The Weekly Journal - March 11-17, 2020 by El Vocero de Puerto Rico

Wednesday, March 11 - 17, 2020 / no. 046

Puerto Rico and the Caribbean

www.theweeklyjournal.com

Fiscal Plan presents Optimistic Outlook Despite Uncertain Future P10 A year later, the ruling on Supplemental Security Income for Puerto Rico is still pending P12 Puerto Ricans could benefit from the collapse of international exchange markets P18

Political Insight: President Trump on Puerto Rico Disaster recovery funds, corruption claims and the Oversight Board Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

Editor’s note: This is the second story in a two-part series about the 2020 presidential candidates’ stances on Puerto Rico affairs.

La Perla to become San Juan’s next tourist stop P28

ast week, THE WEEKLY JOURNAL offered political insight on the Democratic presidential candidates that remained back then and their plans for Puerto Rico as outlined by their campaigns. For the second part of this edition, the gaze will shift to the Trump administration’s efforts

regarding the welfare of Puerto Rico’s residents. More than three years have passed since business magnate Donald J. Trump claimed a shocking victory in the 2016 presidential elections. The Republican contender garnered an outpour of support from middle America that clashed considerably with poignant criticism from the “mainstream media,” as he refers to left-leaning publications, postmodern progressives, the Democratic National Committee (DNC), and even prominent members of his own party. GO TO PAGE 4

The Weekly Journal > Wednesday, March 11, 2020 > 2

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a week in review First suspected cases of Coronavirus reported this week A 68-year-old Italian tourist on board the Costa Luminosa cruise ship became Puerto Rico’s first suspected case of coronavirus this weekend. The woman, who boarded the ship in Ft. Lauderdale, Florida after arriving from her native Italy, allegedly didn’t show any symptoms when she first boarded, but developed them during the voyage. After docking in San Juan, the woman, who had been taking antibiotics prescribed by the ship’s doctor, was taken to the Ashford Presbyterian Hospital. Department of Health protocols have been activated after more suspected cases were reported earlier this week.

Restaurants are forgoing customer’s sales and use tax Applebee’s, Longhorn, Olive Garden, Red Lobster, Sizzler and Wendy’s are paying the sales and use tax (IVU) for their customers on selected dishes in an effort to offer consumers a monetary relief and attract more customers. The offer only applies to regular orders. Secretary of the Treasury Francisco Parés said Puerto Rico’s Internal Revenue Code allows the restaurants to announce that the IVU is included in the price of the food during the promotional period even if the IVU is displayed separately in the customers’ check.

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Puerto Ricans experience an improvement in their finances According to TransUnion’s most recent report, Puerto Ricans are improving their credit by showing a decrease in mortgage delinquency and personal bankruptcies, as well as requesting less personal loans .The report states that Puerto Rican consumers’ credit has improved 23 points over the last five years. There are approximately 1.4 million consumers with credit on the island.

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CONTINUED FROM PAGE 1 Because of his administration’s zero-tolerance policy on illegal immigration—particularly concerning Latin Americans—critics have accused the president of employing racist rhetoric presented as dog whistles to appeal to “neo-Nazis,” the Ku Klux Klan (KKK), and other groups rooted in white nationalism or xenophobia. While the depth or congruity of these accusations can be highly debatable, a number of Puerto Ricans have denounced that Trump’s perceived disdain toward Hispanic Americans extends to themselves. This perception is heightened by American media, most of which claims that the 45th president in office holds a personal vendetta against the Commonwealth and its people. This viewpoint has been showcased extensively by local news sources as well ever since Hurricane Maria devastated the island. However, although some critics lambast Trump concerning issues that impact the U.S. residents of Puerto Rico, others have praised his administration’s commitment to the island.

An Unprecedented Natural Disaster

When Hurricane Maria made landfall on Sept. 20, 2017, the Category 4 storm ravaged the island’s already flailing infrastructure, resulting in a mass power outage, interrupted water service, lack of telecommunications and other essential services, crowded shelters, inefficient medical care and loss of life.

One claim that has been misleadingly presented as a fact is that 4,645 residents died as a result of Hurricane Maria. A 2018 report published in The New England Journal of Medicine presented that number as an estimate of 14.3 deaths per 1,000 persons. As The Washington Post’s Glenn Kessler explains, this is an unverified number based on estimates of deaths from people who

were interviewed in a survey. The question of its veracity aside, the unconfirmed death toll from the hurricane and the despoiled state of the island in its wake are sensitive issues that have altered the conditions of both local politics and Puerto Ricans’ expectations from the federal government. Trump made international headlines after he was seen throwing paper towels at hurricane victims during his first visit to Puerto Rico as a sitting president on Oct. 3, 2017, nearly two weeks after the hurricane struck the island. San Juan Mayor Carmen Yulín Cruz reprimanded the sight as “terrible and abominable,” calling the president the “miscommunicator-in-chief.” This, and previous social media interactions, would spark an unending dispute between both leaders, with Trump denouncing the mayor of Puerto Rico’s capital as “incompetent” and “corrupt.” On Sept. 30, 2017, the president said that the local government was failing to address residents’ needs, specifically targeting Cruz’s “poor leadership.” But Trump’s criticism of Mayor Cruz’s management prompted a backlash from Democrats and some residents, as well as support for Cruz, including from presidential hopeful Bernie Sanders. However, Fernando Jiménez, president of the College Republican Federation of Puerto Rico, pointed out

President Trump sparked controversy after he threw paper towels at a crowd of Puerto Ricans impacted by Hurricane Maria. >AP/File

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Donald Trump is the first sitting president to visit Puerto Rico after a natural disaster. >Carlos Rivera Giusti

It is a fact, not an opinion that under the administration of President Donald Trump Puerto Rico has been assigned the largest amount in federal funds... -Fernando Jiménez, president of College Republican Federation of Puerto Rico

that Trump is the first president to visit the island after a natural disaster and supported Trump’s critique on local politicians. “We witnessed how [Cruz] didn’t distribute the aid that she was provided and did not attend meetings with FEMA… Same with the [New Progressive Party], who, under Ricardo Rosselló’s leadership and after his resignation, there were news of forgotten warehouses with expired water bottles (in Ceiba), misuse of federal funds, centers full of undistributed supplies (Ponce), etc.,” Jiménez told THE WEEKLY JOURNAL. Another issue that has cast a shadow on some Puerto Ricans’ stance on Trump is the delayed disbursements from the Community Development Block Grant Disaster Recovery (CDBG-DR) program. The Central Office of Recovery, Reconstruction & Resilience (COR3) indicates on its transparency portal that the U.S. Congress assigned $48.8 billion in recovery funds, of which roughly $22.1 billion

have been obligated and only $15.2 billion have been disbursed. After a chain of seismic activities impacted southwestern municipalities in Jan. 2020, the Trump administration imposed restrictions on $16 billion in emergency relief, citing a need to hold the local government accountable. Jiménez nonetheless stated that the Trump administration assigned greater funds to Puerto Rico than other states affected by weather phenomena, even though residents do not pay the federal income tax. “Puerto Rico needs to change its mentality of the political-economic framework of Keynesian and corporatist dependence, of maintaining the homeless and corporations, because if Hurricane Maria had not happened there would be no emergency funds or a historic rescue worth billions of dollars,” Jiménez asserted.

PROMESA and Debt Relief

While the topic of disaster recovery is an important component in the discussion of Puerto Rico, the U.S. jurisdiction’s multimillion-dollar public debt remains an essential factor in either closing or expanding the relationship between the federal administration and the residents of the commonwealth. In 2016, the Barack Obama administration signed the Puerto Rico Oversight, Management & Economic Stability Act (Promesa), which created the Financial Oversight and Management Board (FOMB) to control the island’s debt restructuring, whose members were confirmed by Congress. In June 2019, Trump renominated the existing FOMB members to continue in their current positions. Around that time, his administration urged the U.S. Supreme Court to revoke the First

Circuit’s ruling that declared FOMB members’ appointments as unconstitutional. U.S. Solicitor General Noel Francisco argued that Puerto Rico’s fiscal recovery would be undermined if FOMB was unable to operate. This falls in contrast with Democratic presidential candidates Sanders and Joe Biden, both of whom have either deemed Promesa as a “colonial” imposition that should be discarded, or as legislation that merits reframing or revisiting. Regarding relief, some politicians have advocated enabling a mass cancellation of Puerto Rico’s debt, which exceeds $70 billion. In Oct. 2018, the president initiated a heated debate after he accused local politicians of intending to use federal disaster recovery funds to pay off the public debt, an allegation he could not support with claims of political corruption within then-Governor Rosselló’s administration. “You know, they owe a lot of money to your friends on Wall Street, and we’re going to have to wipe that out… You can say goodbye to that. I don’t know if it’s Goldman Sachs, but whoever it is, you can wave goodbye to that,” the president said in Oct. 2017 while interviewed by Fox News. After these comments, delivered shortly after the hurricane, Puerto Rico’s general obligation bonds dipped at 30 cents on the dollar. Although the residents of Puerto Rico do not have the right to vote in the U.S. general election, or a voting representative in Congress, the fact remains that there are more Puerto Ricans living stateside than on the island, roughly five million versus some three million residents. With their newfound voting right, politicians from each end of the political spectrum must include the island in its platform to appeal to an ever-expanding voter base.

