The Weekly Journal - August 14, 2019 by El Vocero de Puerto Rico

Puerto Rico and the Caribbean

www.theweeklyjournal.com

>Josian Bruno Gómez

Wednesday, August 14-20, 2019 - // no. 016

PUERTO RICO’S THIRD GOVERNOR IN A WEEK—FOR NOW P10 TREASURY’S COFFERS GET BIG PRIVATESECTOR BOOST P12 DMO SETS EYES ON SPORTS TOURISM INDUSTRY P16

THE ISLAND’S ECONOMY

>Josian E. Bruno Gomez

Small and Medium Scale Businesses make up 92 percent of all retail businesses and account for 39 to 44 percent of sales in the retail sector

O Cynthia López Cabán

OCEAN PARK ON ALERT TO FIGHT WORSENING BEACH EROSION P20

clopez@wjournal.com

@cynthia_lope

n a stretch of road between the Condado and Isla Verde touristy neighborhoods of San Juan, Loíza Street overflows with restaurants, bars, coffee shops, boutiques, thrift and convenience stores. A foodie and shopper’s paradise, this string of retail stores or corridor of commerce is part of the vibrant small to medium enterprise (SME) force that has become the backbone of the island’s economy.

In Puerto Rico, small and medium-sized enterprises (SMEs) make up 92 percent of all retail businesses. They account for 39 to 44 percent of sales in the retail sector, according to the Trade and Export Company. Data provided by the agency also revealed that during the month of May sales in SMEs amounted to $1,148 billion, a slight decrease when compared to the same period last year. At the end of 2018, 41,458 SMEs (companies with 50 or fewer employees that filed payroll reports) were scattered across the island, from a universe of GO TO PAGE 4

>Gabriel López Albarrán

THE BACKBONE OF

THE WEEKLY JOURNAL > WEDNESDAY, AUGUST 14, 2019 >

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A WEEK IN REVIEW FISCAL BOARD REQUESTS RECENT CONTRACTS SIGNED BY ROSSELLÓ

>Courtesy Hyatt

>Archive

The Financial and Oversight Management Board (FOMB) for Puerto Rico has requested an accounting of all contracts signed by former Gov. Ricardo Rosselló during his last two weeks in office. In a letter addressed to Chief Financial Officer Omar Marrero, the FOMB said that “according to press reports, the Rosselló Administration executed or approved more than 200 contracts with a value of approximately $80 million during former Gov. Rosselló’s last two weeks in office.” The contracts in question should be submitted to the FOMB no later than August 16, 2019.

PRASA COMPLETES CONSENSUAL MODIFICATION OF DEBT

The Puerto Rico Aqueduct and Sewer Authority (“PRASA”) and the Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”) announced the consummation of definitive agreements restructuring PRASA’s debt obligations under the Environmental Protection Agency’s (EPA) Clean Water and Drinking Water State Revolving Fund programs and the United States Department of Agriculture’s (USDA) Rural Development, Rural Utilities Service program totaling almost $1 billion. AAFAF Executive Director Omar Marrero, Esq., confirmed that “the Agreements set PRASA on a clear path to credit rehabilitation that will allow it to regain municipal market access in the near term for future capital investments.”

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/ Wednesday, August 14, 2019

CONTINUED FROM PAGE 1 approximately 45,000 retail businesses. According to The Economic Census, these enterprises provided 48 percent of the jobs in the retail sector in 2015 and created an average of one job for every $115,000 they generated in sales. While micro, small and medium businesses outnumber large companies, drive job creation, and continue to push the economy even in tight times, experts interviewed by THE WEEKLY JOURNAL agreed that the sector still lacks the government support it deserves to flourish and expand further. “Small and medium businesses are vital ingredients for economic growth and revival. They are local enterprises with local capital, creating the vast majority of the jobs in the private sector and are full-time jobs,” Entrepreneurs for Puerto Rico President Enid Monge indicated. She is right. In 2015, the Trade and Export Company prepared a comprehensive report about the situation of micro, small and medium enterprises. The analysis revealed that SMEs accounted for 95 percent of the businesses on the island, added 13 percent to the overall gross domestic product (GDP) and generated 43 percent of all the jobs in the private industry. Entrepreneurs for Puerto Rico President Enid Monge emphasized the importance of the local capital for the SME’s disbursed $4,712 billion in wages and their island’s economy because the money stays here and it gets reinvested. >Archive payroll represented 32 percent of the private sector pay. the sector grew 67 percent,” said Luis Adorno that after the devastating storm that ravaged the “Since it’s local capital the money stays here and González, acting director of the Market Research island’s electric grid and communications system, it gets reinvested,” and Economics Division SMEs are going thru a transformative process. Monge, the former of the Trade and Export “A lot of businesses closed, but others opened president of the Company. with new ideas and offerings. The crisis fostered United Retailers Eight months after reinvention and invention. We have developed with Center (CUD by its Hurricane Maria the capacity to strengthen the economy.” Spanish acronym) slammed the island, David Vergel, an advisor to the Board of emphasized. the Trade and Export Directors of Entrepreneurs for Puerto Rico But it is more Company certified 1,680 and third Vice President of the Chamber of than local hiring small and medium Commerce, underscored the importance of and reinvesting in scale enterprises, 732 the SMEs within the wider context of the local their communities, of which were new business industry. small and medium businesses. It projected “All SMEs are local. Ergo, they are some of the businesses can be the creation of 5,750 biggest creators of domestic wealth. They don’t a solution during jobs. create new capital, but prevent capital flight,” difficult and uncertain “The sector is not Vergel accentuated. economic times. growing at the same “Local businesses, which in their vast majority - Enid Monge, president “The hurricane pace than last year, are SMEs, are the largest employer in the country spurred SMEs in of Entrepreneurs for Puerto Rico but it is still growing,” and the sector is the biggest economic contributor Puerto Rico. We González stated. to the economy,” he added. had a month where Monge explained Last year the firm Estudios Técnicos revealed

Small and medium businesses are vital ingredients for economic growth and revival. They are local enterprises with local capital, creating the vast majority of the jobs in the private sector and are full-time jobs,

/ Wednesday, August 14, 2019

the findings of a study about the social and economic impact of local businesses in Puerto Rico. Commissioned by Entrepreneur for Puerto Rico, the survey discovered that 96 percent of all business on the island is local. They generate 83 percent of jobs and account for 68 percent of the GDP. Retail businesses were the number one creator of jobs and the third sector of the economy. Yet the playground is uneven. “Local businesses are the biggest creators of jobs and help reduce inequality. We have economic inequality because business inequality exists,” pointed out Vergel. For example, he argued that economic incentives and tax breaks favor big foreign companies. “A multinational (company) does not pay property taxes, nor does it pay inventory tax... Companies like Walmart export their capital, but companies like pharmaceuticals and local businesses create capital for the country.” Aside from access to incentives or tax breaks, Monge also mentioned that small business owners face other bureaucratic hurdles. “It is an uphill

battle. Many get discouraged.” Last week a young entrepreneur that opened an ice cream parlor on Loíza Street told THE WEEKLY JOURNAL that she had to hire a private agent to navigate through the permit process. “It is not so much the money, it is equal conditions. We want a leveled playing field... It is not about giving more to those who have more. It is about creating fair competition conditions,” Monge insisted. Kenneth Rivera Robles, the former president of the Chamber of Commerce, agreed that these businesses are all too often overlooked by policymakers and, yet, are a fundamental part of the economy. “It is a lot easier to help develop SMEs than bigger companies like Walmart and Lufthansa,” Rivera insisted. The lawyer and CPA also noted that the impact of SMEs could be underestimated due to the complexities of the sector. Rivera, for instance, said that the number of small and medium-sized enterprises would be significantly higher if informal SMEs were included.

CPA Kenneth Rivera Robles, the former president of the Chamber of Commerce, agreed that these businesses are all too often overlooked by policymakers and, yet, are a fundamental part of the economy. >Archive

SMEs are not only good for the island, but these enterprises also play a major role in most economies, particularly in developing countries. Formal SMEs contribute up to 60 percent of total employment and up to 40 percent of national income in emerging economies, according to the World Bank.

