Authority signs memo of understanding on San Juan Waterfront
By : DENNIS COSTA PACHECO
Volume: 35 | No: 49
Page : 04
Issued : 12/13/2007
Island Global Yachting on tap to develop marina at a private
investment of $113.6 million; project to include 67,000 square
feet of commercial space
The Puerto Rico Ports Authority (PRPA) has signed a memorandum of
understanding with Island Global Yachting (IGY) toward the
development and operation of the San Juan Waterfront project,
CARIBBEAN BUSINESS has learned.
The signing represents the most significant step yet in bringing
to reality a project that has been under discussion since the
administration of former Gov. Pedro Rosselló. Originally called
the San Antonio Waterfront, the project was part of the Golden
Triangle initiative designed to revamp San Juan. Although the
other two points of the triangle, the San Juan Convention District
and the Condado Duo, are very close to completion, the waterfront
initiative has lagged in recent years.
According to terms detailed in the memorandum, the marina will
entail a private investment of $113.6 million and include 67,000
square feet of commercial space as well as 7,496 linear feet of
piers. The project is slated for development in the area between
Piers 7 and 9 in San Juan.
Seventy-six spaces for yachts of less than 80 feet and 20 spaces
for yachts of more than 80 feet will be available, the memorandum
added. The document also requires the building of a 240-room (equivalent
to 168,000 square feet), four to five-star hotel on Pier 9.
As part of the agreement, PRPA commits to obtain the environmental
and development permits necessary for projects in the area, while
IGY will be responsible for permits related to construction. The
agency will also take care of the demolition and repair of the
wooden foundations for piers seven through 10, as well as the
construction of public spaces including parks and walkways.
The duration of the agreement is for 50 years and also entails a
payment of $6.75 million to the PRPA, to be paid a year after the
reconstruction of the piers is completed, or three years after the
signing of the development contract, whichever comes first, in
addition to a $250,000 annual payment to the agency. Net operating
income (NOI) stemming from the San Juan Waterfront will be
distributed 75% to IGY and 25% to PRPA. It is estimated that
profits will reach $20 million throughout the contract’s term.