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CEO of Antos Environmental on Campaign to Sustainability, Waste Reduction Launching composting program at local schools

T Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

ony Schifano is a man with a mission. Aware that Puerto Rico has a waste management problem, the CEO of Antos Environmental believes that the cultural transformation to save the planet must start with

children. With that in mind, his pro bono work includes giving talks at schools, college campuses and civic organizations on the importance of recycling. In Puerto Rico, he has started a composting program at Robinson School in Condado and is in talks to start a similar program at 50 Montessori schools islandwide. Our “throw away culture” is far from OK, he said during a recent talk with the San Juan Rotary Club. “You guys are buying plastic water bottles like it’s ok. It’s not ok. Those water bottles are like eating donuts… It’s a global problem, a massive problem,” Schifano said. He noted that most of the products we use are not biodegradable. “You buy glass bottles of iced tea and throw it away in a garbage can. That bottle will take 100 years to slightly decompose. You’ll be dead. When will we stop this behavior?” he asked rhetorically. About 11,000 tons of waste material is generated in Puerto Rico every single day. Of that, 40 percent is food waste, he indicated. This represents an opportunity to recycle, as the food waste could be converted into fertilizer for local farmers. “What we need is a cultural transformation, not just here, but the whole world,” Schifano said. For example, New York City has established a composting program for food waste. “If we could do it in New York, don’t you think we could do it in Puerto Rico? This is not rocket science. It’s a behavioral shift,” he said. To help start this cultural transformation, he has decided to focus his efforts on educating young

About 40 percent of what Puerto Rico generates in waste material is food waste. Much of this food waste could be converted into fertilizer for local farmers. >Courtesy

people so that caring for the environment is part of their characters. “I don’t care if they want to be capitalists, but they can be conscious capitalists. They can be composting and recycling from second grade on,” he added. Beyond that, he said that there are simple things that we can do as individuals to help the environment. “Stop buying plastic water bottles. Single use plastic is a disaster for this island,” Schifano said, noting that stateside, the average person spends $1,268 a year on plastic water bottles. “You could buy a reusable water bottle…buy a fancy one…and just fill it up with water and carry it around. This is not so challenging,” he said. He explained that farmers also want our organic waste. “Buy two five-gallon drums with lids and put all your food waste in it all week. Go to a farmer’s market on Saturday and give him one of the drums. Next week he gives it back to you and you

start exchanging your food waste,” Schifano said. Only about 10 percent of the waste generated in Puerto Rico is recycled, public policy has established a rate of 35 percent for 2006, according to government figures. However, Puerto Rico is not alone with its low recycling rates. Florida passed a law mandating a 70 percent recycling rate by 2020, he noted. “Like many places, no one paid attention to the law. I don’t think that happens here in Puerto Rico,” he said with a laugh. “Lo and behold, 2020 came around and they may be recycling about 12 percent of their waste volume and they have no place to put all this garbage… Every night, the garbage companies drop their garbage off the side of I-95 highway and cover it with dirt. That’s what’s happening on the East Coast of Florida… Don’t believe me. Google Florida 95 and take a look at the pictures,” he said.

T-Mobile GETS Naming Rights for EL DISTRITO

NV, a sports and entertainment venue. connected while they explore. THE WEEKLY JOURNAL asked Martel what • Every day of the week, visitors get their first attracted the company to El Distrito. “In this case, hour of parking free. Every Tuesday, T-Mobile Distrito T-Mobile is the first construction project customers get a second hour of parking for free — of this nature in Puerto Rico, post-Maria. We were just for being a T-Mobile customer. attracted by the quality of its construction and its • T-Mobile customers even get their own, Rosario Fajardo rfajardo@wjournalpr.com @RosarioWJournal tenants,” he said. dedicated VIP Express Line for quick entry into the “To associate our name with this world class Coca-Cola Music Hall — all they have to do is show venue, that’s a big attraction for Puerto Ricans and their phone. And, they may even be surprised with -Mobile has landed the 10-year tourists,” he added, noting that a seat upgrade for some events. naming rights for Distrito the project, by local developer “We’re extremely proud to T-Mobile, a new entertainment and builder Prisa Group, is also an announce Distrito T-Mobile and to complex in San Juan that is example of Puerto Rico’s recovery continue to be part of the island’s scheduled to open next month. and resiliency. Also partnering in economic development,” Martel The venue, next door to the the endeavor is ASM Global, one said. In Dec. 2019, Puerto Rico Convention Center, of the top venue-management T-Mobile provides 700 direct T-Mobile launched will feature a variety of entertainment options for companies in the world. jobs in Puerto Rico and he 5G nationwide across local residents and visitors alike: concerts, movies, The 476,000-square-foot estimated that the company the U.S., including games, dining and more. complex will feature a Caribbean supports another 500 jobs blanketing nearly all “We are not divulging the exact amount of the Cinemas VIP movie theater; Toro indirectly. In early 2019, T-Mobile of the island with 5G. investment but this is a sign of our commitment to Verde ziplines; a virtual reality rolled out a massive 600 MHz Puerto Rico,” said Jorge Martel, vice president and gaming center complete with laser network expansion and in Dec. general manager of T-Mobile Puerto Rico to THE tag and a bowling alley; a wide 2019, T-Mobile launched 5G WEEKLY JOURNAL. range of restaurants and a digital scenery system nationwide across the U.S., including blanketing He noted that the telecommunications company composed of 14,000 square feet of LED screens, nearly all of the island with 5G. has invested about $450 million in its network and including one of the largest horizontal 4K screens “There’s no finer destination for entertainment stores on the island since Hurricane Maria in Sept. in the U.S. In addition, the Coca-Cola Music Hall will on the island than Distrito T-Mobile, and we’re 2017. serve as the go-to venue for concerts and shows, thrilled to have a disruptive partner in the UnThe company already has two sports and while the first Aloft hotel in the Caribbean will carrier to help bring this innovative vision of the entertainment venues in the U.S. mainland that become the ultimate place to stay. future of entertainment to life for the benefit of bear the T-Mobile name: T-Mobile Park in Seattle, As part of the agreement, T-Mobile will provide all Puerto Ricans and visitors from throughout the WA, home of the Seattle Mariners, a Major League visitors a number of technological perks: world,” said Federico Stubbe Jr., president of Prisa baseball team, and the T-Mobile Arena in Las Vegas, • Device charging stations, so everyone can stay Group.

First for the telecom company outside the mainland U.S.

In fact,

>Courtesy

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Sandy Weill (far right), founder and president of NAF, shares a moment with students from Benito Cerezo High School in Aguadilla. >Courtesy

United Technologies, National Academy Foundation Launch $3M STEM Partnership Engineering academies established at two public high schools in Aguadilla

D Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

id you know that 90 percent of commercial airplanes worldwide have at least one part that was manufactured in Puerto Rico? Did you know that only about 20 percent of the world’s population have had the opportunity to fly on an airplane? These two interesting facts were among the tidbits that your correspondent learned when covering the announcement by United Technologies Corp. and the National Academy Foundation (NAF) on their $3 million partnership to expand NAF Academies of Engineering to Puerto

Rico and beyond. “The aerospace industry is growing worldwide and it has become an important segment in Puerto Rico,” said Gilberto Montes, general manager of Collins Aerospace on the island, noting that a main cluster is in Aguadilla and another in Santa Isabel. Collins Aerospace is a subsidiary of United Technologies. “Flying is becoming more and more accessible worldwide and we expect the gap [between those who have flown and those who have not] to close in the coming years,” he said to THE WEEKLY JOURNAL. With the demand in air travel continuing to grow, it is important for Puerto Rico to develop the local talent pool in the industry, particularly in STEM (science, technology, engineering and mathematics), he noted. “We want to develop interest in STEM at an early age, so that hopefully, students can continue on to college and have careers in these fields… We want to provide equal opportunities to those in public schools so that they also have the opportunities to have careers in these fields,” he said.

The partnership, consisting of a $3 million funding commitment over three years, aims to expand NAF’s well-established and successful Academies of Engineering, bringing STEM programs to under-resourced public high schools in Puerto Rico, Palm Beach County, Florida and across the United States. The commitment will also extend to supporting NAF’s Academies of IT and engaging NAF alumni through its NAFTrack platform. Through its partnership with NAF, United Technologies will prioritize the development of a pipeline of diverse technical talent and include internship opportunities. Two public high schools have been chosen in Puerto Rico: Benito Cerezo High School and Elvira Colon High School, which will serve as the inaugural sites for Puerto Rico’s first NAF Academies of Engineering. Both schools are close to United Technology’s Pratt & Whitney and Collins Aerospace Systems facilities, making it possible for employees to volunteer and work side-by-side with students. Josymar Acosta, president and general manager

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of Pratt & Whitney Puerto Rico—a United Technologies company—explained to THE WEEKLY JOURNAL that initially, 25-30 9th grade students at each school will participate at the engineering academy. Every year, the program will continue with successive students so that eventually, the program will be available at all high school grade levels.