David Vergel, an advisor to the Board of Directors of Entrepreneurs for Puerto Rico and third Vice President of the Chamber of Commerce, underscored the importance of the SMEs within the wider context of the local business industry. >Carlos Rivera Giusti

/ Wednesday, August 14, 2019

Señor Paleta:

A Successful Small Business

Paleta owns seven stores on the island and one spot in Orlando, Florida. In total, it has 100 employees. It all started with a dream and $25,000. “Ramón was always talking about being his own boss and, one day, after noticing a resurgence in the popularity of Italian and Mexican ice pops, he came to me with the idea. I said ‘why not, we have the perfect weather for that it’”, Serrano recounted. Shortly after, the pair began experimenting with flavors and testing their inventions with friends and relatives. “When my nephew was born instead Cynthia López Cabán @cynthia_lope clopez@wjournal.com of cigars I gave away ice pops,” Serrano said in between laughs. From the beginning, the entrepreneurs set hat happens when a out to capture the flavors and colors of Puerto pharmacist and a Rico in one stick. The result: a velvety coconut ice physician get together pop, the most sought after flavor, or a slightly tart to start a company? passion fruit popsicle with scattered freckles from Popsicles. the pulp’s edible seeds, to name two of Señor You read correctly. Paleta’s 48 flavors made with local fresh fruits and For some, it might ingredients. seem an unorthodox career move. But for A successful stint at the Farmer’s Market in childhood friends and business partners Jennifer Condado during the fall of 2014 confirmed that Serrano Rosario, 34, and Ramón Ortiz Sánchez, 35, Serrano and Ortiz were ready for the next step. founding Señor Paleta was the ticket to economic They celebrated the new year opening their first independence and the path to a new vocation. store on Tetuán Street in Old San Juan. Five years ago, the artisanal popsicle company “The fact that we were able to save and didn’t had a tricycle and tree employees. Today, Señor need to borrow money to start our business made a difference. It gave us breathing space,” Ortiz told THE WEEKLY JOURNAL. “We opened the store with $25,000, a small investment. Now, we need $100,000 to open a store.” The pair learned the art of making popsicles online and taking short courses. They also followed their instincts and gut feeling. Originally, the plan was to open the first Jennifer Serrano and Ramón Ortiz founded Señor Paleta in 2014.

Founded in 2014 by childhood friends Jennifer Serrano and Ramón Ortiz, the company already has seven stores on the island and one spot in Orlando, Florida

Although Señor Paleta offers over 40 flavors, the parlor has 24-30 different ones available every day. >Photos by Gabriel López Albarrán

store in Condado, but after learning in the news about an increase in the number of cruise ships visiting the San Juan Port, the duo ditched the idea. “Our business model was focused initially on tourists. The focus changed when we realized that our number one customers were locals,” Serrano explained. With limited resources, the duo got creative. “The space that we liked and could afford in Old San Juan was on a street with slow foot traffic. Since we didn’t have money for marketing research, for four days I sat in a plaza across the street from the store counting the number of people that walked by, one by one,” Serrano indicated. The company started with a 450 square feet space that housed the store, production area and storage. In its early stages, the small manufacturing operation produced 88 ice pops every 40 minutes. The gamble paid off. Six months after opening, the store was flooded with customers. A year later, Señor Paleta was making a profit. Other stores followed in Condado, Lote 23 in Santurce, Paseo Caribe in San Juan, Plaza del Caribe in Ponce, Plaza Carolina, Plaza del Sol in Bayamón and the store at

/ Wednesday, August 14, 2019

the Florida Mall in Orlando, which opened last May. center, or the Birthday ice pop, that has a piece of The production and manufacturing operation moist cake in the middle. also expanded. Now the company makes 280 Other Puerto Rican-inspired concoctions include popsicles every 30 minutes. On a weekly basis and the Christmas trilogy, based on the traditional depending on the season, it produces between coconut dessert pudding (tembleque), nougat 18,000 to 19,000 ice pops. (turrón) and rice pudding (arroz con dulce). “The business “That is what sets process was us apart. We turn somewhat organic. traditional desserts From the beginning, into popsicles,” Ortiz when we created the indicated. logo and the brand, For the more we knew we wanted traditional frozen to branch out locally dessert lover, Señor and internationally. Paleta has a wide variety Not necessarily the of mainstream flavors United States. But like strawberry, orange, after Hurricane Nutella, chocolate, -Ramón Ortiz, co-founder Maria, we saw pistachio, lime and of Señor Paleta the growth of the mango. And, while diaspora and we the company has not knew it was the been officially certified moment to open a store and that the place was as kosher, its production process adheres to the Orlando,” Ortiz indicated of the growth of the strict standards of this religious dietary practice. business. “As a child, I remember that every Sunday I Besides using fresh fruits and ingredients in went out to eat with my family. We would go to the elaboration of their popular ice pops, the duo mass and afterward would visit an ice cream continues to push the flavor boundaries with parlor. That is what we want to recreate here, creations like the Churro ice pop, that has a piece that concept of the family trip that includes a of fried homemade dough dusted with sugar in the popsicle,” Serrano said.

The fact that we were able to save and didn’t need to borrow money to start our business made a difference. It gave us breathing space.

The company makes 280 popsicles every 30 minutes. >Photos by Gabriel López Albarrán

/ Wednesday, August 14, 2019

LaA new Mafia twist in marketing posts in his company’s Instagram page, which has 61,000 followers, he does create and market events like Hops, a restaurant hopping event that features tastings at different restaurants. The last event featured Condado restaurants Mario Pagán, Almaviva and Chloé. So far, he has uploaded three episodes. One of them features El Burén de Lula, a Claudia Guerrero Negrón @cguerreronegron newsroom@wjournal.com shack-like restaurant in Loíza that serves traditional African-infused food. María afael Ruiz Mederos created the Dolores de Jesús, also known as Lula, uses a popular food blog La Mafia, buren to cook with cassava and coconut. The Puerto Rico when he realized he buren is a flat surface made out of clay that could describe food in a peculiar was used by Tainos to cook. way. Because he relishes Lula and her restaurant are considered in sharing his gastronomic the last link to the Taino and African culture experiences, he has decided to in Loíza and Ruiz knew he had to include her branch out and produce a documentary titled Eat, in the series. To him, she was the epitome of Drink, Share, meant to be released on YouTube. what the series represented. La Mafia, Puerto Rico is a food photoblog “There needs to be that highlights the best local spots to documentation, we need to eat at but, more than that, it is also preserve out culture. There Ruiz’s venture into digital marketing. are things we are losing Through his company he offers even if we don’t believe photography and videography it,” said Ruiz Mederos. services to local restaurants so Before embarking that they can promote their on his mission to unique offerings to a larger preserve Puerto audience. Rican culture, Ruiz The idea to create this type searched all over the of a blog came to him after web for the perfect he realized that food is a big platform for his part of Puerto Rican series; he needed culture that should something be documented and accessible to all preserved. Eventually, audiences that La Mafia, Puerto would allow Rico turned into a him to upload YouTube channel lengthier videos with the very name than he could on of his documentary, Instagram. He Eat, Drink, Share. The decided YouTube channel, which he was the perfect - Rafael Ruiz, produces on his own, place as his La Mafia’s founder covers everything that goal was to not has to do with Puerto only reach the Rican cuisine, its roots continental U.S, and culture. but also the rest of the world. He aspires to Although he doesn’t charge fees for making share Puerto Rican heritage with all corners

Rafael Ruiz creates high quality marketing with La Mafia and Eat, Drink, Share Puerto Rico

There needs to be documentation, we need to preserve our culture. There are things we are losing even if we don’t believe it.

>Photos Courtesy

/ Wednesday, August 14, 2019

of the planet. “If you go to any country’s main platform, be it Peru, Mexico, Spain, there’s high quality content of valuable information. In the Caribbean, however, they’ve just uploaded pictures, pictures, pictures. Nothing is being preserved. In little less than a year we have managed to publish a lot of information,” stated Ruiz Mederos. For his first episode he recorded over 14 hours of footage all the while thinking that he would be able to cut the video down to two or three minutes. The feat was impossible and he wound up with a 12 minute video after realizing that he was filming something special that captured the essence of Puerto Rican culture. All the information that is presented in Ruiz’s documentaries is confirmed and validated by gastronomic historian Cruz Miguel Ortiz Cuadra, who has written multiple books on the history of Puerto Rican cuisine, how our main ingredients arrived on the island and how they became endemic and further developed. “He collaborates every step of the way. As I collect and gather information, I show it to him for corroboration. All the information I put out is true to the

extent that history has allowed us to know, whether it was written or oral,” said Ruiz Menderos. To further enhance the ethnic, cultural feel of the videos, he has set them to music by Andrea Cruz. The Puerto Rican music adds the last perfect touch to his vision. For the next string of videos, Ruiz will focus less on restaurants and more on actual Puerto Ricans and their cooking techniques. His next episodes will be about tradition, culture and local products, like the iconic clandestine Pitorro. Another one of the episodes will be on “Sofrito y las Abuelas”, meaning sofrito and the grandmas. Sofrito, according to Ruiz, is considered to be a staple of Puerto Rican cuisine, the base. It is a blend that contains oregano, peppers, onions, garlic, cilantro and recao...and is a no-brainer idea for another chapter in the series. Eat, Drink, Share Puerto Rico is supported and endorsed by the Institute of Puerto Rican Culture and the Ana G. Mendez University. In fact, after a conversation with Terestella González, a dean and instructor at the university, his videos have become part of the hospitality curriculum.

