ROOSEVELT ROADS PUERTO RICO PROMISE ZONE April 20, 2017 Hon. Manuel A. Laboy Rivera Secretary, Department of Economic Development and Commerce DISCLOSURE The materials contained in this presentation are for informational purposes only. This document does not constitute an offer to sell or a solicitation of an offer to buy any securities. This document is a summary of certain matters for discussion only. You may not rely solely upon this document in evaluating the merits of a project, investment venture, or any business referred to herein. This document does not constitute and should not be interpreted as either a project recommendation, investment advice or any other recommendation including legal, tax or accounting advice. Future results are impossible to predict. Opinions, figures, estimates and market trends offered in this document constitute a preliminary assessment and are subject to change without notice. Data on this document are based on current market conditions but should not be relied upon without further assessment and verification. This presentation may include forward-looking statements that represent opinions, estimates and forecasts, which may be subject to significant uncertainties, many of which are outside the control of the Puerto Rico PublicPrivate Partnerships Authority, the Government of Puerto Rico and its agencies and instrumentalities. Roosevelt Roads Puerto Rico Promise Zone - Overview The Roosevelt Roads Puerto Rico Promise Zone is located in the Northeast corner of Puerto Rico. Lead Organization: The area suffered a big financial loss when the Roosevelt Roads Naval Station closed in 2004. The three communities affected by this closure have joined forces with the Local Redevelopment Authority of Roosevelt (LRA). June 6, 2016 Local Redevelopment Authority for Roosevelt Roads (LRA) Designation Date: Population: 77,344 Average Poverty Rate: 47.2% Fajardo Unemployment Rate: The LRA plans to not only improve community infrastructure but also to rejuvenate economic activity in the region, increase access to health care, improve educational opportunity, reduce violent crime, and jumpstart job creation. Ceiba 17.34% Average Family Income $19, 722 Key Partners: Municipalities of Ceiba Fajardo and Naguabo; Naguabo Roosevelt Roads Roosevelt Roads Puerto Rico Promise Zone – Plans and Goals Identify private developers with the ability to advance the business objectives of the LRA, by creating partnerships that will jumpstart the redevelopment of RR and transcend government administrations. Upgrade the infrastructure system through P3’s, and federal programs and/or other mechanisms, to allow the continuation of current operations and set the groundwork for the upcoming redevelopment, further enhancing the attributes and the value of this redevelopment project to private investors. Finding the right partners to collaborate on this endeavor is of the uttermost importance. PROMSE ZONE Location of the Roosevelt Roads Puerto Rico Promise Zone Roosevelt Roads Puerto Rico Promise Zone San Juan Airport Puerto Rico, USA Fajardo Ceiba Roosevelt Roads Naguabo Roosevelt Roads Puerto Rico Promise Zone Transferred Lands In 2013, the Navy completed the transfer of 3,409 acres and 1,600 facilities to LRA. Development Zones Master Plan Airport Fajardo Ceiba Roosevelt Roads Naguabo Status of Redevelopment Project 2004 • Base closure BRAC • Law 508-2004 created the LRA for 10 years • LRA developed Reuse Master Plan 2010 • LRA developed Addendum to Reuse Master Plan 2011 • RR Land Use Zoning Plan approved by Puerto Rico Planning Board • RR Infrastructure Master Plan completed 2012 • U.S. Navy transferred Parcel 3 to the LRA 2013 • U.S. Navy completed transfer of Parcels 1 & 2 to the LRA (all land transfer completed and transferred to Puerto Rico Government) 2014 • PR Planning Board Amendment to Land Use Zoning PlanROTFU approved • Development Zones Master Plan • Law 508-2004 is amended to extend term for an additional thirty (30) years 2015 • U.S. Navy completed transfer of the Hospital Parcel 2016 • Promise Zone Designation by President Obama 2017 • Land available for the redevelopment Roosevelt Roads Land Available for the Redevelopment Renewable Energy Generation, Distribution and Operation Land available for the redevelopment. Based on market demand, four (4) major projects are on the works: Redevelopment of the Waterfront for a Mega Yacht Marina Establishment of a Retirement Community including independent housing, assisted living and all medical services Private Ferry Route to Vieques, Culebra and other Islands The Site Over 8,000 acres of Opportunities & Amenities Location of Projects for Immediate Implementation Roosevelt Roads Infrastructure The LRA currently owns and operates all of the infrastructure and utility systems at FNSRR. This presents a unique opportunity for interested utility developers General Infrastructure Overview Existing infrastructure at Roosevelt Roads was developed throughout 60+ years to satisfy the