Importance of Providing Opportunities

Acosta and Montez, both Puerto Rican, are examples of the opportunities available in the aerospace industry. Both are graduates of the University of Puerto Rico’s Mayagüez Campus, with degrees in engineering, and with hard work and dedication, they have forged successful careers in STEM. Acosta is a graduate of Benito Cerezo and said she was proud and honored to go back to her old high school with the hope of inspiring other students to follow her footsteps. “United Technologies is incredibly proud to partner with NAF, an organization that is transforming the STEM learning environment with tangible, hands-on learning opportunities for high school students in underserved communities,” said Greg Hayes, the company’s chairman and CEO. “These academies will expose generations of students in Puerto Rico to STEM classes, mentorships and company internships, bringing to life what a future career in engineering and technology can look like.” Through the partnership, United Technologies

and NAF will bring professional engineering expertise into the classroom. By offering a variety of work-based learning engagements such as company visits, mentoring and paid high school internships, the two organizations are helping these to be college and career ready. The two new engineering academies in Puerto Rico are also joining a nationwide network of 600 academies offering “school within a school” careerthemed programs. With a focus on providing opportunities for women and minorities in STEM fields, NAF serves more than 100,000 students throughout the United States, the U.S. Virgin Islands and Puerto Rico.

Jobs, Jobs, Jobs

To highlight the job opportunities in their respective fields, Acosta told THE WEEKLY JOURNAL that Pratt & Whitney is currently hiring 100 people for supply chain positions and looking for 15 software engineers in Puerto Rico. Based on a quick perusal of United Technologies’ website, the company is looking to hire 72 people for various positions in Puerto Rico, such as engineering (22), operations (20) and supply chain (5). Collins Aerospace, meanwhile, has 28 job openings on the island. Engineering jobs in the aerospace industry are well paid, according to 2018 figures—the latest available—from Puerto Rico’s Labor Department. For example, the average salary for electrical

We want to develop interest in STEM at an early age, so that hopefully, students can continue on to college and have careers in these fields. Gilberto Montes, general manager of Collins Aerospace in Puerto Rico

engineers is $51,490 a year; for mechanical engineers $50,630 annually; and computer hardware engineers $62,210 a year. As a whole, United Technologies employs over 2,000 people on the island in the design and manufacturing of aerospace technologies for jet engines, air management and electrical systems. For its part, Collins Aerospace employs about 1,200 people locally at its smart-line production line with its automated Printed Circuit Board Assemblies build process for commercial aircraft engines and power control applications. Pratt & Whitney employs some 850 people locally; its employees design, evaluate and support gas turbine engines, airframe systems and other aerospace products.

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Government’s Revised Fiscal Plan Optimistic Despite Continuing Uncertainties

Impact of coronavirus is the big unknown

Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

“

ptimistic, determined and full of potential.” That is the overall message that the government of Puerto Rico hopes to project in its newly revised Fiscal Plan that was recently submitted to the Financial Oversight and Management Board (FOMB). According to Gov. Wanda Vázquez, it was necessary to revise the government’s fiscal plan due to the new fiscal and economic realities facing Puerto Rico, not only after the impact of two hurricanes in 2017, but also the January earthquakes. At the same time, the coronavirus outbreak is having an impact on the world economy. If approved by the FOMB and U.S. District Court Judge Laura Taylor Swain, this would be the Puerto Rico government’s seventh Certified Fiscal Plan since May 2017. “We have submitted to the Oversight Board a draft of the Fiscal Plan that is sustainable and adjusted to the fiscal and economic challenges that our island is facing,” the governor said. “We have also identified operational efficiencies that benefit public workers while guaranteeing the pensions of our retirees.” For example, since fiscal year 2016, the number of public workers has been reduced by 18,000 people, through attrition, early

>Archive

retirement and “voluntary transitions.” As a result, payroll expenses have been reduced by 19 percent. This has allowed the government to ensure public pensions are not cut, she noted. At the same time, $146 million has been identified in fiscal year 2021 for the Uniform Remuneration Plan, a new compensation plan for career government workers. Vázquez said the negative impacts of the natural disasters, along with the possible impacts of the coronavirus outbreak are included in the

document. Balancing it out, though, are the positive expectations that the pending federal reconstruction funds will arrive. Economist Daniel Santamaría of nonprofit Espacios Abiertos told THE WEEKLY JOURNAL that since April and May 2018, the projected savings in “structural reforms” over the next 30 years has gone down from between $80 billion to $90 billion, to $54 billion, $42 billion, $34 billion and now $12.8 billion. “Those are big drops,” he said. “The structural

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reforms are supposed to be the motor that generates economic activity. The [numbers] show you that they have been too optimistic in this area.” The thinking is that savings generated from structural reforms, often categorized as “austerity measures,” are supposed to be compensated by the federal help that should be streaming into the island. “This is not happening. Yes, federal funds should continue to arrive little by little, but not at the pace projected,” Santamaría said. “The future is uncertain and very complicated for an economy that is as small as Puerto Rico’s,” he added, noting that there are so many factors beyond our control: the flow of federal funds, natural disasters and now the coronavirus outbreak.

Latest on Federal Funds

The revised plan, which encompasses 90 pages, acknowledges that federal funding for the island’s recovery after Hurricane Maria in Sept. 2017 has been slow in coming and bogged down by bureaucracy. Since the powerful storm struck the island, $20 billion in Community Development Block Grant - Disaster Recovery (CDBG-DR) funds have been allocated or obligated to Puerto Rico, but only about $1.5 billion have been released. Based on data from the Federal Emergency The revised Fiscal Plan says tourism could be impacted by the coronavirus outbreak. >Arcive Management Agency’s (FEMA) website, only $5.9 billion of FEMA public assistance funds have been obligated over the last 27 months (Sept. Risks Galore 2017 – Nov. 2020). Despite the optimistic view, many risks Still, the revised 2020 Fiscal Plan projects remain on the horizon. For example, due to the that, in the coming years, $81 billion of disaster earthquakes and the 2017 storms, “outmigration relief funding, including federal and private above what is forecast in the 2020 Fiscal Plan sources, will be disbursed in the remains a major risk to recovery reconstruction effort. The funds that Puerto Rico faces.” will be used for a mix of individual Another unknown is the and public assistance, such as eventual cost and time of the reconstruction of houses and repairing power-generating major infrastructure, roads and equipment at the Puerto Rico To date, the damages schools. Electric Power Authority’s caused by the tremors, Of that, $47 billion is estimated (Prepa) Costa Sur plant, which which were focused in to come from FEMA’s Disaster was significantly damaged as southern Puerto Rico, are estimated at $500 million. Relief Fund for public assistance, a result of the tremors. “With But the figure is certain hazard mitigation, mission Costa Sur out of service, Puerto to increase as inspections assignments and individual Rico would need to rely on its Puerto Rico is still waiting for billions in federal recovcontinue in the most assistance. An estimated $8.4 other power plants to operate ery funds to help jumpstart the local economy. >Archive affected municipalities, billion will come from private and almost at full capacity in order according to the revised lead to direct slowing of economic activity (due for business insurance payouts and to meet demand. This is in Fiscal Plan. example, to school closures, quarantines, tourist $6 billion is related to other federal addition to Prepa still struggling cancellations, supply disruptions) and is likely to funding. The 2020 Fiscal Plan to recover from the severe impact consumer confidence and real U.S. GDP includes $20 billion from the CDBGdamage to the power grid growth,” according to the document. DR program in the coming years. caused by the hurricanes,” the The revised Fiscal Plan mentions three specific Meanwhile, structural damages related to document mentions. risks for Puerto Rico. “Negatives for Puerto Rico the recent earthquakes should have a “minimal As in many other jurisdictions, the Puerto Rico include emerging risks to federal funding from impact” on the revised plan’s forecast. To date, government is concerned about the possible competing priorities for what is possibly an the damages caused by the tremors, which were impact of coronavirus on the island’s already emerging and immediate economic, political and focused in southern Puerto Rico, are estimated at challenged economy. As previously reported by public health emergency. $500 million. “But the figure is certain to increase THE WEEKLY JOURNAL, the revised Fiscal Plan “Direct impact from slowing tourism globally is as inspections continue in the most affected states that coronavirus poses a “significant risk” to also a risk... [and] to the extent that Puerto Rico’s municipalities. Currently, the estimated damages Puerto Rico’s economic outlook. bio/pharmaceutical products are responsive to the are relatively small as a percentage of real GNP “While stimulus and Federal Reserve rate needs of a federal COVID-19 response, the island’s (0.1 percent) and the capital stock (1.3 percent), cuts are a possibility if the coronavirus outbreak and, as a result, the structural damage will have a morphs into a pandemic, the stock rout [last week] economy can capitalize on what is likely short-term minimal impact on the 2020 Fiscal Plan forecast,” and pullback in other assets has tightened financial surges in demand for these products,” states the document. states the document. conditions, impacted consumer confidence, could

In fact,

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Puerto Rico Still On Hold for Supplemental Security Income

More than a year has passed since district judge ruled for equal treatment

O Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

n Feb. 4, 2019, Chief Judge Gustavo Gelpí of the U.S. District Court of Puerto Rico ruled that U.S. citizens on the island are entitled to the same social security supplemental payments, or Supplemental Social Income (SSI), as citizens who reside in the mainland. More than a year later, the federal government has not taken the necessary steps to ensure that all U.S. citizens have equal access to financial aid and government benefits. While similar in name, the SSI differs from the Social Security (SS) program. Economist Antonio Rosado explained that the SS is a benefit that employers and workers pay throughout the employee’s work life. That is, SS is a type of worker’s insurance that is deducted from their income. This retirement plan applies to all retirees regardless of their place of residence. “By contrast, the SSI is financed with the federal government’s regular revenue. It comes from personal income taxes, corporate taxes and other federal taxes,” Rosado told THE WEEKLY JOURNAL. Another distinction from the regular SS is its eligibility. In order to apply for the SSI, an applicant must be at least 65 years old or be blind or disabled; have limited income and resources; and be a U.S citizen, a national of the U.S. or an immigrant who meets certain applicable requirements. Even if an individual was an SSI beneficiary in the mainland, if they relocate to a non-incorporated territory, with the exception of the Northern Mariana Islands, they lose their right to continue receiving this supplemental income.