/ Wednesday, August 14, 2019

Puerto Rico Gets Third Governor in a

Week, Turmoil Calms Down yalvarez@wjournalpr.com

@yalvarezjaimes

uerto Rico’s political uncertainty seemed ease with Gov. Wanda Vázquez at the helm and focused on public policy. Puerto Rico got its third governor in a week after the Puerto Rico Supreme Court ruled that Pedro Pierluisi was illegally sworn in, which meant that Secretary of Justice Wanda Vázquez would become governor. Pierluisi was appointed secretary of state by then-Gov. Ricardo Rosselló with the approval of the House while legislators were in recess. Pierluisi was then sworn in as governor after Rosselló’s resignation went into effect on August 2 at 5 p.m. Former Gov. Rosselló stepped down, the first to ever do so, after mounting pressure from a dozen days of protests following the arrests two former high-ranking government officials on charges of conspiracy and alleged mismanagement of funds and after a plethora of offensive chat messages between him and some of his advisors were leaked. Puerto Rico’s Constitution says a secretary of state has to be approved by both chambers and Pierluisi only had the approval of the House of Representatives. The Senate immediately asked the Supreme Court to decide on the constitutionality of a portion of the 2005 amendment of Law 7 of 1952 which stated that a secretary of state could be appointed without the approval of both the House and the Senate if either was in recess. The Supreme Court of Puerto Rico unanimously determined that it was unconstitutional to name

>Josian Bruno Gómez

P Yennifer Álvarez

Although Gov. Wanda Vázquez was criticized by some, there haven’t been protests since she was sworn in

/ Wednesday, August 14, 2019

the secretary of state without approval of both chambers of the government and immediately struck down the portion of the law that permitted it. A day after Gov. Vázquez sworn in, Senate President Thomas Rivera Schatz publicly stated his support of Resident Commissioner Jenniffer González to the post of secretary of state, which would put her first in line if Gov. Vázquez were to resign and leave vacant the governorship. González –Puerto Rico’s nonvoting representative in Congress– said past week the presidents of the House and Senate called her to ask if she would be willing to become secretary of state as a candidate of consensus, and she agreed to assume the post if it would help restore credibility and stability to Puerto Rico. On Tuesday, González discard the possibility to become governor. Nonetheless, Gov. Vázquez said she did not intend to step down

sworn in. Vázquez, a 59-year-old former prosecutor from Bayamón, became secretary of justice on January 2017 after being appointed by former Gov. Rosselló. She had also previously worked as a district attorney for two decades at Puerto Rico’s justice department, handling domestic and sexual abuse cases, and in 2010 was appointed director of the Office for Women’s Rights. After being sworn in, Gov. Vázquez broadcasted a message in which pointed out that “we have all felt the anxiety provoked by the instability and uncertainty.” “Faced with this enormous challenge and with God ahead, I take a step forward with no interest other than serving the people ... It is necessary to give stability to the island, certainty to the markets and secure recovery funds,” Vázquez added. As of press time, Gov. Vázquez Puerto Rico Gov. Wanda Vazquez went on Monday to the elementary school Ramón Marín Solá, in Guaynabo, marking the beginning of the 2019-2020 school year. >Courtesy La Fortaleza

Faced with this enormous challenge and with God ahead, I take a step forward with no interest other than serving the people ... It is necessary to give stability to the island, certainty to the markets and secure recovery funds. -Gov. Wanda Vázquez

despite previous comments that she didn’t want the job. Meanwhile, the majority party, the New Progressive Party (NPP), is staying mum while Gov. Vázquez met with former governors Alejandro García Padilla and Carlos Romero Barceló during the weekend. Gov. Vázquez continues with her schedule of Cabinet meetings and announced that as one of her first acts she had stopped a $450,000 contract that was part of the program to rebuild and strengthen the island’s power grid, which was destroyed by Hurricane Maria. “There is no room in this administration for unreasonable expenses,” stated Gov. Vázquez through a press release on Sunday. Although, Gov. Vázquez was criticized by some sectors, there haven’t been protests since she was

had yet to determine who would be her chief of staff. Sources of THE WEEKLY JOURNAL said that former comptroller Manuel Díaz Saldaña was briefly considered for the position but quickly discarded. Former Gov. Rosselló Receives Threats Puerto Rico Public Safety Secretary Elmer Román confirmed on Tuesday that former Gov. Rosselló received threats after leaving the island following his resignation. Román went on to say that the threats are under local and federal investigation and confirmed that Gov. Vázquez approves of Rosselló’s security detail off island. “The FBI and the police are working on this. As soon as the investigation ends and arrests are made, we can make more statements,” Román said. He stated that he has no personal knowledge of any arrests in the case.

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Post-Maria Recovery Continues in the Private Sector Tax contributions from corporations and vehicle sales show big increases Rosario Fajardo

rfajardo@wjournal.com

@RosarioWJournal

ueled in great part by Puerto Rico’s economic recovery after the devastation of Hurricane Maria in 2017, the island’s Treasury Department received a large influx of corporate income taxes during the recently concluded fiscal year

2019. In fact, this line item was the main revenue driver in Puerto Rico during fiscal year 2019, with corporate income taxes reporting a 40.3 percent boost from the previous year. According to Treasury Department figures, corporate income taxes for fiscal year 2019 totaled $2.49 billion, a $716.1 million increase from the previous year. According to Treasury Department figures, corporate income taxes for fiscal year 2019 totaled $2.49 billion, a Excise taxes on the sale of motor vehicles $716.1 million increase from the previous year. >Archive also showed great numbers, with $519.1 million collected for fiscal year 2019, compared with $2.083 billion, a year-over-year increase of $168.3 since last December of the second phase of the $407.3 million in the previous year, representing million. [new] tax administration system and the Taxpayer an increase of 27.4 percent. Treasury said this was Collections from the island’s 11.5 percent sales Rehabilitation Program,” he said. the highest revenue level for vehicle sales in 13 tax totaled $2.80 billion, an increase of $283 million In addition to the recent political turmoil, years. from the previous year, representing an 11 percent there are other warning signs on the horizon. The United Automobile jump. The island’s Economic Activity Index (EAI) for June Importers Group (GUIA by Overall, Puerto Rico ended 2019 showed a decrease, reported the Economic its Spanish acronym), which fiscal year 2019 on a bright note. Development Bank for Puerto Rico, which represents the automotive Treasury Secretary Francisco publishes the data. industry in Puerto Rico, has Parés Alicea reported that the The EAI for June 2019 showed a slight decrease lauded the positive numbers, preliminary net income of the of 0.3 percent compared to May 2019, while on a Corporate but has been cautious about the General Fund for fiscal year 2019 year-over-year comparison, there was a drop of 0.7 income taxes were the future, especially since the island totaled a record $11.376 billion. percent. main revenue driver has experienced much political This represents more than The EAI, an indicator of economic activity, tracks in Puerto Rico during upheaval in recent weeks. “What $2.063 billion collected from total non-farm payroll employment, electric power fiscal year 2019, with the country needs is greater the previous fiscal years—a 22 generation, gasoline consumption and cement corporate income economic stability so that the percent increase for Hacienda’s sales. taxes reporting a 40.3 investments of private companies coffers. Another area of concern is the continuing delay percent boost from continue, eliminating all those The Treasury chief pointed in the disbursement of federal recovery funds, the previous year. elements that create uncertainty, to several factors moving which economists say will have an impact on so that consumer confidence the positive numbers. These economic performance for the rest of the year. increases and the progress of included the economic activity Recently, the U.S. Housing and Urban Department Puerto Rico is achieved in a solid associated with “the recovery (HUD) announced that another tranche of recovery and sustainable manner,” said Ricardo M. García, and reconstruction tasks works after Hurricane funds for Puerto Rico would not be released president of GUIA. Maria [that hit Puerto Rico in 2017], the legislation until new “release rules” are in place. Puerto Rico Excise taxes on Law 154 multinational firms also of the New Tax Model that entered into force in is waiting for another tranche of $8.2 billion in reported strong growth of 8.8 percent, collecting January 2019, the success in the implementation recovery funds from HUD.

