The development and ongoing maintenance costs are being covered by the sign-up donations from project issuers,” the nonprofit said in a statement to THE WEEKLY JOURNAL. Impeller can be accessed directly on impeller. investpr.org, or through the official website of InvestPR.

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Omar J. Marrero

Executive Director of the Puerto Rico Fiscal Agency and Financial Advisory Authority

Light at the End of the Tunnel

I

t is very likely that the summer of 2021 will go down in history as the point that marked the beginning of the end of the bankruptcy of the Government of Puerto

>Archive

Rico.

On July 1, the first day of Fiscal Year 2022, the first budget prepared by the government of Puerto Rico and approved by the Oversight Board since Congress passed PROMESA five years ago, began to take effect. And in late July, Judge Laura Taylor Swain approved the Disclosure Statement for the Plan of Adjustment (POA), which represents the beginning of the end of the debt-adjustment process for the Government of Puerto Rico.

Both events are significant milestones in the process of complying with the two conditions imposed by PROMESA for Puerto Rico to emerge from bankruptcy and the Oversight Board to cease operations on the island: four consecutive years of balanced budgets and returning to the capital markets at reasonable rates.

What is truly significant is that since the enactment of PROMESA in July 2016, the government of Puerto Rico had not been able to implement its own budget, as provided for in the Constitution of Puerto Rico, because they were all rejected by the Board.

The budgets that governed FYs 2018, 2019, 2020 and 2021 were the budgets imposed by the Board.

This time it was different. After all these years of hard work— sometimes collaborative, sometimes contentious—the Legislature, Governor Pedro Pierluisi and the Board, all did their part, making relentless demands as to some things and giving in generously as to others, to achieve the common goal.

The truth is that we did not agree on everything. Differences remained, some of them considerable, but the end result was that the government of Puerto Rico was able to draw up a budget that the Board approved and

certified as being in compliance with the Fiscal Plan for the first time since the beginning of PROMESA. It is easily said, but it has been an extraordinary achievement and a milestone on the road to emerging from bankruptcy, restoring our finances and achieving better opportunities for everyone in Puerto Rico.

We are now engaging in the process of approving the debt adjustment plan for the central government. Just as the average Puerto Rican family finds it impossible to thrive when it has debts up to its neck, Puerto Rico also needs to restructure its debt in order to exit the bankruptcy, dismiss the board and move forward.

When Congress passed PROMESA in 2016, the Government of Puerto Rico and its public corporations had accumulated more than $70 billion

in debt that they could not repay.

The Government and the public corporations had to spend nearly $3 out of every $10 in revenue just to service the debt. In addition, the government had another $55 billion in unfunded pension debt, that is, obligations to our retirees that could not be paid because the pension systems were broke.

Although the process of restructuring Puerto Rico’s debt has been going on almost since the beginning of PROMESA, and the restructuring of significant amounts of debt, such as that of COFINA and the Government Development Bank, among others, has already been completed, the next step will be perhaps the most important.

Following the approval of the Disclosure Statement, in the coming months Judge Taylor Swain will

At the moment, the Plan of Adjustment (POA) confirmation hearing is scheduled to begin on November 8. In other words, there is a real probability that by the end of this year, a POA will be confirmed for the central government, thus marking the end of the bankruptcy. begin the process of considering the Plan of Adjustment that covers all of Puerto Rico’s central government obligations: approximately $35 billion in general obligation bonds, Public Buildings Authority (PBA) bonds, Highways and Transportation Authority (HTA) bonds, Government Employees Retirement System (ERS) bonds, other uninsured general debt of the Central Government, PBA, HTA and ERS, as well as another $55 billion in pension liabilities.

At the moment, the POA confirmation hearing is scheduled to begin on November 8. In other words, there is a real probability that by the end of this year, a POA will be confirmed for the central government, thus marking the end of the bankruptcy.

As with the budget, the Executive Branch, the Legislative Branch and the Oversight Board do not agree on everything relative to the POA. Governor Pierluisi’s well-known public policy is that such a plan should not entail cuts in the pensions of public employees because these have already been cut in the past.

We are confident that we will be able to reconcile those differences and reach a POA that benefits Puerto Rico, since reducing debt to sustainable levels is another very important step on the path that Puerto Rico must follow to emerge from bankruptcy, regain access to capital markets and end the mandate of the Oversight Board under PROMESA.

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/ Wednesday, September 1, 2021

>Courtesy of Base Co-Work and Condado Ocean Club

Ready for Results? Find a Mentor s your financial and professional lives become more complex, going it alone will only get you so far.

We all need advice, encouragement and a sounding board from time to time. Leaning on family and friends can help, but it can be difficult for loved ones to give you objective advice.

That’s why you need a mentor. Or mentors.

You can have a career mentor. A money mentor. A life mentor. A spiritual mentor. A relationship mentor. A business mentor. Basically, any area of your life in which you need guidance or accountability, there’s a mentor for that.

These relationships don’t appear out of thin air. You need to seek out a mentor and put in the work to see results.

spiritual community, and start having deeper conversations. Ask for their perspective and use them as a sounding board.