The Case That Sparked Debate

Judge Gelpí dismissed a plaintiff from the federal government in favor of defendant José Luis Vaello-Madero. The defendant lived in New York from 1985 to 2013 and received SSI benefits due to a disability. However, after he moved to Loíza, Puerto Rico in 2013, he was removed from the program. He continued receiving his routine payments until 2016 when the Social Security Administration learned of his relocation. The agency then proceeded to demand that he

Judge Gustavo Gelpí of the U.S. District Court of Puerto Rico dismissed the plaintiff, ruling that the defendant would not have to return the SSI payments received after moving to Puerto Rico. >Carlos Rivera Giusti

returned all payments issued in that three-year span, a total of $28,081. In his ruling, Judge Gelpí asserted that Congress cannot discriminate against the U.S. citizens in Puerto Rico, arguing that the federal entity cannot deny the liberty protected by the Due Process Clause of the Fifth Amendment. This, in spite of the powers conferred in Article IV of the Constitution, which allows Congress to enact the regulations needed to govern unincorporated territories. “[Article IV], however, is not carte blanche for Congress to switch on and off at its convenience the fundamental constitutional rights to Due Process and Equal Protection enjoyed by a birthright United States citizen who relocates from a state to Puerto Rico. Congress, likewise, cannot demean and brand said United States citizen while in Puerto Rico with a stigma of inferior citizenship to that of his brethren nationwide. To hold otherwise would run afoul of the sacrosanct principle embodied in the Declaration of Independence that ‘All Men are Created Equal,’” Gelpí stated.

“Dramatic Impact” On Local Communities

The case of U.S. v. Vaello-Madero is currently before the Court of Appeals for the First Circuit of Boston. “If the Circuit of Boston determines that yes, that it doesn’t matter that he had moved to Puerto Rico and is receiving benefits, that will open a window of opportunity here for impoverished Puerto Ricans. We are talking about poor folks, and this supplemental payment is highly significant. We are talking about a dramatic impact,” Rosado said.

The most recent data from the U.S. Census Bureau indicates that 43.1 percent of Puerto Rico residents live in poverty. THE WEEKLY JOURNAL asked Rosado if this statistic could hinder the island’s probability of achieving access to the SSI program, but the economist argued that the court would only assess a case from a legal standpoint and not its financial implications. “If [the court] follows Judge Gelpí’s stance, it will definitely rule that the fact that we are U.S. citizens who for some reason reside in Puerto Rico, that shouldn’t exempt us from receiving the SSI… The fact that he lives in Puerto Rico does not affect his status. That is what’s in talks right now and at any moment the Court of Appeals will release its opinion on this case,” the economist noted. Meanwhile, Resident Commissioner Jenniffer González, Puerto Rico’s representative in Congress, introduced last year a bipartisan bill to extend the SSI program to Puerto Rico, the U.S. Virgin Islands, Guam and American Samoa.

Puerto Rico Contributes to U.S. Treasury

An argument that has been used in favor of excluding U.S. citizens in Puerto Rico to the SSI benefits is that most residents do not have to pay most federal personal income taxes, which are some of the main funding sources for the supplemental income program. However, Rosado pointed out that residents are eligible for Medicaid, so—although Puerto Rico lacks fund parity in this tax-funded benefit—the SSI is “a special case” in favor of this argument. Moreover, Rosado dismissed a common claim that Puerto Rico receives more federal financial aid than the amount it contributes to the U.S. government. “That is a matter of measurement. Here, for example, American companies that are established in Puerto Rico and have an income of $30 billion a year return it to the United States and pay federal corporate taxes. It would be difficult to convince me that Puerto Ricans are not making a contribution to the U.S. government’s treasury,” he affirmed. With more than five million Puerto Ricans living stateside, the economist said that U.S. politicians will feel political pressure to reduce the gap that restrains Puerto Rico’s equal access to government benefits and fund parity. Failing to address these issues would only result in a growing and continuous migration chain from the island to the mainland, thus affecting states’ economies in the process. “What they need to understand is that this is a problem of necessity; this is not a problem of where you live. The solution is to go to Florida, New York, Texas or Arizona to receive these benefits because that is what will happen,” Rosado said.

/ Wednesday, March 11, 2020

Roughly 700 entrepreneurs attended a series of forums in Guánica and Yauco, where they were advised on how to apply for technical or financial assistance, how to protect their businesses during a natural disaster and how to remain resilient amid adversity. >Courtesy DDEC

New Government Portal Seeks to Boost Small Businesses

Entrepreneurs can market their services for free in this business catalog

T Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

he Puerto Rico Department of Economic Development and Commerce (DDEC, by its Spanish acronym) unveiled last week a new digital platform designed to aid small-business owners from the island’s southwestern region in recovering from the impact of the seismic activity that devastated those communities throughout Jan. 2020. On the website, http://www.refuerzoenelsur. com, entrepreneurs who employ up to 25 people are able to promote their products, services and schedule free of charge. The portal serves as a type of catalog meant to boost clientele. “Many people perhaps didn’t go [to southwestern municipalities] because there were earthquakes; many people perhaps were affected… This is a way of marketing businesses for the future beyond the aspect of an emergency. It provides visibility to that business so that they can promote it,” DDEC Secretary Manuel A. Laboy told THE WEEKLY JOURNAL. According to the secretary, more than 100 businesses have already registered, and he expects that number to continue to grow. “This is a tool that is easy to use, both for the business owner and the citizen, who will be able

to conduct his/her search by town or category, according to their needs. As such, we as a people will be able to support pymes (small- and midsize businesses) by buying from these establishments,” Laboy said. When asked about the metrics used to measure the portal’s success in fostering a healthier economy, Laboy explained that the DDEC will periodically gather feedback primarily from the entrepreneurs. However, the secretary clarified that the platform will serve as a temporary measure because it was conceived under the ‘Back to Business’ project for the southwestern region of Puerto Rico. Although the project was meant to assist in aiding those communities after the aforementioned natural disasters, Laboy said that he is considering to move those services into the DDEC’s official website, http://www.ddec.pr.gov, “and perhaps turning that into something more along the lines of a permanent feature.” THE WEEKLY JOURNAL asked if the DDEC would consider implementing a similar initiative for other zones with underdeveloped economies. “I have had general conversations because we are always seeking to improve our communication strategies on the programs, the initiatives, the projects… so I wouldn’t rule it out,” Laboy answered. “I believe that as we collect data on how this is performing—the benefits and value to the small businesses—that puts us in a good position to evaluate if we can do it for other regions that are undoubtedly, be it for historical reasons or even after [Hurricane] Maria, a little behind, economically… That is something that we haven’t ruled out because we are always seeking continuous improvement,” he added.

Businesses Receive Financial Compensation

Apart from the website, Laboy informed that his agency awarded a $2,500 cash grant to 1,000 small businesses that filed for this incentive and met the requirements. Officials had originally identified $1 million in economic incentives through Act 60 of 2019 of the Puerto Rico Incentives Code. The goal was to distribute this sum equally amongst 400 small businesses. “When we did the official call and the opening, which was on Jan. 27, 2020, we were receiving applications from Ponce, Mayagüez, Yauco and San Juan. And, obviously, we let them know that it would be ‘first come, first served; because we knew that we would be receiving more applications than what we could afford because we don’t have money for every small business in Puerto Rico, or at least for the municipalities affected by the emergency,” Laboy said. That same day, Jan. 27, the agency had received over 1,000 applications. The secretary then met with the board of the Puerto Rico Industrial Development Co. (Pridco) and requested an additional $1.5 million to assist a greater number of entrepreneurs. Applicants were required to present documents that certified their bona fide status with the Department of the Treasury and a copy of their municipal patent. They were also required to sign a contract certifying the veracity of the information presented.

