TROUBLE IN

PARADISE:
THE PASEO
CARIBE
PROJECT

SUBMITTED BY:
SAAD MUNIR
ABUBAKR RAUF
SHAHEER AHMED
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Conduct stakeholder How could Madero have
analysis – identify all won these stakeholders
stakeholders briefly and have them support
describing their role project?
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The project controversy What could investors, What would you
could be characterized an citizens, developers and recommend to Moreno?
ethical issue, a political governments do to avoid
failure, or lack of such conflicts in future?
corporate responsibility?
Justify your answer

PROBLEMS

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SHARE HOLDER
ANALYSIS

 Alberto De Jesus (Tito Kayak)

Member of Friends of M.A.R .He planted Puerto Rican flags on the alleged public domains and climbed
up the construction cranes.
 AMIGOS DI MAR
Revolutionary environmental movement that Tito Kayak was a part of.
 Puerto Rico Architects and Landscape Association
Grants licenses to the architects. In 2008, Jose Antonio Moreno was the president of this association.
 The people’s court
It consisted of lawyers, architects, engineers and eight community members

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 Arturo Madero
A highly successful real estate developer in Puerto Rico. The developer of Paseo Caribe project.
 First bank PR
A state chartered commercial bank which invested $200 million in the Paseo Caribe project
 Investors and construction workers apart of Paseo Caribe
Opposed any paralyzation of the project
 Roberto Sanchez
After a lengthy investigation, Secretary of Justice found that the permit grant process showed
irregularities. In 2007, he requested an order for the project to stop for 60 days
 Supreme Court
Madero’s lawyers appealed to the Supreme Court to lift the stoppage. In February 2008, the Court
ruled that the land was not of public domain and that Madero was a third line buyer.

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 The Regulation and Permits Administration (ARPE)
In 1999, Madero’s company presented the Land Use Consultation plan to the planning board. In 2000, the planning
board approved the Land Use Consultation plan
 Anibal Acevedo Vila
Governor of PR (governor from 2004 to 2008). After continuous allegations from the opposing parties decided to
conduct his own research.
 Institute of PR culture planning board (ICP)
Since this project was being built near a historic monument, the developer also had to request a special permit. In
2003, the permit was granted

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GETTING
SHAREHOLDER
SUPPORT

 The advantages of the project should have been conveyed to the public.

 He could have listened to all of the stakeholders and their concerns.

 He should have guaranteed that his construction wouldn’t affect the fort.

 He could have chipped in the fort restoration project.

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PASEO CARIBE
PROJECT

Ethical

Political

CSR

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ETHICAL ISSUE
 A major complex like Paseo Caribe would be a threat to the preservation of San Jeronimo Fort.

 Due to proximity of the project to the residential buildings, it would block their beach view, ventilation,
sunlight and disturb the residential nature of the area.

 The parking area for the project would cause traffic, sound and air pollution.

 The initial appraised value of land increased from $5 million to $48.86 million within 2 years which aroused
doubts about the accuracy of the original appraisal among the brokers.

 The NGOs protested that construction on the edge of the coastline was dangerous due to waves from
seismic activities and natural phenomenas but they were ignored by regulatory agencies.

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POLITICAL ISSUE
 There were allegations that a portion of project was sold illegally to Madero because it was located on
maritime-land-zone (ZMT) which were in public domain under Puerto Rican law.

 The Planning Board authorized the Land Use Consultation while a number of required permits and studies were
still pending.

 ARPE ordered the stoppage of construction without a hearing being held to review the evidence, hence violating
the law.

 It was alleged that the court illegally accepted donations of $165000 from Madero for improvements to the
court's physical infrastructure.

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CORPORATE
RESPONSIBILITY ISSUE

 Madero had purchased a maritime land zone (ZMT) despite know that it was a public domain.

 Workers safety wasn't taken into account by Madero since the construction was being held at coastline which was
prone to natural calamities.

 The interests and rights of the residents were completely ignored.

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AVOIDING FUTURE
CONFLICTS

 Thorough research before taking decision e.g. Re-zoning.

 Educating all stakeholders about the opportunities the project would create.

 The permit granting process should be short to reduce errors.

 The concern of the stakeholders should be addressed properly.

 Making sure the project is in compliance with the law.

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RECOMMENDATION

 Informing stakeholders about the benefits of the

project.

 Addressing stakeholder concerns.

 Making sure the project does not violate the law.

 Obtaining the necessary permits and then starting

the project.

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QUESTIONS?

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