Comments on: Puerto Rico’s pain stretches to its lack of assets http://blogs.reuters.com/muniland/2012/10/09/puerto-ricos-pain-stretches-to-its-lack-of-assets/ Bridges, budgets, bonds Mon, 24 Nov 2014 00:29:08 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: DavidMartin http://blogs.reuters.com/muniland/2012/10/09/puerto-ricos-pain-stretches-to-its-lack-of-assets/comment-page-1/#comment-1830 Mon, 15 Oct 2012 15:22:32 +0000 http://blogs.reuters.com/muniland/?p=12019#comment-1830 It’s also not clear to me whether this 40-year tie-up of PR’s air transportation facilities is in the long-term interest of the island.

The financials sent to the FAA show LMMIA’s net profit of $13 million only for 2009. Other years’ net profits are not shown. But 2009 was a low point of passenger traffic. PR will be giving up future net profits for a mere expectation that the new tenant will make the necessary investments in LMMIA to bring more business activity to the island.

Separately, contractual restrictions (Sec. 3.22 of the lease) on developing Ceiba’s airport into a major international airport seem anti-competitive. My proposal for Puerto Rico City, a world-famous entertainment city on Ceiba, requires the development of a world-class international aiport that would surpass LMMIA in economic importance.

San Juan is already too congested and constrained by poorly planned development. PR needs an entirely new, master-planned city to welcome and accommodate millions of new visitors with a state-of-the-art and seamless transportation system, including an airport with an integrated rail system.

LMMIA cannot accommodate major increases of new visitors. Under my proposal, LMMIA would remain the main airport for business and ordinary civilian travel. Yet Ceiba’s airport would become the primary airport for the untapped tourist market that PR has ignored for decades. The lease restrictions would create an obstacle for these plans.

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By: Uriel_I http://blogs.reuters.com/muniland/2012/10/09/puerto-ricos-pain-stretches-to-its-lack-of-assets/comment-page-1/#comment-1806 Fri, 12 Oct 2012 00:32:03 +0000 http://blogs.reuters.com/muniland/?p=12019#comment-1806 Cate, there is a very strong probability that, because of this high debt load, regardless of who “wins” the elections in Puerto Rico next month, the 7% sales tax that began to be collected in Puerto Rico in 2006 will be increased to 8% some time during the next four years. Guess what that will do to the the island’s legitimate economy.

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By: Ahora http://blogs.reuters.com/muniland/2012/10/09/puerto-ricos-pain-stretches-to-its-lack-of-assets/comment-page-1/#comment-1783 Wed, 10 Oct 2012 13:55:29 +0000 http://blogs.reuters.com/muniland/?p=12019#comment-1783 I have never seem this type of journalism or analysis before. Again, Reuters readers deserve better. I have been in Puerto Rico’s airport and it is hard to understand how citizens can be worse off in terms of infrastructure conditions and economic development given that the PPP proposal represents a clear path towards airport development that requires compliance with Operating Standards (available online) on top of FAA Regulations. It is not a lie that the actual conditions are very poor and that there is stagnant passenger growth. Again, this “analysis” presented here it is extremely weak and not based on a real assessment of the present infrastrcuture conditions of the airport and trend of passengers.

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