/ Wednesday, March 11, 2020

Claro PAIRS NEW IMPROVEMENTS WITH LAUNCHING OF Samsung S20

of Puerto Rico’s most distinctive places. It is a at once with the four cameras, and the technology local production, sheltered under the motto for pictures taken at night was improved,” said #TodosSomosClaro. It focuses on the strength of Gianmarco Leri, Samsung Mobile manager for Puerto Rico. the brand and Puerto Ricans,” Ortiz de Montellano Memory capacity and artificial intelligence are explained. factors that also stand out in the new model, in The promotion is aimed at those who make use addition to its speed and efficiency in battery of social networks such as Facebook, Twitter and Instagram, as well as electronic games. The images consumption. “The high-resolution video is 8K and the angles can portray young adults using their cell phones to communicate, take photos and videos while engaging be adjusted. It is brighter and has a larger memory Brenda Vázquez Colón in recreational activities with their loved ones. The ads capacity. The phone’s screen is more sensitive to also highlight the social and positive aspect of Puerto touch, to make everything faster, and the new elecommunications giant Claro processor spends 30 Ricans, who have used is investing $250 million to percent less battery,” phrases like “we are expand the coverage of its fixed said Leri. moving forward” and and mobile network in Puerto An exclusive alliance “let’s get up” as they Rico, in order to keep its position surpass an array of between Samsung at the forefront of technology and Google in several challenges in recent and provide its customers with an years. regions – including efficient and agile service. Puerto Rico – will Enrique Ortiz de Montellano, president of Claro, provide extra storage on Samsung’s Galaxy -Enrique Ortiz de Montellano, president confirmed the news during the launch of the Galaxy devices and keep For its part, Samsung of Claro in Puerto Rico. #TodosSomosClaro advertising campaign and the information secure with Electronics Co. Ltd. new Samsung Galaxy S20+ at the Caribe Hilton hotel Knox and Google One. introduced its premium in San Juan. Google is offering free line, which includes the “We are investing in the 5G network and we are of charge 24 months of access to Google One, which 6.7-inch Galaxy S20+ and the 6.9-inch Galaxy S20 already in 200,000 homes. This year, we hope to provides up to 100GB of storage, with the purchase of Ultra. The latter is equipped with 5G technology. All have 300,000 homes within our fiber optic network. the Samsung Galaxy S20 + or S20 Ultra. models feature a slim and lightweight design that is Our speed will be 10 times faster than the current The safest device Samsung has manufactured is complemented by the Infinity-O front screen, with an one, going from 700 to 1,000 megabytes. We are almost invisible frame, Quad HD + Dynamic AMOLED 2X. the Galaxy S20 series, and it is protected by Knox, the waiting on the arrival of the new high-speed modems. industry’s leading mobile security platform, which The screen of the Galaxy S20+ includes a 10 MP We will be getting them this year,” Ortiz anticipated. protects everything from the chip to the software. The selfie camera, while the S20 Ultra has a 40 MP lens. The 5G high-speed internet will be initially installed The Galaxy S20 Ultra also has a powerful quad Galaxy S20+ and S20 Ultra also feature a new secure in the metropolitan area and other towns where processor for protection against hardware-based camera setup that allows you to take photos and there is a high demand for the service. Claro is also attacks. record professional quality videos. launching a media campaign at a cost of $500,000 “Samsung has always been a formidable partner, “They have refined the design with a super highto promote its most recent offering.The campaign and one that sets the standard in the industry with resolution camera that brings out the best of every started last week and will run throughout the year. significant technology revolutions in its mobile image and moment. Samsung’s latest flagship “We will introduce the campaign at the “Tu Música devices. Today is one of those great moments with products completely change the way the world is Urbano” Awards and then on social networks, the arrival of the Galaxy S20+ – followed in April with captured and experienced. The photos are much traditional media and movie theaters. The campaign the S20 Ultra –, two powerful smartphones, one with sharper, they are taken in tenths of a second, it has is being created and produced by Badillo Saatchi 5G, and a powerful camera capable of recording 8K a ‘zoom space’ 30 times larger than the others, and & Saatchi and GPS Studio. It was filmed in some content,” said Ortiz de Montellano. an extra 64 pixels. One can capture up to 14 images

Claro is investing in its new 5G network, and is angling to provide fiber optic internet access to 300,000 homes in Puerto Rico

“[Claro’s campaign] is a local production, sheltered under the motto #TodosSomosClaro,”

/ Wednesday, March 11, 2020

Pinky’s Reopening in Condado, Teaming Up With Açai Express

Both Plan to Open More Venues rfajardo@wjournalpr.com

@RosarioWJournal

inky’s restaurant, a local favorite among Condado residents and tourists alike, is returning to the area with a new restaurant that should be open in a matter of weeks. With an investment of $150,000 at the new locale on Ashford Avenue, with available seating space for 25 customers, everything is ready to go: the kitchen and bathrooms are set up, as are the decorations, tables and chairs. A total of 15 staff are being hired. The only thing pending? The final permits. They say that patience is a virtue, and this is definitely true of business owners in Puerto Rico, who often have to wade through the challenging permits process that can take months, if not years. Still, it will be worth the wait, as the restaurant, famous for its breakfast sandwiches and friendly faces, will soon be up and running. As part of the growing online trend, customers will be able to order online for pick-up or delivery via Uber Eats. But not only that—Pinky’s has also teamed up with Açai Express on their various expansion plans via franchises. THE WEEKLY JOURNAL sat down with Héctor Westerband, president of Açai Express, to talk about these plans. First, he said that he sees the two companies as complementary rather than direct competitors. Pinky’s is known for its sandwiches, shakes and coffee, while Açai Express is known for its açai bowls, smoothies and juices. Both brands have healthy sales revenues and are growing, so teaming up was a “no brainer.” “As a fan of Pinky’s for over 20 years, I am impressed with the amount of [sales] volume for the small space,” Westerband said. With that in mind, an additional two Pinky’s establishments should be opening in Puerto Rico by the end of the year. Among the locales being

P Rosario Fajardo

In fact,

considered are Santurce, Isla Verde, Old San Juan and Guaynabo. Westerband noted that Açai Express has 21 locations total in Puerto Rico, Florida and New Jersey. With his own experience as a guide in this endeavor, Pinky’s should soon be expanding stateside. Eating out for breakfast is a growing trend in the U.S. and Pinky’s is well positioned in this regard, he said. “Pinky’s is a small, hip café, with consistently great food. The brand is solid.” According to 2019 data, stateside consumers ate nearly 102 billion breakfasts out of their homes, in addition to 50 billion morning snacks, reported NPD Group, a market research firm.

Eating breakfast out is the wave of the future, as more than half of adults stateside—many of them millennials—said that, today, they are more likely to eat or pick up breakfast from fast-food establishments, coffee shops and restaurants compared with two years ago, according to the National Restaurant Association’s State of the Industry 2020 report. “We are very excited about this new opportunity, born from the union of businessmen and Puerto Rican business concepts. Pinky’s is an excellent brand with a culture of customer service, so we are confident that we will be successful not only in Puerto Rico but also in the U.S. market,” Westerband added.

The Weekly Journal > Wednesday, March 11, 2020 >

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/ Wednesday, March 11, 2020

Oil,Virus Wreak Havoc on the Market

The volatility generated by the collapse of the market could represent substantial savings for Puerto Ricans

T Ileanexis Vera Rosado

ivera@elvocero.com

@iverarosado

he proliferation of the coronavirus, along with the standstill between Russia and Saudi Arabia – which has caused a decrease in the price of oil – far from resulting in a tragedy for the island, could become an advantage. Although the stock market’s fall could mean a decrease in a broker’s income, analysts claim that for the ordinary citizen, who is not usually an investor, the volatility generated by the collapse of the markets, as well as the crash in the price of oil, could represent substantial savings for Puerto Ricans. In an interview with THE WEEKLY JOURNAL, Carlos Crespo, an oil industry analyst, agreed that the decline in the price of crude oil will continue until China manages to restart its economy after the coronavirus crisis. Goldman Sachs’ global head of commodities research in the global investment research division, Jeffrey Currie, acknowledged that the unprecedented cessation of economic activity in China has resulted in an estimated loss of four million barrels per day (bpd) in oil demand, compared to the five million bpd during the recession of 2008. “The constant tension between economic stimuli and inventory surpluses will most likely lead to volatile commodity prices,” Currie has said. Crespo acknowledged that, for the island, the coronavirus issue has its advantages and disadvantages, with a greater tendency toward the positive. Crespo mentioned that gasoline prices at the pump will likely show a significant downward trend, given the more than 30 percent fall in the price of oil. At the close of market on Monday, the price of a barrel of crude oil stood at $34. An 18 percent drop, or about $7.00 less per barrel. Likewise, a decrease in the price of propane should be seen, precisely at the very moment that wholesalers had determined to raise the price of the product to cope with the upward trend in the markets.

Similarly, Crespo argued that a decrease in the price of electricity, the production of which is 60 percent dependent on oil, should be expected. However, gasoline retailers, who have already seen product demand reduced from 1.1 million gallons per year to less than 800,000 gallons, should expect the reduction in demand to continue. “As the threat of contagion progresses, people decrease visits or trips outside their homes. This is already beginning to happen. People don’t want to be where there are crowds, which could also lead to a blow to retail sales, since they choose to go out only once to buy what is strictly necessary,” Crespo argued. However, Crespo, who is also a gasoline retailer, acknowledges that some construction materials, such as construction rods, will experience a decrease in price, since China’s demand for construction materials has been reduced to almost zero. “Although the prices of construction materials had stabilized quite a bit, we should see a downward trend due to the excess of available supply.”

Drop in the price of crude oil

Oil prices suffered a historic collapse overnight after Saudi Arabia disrupted the market by launching a price war against Russia, its ally. U.S. oil prices plummeted almost 34 percent, a four-year record low, to $27.34 per barrel. Meanwhile, traders prepare for Saudi Arabia to

flood the market with crude oil in an attempt to recover its market share. Oil prices dropped about 30 percent after Saudi Arabia drastically reduced its official sale price and established plans for a drastic increase in oil production next month, starting a price war at a time when global demand has decreased due the spread of the coronavirus. This means an end to more than three years of cooperation within the oil market, Organization of the Petroleum Exporting Countries (OPEC). The International Energy Agency (IEA) said that, in 2020, global oil demand may suffer its first contraction in more than a decade, given the stagnation of economic activity caused by the coronavirus. The IEA also anticipates a contraction of 90,000 bpd. However, it estimates a rebound to about 2.1 million bpd by 2021.

