Post on 24-Apr-2018
ROOSEVELT ROADS PUERTO RICO
PROMISE ZONEApril 20, 2017
Hon. Manuel A. Laboy Rivera
Secretary, Department of Economic Development and Commerce
DISCLOSURE
The materials contained in this presentation are for informational purposes only. This
document does not constitute an offer to sell or a solicitation of an offer to buy any securities.
This document is a summary of certain matters for discussion only. You may not rely solely
upon this document in evaluating the merits of a project, investment venture, or any business
referred to herein. This document does not constitute and should not be interpreted as either a
project recommendation, investment advice or any other recommendation including legal, tax
or accounting advice.
Future results are impossible to predict. Opinions, figures, estimates and market trends offered
in this document constitute a preliminary assessment and are subject to change without notice.
Data on this document are based on current market conditions but should not be relied upon
without further assessment and verification. This presentation may include forward-looking
statements that represent opinions, estimates and forecasts, which may be subject to
significant uncertainties, many of which are outside the control of the Puerto Rico Public-
Private Partnerships Authority, the Government of Puerto Rico and its agencies and
instrumentalities.
Roosevelt Roads Puerto Rico Promise Zone - Overview
Fajardo
Ceiba
Roosevelt
Roads
Naguabo
Lead Organization:Local Redevelopment Authority for Roosevelt Roads (LRA)
Designation Date:June 6, 2016
Population:77,344
Average Poverty Rate:47.2%
Unemployment Rate:17.34%
Average Family Income$19, 722
Key Partners: Municipalities of CeibaFajardo and Naguabo;
The Roosevelt Roads Puerto RicoPromise Zone is located in theNortheast corner of Puerto Rico.
The area suffered a big financial losswhen the Roosevelt Roads NavalStation closed in 2004. The threecommunities affected by this closurehave joined forces with the LocalRedevelopment Authority of Roosevelt(LRA).
The LRA plans to not only improvecommunity infrastructure but also torejuvenate economic activity in theregion, increase access to health care,improve educational opportunity,reduce violent crime, and jumpstart jobcreation.
Roosevelt Roads Puerto Rico Promise Zone – Plans and Goals
Identify private developers with the ability to advancethe business objectives of the LRA, by creatingpartnerships that will jumpstart the redevelopment ofRR and transcend government administrations.
Finding the right partners to collaborate on thisendeavor is of the uttermost importance.
Upgrade the infrastructure system through P3’s, andfederal programs and/or other mechanisms, to allowthe continuation of current operations and set thegroundwork for the upcoming redevelopment, furtherenhancing the attributes and the value of thisredevelopment project to private investors.
PROMSE ZONE
Location of the Roosevelt Roads Puerto Rico Promise Zone
Puerto Rico, USARoosevelt Roads Puerto Rico
Promise Zone
San Juan
Airport
Fajardo Ceiba
Roosevelt Roads Naguabo
Roosevelt RoadsPuerto Rico
Promise Zone
Transferred
Lands
In 2013, the Navy completed the transfer of 3,409 acres and 1,600 facilities to LRA.
Status of Redevelopment Project
2004
• Base closure BRAC
• Law 508-2004 created the LRA for 10 years
• LRA developed Reuse Master Plan
2010
• LRA developed Addendum to Reuse Master Plan
2011
• RR Land Use Zoning Plan approved by Puerto Rico Planning Board
• RR Infrastructure Master Plan completed
2012
• U.S. Navy transferred Parcel 3 to the LRA
2013
• U.S. Navy completed transfer of Parcels 1 & 2 to the LRA
(all land transfer completed and transferred to Puerto Rico Government)
2014
• PR Planning Board Amendment to Land Use Zoning Plan-ROTFU approved
• Development Zones Master Plan
• Law 508-2004 is amended to extend term for an additional thirty (30) years
2015
• U.S. Navy completed transfer of the Hospital Parcel
2016
• Promise Zone Designation by President Obama
2017
• Land available for the redevelopment
Roosevelt Roads Land Available for the Redevelopment
Renewable Energy Generation, Distribution and Operation
Establishment of a Retirement Community including independenthousing, assisted living and all medical services
Redevelopment of the Waterfront for a Mega Yacht Marina
Private Ferry Route to Vieques, Culebra and other Islands
Land available for the redevelopment. Based on market demand, four (4) major projects are on the works:
Location of Projects for Immediate Implementation
The SiteOver 8,000 acres of Opportunities & Amenities
Roosevelt Roads Infrastructure
The LRA currently owns and operates all of the infrastructure and utilitysystems at FNSRR. This presents a unique opportunity for interestedutility developers
