P.R. Laws tit. 23, § 9012o
(a) In general.— The Permit Management Office may conduct any kind of studies or research concerning any matters within its scope, and to that effect, the Office may require any information as necessary, pertinent, and essential to achieve such purposes and approve such rules and regulations as necessary and reasonable. Provided, however, That such studies and research shall be conducted without prejudice to the vested rights of natural or juridical persons that have obtained site consultations and/or land development or use permits already approved for commercial projects under regulations or legislation in effect prior to the effective date of this act.
(A) Regional Economic Impact Analysis.—-
(1) The Permit Management Office shall require every proponent of projects to establish or develop retail and/or wholesale establishments with sixty-five thousand (65,000) square feet or more of sales area and storage space to conduct a regional economic impact analysis. Such analysis shall also be required to establishments devoted to the retail sale of mixed merchandise with fifteen thousand (15,000) square feet or more of sales area and storage space.
The regional economic impact analysis requirement shall also apply to all those projects to which duly qualified municipalities are empowered to issue the corresponding permits.
The regional economic impact analysis shall assess the net impact of the proposed projects on the economic conditions of the area under analysis to prevent any potential harm to such areas.
The regional economic impact analysis required under this section shall apply to any proponent of new projects or those who have already started a process in the Permit Management Office to establish or develop retail and/or wholesale establishments with sixty-five thousand (65,000) square feet or more of sales area and storage space. However, the regional economic impact analysis shall not be required for projects with such square footage or more that already have obtained a duly approved site consultation and/or land development and/or use permits in accordance with regulations or legislation in effect prior to the effective date of this act.
Likewise, the regional economic impact analysis required under this section shall apply to every proponent of new projects or those who have already started a process in the Permit Management Office to establish or develop establishments devoted to the retail sale of mixed merchandise with fifteen thousand (15,000) square feet or more of sales area and storage space. However, the regional economic impact analysis shall not be required for projects with such square footage or more that already have obtained a duly approved site consultation and/or land development and/or use permit in accordance with regulations or legislation in effect prior to the effective date of this act.
The regional economic impact analysis shall evaluate, among other things, the following:
(1) The economic effects of the proposed project on existing business establishments in the region, and the economic effect of projects similar to those proposed on existing business establishments in other areas or regions.
(2) Number and location of business establishments where there is an overlap with respect to the type of goods and services object of the project.
(3) Supply and demand of available space for business establishments at the regional level. Potential use of unoccupied spaces or facilities.
(4) Information about jobs in the region, including the projected net job creation and loss, as well as information about earned salaries and benefits.
(5) Volume of sales and income of the business establishments existing in the region.
(6) Municipal or State revenues to be generated by the proposed project, as well as the construction costs and operating expenses (State and municipal) it entails to be covered by the government, including those related to the costs of highways, police, firefighters, rescue, water and sewage services, or other public services such as power lines or solid waste disposal.
(7) Effects of the proposed project on the environment.
(8) Growth impact, which shall include an evaluation of the population growth experienced in the region in order to determine whether or not the proposed project shall affect the financial capacity of the government (current and potential) to accommodate the total growth and the growth rate resulting from the project if approved. For such purposes, foreseen government costs in connection with public health, safety, and wellbeing shall be taken into account in order to evaluate the region’s capacity to accommodate the growth resulting from such project.
(9) Market concentration analysis using the herfindahl-Hirschman Index (HHI) parameters.
The required analysis shall apply notwithstanding the sixty-five thousand (65,000) square feet or more are comprised within one or more buildings; provided that they are located in the same site. Likewise, the required analysis shall apply to any expansion or renovation of an existing business or new establishment for retail sale of mixed merchandise. Such requirement shall also apply to projects of fifteen thousand (15,000) square feet or more.
(2) Role of the Planning Board (PB). The regional economic impact analysis shall be defrayed in its entirety by the proponent, and the PB, in coordination with the Permit Management Office (OGPe) and the Puerto Rico Trade and Export Company (PRTEC), shall be the entity in charge of prescribing through regulations the parameters and provisions that must be included in the analysis. The PB shall establish a certified list of professionals and/or companies authorized to conduct such analysis, from among which the proponent shall choose one to conduct the analysis. The PB shall also include in the regulations the cost limit for such analyses in accordance with the size of the proposed project and define the land area to be included in the analysis.
The recommendations and conclusions of the analysis shall be taken into account when issuing the corresponding permits to the proposed project, subject to the provisions of this section.
(3) Role of the PRTEC:
(1) To establish a system to keep the conducted analyses and related documents in its facilities; and adopt through regulations the guidelines to ensure citizen access to such documents.
(4) Role of the OGPe.- The Permit Management Office (OGPe) shall determine the selected economist and/or company’s due date for submitting the analysis. Said due date shall be established in the regulations.
Regional economic impact analyses submitted to OGPe by the PB shall be reviewed by the PRTEC, for the latter to issue recommendations with respect thereto, subject to the provisions set forth herein. OGPe shall issue its determination with regard to the permits requested for the proposed project.
Based on the PRTEC’s recommendations, OGPe may also require the project’s proponent to mitigate any adverse impact identified in the analysis. OGPe may require the project’s proponent the following mitigation measures, among others:
(1) Impact fees, in the event that the projected impact on the treasury with regard to the proposed project exceeds the projected municipal and/or central government’s revenues; the PB shall determine whether the payment shall be remitted to the Central Government or the Municipality, as well as the amount and frequency thereof; and
(2) measures aimed at delimiting the maximum square footage and/or other aspects of the original proposed project, including some of the proposed business activities, may cause an excess supply of goods or services in the market of the area under analysis.
OGPe shall be empowered to issue, amend, or deny a permit as requested. For such purposes, it shall take into account the recommendations made by the PRTEC, any mitigation effort undertaken by the projects proponent as provided herein, and all other requirements applicable by law and regulations to permit applications filed with it.
The Legislative Assembly shall appropriate every year, as part of the budget request, special funds for the PB and OGPe to enforce the provisions set forth in this Act with regard to regional economic impact analyses.
History —Dec. 1, 2009, No. 161, § 2.16; June 11, 2014, No. 62, § 7.