In fact,

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< The Weekly Journal > Wednesday, August 14, 2019

GALA ANUAL

/ Wednesday, August 14, 2019

Puerto Rico Cacao

Industry on the Rise price their chocolate at a premium. artisanal chocolate enterprise where cacao is Like many other Puerto Rican farmers, grown, processed, elaborated and Vizcarrondo has plans to expand his distributed. farm and continue increasing his The farm has been production capacity. open since 2009, when In 2017, cacao industry leaders unemployment led had projected gains of $200,000 Echevarría and his wife for 2019. However, Hurricane María to start thinking of ways to reinvent Claudia Guerrero Negrón @cguerreronegron Maria’s path through Puerto Rico newsroom@wjournal.com wiped out a large number of themselves. Now, 12 recently registered farms. years later, they own one uerto Rican cacao is the new kid Nonetheless, the industry of the biggest cacao farms on the block, according to Loíza continues on an upward spiral, in Puerto Rico, located in Dark founder and owner, Juan with more and more Aguada, the “cacao Carlos Vizcarrondo. Loíza Dark farms being registered capital of Puerto is a chocolate factory in Carolina every single day. The Rico,” according to that has been growing and cacao industry has Echevarría. processing single origin 100 been booming since It wasn’t easy at percent Puerto Rican cacao since 2009. 2009, and a lot of that first. When Echevarria The sudden appearance of Puerto Rican has to do with Juan started telling Juan Echevarría, cacao in the industry has sparked interest among Echevarría, owner and people about his chocolate lovers, especially in the United States. owner and founder of Jeanmarie founder of Jeanmarie plans to open a cacao This allows Puerto Rican chocolate distributors to Chocolat Chocolat, an organic farm, they looked at him with worry in their eyes. “They looked at me as if I was crazy,” said Echevarría, when he remembers the hardships he faced. For many years, agriculture was seen as an unattractive line of work. A business that didn’t generate any profit, so for people like Echevarría, growing cacao was an uphill battle. Cacao wasn’t even on the list of cultivable crops at the Department of Agriculture of Puerto Rico, so he decided to change that. With the help of then Secretary of Agriculture Myrna Comas Pagán, cacao was added to the list. As part of the federal government’s 2013 Specialty Crop Block Grant, the local cacao industry received an injection of capital for the planting and farming of 10,000 cacao trees. For Echevarría, this further aided in the development of the industry. Current Secretary of Agriculture Carlos Flores has restored a variety of farming incentive programs, thus making farming and cultivating a viable option for small farmers in Puerto Rico. Easing the farm licensing and registering process has also aided in getting Loíza Dark has a chocolate factory in Carolina that has been growing and processing single origin 100 percent more farmers involved in agriculture. It used Puerto Rican cacao since 2009. >Photos Courtesy

Local cacao industry experts claim Puerto Rico could be a leader in production and exportation

Puerto Rico has the potential to be like Napa Valley,

/ Wednesday, August 14, 2019

to be that farmers from all over says will have a positive impact on the island had to go to San Juan to neighboring businesses. register their farms and get licensed. Now that the Jeanmarie Chocolat Now, Puerto Rico is split into Super hacienda owned by Echevarría has Regions, making it more accessible recently been declared an official for farmers to drive to nearby towns Touristic Agricultural Farm by the to get registered. Puerto Rico Tourism Company, he Echevarría has also joined forces plans to add rooms so that visitors with the municipality of Aguada are able to spend the night. in efforts to boost the cacao “Puerto Rico has the potential to industry. After the local government be like Napa Valley,” said Echevarría. closed 283 schools, Echevarría Echevarría is in the process of saw the perfect opportunity to expanding his production capacity convert some of these buildings as he has noticed an increasing into manufacturing centers demand for Puerto Rican chocolate. and locales in which to offer cacao He currently exports to three cultivation workshops. As part of corporations in the United States his efforts, he was able to restore and plans to add more clients once an abandoned school building in he buys more farms. The man Aguada and turn it into Puerto who started with 1,700 cacao trees, Rico’s first factory that prepares, now has 25,000. distributes and exports chocolate The cacao industry in Puerto made with 100 percent Puerto Rico would not be where it is if Rican aroma. This initiative could it also weren’t also for Eduardo generate up to $3 million per year Cortes who launched Forteza for the municipality and aid in the Caribbean Chocolate in 2014 and had creation of jobs. Echevarría hopes Echevarría as his sole cacao supplier. to finish signing contracts with the Now, he has six. municipality by the end of 2019. In a joint effort with the Puerto Another endeavor Echevarría has Rico Department of Agriculture and embarked with in conjunction with the United States Department of the municipality of Aguada, is to Agriculture (USDA), he now plans on prepare and deliver 45 new farms producing and distributing around to new farmers, who according to 12,000 high-rendering cacao trees The creation of more farms is what is going to allow the cacao industry to continue the chocolate maker, have increased among farmers, which he expects will booming. in numbers categorically, especially triple his supply in a period of three after Hurricane María passed and to four years. industry to continue booming. Echevarría also says catapulted interest in Puerto Rico’s agriculture Since launching Forteza, Cortés has seen a that another way in which to continue growing among non-farmers. 10 percent to 15 percent increase in sales each the industry is through agro-tourism, which According to Echevarría, the creation of year. The increase in sales each year is a similarity brings visitors to parts of the island that aren’t more farms is what is going to allow the cacao noticed by Echevarría as well. usually seen by tourists or locals, something he

/ Wednesday, August 14, 2019

DMO Outlines Challenges and Opportunities in Sports Tourism Discover Puerto Rico aims to position the island as the top sports tourism destination in the Caribbean

T Giovanna Garofalo

ggarofalo@wjournal.com

@giopgarofalo

he island’s destination marketing organization (DMO), Discover Puerto Rico, revealed its goal to showcase Puerto Rico before the world as the top sports tourism destination in the Caribbean. Carlos Deliz, the DMO’s regional sales manager, informed to THE WEEKLY JOURNAL that the economic impact of sports tourism in the mainland United States in 2016 was estimated at more than $10 billion, and all signs point to the sector’s continued expansion, particularly in the rise of eSports. According to Deliz, the sports industry is projected to generate more than $5 trillion worldwide by 2021. “Here at Discover Puerto Rico, we are highly convinced of the impact that sports tourism can have on the local economy... and that is why we are fully on board with developing a sports strategy within our organization,” Deliz said. Discover Puerto Rico has been holding meetings with top stakeholders in the industry for the past year to convince them to host high-profile sports events and competitions on the island. In a study released earlier this month, the DMO listed some causes for unease addressed in the meetings. One of the concerns is the lack of confidence in hosting a successful event based upon past experiences or due to international coverage of the island’s status after the onslaught of Hurricane Maria in 2017. Another challenge listed in the study is government bureaucracy, which stakeholders affirmed led to “process inefficiencies.” “Government bureaucracy and having too many individuals to satisfy has led to frustration and eliminates the intent to return. Also, there is no one on [Discover Puerto Rico’s] service side who can solve these problems,” the report reads.

Regardless, the DMO also cited silver linings in its and intent to recommend, among others. study. Specifically, the market research output states More Sport Events to Come that stakeholders want to bring events to the For his part, Deliz affirmed that the DMO is island, and they want to be part of Puerto Rico’s working on upcoming sport events, such as the path to recovery, even showing a “willingness to Friendship Tennis Tournament in 2020, which will help despite the barriers reported.” be held at the Honda Tennis Center in Bayamón With this in mind, Deliz explained that and is estimated to fill more than 600 hotel rooms. Discover Puerto Rico’s next step is to outline The island will also host an eSports a clear marketing strategy to ensure tournament, called First Attack, that upcoming sports projects on October 26 to 27 at the P.R. report successful revenues and Convention Center in San Juan. positive feedback. For this, he Regarding eSports, Deliz said, the DMO will have to stated that “perhaps the work in collaboration with real economic impact is municipal governments and not observable on the the Department of Sports & traveler who goes directly Recreation, chaired by Secretary to the facility to see the Adriana Sánchez Parés. tournament, but rather on On the municipal aspect, the millions of users who the DMO noted that 57 percent are streaming the of hotel rooms are event online. That is concentrated in San where, I think, lies the Juan. “This scenario opportunity in terms of provides opportunities marketing.” for sporting events Meanwhile, Harry around the San Juan Potter fans can rejoice metropolitan area, but in the fact that Discover at the same time, it is a Puerto Rico submitted weakness for all other a proposal just over destinations within the two weeks ago to bring island,” the study says. quidditch to the island. Thus, Discover This popular sport in Puerto Rico listed the beloved children’s key objectives for fantasy book and film - Carlos Deliz, DMO’s regional sales manager the island’s sports series already has a tourism, which professional league in include developing mainland U.S. a collaborative approach to facility development; Between this initiative and eSports, the DMO is facilitating booking and contracting processes; also appealing to a different generation of sports elevating the skill set and tourism business acumen enthusiasts, given that these tend to appeal to of island-based event stakeholders and sports younger generations. Apart from growing interest operators; developing a long-term event and in these newer sports, Deliz observed that Puerto tourism strategy around lifestyle sports and eSports. Rico has a rich history of internationally renowned Other points are to elevate the awareness athletes, particularly in baseball and boxing. and viability of sports tourism to local tourism “Our sports history is vast and here in Puerto Rico leadership; build alliances and event strategies with people are very passionate about sports, so we are the local sports government bodies; and improve working toward continuing to develop that market,” client and guest experience to drive intent to return he affirmed.