Existing infrastructure requires update and major modifications inorder to support current operations in FNSRR and set thegroundwork for the master planned multi-use redevelopment
Existing infrastructure at Roosevelt Roads was developed throughout60+ years to satisfy the demands of low density, military uses
The investment for these upgrades has been estimated at$150-$200 million dollars
General Infrastructure Overview
Potential Infrastructure Projects
Main infrastructure components at FNSRR include:
Roads and Access Potable Water Distribution System
Sanitary Collection System
Power Distribution System
None Existing Telecommunication System
Roosevelt Roads Infrastructure - Roads and Access
STATE ROADS
• FNSRR connects the municipalities of Naguabo and Ceiba mainly through the stateroads PR-3 and PR-53
• Roads are in excellent condition and have the sufficient capacity to meet therequired development capacity for the next 25 years
FNSRR ROADS
• The Interior of the FNSRR contains over 100 miles of main and secondary roads
• Most of them are in good condition. In general most of the existing roads can berepaired by patching or paving certain areas
ACCESS
• In the past, the access points to FNSRR were through four main gates: 1, 2, 3 and 4
• Gate 1 is the current and main entrance that connects FSNRR with PR #3 on the north
• For security reasons, all other gates are currently closed
Roads and Access
Roosevelt Roads Infrastructure – Potable Water Distribution System
WATER INTAKE
• WI for the water system takes place in the Rio Blanco River of Naguabo, via a 27” diameterpipe that is connected to a lift station pump that directs the water to the reservoir located atthe base
WATER FILTRATION PLANT
• The WFP filtrates and distributes the potable water throughout the FNSRR
• It is comprised of aeration, sedimentation tanks and sand filters
• It has enough capacity to fulfill the estimated water demand for the future development forover 25 years
DISTRIBUTION SYSTEM
• It has over 64 miles of pipelines, seven pumping stations and a Storage tank among othercomponents
• Actual condition of this system is fair. Current tenants are being served with this system
Water Distribution System FNBRR is completely independent of PRASA
It consists of three main components:
A. Water Intake
B.Water Filtration Plant
C. Distribution System
Roosevelt Roads Infrastructure – Sanitary Collection System
• FNSRR has its own used water treatment system
• It consists of a network of:
Approximately 32 miles of pipes that collect the sanitary discharge by gravity
Approximately 9.5 miles of force lines
28 pumping stations
Which converge in three independent water treatment plants:
Bundy,
Forrestal
Capehart
Treatment Plants and
Sanitary Collection
System
• All three treatment plants are currently non-operational
• All sewer and sanitary components, such as manholes and piping systems, are ingood condition
• All current sanitary collection is managed by sanitary extraction trucks
Roosevelt Roads Infrastructure – Power Distribution System
• All the electrical infrastructure and components within FNSRR are property of the LRA
Power Distribution
System
• There are 11 substations (of various capacities) in FNSRR. Substation “India” is theonly one currently operational
• “India” supplies the electrical load for all current operations within FNSRR
• Power is supplied by the Puerto Rico Electrical & Power Authority (PREPA) from theDaguao Station
• Power is supplied by two main lines of 38kv that enter the base via Gate 3 tosubstation “India”
• “India” distributes power to the different tenants using 13.2kv lines that runfrom Forrestal to Langley Road
What do We Need?
I E OJINFRASTRUCTUR
EECONOMIC
DEVELOPMENTJOB
CREATION
Develop Infrastructure Projects: Energy, Potable Water, Sanitary Water, Roads & Telecom
Rejuvenate economic activity in the region
Jumpstart job creation
RI E OJINFRASTRUCTURE
ECONOMIC DEVELOPMENT
OPERATEJOB CREATION
Rejuvenate economic activity in the region
Jumpstart job creation
Customer Service
RRE-POPULATE
Populate Roosevelt Roads again
Identify interested investors to develop & operate Infrastructure Projects: Energy, Potable Water, Sanitary Water, Roads and Telecom Systems
What do We Need?
Next Steps
1 Identify interested investors to develop Infrastructure Projects:Energy, Potable Water, Sanitary Water, and Roads.
2Engage in direct negotiations with private investors developers/zone developers whowill partner with the LRA and acquire a leasehold, fee-simple or other appropriateinterest in the property.
3Continue to identify potential federal government programs through RR’s Promise Zonedesignation to provide funding for required infrastructure upgrades.
4 Perform assessment process for Private Ferry Route from RR, Renewable EnergyGeneration and Distribution, Mega Yacht Marina, and Medical and RetirementCommunity.