First Market Closure Since Dec. 2008

Shortly after trading began at the New York Stock Exchange, trading was halted for 15 minutes, a closing that had not been experienced since Dec. 2008. At the close of market on Monday, the main stock market indexes on Wall Street collapsed and the Dow Jones lost 2,014 points. The S&P 500 benchmark index fell 7 percent to its lowest level since June 2019, while the Nasdaq Composite was on its way to its biggest daily percentage drop since 2011.

/ Wednesday, March 11, 2020

By Inteligencia Económica

The Coronavirus and the Risks for a Global Recession

he global spread of the coronavirus (COVID-19) is beginning to have a destabilizing effect on the major economies around the planet. During the weekend, press reports indicated that Italy has taken radical measures to prevent the spread by isolating 16 million of its inhabitants. The potential crippling effects of COVID-19 have caused major

financial markets around the world to begin to collapse. Yesterday, in anticipation of the opening of the Asian and European markets, future indexes pointed to falls between 5% and 6% of the markets. For two weeks, the U.S. financial markets have experienced declines between 12% and 15%. The Dow Jones Industrial Average (DJIA), has fallen from 29,551 to 25,864, for a 12.4% drop, while the S&P 500, has fallen from 3,391 to 2,972 points, for a correction of 12.3%.

By Emilio Colon-Zavala, PE President and CEO – ECZ Group

The Scarlet Letter

he island of Puerto Rico has been hit with several disasters in the last five years.

Firstly, government bankruptcy in 2015, then Hurricanes Irma and María in 2017, and now a seismic event that began last December and is not showing much signs of stopping. One can argue about the causes of the first disaster but there is no escaping the fact that the other two have been complicated by the bankruptcy. Disaster recovery is challenging due to the bankruptcy, as well as the crippling bureaucracy that

has slowed recovery programs. To date, over 20,000 families still live under a blue tarp after the 2017 hurricanes. Recovery programs haven’t been able to start due to the red tape that has made it nearly impossible for monies to be spent. First, there was talk of corruption in Puerto Rico, when in fact only two FEMA officials from the mainland have been accused along with a California-based contractor. This red tape includes several layers of big government processes that entail multiple reviews that only increase costs and delay the execution of works. Then there is the slow process of project formulation. Not even

As a consequence of the potential financial and economic crisis, the price of oil has also plummeted. The reference price has dropped to $32 a barrel, the lowest level since the Persian Gulf War in 1991. The multiplier effect could be devastating for the North American conglomerates of the oil industry. The airlines are also feeling the effect, to the extent that they have begun grounding airplanes for fear of contagion. The value of the shares of companies that are exposed to China, or to economies where there are high transmission rates, are taking heavy blows. There is a fear that the global economy may enter a recession. In layman’s terms, this means that economies like the United States’, China’s and the European Union’s would enter a contraction phase which could have an effect on the rest of the world’s economies. Europe represents 16.3% of the global

economy, while the United States represents 23.6% and China, 15.5%. While the situation is further complicated by the lack of a definitive solution to the problem of COVID-19, the central banks of the main economies are trying to use their respective monetary policies to inject liquidity into the markets and avoid a paralysis of capital flows. The Central Bank of the United States, the Federal Reserve, has already made the decision to lower rates by .5% last week to calm the markets, but these continued to fall. This week will be crucial, and there is a possibility that international organizations such as the G7, which brings together the main global economies, could begin to develop a multilateral solution. We have to follow the situation closely and stay alert so we may act intelligently and strategically.

FEMA understands or knows how to comply with its own laws and regulations. Puerto Rico is the only jurisdiction in which this is happening, and it has significantly slowed down over nine thousand public sector projects. This year started with seismic activity that had its climax in Jan. 7 with a 6.4 magnitude earthquake. In the southwest area of Puerto Rico it still shakes approximately 20 times per day. The decay in structural capacity of buildings due to this event is evident as damages continue to pile up. Now, when visiting the urban centers of Ponce, Peñuelas, Guayanilla, Yauco and Guánica we can see condemned buildings marked with an “X” inside a red square. They sit with a scarlet letter for all to see. Bureaucrats say that no additional funds are needed for Puerto Rico. It’s important to point out that funds appropriated for the 2017 hurricanes cannot be used for the latest earthquake disaster. It’s just not allowed. Puerto Rico still has the opportunity to become a beacon of resiliency in the world.

Being a microcosm of the U.S. mainland in terms of the state of infrastructure, we have the unique opportunity to research and implement strategies that may enable us to be better prepared for natural disasters. There is a renaissance brewing as long as we get rid of the scarlet letters that some impose upon us. We can be the premier place for resiliency research and development. A place where we can provide code compliant and resilient homes regardless of socioeconomic status. We just need the willpower to implement the actions needed to accomplish it. In addition, we can work towards establishing economic drivers to achieve a true recovery. Working towards increasing our market share in agroindustries, tourism, the knowledge industry and manufacture needs to be our goal. Establishing Puerto Rico as a global top ten jurisdiction in competitiveness and ease of doing business needs to be our mission. Everything we do has to be aligned with this simple mission. We can do it. Let’s roll…

/ Wednesday, March 11, 2020

Karla Monroig: Happy and Transformed

Puerto Rican actress leaves social prejudices behind with new movie

M Melissa M. Cruz

mcruz@elvocero.com

@mmcruzrios

arch is an important month for Puerto Rican actress Karla Monroig, who is not only celebrating her birthday, but also the return to the Puerto Rican art scene with the premiere of “Yerba Buena”, a movie from filmmaker Bruno Irizarry, now playing in more than twenty theaters throughout the island since March 5. “This is a dream come true for me. For a long time, I’ve been asking the universe to have the opportunity to work in a movie project that I like, in my island, and it happened”, says Karla, who is also a model and a host. She describes the project as “a spectacular screenplay that breaks all taboos, learned behaviors and showcases how resilient Puerto Ricans were after the Hurricane Maria disaster, which brought to light so many needs in the community, as well as health issues.” In the movie, Karla plays Sonia, a woman that, together with her friend Mary (actress Isel Rodríguez), tries to help Juana (Jessica Rodríguez), who struggles with pain management during her remission from cancer in the aftermath of Hurricane Maria. The use of medicinal marijuana is a key element in the movie´s plot. Karla reveals that “when the screenplay was presented to me for the first time, judgments and prejudices came to mind. But now I can see and understand them for what they really are. I gave myself the opportunity to study the issue, talk to the director and learn about the goals of the film. He told me, ‘what I want is to educate, break taboos, and make people understand that this could be a real alternative for patients with chronic illnesses’. He also said that he wanted to show that medical

marijuana could significantly improve the health in individuals with these conditions.” This controversial subject gets a comical treatment in the movie. Karla points out that audiences will leave the theater with a clear sense of the issue and the reasons why. “It’s completely legal”, she says. “The idea that these drugs are bad exists because that’s what we were taught. Until a few years ago, the same thing was said about alcohol. However, through the film, and my character, Sonia, we show that ‘brownies’ can be bought in the same way that you buy pain relievers. These are tools to empower communities,” she adds enthusiastically. “Have you had any personal experience with cannabis?,” asked THE WEEKLY JOURNAL. “Of course,” is her answer. She adds, “I have a nephew with epilepsy and autism, with convulsions that get worse every time, he cannot communicate verbally. He has made incredible improvement with the [cannabis] oil. I also have close relatives with chronic pain. It’s sad that I have to refer to them as “a relative” and not by name because of taboos, but they get judged even though they use it for their health. Anyway, whoever wants to use it for recreational purposes, it’s their decision.” Have you used or do you currently use it?, posed THE WEEKLY JOURNAL . “I don’t use it, but if I had to, I would. As matter of fact, my neurologist recommended CBD to help me sleep since I was suffering from migraines. At some point I tried, but I got sort of sick”, shared Monroig.

Happy And Renewed

Karla says that she is happy, not only because of her obvious physical transformation, but also because she feels healthier. She made important adjustments in her eating habits. She has also begun taking products that have improved her intestinal health; products that this summer will become her first entrepreneurial project. “All bodies work differently. For a while I tried the Keto diet; whereas some people lose 10 pounds, I only

/ Wednesday, March 11, 2020

lost 2. It was frustrating because I was in the middle of the production of Yerba Buena and I was feeling bloated. I followed a treatment to stop the addiction to sugar and carbohydrates, which gave me a better understanding of proper eating habits, but even then, it was difficult losing weight. Then I began to use Plexus, a product based on plants to improve intestinal health that gave me great results. I want to invite more people to use it, to benefit from it and to generate some extra income.” With regards to her new entrepreneurial role, Karla, the mother of 7-years-old, Amanda and wife of famous Puerto Rican songwriter and performer Tommy Torres, shares that she has never been involved in a project like this one. “I know what it is to fight with a body that is not reacting the way you are expecting it to, even when you have a balanced diet. I’m also aware of many people with health conditions that don’t realize theycan be caused by intestinal problems; this is the reason why I feel compelled to share my testimony as well as others’ that are happy with the results”, she concluded.

