Frequently Asked Questions
What is an Economic Development District?
An Economic Development District (EDD), or District Organization, is a federally designated regional (multiple contiguous municipalities and/or jurisdictions) organization given the responsibility to maintain and implement a Comprehensive Economic Development Strategy (CEDS) plan. As of June 2020, Puerto Rico does not have a single EDD. Puerto Rico does have a CEDS, but it is currently managed by the Puerto Rican Planning Board and covers all 78 Municipalities. This pilot initiative seeks to establish the minimum requirements for Puerto Rico to request a regional EDD designation for a select geographical area of 6 municipalities, with the ability to conduct a more granular and targeted CEDS in addition to the Puerto Rican Planning Board’s broader CEDS.
|
Which Municipalities are included in Puerto Rico’s Pilot EDD?
Yauco, Guánica, Guayanilla, Peñuelas, Ponce and Juana Díaz
Yauco, Guánica, Guayanilla, Peñuelas, Ponce and Juana Díaz
How long does an Economic Development District (EDD) designation last?
EDD Designation continues as long as an active CEDS, approved by EDA, is in place, the organization is solvent, and is governed by a body that is representative of all the region it serves. A new CEDS is required every four years, following development criteria as specified by EDA.
Why would Puerto Rico want to have a federally designated Economic Development District?
It has been demonstrated that regional governmental and non-governmental entities are often more effective at leveraging their assets by working with others in an economic region. It is worth noting that Economic Development Districts traditionally do not market the region or recruit new industries. Their primary mission is to build capacity for expansion of existing firms, recruitment of new firms, and creation of new firms through entrepreneurship. Building capacity is accomplished through improvements in and expansion of infrastructure, initiating programs such as innovation hubs and business incubators, developing and managing workforce skill development programs, and other initiatives such as broadband access and industrial/business parks, often with “shell” buildings that can be quickly customized and completed for either new or existing business use.
Is the EDD a government initiative?
Puerto Rico’s Pilot EDD is supported by the Economic Development Administration (EDA) but is an independent, non-governmental entity. In some states, EDDs are designated as quasi-public organizations, giving them certain authorities. However, in other states, EDDs are non-profit organizations, such as a 501(c)6, as designated by the federal Internal Revenue Service, as will be the case in Puerto Rico. As such, the Puerto Rico Pilot EDD can apply for federal grants, administer grants for municipalities within its service area, and receive funds from the Puerto Rico government.
How can I get involved?
Your input, ideas and feedback are welcome, especially during the 30-day public review and comment period.
In early 2021, a Comprehensive Economic Development Strategy (CEDS) will be published on this website by the Titín Foundation. The CEDS is based on a series of interviews with a wide range of private industry leaders, public sector representatives, and stakeholders from non-profits and community-based organizations. The input of these individuals and organizations that live, work and serve in the six municipalities of Yauco, Guánica, Guayanilla, Peñuelas, Ponce and Juana Díaz will be integrated with analysis of data about the strengths, weakness, opportunities and threats that exist in the region today.
Please stay tuned and come back to this site often. We anticipate that the 30-day period when you can submit your comments about the CEDS on this website will begin in March 2021.
In early 2021, a Comprehensive Economic Development Strategy (CEDS) will be published on this website by the Titín Foundation. The CEDS is based on a series of interviews with a wide range of private industry leaders, public sector representatives, and stakeholders from non-profits and community-based organizations. The input of these individuals and organizations that live, work and serve in the six municipalities of Yauco, Guánica, Guayanilla, Peñuelas, Ponce and Juana Díaz will be integrated with analysis of data about the strengths, weakness, opportunities and threats that exist in the region today.
Please stay tuned and come back to this site often. We anticipate that the 30-day period when you can submit your comments about the CEDS on this website will begin in March 2021.
Does Puerto Rico Recognize Organizations that Serve Multiple Municipalities?
Yes. There are several laws in Puerto Rico that establish the parameters for creating strategic partnerships to pursue a common goal. Government entities, non-profit organizations, and institutes of higher education, among others, can create a new multi-sectorial legal entity towards this end.
Is the Puerto Rico Pilot EDD part of Hurricane Maria Disaster Recovery Plans?