That person may be two decades your senior, or they may be close to your age. In some cases, a mentor closer in age can better relate to your experiences at the workplace, in relationships and in life, Green says. It’s still fresh for them.

There are situations where a structured, formal mentorship is the way to go. If you’re trying to start a business, for example, you need someone who sees your vision and has the expertise to help you execute it.

That person may not already exist in your orbit.

But you can find them through organizations like Score, a national volunteer organization that offers free business mentorship.

Whether you want to excel as a manager, save for retirement or become more involved with your house of worship, defining your goal can help narrow your mentor search, says Bridget Weston, CEO of Score.

“Try to understand your goals and what you want out of a mentor relationship,” Weston says.

“Then you can approach them and say, ‘This is what I’m looking for. Does this work for you?’”

Finding a Mentor

Making it Work

Finding a mentor can help you move forward

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NerdWallet via AP

Approaching someone and asking “Will you be my mentor?” feels a little awkward. But mentorship doesn’t need to be that formal.

“I think the most valuable mentorships are the ones that arrive more organically,” says Alison Green, creator of Ask a Manager, a work advice website.

Find someone you connect with, whether at work, in your social circle or in your

A mentorship is a relationship, and even the easiest relationships require time, energy and focus. You also need to be open and vulnerable.

Don’t Hold Back: Confessing your fears and doubts won’t happen on day one, meeting one.

But as the mentorship grows, try to open up.

“You have to gel with your mentor in order to make the most of that relationship,” Weston says. “If you’re holding back or not being 100%

authentic, you’re not going to get the most out of it.”

If you don’t feel comfortable doing so after a few sessions, consider finding a different mentor, says Jennifer Jones, founder of Cosmopolitan Plated, a culinary company in Arlington, Virginia , that offers group cooking classes and teambuilding events.

“It’s like dating someone. You need three dates to figure out who they are,” says Jones, who has a life coach and a business mentor. “If after that third meeting you realize it isn’t working, kindly tell them. They will understand.”

Do the Work: This isn’t a college class where you can skim the assignment five minutes beforehand and wing it during the class discussion. To get the most out of your mentorship, take notes during meetings, prepare questions in advance and, most importantly, work on the things you say you will.

“Here’s the catch: If you’re not working on them, they don’t mean anything to you,” Jones says. “If they don’t mean anything to you, either you’re in the wrong mentor/mentee relationship or you are not ready.”

Close the Loop: Find ways to show your appreciation and build the relationship. This step can be as simple as telling your mentor how you put their advice into action.

“If you have a big conversation with them about an issue you’re grappling with, come back to them and tell them what you ended up deciding. Close that loop,” Green says. “It’s so gratifying when someone comes back to you and says, ‘Here’s what I did and here’s how your advice helped me.’”

-This article was provided to The Associated Press by the personal finance website NerdWallet.

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/ Wednesday, September 1, 2021 >Adam Smigielski via gettyimages.com

Entertaining Caribbean Style Six Fruit and Wine Pairings You Need to Try

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The Entertainer

ife in the Caribbean means that warm days and evenings are the norm, so planning for drinks and snacks means focusing on lighter fare.

Fruit and wine can often be the perfect evening appetizer for your intimate or grand gathering. With so many fruits reaching their peak during the summer and even throughout the year, these wine pairings will help you make the most of their unique flavors and textures.

Here are six of the best options to try now, with friends and family.

Sauvignon Blanc and Mangoes/Coconuts

One way to have a successful wine and fruit pairing is to balance flavors and richness rather than trying to boost the intensity of each. In the case of this match-up, the fruits are bold and hearty, while the wine is more subtle; a crisp glass of Sauvignon Blanc pairs wonderfully with such meaty fruits.

Mangoes and coconuts are also two fruits best enjoyed at the height of summer, but in Puerto Rico are pretty much available year-round, so this pairing will have you enjoying a tropical vacation from your back porch in no time.

Tempranillo and Fresh Berries

From the Rioja region in Spain, a Tempranillo is a naturally fruity wine - in this case, pairing that fruit flavor with fresh berries serves to enhance the richness of each. Choosing raspberries and blackberries will give you the deepest flavor since strawberries and blueberries tend to be lighter a Tempranillo’s fruit notes are usually deep and jammy from cherry, plum and fig.

It’s important to choose fully ripe berries; a slightly tart berry will taste too bitter paired with the sweet wine. A good balance of earthiness and fruit flavor, a Tempranillo paired with fresh and vibrant berries is the perfect summer treat on a warm evening.

Syrah and Blueberries

If you’re looking to use your fresh blueberries, however, try pairing them with a Syrah. A wine that often has notes of vanilla and tobacco, a Syrah is a perfect complement to the more creamy and subtle flavor of a blueberry.

If your particular Syrah has bold notes of fruit (most are fruit-forward, but some can favor spicier notes), you’ll get a blackberry/blueberry combination from the wine that can enhance the subtleties of the fresh blueberries. Syrah is also a medium-acidity wine, so the creamy blueberries, with just a hint of tartness, balance its flavor well.