We are highly convinced of the impact that sports tourism can have on the local economy... and that is why we are fully on board with developing a sports strategy within our organization,

/ Wednesday, August 14, 2019

Ceiba Stands Out

On May 2018, unemployment in the town was at 14.4 percent and for the same month this year it was 10.3 percent Christian G. Ramos

cramos@elvocero.com

@cramossegarra

he town of Ceiba has seen an upsurge of economic activity since the Roosevelt Roads Waterfront was established to service those heading to Culebra and Vieques. Service to the island municipalities began on October 2018, after an investment of $15 million that sought to alleviate the historical pitfalls faced by the Maritime Transport Authority (ATM). This was the first of several projects that has been announced for the revival of the base. Initially, Ceiba’s mayor, Angelo Cruz, was opposed to hosting the service in the town. However, the service has attracted hundreds of tourists and contributed to growth in Ceiba. On May 2018, unemployment in the town was at 14.4 percent and for the same month this year it was 10.3 percent. “For the past year we have seen more tourists in our area visiting and shopping. We have also seen

an increase in room reservations. Tourists are for repair and maintenance of vessels and staying one or two nights in the municipality and the installation of optical fiber to attract that increases spending,“ said Joshua Díaz Rivera, telecommunication technologies and industries deputy mayor of Ceiba. to the area. Although no specific data were provided on The redevelopment of the area will require a the collection of taxes, Díaz said that the increase private investment that should exceed $100 million in economic activity and create more than could, in turn, have 1,000 jobs. a positive impact on The strategies the income of the proposed for the municipality. This revival of Roosevelt contrasts with the Roads during past trend registered at the administrations have beginning of the year, been innumerable. when the number It has been indicated of tourists who that the project group -Joshua Díaz Rivera, deputy mayor preferred to fly to the should be operating of Ceiba. island municipalities by the third quarter of increased and the 2019. expenses decreased On the other due to instability in the maritime service. hand, given the rise in tourism that Ceiba is He also indicated that the economic increase experiencing, Díaz said they also hope that is being mostly enhanced by foreign tourists cruise lines are interested in this area as who arrive and spend the night. “They are mostly another Caribbean port. He said the mayor is Americans and Europeans. Local tourists come and in negotiations with Carnival Cruise line so that go on the same day and do not necessarily incur in some of their ships include the municipality in expenses, “ said the deputy mayor. their route. The Roosevelt Roads Ferry Terminal - which “In the past few weeks the company has is in plans to operate through a private public approached us. They are interested in being able alliance (P3) that is not yet concrete - is part to add our port as another option on the island. of the four projects that are expected to be Although we would love to host them because it developed in the area. The others are the benefits us economically, the final word rests with development of electrical energy to attract the Roosevelt Roads Redevelopment Authority, the industrial sector, the creation of an area “he said.

Tourists are staying one to two nights in the municipality and that increases spending.

/ Wednesday, August 14, 2019

NICK PASTRANA, JD

San Juan Realty Group President

Real Estate as an Export

n order to specialize and therefore grow their economies, countries need to find products in which they have a comparative advantage. Switzerland has its watches, Spain has wine, Japan its cars, Belgium its beer, and for Cuba it’s Cigars. This is one of the oldest economic and international trade theories, introduced to the mainstream economic discussion and study by British economist David Ricardo in the19th century. A country should always allocate its resources to produce goods and services for which it has a comparative cost advantage and a lower opportunity cost. If you ask me, Puerto Rico has two obvious comparative advantages. First, its people. Second, oceanfront and mountain land. Puerto Rican people and culture is the main attraction, what catches the eye of the world. Land is the way to monetize it. Puerto Rico has a lower opportunity cost when producing real estate for the world because ocean views and mesmerizing surroundings add intrinsic value to any real estate asset. Compare it with Dubai, where entire islands had to be built from scratch in order to create such value. So, by providing real estate for the world, Puerto Rico can offer it at a better price and compete more aggressively. After all, it is located under the U.S. flag which adds to its value. Creating new developments

for the rest of the world will not only reactivate our stagnant construction industry but it can derive a steady income of new money to be inserted to the economy through property taxes. The impact created by new developments will also reactivate other industries like the manufacturing of cement, which can be produced locally, helping to lessen its import and even exporting it like Puerto Rico used to do. Puerto Rico’s real estate market will be welcoming a new aggregate demand comprised mainly by the international luxury property owner, the retiree, the diaspora and the long term capital preservation investor. This added global demand will inevitably produce price resiliency because property values will no longer be tied to the performance of the local economy. After an economic or financial crisis, global real estate markets tend to rebound fast and to stronger and larger demand. As an example take Miami’s Brickell Avenue Avenue where prices rebounded aggressively after the 2008 mortgage crisis. In summary, we live in a globalized world and should, therefore, focus our efforts on areas where we can create lots of value quickly because of comparative advantages provided by nature and our relationship with the United States.

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By Maria de los Angeles Rivera,

CPA

Tax Partner and IBC Director Kevane Grant Thornton

The 123’s of Opportunity Zones

he primary purpose of the Opportunity Zones program is to attract investment to designated areas. Therefore, Qualified Opportunity Funds (”QOF”) must maintain at least 90% of the assets contributed by investors in qualified opportunity zone property (“QOZP”). QOZP is defined as: • shares of corporations, issued after December 31, 2017, operating a business in the area, • participations on partnerships, issued after December 31, 2017, operating a business in the area or • in tangible property used in a business operating in the area. Today we will discuss the requirements established by federal regulations for a business to qualify as a business in the area. Remember, we need to understand the concepts established at the federal level as they serve as the basis for local

incentives. The first requirement that the business has to be an active business. For these purposes, the rent of property will also be considered an active business. However, leases known as “triple net leases” where the tenant is responsible for all costs (insurance, maintenance and taxes) related to the property in addition to the rent, are not considered a active business. Once we determine that the business conducts an active business, it must meet the following requirements: • Not considered a “sin business”, • The business meets the following tests: at least 50% of its gross income is generated in a QOZ at least 40% of intangible assets are used in a QOZ less tan 5% of its assets are non qualified financial assets, and • Substantially all (70%) of the tangible property owned or leased by the trade or business is QOZBP

By Inteligencia Económica

Personal Consumption Increasedin 2018

ccording to the Statistical Appendix published by the Planning Board, personal consumption expenditure for fiscal year 2018 increased 1.1 percent in real terms after spending 4 years in decline. The last reported increase was of 1.7 percent in 2013. The aggregate of personal consumption on the island was $ 64,276 million, an average of $ 19,717 per capita. What this means is that

in Puerto Rico, for fiscal year 2018, each person consumed $19,717 on average, an increase from $18,648 in fiscal year 2017. Regarding the expenditure by category, most of people’s income went to medical and funeral services, which represents 22.6 percent of personal consumption. Since 2014, it is one of the few categories that continues to grow while the others continue to decline. This means that Puerto Rican families are changing their consumption habits to focus more on medical expenses.

The activity carried out by the business cannot be one of the following known as sin businesses: • public or private golf course • country club • massage parlor • hot tub facilities • tanning facilities • racetracks or betting facilities •selling alcoholic beverages for consumption outside the business. To satisfy the rule of generating at least 50% of gross income from an active business in an area, you can use one of the following tests: • at least 50% of the hours related to the services provided by the business are incurred in an area, • at least 50% of the fees paid for services for the business are performed in an area, the assets of the business located in the area and the management or operational functions carried out in the area are necessary to generate • at least 50% of the gross income of the business, or • based on the facts and circumstances, at least 50% of the business is generated from a commercial activity in an area. An important exception to the financial assets rule (investments, bonds, etc.) is that the business can maintain a reasonable amount of working capital (cash or investments with terms of 18 months or less) as long as the business has a formal plan to use them within 31 months of their contribution to the business.

The following are the requirements for the assets to constitute qualified property: • Property purchased from an unrelated person after 12/31/2017, • Property leased from an unrelated person after 12/31/2017, or from a related person at arm’s length market rates, • Original use of the property commences with the QOF or when the QOF substantially improves the property, and • During substantially all (90%) of the QOF’s holding period of the tangible property, substantially all (70%) of the use of the tangible property was in a QOZ Original use is determined when the property is put into service for the first-time for depreciation or amortization purposes within a zone. A property that has been used outside the area qualify for original use in the area if it meets the rest of the requirements (e.g. purchased after 12/31/17). If the property has been unused or vacant for at least 5 years, it will be treated as original use when purchased by the qualified business or the QOF. If the property has been used within the area previously but it hasn’t been vacant for at least 5 years, it could be considered a qualified property if the business or the fund perform substantial improvements within 30 months of acquisition. Improvements should be at least in an amount similar to the cost of the property without including land.

Housing expenses, which is the second largest category representing 18.7 percent of expenses, also continues to increase. In the case of food, the third category of more consumption at 13.8 percent, has been decreasing. This is one of the categories where people reduce their consumption to pay for other categories such as housing and medical care. Clothing and accessory expenses, as well as

recreation expenses have remained quite similar. The category with the greatest decrease is the personal consumption expenditure in traveling abroad, which decreased -19.4 percent in fiscal year 2018, demonstrating the adjustments that Puerto Ricans have had to make. This analysis was written by the Economic Intelligence research unit, available to subscribers along with more than 100 economic indicators.