Achieving an Economic Development District designation is not specifically called for in the Island’s congressionally approved plan, Transformation and Innovation in the Wake of Devastation: An Economic and Disaster Recovery Plan for Puerto Rico. An EDD would, however, advance two of the Courses of Action from the plan and build the formal mechanism to sustain recovery and resiliency efforts into the future.
Puerto Rico Recovery Plan Courses of Action the Pilot EDD would accomplish:
Economics 8 - Define and Develop Economic Development Zones
Define geographically distinct economic development zones (starting with the Port of Ponce) and establish policies (which might include a waiver of the Jones Act) to provide benefits, such as tax advantages.
Municipalities 2 - Create Regional Economic Development Plans
Provide technical assistance to municipalities to create municipal and regional-level economic plans aligned with the overall economic development goals of the Government of Puerto Rico. Plans will include workforce assessments, identifying industries with the highest potential in each region, identifying needed infrastructure, and providing training.
Economics 8 - Define and Develop Economic Development Zones
Define geographically distinct economic development zones (starting with the Port of Ponce) and establish policies (which might include a waiver of the Jones Act) to provide benefits, such as tax advantages.
Municipalities 2 - Create Regional Economic Development Plans
Provide technical assistance to municipalities to create municipal and regional-level economic plans aligned with the overall economic development goals of the Government of Puerto Rico. Plans will include workforce assessments, identifying industries with the highest potential in each region, identifying needed infrastructure, and providing training.
What Steps are Required to Establish an Economic Development District?
The following steps, in chronological order, must be taken for successful establishment of an Economic Development District in Southern Puerto Rico:
The Economic Development Administration (EDA), Economic Recovery Support Function, FEMA CPCB, and the International Economic Development Council (IEDC) have been working to produce the baseline background to facilitate a Comprehensive Economic Development Strategy (CEDS). The Titín Foundation, a local NGO, with executive and board approval, will lead this effort with support from the Econ RSF in meeting the above requirements, and IEDC will be holding the pen and drafting a SWOT Analysis.
Once the SWOT Analysis is produced, it will be used by the ERSF as a foundation to develop a CEDS. The Titín Foundation would then submit to EDA for approval as a CEDS and undertake the other steps to request EDD designation.
- Determine the geographical area to be covered and that there is sufficient financial and moral support for an EDD by obtaining endorsements from municipalities and Puerto Rico.
- Develop a Comprehensive Economic Development Strategy (CEDS) in accordance with Economic Development Administration Guidelines, including public participation, economic analysis- based and publicly supported strategies, and adherence to all other guidelines set forth in Section 303 of Title 13, Chapter III of the Code of Federal Regulation.
- Begin the process of establishing a non-profit organization within Puerto Rico and Federal statutes.
- Assemble a governing body that is broadly representative of the economic interests of the region, including representatives of the private sector, community leaders, institutions of higher education, minority and labor groups, public officials, workforce development boards, and private individuals.
- Identify potential candidates for staff positions who are qualified persons in economic development, planning, business development, and related disciplines.
- Put policies in place to ensure access for persons who are not members to make their views known on ongoing and proposed EDD activities through public meetings and distributing information prior to enacting programs, adopting parliamentary procedures for governance, compliance with public disclosure of documents, and adhering to Federal and State financing assistance reporting requirements and Federal conflicts of interest provisions.
The Economic Development Administration (EDA), Economic Recovery Support Function, FEMA CPCB, and the International Economic Development Council (IEDC) have been working to produce the baseline background to facilitate a Comprehensive Economic Development Strategy (CEDS). The Titín Foundation, a local NGO, with executive and board approval, will lead this effort with support from the Econ RSF in meeting the above requirements, and IEDC will be holding the pen and drafting a SWOT Analysis.
Once the SWOT Analysis is produced, it will be used by the ERSF as a foundation to develop a CEDS. The Titín Foundation would then submit to EDA for approval as a CEDS and undertake the other steps to request EDD designation.
Who took the beautiful photographs of Southern Puerto Rico found on this website?
Xavier García is a photojournalist with over eleven years of experience working with both local and US-based media outlets.
Learn more about Xavier García.
Learn more about Xavier García.