Pinot Noir and Cherries

As far as red wines go, Pinot Noir is a fairly mild and balanced one, making it ideal for pairing with the tart sweetness of cherries. Many Pinot Noirs have fruit-forward notes with hints of spice

and earthiness underneath. Because cherries are moderately acidic on their own, this red wine does a good job balancing those notes to leave you with a delicious mid-afternoon treat. Many vineyards in the Pacific Northwest grow Pinot Noir grapes close to cherry orchards, so it’s a match made in…well, Oregon!

Chardonnay and Peaches

A chilled glass of Chardonnay paired with juicy slices of a ripe peach is perhaps the best summer treat for your menu. The un-oaked variety of Chardonnay has a slightly fruitier and crispier taste than its oaked counterpart (which tends to be more buttery and has notes of vanilla), so pairing it with the fresh, sweet taste of peaches is a perfect combination.

Sangria

For perhaps the ultimate summer fruit and wine pairing, consider making a pitcher of sangria. A classic Spanish summer drink that has migrated across the globe, sangria offers the perfect balance of fruit flavor, dry wine, and sparkling crispness for hot summer evenings.

Traditional sangria recipes use fruity red table wine, citrus-like oranges and lemons, cinnamon, and sugar. By leaving slices of fruit in the wine, you’ll be able to eat the pieces as you drink! Using apples and pears is also popular – just be warned that these fruits soak up far more alcohol than their citrusy counterparts!

All of these pairings highlight both the wine and the fruit, so make sure to try them all this summer – and share your favorites with your guests!

/ Wednesday, September 1, 2021

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Puerto Rico to Participate in the

Annual Global Festival ‘Ars Electronica’ PRSTRT and its Cultural Heritage Innovation Program to present ‘Garden Puerto Rico’

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he Puerto Rico Science, Technology and Research Trust (PRSTRT), with its Cultural Heritage Innovation Program (CHIP), will be one of over 100 participants with virtual space at the prestigious international event “Ars Electronica,” which will be held from Sept. 8 to 12, 2021.

As part of the global virtual event, various collaborative projects will feature their respective “gardens,” created with world-renowned artists.

This year’s theme is dedicated to art, technology and innovation. Besides the PRSTRT, the local effort has received the support of Discover Puerto Rico and Universidad Ana G. Méndez.

“Ars Electronica” is a scientific and cultural institute, started in 1979, based in the city of Linz, Austria. It holds an annual global festival in its Kepler Garden, called the “Ars Electronica Festival,” where, in addition, the Prix Ars Electronica prize has been awarded since 1987.

Due to the COVID-19 pandemic, since last year, the festival has been held in virtual mode, creating an interactive space known as “gardens,” in which this year, artists from 120 locations around the world will participate. Under the theme, “A New Digital Deal,” participants have been asked to develop projects around the challenge of digitization in our daily lives, explained CHIP director, Johnny Lugo Vega.

“At the P.R. Science, Technology & Research Trust, our approach to the digital era has been through our efforts to facilitate and invest in science, technology and innovation, to solve problems in Puerto Rico, arising during emergencies such as hurricanes, earthquakes and economic disparities. We invest, facilitate and build capacities to continually advance Puerto Rico’s economy through innovation enterprises, science and technology,” said Lucy Crespo, the CEO of PRSTRT. According to Lugo, this event prompted many partner institutions throughout the world to cultivate their own festival “gardens” and allowed the first “Ars Electronica” to take root and grow on the planet.

>Courtesy of the PRSTRT

The Weekly Journal Staff

A call to protect Mother Earth >Courtesy of Bacardi

“Our participation in this event with ‘Garden Puerto Rico’ arises, thanks to the alliance we have had since 2019 with the international artist and Argentine engineer, Joaquín Fargas, who will exhibit his performance ‘Pulsar la Tierra.’ In this project, Fargas is calling on all of us to protect our Mother Earth, serving as a prelude to a series of presentations that have been coordinated for this event, as a complement to CHIP’s participation with ‘Garden Puerto Rico,’” Lugo explained.

The “Garden Puerto Rico” program consists of welcome videos from participating institutions and their sponsors, followed by a series of webinars from Sept. 8 to 10, alluding to the festival’s theme.

On Sept. 9, along with the webinars on that day, a special program will be presented from the Josefina de la Nuez Museum and Center for Humanistic Studies at the Gurabo Campus of the Ana G. Méndez University. This program includes the performance “Pulsar la Tierra” by Fargas, a panel discussion, a screening of a virtual tour of the Hispanic Studies Room of the Library of Congress, and will culminate with a conversation with the Puerto Rican artist-in-residence of the museum, Carola Cintrón Moscoso.

This activity will also be transmitted through a direct connection in collaboration with ´Garden Buenos Aires,” from Argentina, to “Garden Puerto Rico,” and vice versa.

For more details on “Ars Electronica” go to: https://ars.electronica.art/newdigitaldeal/de/ rediscovering-art-culture/.

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