>Archive

/ Wednesday, August 14, 2019

Beach Erosion in Ocean Park a Growing Threat to Many Residents clamoring for emergency measures

B Rosario Fajardo

rfajardo@wjournal.com

@RosarioWJournal

each and coastal erosion are a growing threat in the Caribbean region and Puerto Rico is no exception. The popular beach of Ocean Park in San Juan is a case in point. A stretch of three or four city blocks is now under water, most noticeably in front of Hostería del Mar at the end of Tapia Street. At the same time, several palm trees have fallen down in a space of about a week. THE WEEKLY JOURNAL first saw two palm trees down one weekend and by the end of the week, several more had fallen into the water. Some palm trees had also been washed away and their trunks were

lying further down the beach. It’s just not residents and tourism-related businesses that are affected by the problem, as environmental issues are also of concern, such as sea turtle nesting grounds in the area. In the event of a strong storm, the surge of water could be such that the area, already prone to flooding, will be worse than usual, affecting many more properties. In brief, the entire area has now become more vulnerable to the forces of Mother Nature. Recently, THE WEEKLY JOURNAL accompanied a group of scientists from the University of Puerto Rico (UPR) and local residents on an on-site visit of the affected area. Hostería del Mar has lost its beachfront locale and business is noticeably down. “We’ve lost a lot of business. There is almost no one here. They come, expecting the beach and when they see there isn’t one out front, they leave,” said an employee at the reception area. “We just had someone cancel. They were going to be here for nine days.” At the nearby Número Uno Guest House, which

Beach erosion from the end of Calle Tapia in Ocean Park toward Condado >Gabriel López Albarrán

has not been affected, an employee said they were concerned that the erosion was spreading quickly and could soon affect their business. “I’ve worked here for many years and I’ve never seen it like that. What’s worrying is that the beach hasn’t returned, as it usually does,” she said. Local resident Hilda Benítez, who has lived in Ocean Park all her life, agreed with this assessment. “We have seen changes since 2015 but nothing so quickly. This happened in less than a year and the beach erosion is spreading. The beach is not coming back. We need to have mitigation efforts now, we can’t wait two or three years to do something,” she said. Benítez is a member of the nonprofit “Grupo Tortuguero de San Juan 7 Quillas,” which protects sea turtles and helps conserve the beaches in the metro area. “This area is a sea turtle nesting ground and we have lost many nests already,” she said. Since sea turtles return to the same beaches where they were born to lay their eggs, she is concerned that their nesting grounds in Ocean Park may be lost.

/ Wednesday, August 14, 2019

Help Is On The Way, But It Will Take Time

UPR Professor Maritza Barreto, who is also the head of the “Red de Playas de Puerto Rico y el Caribe,” said an islandwide study is being conducted on the problem of beach and coastal erosion. UPR’s Graduate School of Planning at the Río Piedras Campus is working on a study as part of a grant from the Federal Emergency Management Agency (FEMA) and the Puerto Rico government’s Recovery, Reconstruction and Resilience (COR3) Office, with the principal aim of evaluating the state of the island’s beaches and coastal zones after the impact of Hurricane Maria in Sept. 2017. Barreto, who is a geologist by profession, said the first phase will focus on 10 municipalities, including San Juan—including the Ocean Park area—Loíza, Aguadilla, Aguada and Humacao. The study on these areas will be completed in Jan. 2020, with the team moving on to other municipalities. “What we have to do in Ocean Park is study what is going on. Right now, we can’t say definitively what is the cause of the beach erosion and what should be the best ways to mitigate the problem,” she said. The team has data on the area, up to the The beach in front of Hostería del Mar in Ocean Park has disappeared due to severe beach erosion. Ultimo Trolley beach, since 2012. She concurred >Gabriel López Albarrán that the beach erosion in Ocean Park is “severe,” but said the beach is not necessarily completely problem, especially since after Maria. “We had restaurant area. lost. a meeting with local agreements, along with the The need for federal funds was highlighted Mitigation efforts, which will take some time, U.S. Corps of Engineers. The study is important when Díaz mentioned that a beach mitigation could include reconstructing dunes, planting to access federal funds for mitigation works,” he plan for the Miami Beach area in Florida cost vegetation and reemphasized. However, $120 million. injecting sand to the entire study will In the meantime, he said the residents’ replenish the beach. not be completed for organization of Ocean Park should focus on Barreto and her team another two years, he “temporary emergency measures” to alleviate are wary of constructing indicated. the problem. “They need to present options barriers because they “The rate of erosion developed by coastal engineers to the Corps of said it could have a is exacerbated… and Engineers and DNER,” he said. further negative impact we are seeing similar on the ecosystem. events happening in “There should have Rincón,” he said to THE been action decades WEEKLY JOURNAL. ago. We have needed “Beaches are dynamic public policy changes systems of equilibrium for decades. How long but if [the balance] have we been talking is altered, it could about climate change?” affect sediment she said. “There could transportation,” he -Hilda Benítez, local resident who have been remediation said, adding that a efforts, but no. This is has lived in Ocean Park all her life global rise in sea levels the result.” is another part of the After a brief equation. “The tidal evaluation, the UPR scientists said the beach influence and waves are operating at a higher level, erosion could be due in part to a change in the so there is more impact inland,” he said. pattern of the waves and winds in the area. Díaz agreed with the other mitigation efforts Another possibility is that the natural coral reef that could be used and added that an artificial reef that is located several hundred yards offshore, may could be another possibility to help decrease the have been weakened due in part to sedimentation. wave energy. “Beach nourishment could be done. As the coral weakens, they break off much easier The lost sand is there, between the beach and the and thus, the making the waves stronger. [natural] coral reef. This is costly, though,” he said. Regardless, the agency will work with the Corps DNER Responds To The Clamor of Engineers and other team members to present Ernesto Díaz, director of the Department of the best options to fight the beach erosion, he Natural and Environmental Resources (DNER) said. The mitigation plan will extend from around Coastal Management and Climate Change the Caribe Hilton all the way to the ‘Boca de Hostería del Mar at the end of Tapia Street a few Division, said the agency is working on the Cangrejo” bridge before entering the Piñones years ago. >Courtesy

We have seen changes since 2015 but nothing so quickly. This happened in less than a year and the beach erosion is spreading. The beach is not coming back. We need to have mitigation efforts now, we can’t wait two or three years to do something.

/ Wednesday, August 14, 2019

Saborea Puerto Rico Offers New Takes on Classic Dishes More than 20 restaurants and alcohol suppliers participate in this annual event kicking off this weekend

M Giovanna Garofalo

ggarofalo@wjournal.com

@giopgarofalo

ore than 20 food and beverage businesses will convene this Friday to showcase Puerto Rico’s vast gastronomy offer at this year’s Saborea Endless Summer Bash.

Multiple chefs from different parts of the island will showcase their unique spin on classics, as well as original concoctions. >Photos Courtesy

The Summer Bash offers a variety of dishes.

Guests can kick off the weekend in this culinary extravaganza which will provide mouthwatering dishes, desserts and cocktails from multiple restaurants, pastry shops, and alcohol suppliers from different points of the island as they listen to live music at the Sheraton Puerto Rico in San Juan. This yearly event is organized by Saborea Puerto Rico, which in turn is managed by the Puerto Rico Hotel and Tourism Association (PRHTA). The PRHTA’s president and CEO, Clarisa Jiménez, explained to THE WEEKLY JOURNAL that Saborea Puerto Rico is committed to highlighting the island’s tourism potential beyond beaches so that guests can connect with Puerto Rico’s culture through its food. “The reality is that Puerto Rico has an incredible talent of chefs and youth who are doing very

/ Wednesday, August 14, 2019

interesting things in gastronomy. We want the world to have no doubt that coming to Puerto Rico is about more than enjoying tourist destinations, we also offer an amazing culinary experience,” Jiménez said. Moreover, Saborea Endless Summer Bash will feature a variety of new dishes for an array of palettes, not just the so-called classics. Some of the restaurants showcased at the event include AlCor Foods Inc., Chef Campis, la Asociación Gastronómica y Culinaria de Puerto Rico, Eclipse, Fantasy Cake Factory and Coffee Shop, Food Freaks, La Guarida de Don Elías, Jugo de Caña El Torito, Lola Eclectic Cuisine, Sheraton Puerto Rico, Kaela’s Grandpa Desserts, Altamar Condado and Cuatro Velas, among others. As for liquors and refreshments, Saborea Endless Summer Bash will boast products by Rums of Puerto Rico, Destilería Serrallés, Coca-Cola Puerto Rico Bottlers, Cerveza Modelo, Anna de Codorníu, Cervecera de Puerto Rico and El Hórreo de V. Suárez. Jiménez noted that each of the event’s participants brings its own unique culinary style to the table, providing for a diverse and culturally enriching selection. “There is a lot of diversity and they come from different parts of the island as well, so I think it is a tremendous example of the gastronomy of Puerto Rico in general,” she said. Given that some of these restaurants are located outside San Juan and the metropolitan area, the participants are encouraged to give out their address information and other promotional materials. Additionally, some of these restaurants extend a special offer to the event’s attendees, so that when they visit the actual locale they receive a treat for having attended Saborea Puerto Rico. As guests revel in succulent dishes and sip on their drink of choice, they will be entertained with live music, sponsored by the hotel’s Casino Metro. The lively atmosphere will be set by the band 12AM, which interprets popular music from the 1980s and 1990s, as well as Latin and contemporary music. “What can be better than to have some fun and forget everything that we have been enduring recently? It is an event both for locals and visitors,” she said, adding that, although guests of all ages are welcome, this event is geared more toward adults because of the alcohol selections. Jiménez also stressed that all events by Saborea Puerto Rico are “a great promotional vehicle” for participants. “The reality is that the restaurant business has been an uphill battle because of the situation that the island has been going through, and this is a great opportunity to