Other Projects

She is currently filming the new show from Telemundo, “100 Días Para Enamorarnos”, a romantic comedy starring David Chocarro, Erick Elías, Ilse Salas and Marian Treviño, among others. During the summer, she will be back in the local theater scene -with a touch of humor-, and will also star in the movie “Bella”, also from Yerba

Marriage is hard work and a responsibility for both people; I feel blessed in that sense. Tommy and I are a team and we support each other a lot... We have learned to see adversity as an opportunity to become better people instead of focusing on chaos or negativity. Karla Monroig

Buena’s director, Bruno Irizarry. However, she is well aware that her biggest challenge this year will be her entrepreneurial adventure.

5 Minutes of Impact

Another professional role she has been working on for almost three years is that of life coach. It is a personal project she pursues in order to positively impact people by strengthening their minds, thereby improving

their quality of life and personal satisfaction. “Life coaching focuses on health and empowerment. When I started, it was only on a personal level, but I would like to host conferences,” she said about her motivational and transformational speeches titled “5 Minutos de Impacto con Karla Monroig”. “I always wanted to study psychology, and now I try to read daily and combine both methods because they are not the same. We all go through difficult moments of change that remove us from our comfort zones. If we don’t have the right tools, our emotions could be affected, cause anxiety and depression. That’s what this is all about, offering those tools,” she says.

Strong And In love

In fact, life coaching helped her during her separation from her husband two years ago. Now she feels her marriage is “stronger and with more love than ever before.” “Marriage is hard work and a responsibility for both people; I feel blessed in that sense. Tommy and I are a team and we support each other a lot. For example, if he’s doing a concert, I’m with our little girl. I’f I’m out promoting or have any other commitments, he stays with her. We support each other so we can both reach our professional goals. We feel empowered. We have learned to see adversity as an opportunity to become better people instead of focusing on chaos or negativity. These new opportunities are why we live as a family,” she concludes.

/ Wednesday, March 11, 2020

Reflection on a Life Through a Trilogy Within three art exhibits, Tabales will express his vision on civilization and how it ties to his life

Prometeo

THE WEEKLY JOURNAL Staff

t was 1998 when Puerto Rican artist Eric Tabales decided to transform his work with the use of recycled materials, with which he has also given life to one of his most ambitious artistic projects: “Trilogía en una vida” (Trilogy within a lifetime). With three exhibitions that will include a total of 100 paintings, sculptor and painter Tabales will recreate his vision on the origins of civilization, with Greece and Mexico as his starting point. Now, after two exhibits, Tabales keeps busy working on what will be his third installment: “Epílogo: Mitos y Dioses” (Epilogue: Myths and Gods). The first exhibition of “Mitos y Dioses”, back in 2004, offered the public a selection of 35 paintings. “When I studied ancient history, the Egyptians, the Phoenicians and all those civilizations that are our origins, I realized that I identified with the Hellenic. I also discovered that Spanish, African and Indigenous languages were not the original basis of my social behavior. I continued my search and arrived at ancient Greece, where the cultural and social patterns of that ancient civilization are reflected in my present, and that is when I decided to create an exhibition that speaks about that,” said Tabales. In the second exhibition, “Punto Medio: Mitos y Dioses” (Midway Point: Myths ad Gods), Tabales explores the devastation Hurricane Maria caused on the island in Sept. 2017. In this installment, he aimed to “capture on canvas the pain and wisdom of a people who could stand up with no help. That force of spirit in the face of adversity and a shattered country became my Olympus,” Tabales explained. This second chapter, unveiled in 2018, consisted of 40 paintings of the heroes of Greek mythology, among them, Hector, Achilles, Paris, Jason and Ulises.

/ Wednesday, March 11, 2020

Tabales selected “Prometeo” (Prometheus) as the most important piece of his second exhibition. For Tabales, the mythological piece is a reminder of the loss of his mother, followed by the passage of Hurricane Maria. Then, in the midst of chaos, “the image of Prometheus arises, stealing the fire from Zeus to give it to the mortals, and that gave me a new reason to live,” he explained. After the success of his second exhibit, Tabales was invited to Puebla, Mexico, to present the forty works on May 4, 2019. The recycled materials used in his pieces range from glass, plastic and wood to all kinds of metals. Using a chemical process he developed back in 1996, he acidifies metal which, in turn, affects the silica in glass and transfers the colors of the metal to the canvas. Tabales also uses “ceramic oxides to paint on canvas. I also work with polychrome in different sizes and fluorescent paintings.” Tabales is focused on finishing the remaining 25 works, which will give life to the third installment of the collection. In “Epílogo: Mitos y Dioses”, the artist will explore the spiritual aspect of his Olympus, comparing it with the emotional side of today’s society. “It will be a dialogue of feelings, values and social awareness,” he concluded.

“When I studied ancient history, the Egyptians, the Phoenicians and all those civilizations that are our origins, I realized that I identified more with the Hellenic.” – artist Eric Tabales About Tabales

Born in San Juan, Tabales is a sculptor, printmaker, set designer, painter and teacher. He completed an undergraduate degree in chemistry and biology at the University of Puerto Rico in 1985 and a graduate degree in medical technology in 1987. He went on to earn a bachelor’s degree in plastic arts, which he followed with a master’s degree in painting from the Escuela Nacional de Artes Plásticas in Mexico City in 1996. He won first prize at the Third Young Artists Biennial, sponsored by the Chase Manhattan Bank of Puerto Rico in 1993 and the Public Monument prize from the Puerto Rican Association of Art Critics in 1995 for his Juan Acha Meditation Chapel. He has taught at the University of Puerto Rico and the InterAmerican University since 1996. His oxide stained-glass piece “Sol Naciente Taíno” (Rising Taíno Sun), installed in the atrium of the Museo de Arte de Puerto Rico, was created using a technique he patented in 1996. He has recently developed an interest in Greek mythology and has been using oxide on canvas to create work on that subject matter.

El rapto de Aurora

Lesa y el cisne

/ Wednesday, March 11, 2020

The BVI Spring Regatta & Sailing Festival returns for its 49th edition

The event will take place from March 30 to April 5 at Nanny Cay Resort & Marina and at Scrub Island Resort, Spa & Marina

THE WEEKLY JOURNAL Staff

xcellent racing, good conditions and camaraderie are some of the things sailors can expect at the 2020 BVI Spring Regatta & Sailing Festival, which will hold its 49th edition this year. The event will take place from March 30 to April

5 at the Nanny Cay Resort & Marina in Tortola and the Scrub Island Resort, Spa & Marina. “We are happy to welcome the regatta’s participants to our beautiful islands,” said Sharon Flax-Brutus, director of the British Virgin Islands Tourist Board. “There are many good reasons why sailors come back to the regatta year after year. The BVI offers them a place with the perfect conditions for a challenging and fun race, in addition to the spectacular views they can enjoy on the way. This is already a community that sees the BVI as its Caribbean home for the spring.” One of three main sailing events in the Caribbean, the BVI Spring Regatta & Sailing Festival attracts an average of 110 yachts per year and 60 percent of its participants come from overseas. The regatta’s calendar includes a week filled with races and fun activities that will turn the event into

/ Wednesday, March 11, 2020 a true nautical vacation. It all begins at Nanny Cay with the BVI Sailing Festival, in which participants will be able to prepare for the main event. The Round Tortola Race for the Nanny Cay Cup opens the Sailing Festival on Tuesday, March 31 at Nanny Cay. The day ends with the Awards Party at the Regatta Village. The following morning, on Wednesday, April 1, the action moves to Scrub Island for the Scrub Island Invitational, a short race, followed by a barbeque lunch, live music, games and fun. This is the 4th time that Scrub Island will host the event, which expects the participation of over 50 vessels in the race. Thursday, April 2 will be a day of rest for the sailors. Registration opens at noon for the Spring Regatta at Nanny Cay, with live music, followed by the Welcome Party to greet the main race’s participants. The 2020 BVI Spring Regatta officially starts on Friday, April 3, with three days filled with races around rocks, islands and cays in 18 different classes. The event ends on Sunday, April 5 with the regatta’s Official Awards Ceremony at Nanny Cay. To participate in the 2020 BVI Spring Regatta & Sailing Festival, click on the following link: https:// www.bvispringregatta.org/registration-2/ . More information about the regatta is also available at http://www.bvispringregatta.org. About the British Virgin Islands Known as a treasured destination rich in undiscovered experiences, the British Virgin Islands (BVI) is an alluring archipelago comprising 60 islands and cays located 80 kilometers (60 miles) east of Puerto Rico, in the northwestern region of the Caribbean Sea. The main islands of Tortola, Virgin Gorda, Anegada and Jost Van Dyke have attracted travelers globally with their cultural Caribbean authenticity. Located in Tortola, Road Town is the BVI’s capital. Ranked #1 Best Place to Visit in the Caribbean by U.S. News for three consecutive years in 2017, 2018 and 2019, the BVI is where nature’s best secrets are kept with an abundance of pristine beaches, azure seas, towering sage mountains and burnt-orange sunsets. It’s no wonder the BVI’s Virgin Gorda and Jost Van Dyke were featured on the “Top Islands in the Caribbean, Bermuda and the Bahamas” list in Travel + Leisure’s World’s Best Awards 2017 and 2018.

