Central gov’t transfers former ferry terminal to Municipality of Fajardo
To complete the transfer, the central and municipal governments negotiated with the Federal Transportation Authority.
The Puerto Rico Ports Authority has signed a 20-year lease and operation contract with the Municipality of Fajardo to transfer the assets of the former ferry terminal, Gov. Pedro Pierluisi announced.
The governor explained that Ports began the process to transfer the asset to the Municipality more than a year ago with the goal of developing an economic project to revitalize the area and reactivate the terminal facilities. The terminal formerly housed ferry services between Puerto Rico and the island-municipalities of Vieques and Culebra but has been vacant since the routes were shifted to a port in Ceiba in 2018.
To achieve the transfer, the central and municipal governments entered negotiations with the Federal Transportation Authority, which had a say in the transaction because it had invested in several aspects of the Fajardo facility over the years, Pierluisi explained.
“It hasn’t been easy. Among other things, the FTA calculated the amount of federal economic interest that had not yet been paid and agreed with the government that the matter would be resolved with a payment of $1.2 million, releasing the property and allowing the transaction to take place,” the governor said during a news conference. He was flanked by Fajardo Mayor José Aníbal “Joey” Meléndez and the Ports Authority’s executive director, Joel Pizá.
The lease contract includes two five-year extensions that can be exercised between Ports and the Fajardo municipal government. As part of the negotiations, Ports will receive a percentage of the gross income generated by the property: 3% during the first year and 5% from the second year onward. The municipality also has a credit equivalent to the amount transferred to settle the debt with the FTA.
Additionally, the contract requires the Municipality of Fajardo to conduct a competitive process to select private operators or developers for the facility within the next 24 months. The municipality will oversee maintenance, insurance and other obligations related to the terminal’s operation.
“The goal is to develop this underutilized area and convert it into a commercial marina,” the governor said.
Meanwhile, Pizá stated, “The contract signing represents a significant step toward Fajardo’s economic revitalization, as in addition to boosting the local economy, it creates opportunities for private investment and the creation of new jobs.”
Meléndez added, “What is now a blemish in the waterfront area will become an economic development project that will move not only the economy of Fajardo, but I would also dare to say the eastern area of Puerto Rico, in coordination or on par with a much larger development that’s coming to Roosevelt Roads.”
Those projects include the development of a new marina through a contract awarded to Puerto Rican development firm PRISA Group. The final contract must be presented to the island’s Financial Oversight and Management Board in the coming days for approval and subsequent signature.
There is also another hotel and golf course project with Starwood Capital Group, which is in the final stage of negotiation to present to the oversight board.
Finally, the Local Redevelopment Authority for Naval Station Roosevelt Roads this week issued a request for proposals for the development of a vertical space launch facility at the former military base in Ceiba.