showcase what they offer to people who have a genuine interest in gastronomy,” she asserted. She added, “we have accomplished many success stories over the years, not only of restaurants, but of companies that—for example—specialize in desserts and got some exposure through Saborea and nowadays are not only selling to their consumers, but are also engaging in businesses with hotels, other restaurants and more.” The PRHTA official affirmed that these cases fulfill Saborea Puerto Rico’s raisons d’être, which are, first and foremost, to establish Puerto Rico as “the best culinary destiny,” and to create business opportunities for the association’s partners and the event’s participants. “The great thing about this tourism segment, gastronomy, is that it impacts every other tourism sector and market. Regardless of why people come to Puerto Rico—be it to visit a family member, be it because of groups or conventions, be it for corporate or business reasons—everybody always aims to have an amazing culinary experience, so I daresay it is one of the most important segments,” Jiménez said. If a visitor were to miss out on the event, they can take comfort in the fact that Saborea Puerto Rico offers three events annually: the Endless Summer Bash between late July and early August, the Winter edition on early December—featuring the best of Puerto Rican holidays—and the Bubbles & Bitted edition in April. Saborea Endless Summer Bash will kick off on August 16, starting 6:30 p.m., at the Sheraton Puerto Rico, which is located in the Convention District in San Juan. To purchase tickets, visit www.fangig.com or the event’s page, at www.saboreapuertorico.com.

Guests can relish in delicious meals while listening to live music.

/ Wednesday, August 14, 2019

On World Mosquito Day, Help the Fight Against Aedes aegypti Vector Control Unit launches free app called “Mosquítalo” Rosario Fajardo

rfajardo@wjournal.com

@RosarioWJournal

In fact, World Mosquito Day commemorates British doctor Sir Ronald Ross’ 1897 discovery that female mosquitos transmit malaria between humans. In 1902, he was awarded the Nobel Prize in Medicine.

associate director of the Unit. “We can’t lower our guard during this season of the year characterized by heavy rains. The Unit is working with the public through community mobilization and education strategies to promote citizen participation. People are a key element in preventing and controlling this mosquito disease

or the vast majority of people, mosquitos are hardly to be celebrated. World Mosquito Day is Aug. 20 and the Puerto Rico Vector Control Unit is taking the opportunity to remind people that the fight against mosquitoborne diseases starts with controlling the breeding grounds of the pesky and often deadly insect. With that in mind, the Vector Control Unit has launched a free app called “Mosquítalo,” a free application that helps the user to identify and eliminate possible breeding sites around or inside vector,” she added. World Mosquito Day commemorates British the home. Through the application, users can doctor Sir Ronald Ross’ 1897 discovery that report the hatcheries they have removed. This female mosquitos transmit malaria between helps keep a record of activities carried out for humans. In 1902, he was awarded the Nobel Prize controlling mosquitos in Medicine. in their homes and Mosquito-borne the unit can identify diseases remain a the most common real health threat breeding sites, worldwide and are in such as receptacles fact, the Grim Reaper where water has incarnate, according accumulated. to historian Timothy To download the Winegard, whose app, users with iOS or book, “The Mosquito: iPhones can go directly A Human History to the App Store and of our Deadliest for Android Cellular -Marianyoly Ortiz, associate director of Predator.” Based on users, directly to the the Puerto Rico Vector Control Unit his calculations, the Play Store. People female mosquito has only need to look killed about 52 billion for Mosquítalo and worldwide, nearly download it. half of the human population throughout our The app is user friendly and the unit is existence. encouraging people to use the app regularly, As part of World Mosquito Day in Puerto Rico, about once a week. the unit’s mascot, “Vectorina,” will be touring local “The goal of the app is to help people identify, schools and participating in various activities to eliminate and monitor places that could be educate students and the public about preventing mosquito-breeding sites. In this way and in the and controlling breeding grounds, as well as long term, the unit wants to promote behavioral teaching the public that it is the female mosquito change. People are a key element in prevention that bites. Vectorina is a female mosquito whose and they are the first line of control against the name was chosen by the unit’s social media Aedes aegypti mosquito, the vector of dengue, followers. Zika and chikungunya,” said Marianyoly Ortiz,

It is a female mosquito whose name was selected by the followers of the unit in social networks. Vectorina will visit schools and participate in various of the unit’s events in various communities, always carrying the central message of prevention and teaching that male mosquitoes do not bite. Activities of eliminating breeding grounds are also being done with the island’s primary healthcare facilities called “Centros de Salud 330,” of which there are 85 islandwide. The unit’s specialized technicians will also help various municipalities with calibrating their spraying machines so that they can spray insecticide properly.

People are a key element in prevention and they are the first line of control against the Aedes aegypti mosquito, the vector of dengue, Zika and chikungunya.

Vectorina, the mascot of the Puerto Rico Vector Control Unit, will be visiting schools and local communities, teaching children and the public about the dangers of mosquito-borne diseases. >Courtesy

www.elvocero.com/revistas/mirame

< The Weekly Journal > Wednesday, August 14, 2019

It's your moment to shine.

/ Wednesday, August 14, 2019

Augusto

Schreiner: A World Class Chef in Puerto Rico The award-winning chef offers lessons every Thursday at the Boutique Du Vin in Hato Rey

A Claudia Guerrero Negrón

Before arriving to Puerto Rico, Augusto Schreiner worked in The Grand Hotel in Paris, the Dusseldorf Hilton, Curacao Hilton and the Bogotá Hilton, where he met his wife, Claudia Pedraza. >Photos by Gabriel López Albarrán

newsroom@wjournal.com

@cguerreronegron

ustrian-born chef Augusto Schreiner has dedicated his entire life to culinary excellence. His expertise has earned him many prestigious awards like the André Simon Award given by the Wine and Food Society of Puerto Rico, the Golden Fork Award that his restaurant, Augusto’s, won for 10 consecutive years and the Platinum Fork Award that Augusto’s received its last year in business. After running his own restaurant for 17 years, chef Schreiner felt it was best to sell the business since the hotel in which it operated was being sold and making an investment on the property wasn’t a viable option. Chef Schreiner trained at the Salzburg Culinary School where he graduated with honors after having won both a Gold Medal and a Jury Grand Prize at the Austrian National Apprentice Competition. Before arriving in Puerto Rico, he worked at The Grand Hotel in Paris, the Dusseldorf Hilton, Curacao Hilton and the Bogotá Hilton, where he met his wife, Claudia Pedraza. In 1974, he was transferred to the Caribe Hilton in San Juan, Puerto Rico for a sous chef position. He was later promoted to executive chef where he remained until 1988 when he opened his restaurant. Ever since Schreiner moved to Puerto Rico he

/ Wednesday, August 14, 2019

The next classes... Thursday, August 15, he will be teaching a class on how to prepare salmon in three different ways: as a fresh salmon mousse, cedar wood wrapped salmon, and coulibac of salmon, a classic Russian dish of puff pastry stuffed with salmon, rice, hard-boiled eggs, mushrooms, onions and dill.

has felt like a local and staying on the island ended up being a no-brainer for him. “The Caribe Hilton offered me a very nice position, it was impossible to turn it down. Plus, I had already started my family with my wife,” he said. Since then, he has made numerous contributions to the culinary development of the island. In 2003, the Senate of Puerto Rico presented him with Resolution #3273 for his contribution to the education and development of the culinary arts in Puerto Rico. The chef has traveled the world representing Puerto Rico in prestigious competitions like the Culinary Contest in Jamaica, where he won a Gold Medal, and the Culinary Olympics in Germany where he was captain of the first Caribbean Culinary Team, which was created by the Puerto Rico Hotel and Tourism Association (PRHTA). Nowadays, Schreiner sits on the panel of judges that decides which people will form the team and represent Puerto Rico. Along with the PRHTA, he created Saborea, an anticipated culinary extravaganza that features the work of many local chefs. The event has gained popularity every year as it continually highlights the best of what the Puerto Rican culinary scene has to offer. When Schreiner started to work with the PRHTA, he knew an event like this was imperative so that Puerto Rico’s gastronomic offerings could take center stage. Schreiner is the current chief of operations of the ALO Demo Kitchen Theater in Saborea and as such, he organizes and puts together a demonstration of delicious bite-size creations by an array of chefs. After closing his restaurant in 2007, Schreiner partnered with the Boutique Du Vin, a wine store in Hato Rey, and established his Art of Cooking School on their premises, where he teaches cooking lessons every Thursday to groups of up to 24 people. Every one of his lessons has a theme or is centered around a specific topic. Some of them are about dishes endemic to specific countries and others center on seasonal dishes or products, for example. During his classes, he strives to create a comfortable environment where adults can learn how to master cooking techniques while using utensils and materials found in an ordinary home. Schreiner buys the ingredients he uses at places

His next lesson after that, on August 22, is titled “Silk Road to Asia” and he will be teaching students how to make a Thai seafood salad, leg of lamb baked in a clay pot, Fattaoush salad and coconut tapioca pudding with mango and lime.

like Costco, Econo, Supermax and La Hacienda. His goal is for his students to learn how to prepare wonderful dinners in their homes while also tending to their guests because he feels that much too often whoever cooks ends up trapped in the kitchen. Thursday, August 15, he will be teaching a class on how to prepare salmon in three different ways: as a fresh salmon mousse, cedar wood wrapped salmon, and coulibac of salmon, a classic Russian

dish of puff pastry stuffed with salmon, rice, hardboiled eggs, mushrooms, onions and dill. His next lesson after that, on August 22, is titled “Silk Road to Asia” and he will be teaching students how to make a Thai seafood salad, leg of lamb baked in a clay pot, Fattaoush salad and coconut tapioca pudding with mango and lime. The classically-trained chef says he doesn’t have a specific food he enjoys cooking but does admit he is partial to European dishes.