Chef Myrta’s passion

for food and cooking finds a new venue

Chef Myrta Pérez Toledo ventured to reopen her second “Pasión”

“P Melissa M. Cruz

mcruz@elvocero.com

@mmcruzrios

asión” by chef Myrta has always been synonymous with good food and love for cooking. As of Dec. 2008, the restaurant by renowned Puerto Rican chef Myrta Pérez Toledo and her partner Norma Guadalupe, has conquered the most demanding palates of tourists and locals alike. This is a new version of the main restaurant, “Pasión por el Fogón”, located in Fajardo. Just over two months ago, chef Myrta ventured to reopen her second “Pasión,” but now at the Hyatt Regency Grand Reserve Puerto Rico, in Rio Grande. The restaurant is located at the same spot it was when it was at the Hotel Melía, before the impact of Hurricane Maria in Sept. 2017. Now, “Pasión” relies on the culinary talent of executive chef José García Campos. Chef Myrta said the new restaurant includes in its menu some of the emblematic dishes of “Pasión

a traditional dish: a puff pastry stuffed with brie por el Fogón” – such as shrimp and “carrucho” cheese and papaya preserves, served on guava (conch) stuffed fish –, but now with added creative sauce. freedom from experienced chef García Campos. For the main course, chef Myrta made a lamb Chef García Campos arrives at “Pasión” by chef chop with a tamarind demi-glace sauce, served Myrta with an impressive gastronomic career in with mashed cassava and potatoes. Rosemary and out of Puerto Rico. He was a professor of makes this a very aromatic dish. Culinary Arts for renowned Le One of the favorites is the Cordon Bleu from 2008 to 2012, “Cachopo,” described by García in addition to being a Certified Campos as “our interpretation Culinary Educator (CCE). He also of the Asturian cachopo, which worked in several restaurants in is made with breaded beef fillet New York, including Nordstrom, The menu includes stuffed with cheese and piquillo and is part of the American some of the pepper. We make them with pork Culinary Federation (ACF). emblematic dishes tenderloin because it provides In fact, chef García Campos of “Pasión por a more neutral flavor, and fill it was part of the cooking group el Fogón,” such with Manchego cheese to achieve that opened “Pasión por el Fogón” as shrimp and a salty touch that gives a good in Fajardo, twenty years ago. “carrucho” (conch) balance with the Serrano ham In a recent visit, chefs Myrta stuffed fish. and the confit piquillo peppers we and José shared with us some add.” of the tastiest dishes of the To avoid any regrets, try restaurant, like “Tuna Pegaíto” the following dishes: Rice with and Baked Brie. “chistorra,” shrimp and vegetables; Salmon in “‘Tuna Pegaíto’ is our version of Puerto Rican Dijon mustard cream; “Canoa de Amarillo” (sweet sushi. With this appetizer, we gather several plantain) stuffed with “Ropa Vieja,” chicken or textures in the same bite and several layers eggplant, served over a bed of stewed beans. of flavor. This version is based on the rich rice The fun decoration of the restaurant, together ‘frituras’ known as ‘granos,’ which are typical to with excellent service in the lounge and the Humacao,” García Campos said. creative cocktail bar, complete an amazing culinary About the Baked Brie – a dish that can also be enjoyed as dessert – the chef gave a local spin to experience in Rio Grande.

In fact,

>Photos: Melissa Cruz/EL VOCERO

/ Wednesday, March 11, 2020

< The Weekly Journal > Wednesday, March 11, 2020

/ Wednesday, March 11, 2020

Next Tourist Stop:

La Perla

Lorel Santiago hopes the influx of businesses will bring more life to La Perla and inspire residents Hallee Patterson

“That is just the way with some people. They get down on a thing when they don’t know nothing about it.” ― Mark Twain, The Adventures of Huckleberry Finn

as the popular song “Despacito” by Luis Fonsi, Daddy Yankee and Justin Bieber taken away the myth behind La Perla? Is it safe to visit? Hoping to change people’s perceptions, entrepreneur Lorel Cubano Santiago is in the process of building microbusinesses in La Perla. Lorel was a tour director for Old San Juan Heritage Walking Tours, a supplier for the Disney Cruise Line Company, when she decided to become an advocate for this community. She cofounded the Old San Juan Heritage Foundation in 2017. Through this organization, she has started teaching residents how to create a “Bomba” drum. La Perla has undergone many transformations. Originally, it was a fort built between the incomplete San Cristobal and El Morro. Fort La Perla was constructed with limestone and glowed white in the sun, hence the name. When Thomas O’Daly designed the wall which now separates La Perla from Old San Juan, the fort went into disrepair. The area became home to many of the disenfranchised on the island. In the 19th century, La Perla housed a slaughterhouse at which the residents worked. La Perla has three main streets named after the daughters of the administrator at the time. They are Lucila, Felisa and Concepción Silva. La Perla consists of three communities; Lucila Silva, located in the center, San Miguel by San Cristobal and Guaypao (the Puerto Rican pronunciation for wipeout) near the cemetery. “These divisions have caused a sense of exclusion between the residents.” Lorel explained to me. “Many of the adults feel displaced. Therefore, I am trying to teach skills to the community so that they can inspire their children. Hopefully, through music, the communities will bond.” At one time there were over three thousand residents but now there are approximately 1,200 hundred. Lorel has opened Perlarte Gallery in La Perla and is encouraging artisans from la isleta to bring their art there to sell. She is hoping this influx of businesses

“I am trying to teach skills to the community so that they can inspire their children. Hopefully, through music, the communities will bond.” – Lorel Cubano Santiago, entrepreneur

Lorel Cubano Santiago co-founded the Old San Juan Heritage Foundation, through which she teaches La Perla residents how to create “Bomba” drums.

will bring more life to La Perla and inspire residents who live there to open art galleries and shops. She is also teaching tourism skills to the locals and when you add to the mix that she has opened a space for chefs to come prepare dinners it is easy to see why

this special place is like a speakeasy venue with a magnificent view of the ocean. However, it has not been fully developed. The San Juan islet is divided into three communities: Old San Juan, Puerta de Tierra and La Perla. It is the Lorel’s vision to unite them through her work. “When I was a tour guide, I always wore a flower in my hair so that the people I was guiding would remember me,” Lorel told me. She has a true desire to help which is forged on a love of life and a will to make it better. For more information or to become involved in the transformation, log online to http://www.walkosj. com or http:www.colectivoperlarte.com.

< The Weekly Journal > Wednesday, March 11, 2020

Ironman 70.3 Puerto Rico: Race in Paradise The 1.2-mile swim course will start at the Condado Lagoon, next to the Caribe Hilton and Condado Plaza Hilton; the bike course will lead athletes through five different municipalities all the way to Dorado; and the running course will go through Old San Juan. The race will finish at the beautiful “Parque del Tercer Milenio.” When: March 12 at 12 p.m. Where: “Parque del Tercer Milenio,” San Juan

The Art Studio Dining Series Join us for an artistic culinary experience at Eduardo Cabrer’s Art Studio, featuring chef María Mercedes Grubb and pastry chef Andrea Santiago, from Lulo’s Sweets and Savory. There will also be a wine pairing by Club UVA, a studio walk-through and much more! When: March 14 from 6 p.m. to 10 p.m. Where: Corona Commercial Park, 44-46 Progreso St., Santurce

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Circo Fest 2020 Puerto Rico’s Circus and Street Arts Festival, #CircoFest, is back for its seventh season. Artists from eight international companies will join artists from the local 30 companies to delight guests with their acrobatics, aerial acts, comedies and much more. When: March 14 and 15 at 11 a.m. Where: Barrio Ballaja, Old San Juan

Caribbean International Boat Show Puerto Rico The biggest boat show in Puerto Rico is back, the Caribbean International Boat Show. Participants will get to see the latest boat and yacht models while enjoying the beats of “La Banda Algarete.” Cosculluela and “Limi-T 21.” Early bird tickets will be $18 and regular admission will be $20. Tickets for children will cost $13 for early birds and $15 regular admission. For more information please call (787) 303-0334. When: March 13 to 15, from 2 p.m. to 11 p.m. Where: Marina Puerto del Rey, Fajardo

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Egg Hunt We will be waiting for you at our first egg hunt. Children from one to six years old will also be able to decorate their own rabbit and enjoy story hour in our beautiful playground.There is a $5 fee and reservations are required (939) 325-7813. When: March 15 from 2 p.m. to 3 p.m. Where: Mamas & Papas Play Center, 1705 Paraná St., San Juan

International Puppet Biennial The 14th edition of the biennial is dedicated to Puerto Rican puppet master, actor, playwright, composer, theater and movie director Manuel Antonio Morán Martínez. Puppeteers from the United States, Mexico, Dominican Republic, Venezuela and Puerto Rico will participate in this free event. When: March 15 at 3 p.m. Where: Leopoldo Santiago Lavandero Auditorium, Caguas

La Secta Allstar The prominent rock band will host a concert to celebrate St. Patrick’s Day. When: March 17 at 7 p.m. Where: Shannan’s, La Placita, Santurce

Glenn Monroig

Woodford, Women and Wine at Marabar

Join us at the Chico Cabaret to enjoy the tunes and rhythms of Puerto Rican composer, singer and guitarist Glenn Monroig. For table reservations and more information, contact Claudia.Concepcion@Fairmont.com. When: March 12 at 8 p.m. Where: Chico Cabaret, El San Juan Hotel, Carolina

Take time off and enjoy special cocktails by Woodford. For table reservations, please contact 1919@ condadovanderbilt.com. When: March 11 from 7 p.m. to 10 p.m. Where: VC Lounge, Condado Vanderbilt, San Juan