ROOSEVELT ROADS PUERTO RICO

PROMISE ZONEApril 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 Public-

Private Partnerships Authority, the Government of Puerto Rico and its agencies and

instrumentalities.

Roosevelt Roads Puerto Rico Promise Zone - Overview

Fajardo

Ceiba

Roosevelt

Roads

Naguabo

Lead Organization:Local Redevelopment Authority for Roosevelt Roads (LRA)

Designation Date:June 6, 2016

Population:77,344

Average Poverty Rate:47.2%

Unemployment Rate:17.34%

Average Family Income$19, 722

Key Partners: Municipalities of CeibaFajardo and Naguabo;

The Roosevelt Roads Puerto RicoPromise Zone is located in theNortheast corner of Puerto Rico.

The area suffered a big financial losswhen the Roosevelt Roads NavalStation closed in 2004. The threecommunities affected by this closurehave joined forces with the LocalRedevelopment Authority of Roosevelt(LRA).

The LRA plans to not only improvecommunity infrastructure but also torejuvenate economic activity in theregion, increase access to health care,improve educational opportunity,reduce violent crime, and jumpstart jobcreation.

Roosevelt Roads Puerto Rico Promise Zone – Plans and Goals

Identify private developers with the ability to advancethe business objectives of the LRA, by creatingpartnerships that will jumpstart the redevelopment ofRR and transcend government administrations.

Finding the right partners to collaborate on thisendeavor is of the uttermost importance.

Upgrade the infrastructure system through P3’s, andfederal programs and/or other mechanisms, to allowthe continuation of current operations and set thegroundwork for the upcoming redevelopment, furtherenhancing the attributes and the value of thisredevelopment project to private investors.

PROMSE ZONE

Location of the Roosevelt Roads Puerto Rico Promise Zone

Puerto Rico, USARoosevelt Roads Puerto Rico

Promise Zone

San Juan

Airport

Fajardo Ceiba

Roosevelt Roads Naguabo

Roosevelt RoadsPuerto Rico

Promise Zone

Transferred

Lands

In 2013, the Navy completed the transfer of 3,409 acres and 1,600 facilities to LRA.

Airport

Fajardo Ceiba

Roosevelt Roads Naguabo

Development Zones

Master Plan

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 Plan-ROTFU 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

Establishment of a Retirement Community including independenthousing, assisted living and all medical services

Redevelopment of the Waterfront for a Mega Yacht Marina

Private Ferry Route to Vieques, Culebra and other Islands

Land available for the redevelopment. Based on market demand, four (4) major projects are on the works:

Location of Projects for Immediate Implementation

The SiteOver 8,000 acres of Opportunities & Amenities

Roosevelt Roads Infrastructure

The LRA currently owns and operates all of the infrastructure and utilitysystems at FNSRR. This presents a unique opportunity for interestedutility developers

Existing infrastructure requires update and major modifications inorder to support current operations in FNSRR and set thegroundwork for the master planned multi-use redevelopment

Existing infrastructure at Roosevelt Roads was developed throughout60+ years to satisfy the demands of low density, military uses

The investment for these upgrades has been estimated at$150-$200 million dollars

General Infrastructure Overview

Potential Infrastructure Projects

Main infrastructure components at FNSRR include:

Roads and Access Potable Water Distribution System

Sanitary Collection System

Power Distribution System

None Existing Telecommunication System

Roosevelt Roads Infrastructure - Roads and Access

STATE ROADS

• FNSRR connects the municipalities of Naguabo and Ceiba mainly through the stateroads PR-3 and PR-53

• Roads are in excellent condition and have the sufficient capacity to meet therequired 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 berepaired 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

Roads and Access

Roosevelt Roads Infrastructure – Potable Water Distribution System

WATER INTAKE

• WI for the water system takes place in the Rio Blanco River of Naguabo, via a 27” diameterpipe that is connected to a lift station pump that directs the water to the reservoir located atthe 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 has enough capacity to fulfill the estimated water demand for the future development forover 25 years

DISTRIBUTION SYSTEM

• It has over 64 miles of pipelines, seven pumping stations and a Storage tank among othercomponents

• Actual condition of this system is fair. Current tenants are being served with this system

Water Distribution System FNBRR is completely independent of PRASA

It consists of three main components:

A. Water Intake

B.Water Filtration Plant

C. Distribution System

Roosevelt Roads Infrastructure – Sanitary Collection System

• FNSRR has its own used water treatment 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

Treatment Plants and

Sanitary Collection

System

• All three treatment plants are currently non-operational

• All sewer and sanitary components, such as manholes and piping systems, are ingood 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 theonly 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 theDaguao Station

• Power is supplied by two main lines of 38kv that enter the base via Gate 3 tosubstation “India”

• “India” distributes power to the different tenants using 13.2kv lines that runfrom Forrestal to Langley Road

What do We Need?

I E OJINFRASTRUCTUR

EECONOMIC

DEVELOPMENTJOB

CREATION

Develop Infrastructure Projects: Energy, Potable Water, Sanitary Water, Roads & Telecom

Rejuvenate economic activity in the region

Jumpstart job creation

RI E OJINFRASTRUCTURE

ECONOMIC DEVELOPMENT

OPERATEJOB CREATION

Rejuvenate economic activity in the region

Jumpstart job creation

Customer Service

RRE-POPULATE

Populate Roosevelt Roads again

Identify interested investors to develop & operate Infrastructure Projects: Energy, Potable Water, Sanitary Water, Roads and Telecom Systems

What do We Need?

Next Steps

1 Identify interested investors to develop Infrastructure Projects:Energy, Potable Water, Sanitary Water, and Roads.

2Engage in direct negotiations with private investors developers/zone developers whowill partner with the LRA and acquire a leasehold, fee-simple or other appropriateinterest in the property.

3Continue to identify potential federal government programs through RR’s Promise Zonedesignation to provide funding for required infrastructure upgrades.

4 Perform assessment process for Private Ferry Route from RR, Renewable EnergyGeneration and Distribution, Mega Yacht Marina, and Medical and RetirementCommunity.

CONTACT US

PHONE: 787-765-2900

EMAIL: secretario@ddec.pr.gov

Department of Economic Development and Commerce

Hon. Manuel Laboy Rivera

Secretary

P.O. Box 362350

San Juan, PR 00936-2350

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