demands of low density, military uses Existing infrastructure requires update and major modifications in order to support current operations in FNSRR and set the groundwork for the master planned multi-use redevelopment The investment for these upgrades has been estimated at $150-$200 million dollars Potential Infrastructure Projects Main infrastructure components at FNSRR include: Roads and Access Potable Water Distribution System Sanitary Collection System None Existing Telecommunication System Power Distribution System Roosevelt Roads Infrastructure - Roads and Access STATE ROADS • FNSRR connects the municipalities of Naguabo and Ceiba mainly through the state roads PR-3 and PR-53 Roads and Access • Roads are in excellent condition and have the sufficient capacity to meet the required development capacity for the next 25 years FNSRR ROADS • The Interior of the FNSRR contains over 100 miles of main and secondary roads • Most of them are in good condition. In general most of the existing roads can be repaired by patching or paving certain areas ACCESS • In the past, the access points to FNSRR were through four main gates: 1, 2, 3 and 4 • Gate 1 is the current and main entrance that connects FSNRR with PR #3 on the north • For security reasons, all other gates are currently closed Roosevelt Roads Infrastructure – Potable Water Distribution System WATER INTAKE Water Distribution System FNBRR is completely independent of PRASA • WI for the water system takes place in the Rio Blanco River of Naguabo, via a 27” diameter pipe that is connected to a lift station pump that directs the water to the reservoir located at the base WATER FILTRATION PLANT • The WFP filtrates and distributes the potable water throughout the FNSRR • It is comprised of aeration, sedimentation tanks and sand filters It consists of three main components: A. Water Intake B. Water Filtration Plant C. Distribution System • It has enough capacity to fulfill the estimated water demand for the future development for over 25 years DISTRIBUTION SYSTEM • It has over 64 miles of pipelines, seven pumping stations and a Storage tank among other components • Actual condition of this system is fair. Current tenants are being served with this system Roosevelt Roads Infrastructure – Sanitary Collection System • FNSRR has its own used water treatment system Treatment Plants and Sanitary Collection System • It consists of a network of: Approximately 32 miles of pipes that collect the sanitary discharge by gravity Approximately 9.5 miles of force lines 28 pumping stations Which converge in three independent water treatment plants: Bundy, Forrestal Capehart • All three treatment plants are currently non-operational • All sewer and sanitary components, such as manholes and piping systems, are in good condition • All current sanitary collection is managed by sanitary extraction trucks Roosevelt Roads Infrastructure – Power Distribution System • All the electrical infrastructure and components within FNSRR are property of the LRA Power Distribution System • There are 11 substations (of various capacities) in FNSRR. Substation “India” is the only one currently operational • “India” supplies the electrical load for all current operations within FNSRR • Power is supplied by the Puerto Rico Electrical & Power Authority (PREPA) from the Daguao Station • Power is supplied by two main lines of 38kv that enter the base via Gate 3 to substation “India” • “India” distributes power to the different tenants using 13.2kv lines that run from Forrestal to Langley Road What What do do We We Need? Need? I EE INFRASTRUCTUR INFRASTRUCTURE E ECONOMIC ECONOMIC DEVELOPMENT DEVELOPMENT Develop Identify interested Infrastructure investors to develop & operate Infrastructure Projects: Projects: Energy, Potable Energy, Potable Water, Water, Sanitary Sanitary Water, Roads Water, Roads & and Telecom Systems Telecom Rejuvenate Rejuvenate economic activity economic activity in the in region the region J J RR OO JOB JOB CREATION CREATION RE-POPULATE Jumpstart job Jumpstart job creation creation Populate Roosevelt Roads again OPERATE Customer Service Next Steps 1 Identify interested investors to develop Infrastructure Projects: Energy, Potable Water, Sanitary Water, and Roads. 2 Engage in direct negotiations with private investors developers/zone developers who will partner with the LRA and acquire a leasehold, fee-simple or other appropriate interest in the property. 3 Continue to identify potential federal government programs through RR’s Promise Zone designation to provide funding for required infrastructure upgrades. 4 Perform assessment process for Private Ferry Route from RR, Renewable Energy Generation and Distribution, Mega Yacht Marina, and Medical and Retirement Community. CONTACT US Hon. Manuel Laboy Rivera Secretary Department of Economic Development and Commerce P.O. Box 362350 San Juan, PR 00936-2350 PHONE: 787-765-2900 EMAIL: [email protected] 19
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