The Chef has traveled around the world representing Puerto Rico in the most prestigious competitions like Culinary Contest in Jamaica where he won a Gold Medal, and the Culinary Olympics in Germany where he was Captain of the first Caribbean Culinary Team

/ Wednesday, August 14, 2019

Betting on horses has been a part of Puerto Rican culture for 135 years. According to Rodríguez, nowadays it is more popular than ever. >Archive

Hipódromo Camarero to Undergo Multi-Million Dollar Renovations

The Hipódromo Camarero will reemerge with state of the art facilites and a new restaurant

Claudia Guerrero Negrón

newsroom@wjournal.com

@cguerreronegron

n an effort to rebuild and modernize the iconic Hipódromo Camarero, an investment of several million dollars was negotiated with Integrated Construction Services (ICS), a Puerto Rican construction company that specializes in handling federal

government projects. After going through a proposal process where various construction companies presented their offers and ideas, ICS was the company chosen to handle the post-Maria reconstruction of the center. After a lengthy claims process with their insurance company, the Hipódromo Camarero can finally undertake its vision. Among the new features that will be available are new concession stands, a new restaurant and new menu offerings. The reconstruction, which is expected to take ten months, also includes restoring structures like the convention center, the roof over the spectator bleachers and Ballito’s Fun Park, an area with inflatables mountain climbing and

pony riding for children. According to Ervin Rodríguez, the lack of a roof has done nothing to deter horse racing fans. Betting on horses has been a part of Puerto Rican culture for 135 years and, although Maria changed many things, in the case of the Hipódromo, the hurricane turned out to be a blessing in disguise. Thanks to the Hurricane, the Hipódromo Camarero in Canóvanas experienced a rebirth. At the end of 2018, sales surpassed those of 2017 and 2016. “We rose from the ashes,” said Rodríguez. After the hurricane, the structure suffered many critical damages and remained closed for three months. “We are seeing a resurgence in clients due to

>Archive

/ Wednesday, August 14, 2019

During this event, which was hosted the first Friday of every month, he would have horse races at night and live music. Night at the Races, which drew in from 6,000 to 7,000 spectators in every edition, had to be discontinued after the hurricane but Rodríguez hopes to have it back on schedule soon. At a recent press conference, Rodríguez also announced the development of “Gana Donde Sea” (“Win Anywhere)”, an online platform with betting all the construction tips and information going on, a lot of that allows people to our clients are bet from the comfort of builders, contractors, their own home. carpenters, etc,” he - Ervin Rodríguez, Camarero President According to added. Rodríguez, Puerto Like many Rico is a place with businesses in Puerto many betting options Rico, the horse racing center has suffered during ranging from cockfighting to the “ Loteria de Puerto Puerto Rico’s latest economic depression. By the Rico”, Powerball, and “Raspa y Gana”, among time Maria struck, Rodríguez had already been others. He went on to state that 97 percent of the looking for new ways to attract more people and bets received at the Hipódromo come from 500 get them involved in betting. equestrian betting agencies spread throughout the Among the many initiatives he had put in place island. before Maria struck, was Night at the Races.

We rose from the ashes.

Hipódromo Camarero is a tourist attraction certified by the Puerto Rico Tourism Company. >Courtesy Camarero

After the hurricane, only 180 of those 500 agencies were operating, putting a strain on the Hipódromo’s finances. The agencies, Rodríguez says, are vital for the function of the horse racing center. At these agencies players can place their bets and watch the races as well as play on casino machines that the Hipódromo has been install since 2009. “Recent laws that have been passed have provided incentives that have helped this industry. Support from the government to this industry is important because the Hipódromo generates over 8,000 to 10,000 direct and indirect jobs,” said Rodríguez. Rodriguez has also kept an important initiative alive for many years, which is to include the Hipódromo as an official tourist destination with the Puerto Rico Tourism Company. “We had talked with the governor at the time, who was Rosselló. He came and expressed that he supports us as a tourist destination…and I doubt that the recent changes alter that commitment. We have already planned all the logistics,” said Rodríguez. The logistics include having shuttles from the Hipódromo pick up tourists from hotels and the cruise ports in San Juan to bring them directly to the multi-attraction center in Canóvanas. More than 50 percent of the American population in Puerto Rico indulges in horse race betting. “We are very excited over the upcoming changes we will be realizing and are confident that our audience will grow larger than ever,” Rodríguez pointed out.

/ Wednesday, August 14, 2019

reik & Camila Concert

ILE “Contra Todo” Puerto Rican singer-songwriter Ile will be presenting her latest album in an intimate concert that will be held at the Museo de Arte de Puerto Rico’s outdoor garden.

Even if you don’t speak a word of Spanish you will still love their soulful lyrics and melodies. Reik is a Mexican band from Baja California and Camila is a band from Mexico City.

When: Saturday, August 17, 7:30 p.m. Where: 299 José de Diego Ave., San Juan

When: Saturday, August 17, 8:30 p.m. Where: Coliseo de Puerto Rico José Miguel Agrelot. 500 Arterial B St., San Juan

Festival de la

Salsa Frankie Ruiz The second edition of the Festival de la Salsa Frankie Ruiz will be celebrated in the town of Mayagüez. Stop by for a salsa-filled day, where you’ll be able to enjoy music and dance. When: Sunday August 18, 10 a.m. to 9 p.m. Where: Concha Acústica Frankie Ruiz, Palacio de los Deportes, Mayagüez.

Puerto Rico Art Museum Book Fair The Museum of Art of Puerto Rico (MAPR) invites you to join this event free of charge. There will be readings an presentations. When: Sunday, August 18, 10 a.m. - 6 p.m. Where: 299 José de Diego Ave., San Juan

/ Wednesday, August 14, 2019

Tres Pianistas “From Queen to Coldplay”

Festival del Cabro Fricassee ang goat cheese galore! One of the highlights of the festival is the fricassee competition in which the attendees can choose the winner by vote. Free admission. When: Sunday, August 18, 10 a.m. – 8 p.m. Where: Paseo Tablado, 833 Santa Rosa Ave., Guaynabo

Sábados pa’ la PlazA Live music, artisans, local food, a carrousel and more. When: Saturday, August 17, 4 p.m. Where: Plaza de Recreo Santiago R. Palmer, Caguas

Saborea EndlesS Summer BasH Saborea will launch a fresh new concept that will offer food connoisseurs the opportunity to indulge in local cuisine and trendy experiences, in addition to a wide variety of wines, beers, distilled spirits and an assortment of desserts. When: Friday, August 16, 6 p.m. – 11 p.m. Where: Sheraton Puerto Rico Hotel & Casino, 200 Convention Blvd., San Juan

“From Queen to Coldplay” is the latest collaboration of three of Puerto Rico’s greatest pianists— Francisco Paz, Adlan Cruz, and Stevan Micheo. The two-hour repertoire will cover songs spanning from the ‘70s to contemporary singers and bands such as Queen, Coldplay, Ed Sheeran, Sia, Air Supply, Journey, OneReplubic, and many more. During the performance, all three virtuosos will be playing the songs simultaneously. When: Sunday, August 18, 7 p.m. Where: Coliseo de Puerto Rico José Miguel Agrelot, 500 Arterial B St., San Juan

Jam Fest: A Night of Tributes Local art and fashion design plus a Rage Against the Machine and Pearl Jam Tribute. When: Saturday, August 17, 9 p.m. – 12 a.m. Where: La Respuesta, 1600 Fernández Juncos Ave., San Juan

Cheese Making Lessons Head to Barra de Quesos for a fun cheese making class. During the two hour lesson, the participants will prepare and spice their own cheese. to take home. For more info: 787-9791515 When: Tuesday, August 20, 7 p.m. Where: Barra de Quesos, 106 Juan Ponce de León Ave., Suite 25, San Juan