Faqs

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 March 2023, Puerto Rico did not have a single EDD. Puerto Rico had a CEDS managed by the Puerto Rican Planning Board and cover all 78 Municipalities. SPREDD’s regional EDD designation for a select geographical area of 6 municipalities, has the ability to conduct a more granular and targeted CEDS in addition to the Puerto Rican Planning Board’s broader CEDS.

Yauco, Guánica, Guayanilla, Peñuelas, Ponce and Juana Díaz

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.

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.

Puerto Rico’s 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 is be the case in Puerto Rico. As such, the Puerto Rico EDD can apply for federal grants, administer grants for municipalities within its service area, and receive funds from the Puerto Rico government.

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.

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 will advance two of the Courses of Action from the plan and build the formal mechanism to sustain recovery and resiliency efforts into the future.

The following steps, in chronological order, must be taken for successful establishment of an Economic Development District in Southern Puerto Rico:

1. 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.
2. 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.
3. Begin the process of establishing a non-profit organization within Puerto Rico and Federal statutes.
4. 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.
5. Identify potential candidates for staff positions who are qualified persons in economic development, planning, business development, and related disciplines.
6. 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.