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An Economic Development Strategy toRealize Tomorrow’s Vision Today

“The Caribbean Riviera”

p r e p a r e d b y C . H . J O H N S O N C O N S U L T I N G & T H E C H I C A G O C O N S U L T A N T S S T U D I O , I N C . © C C S J U N E 2 0 0 9

THE SITUATIONA Critical Condition with Unique Potential

• Shuttered naval base and underutilized resource

• Area unemployment and economic hardship

• Need to enhance the overall Puerto Rico tourism market

• Need to stimulate investment, create jobs, encourage visitation and re-energize through true economic development

• In short – a strategic vision for Roosevelt Roads rather than a patchwork of land sales and an empty promise of the future


THE PREMISEAn Economic Development Strategy

• Leverage gaming as an “Economic Engine”

• Create world-class quality and appeal in all aspects

• Focus on job creation and true, regional economic development

• Enhance the tourism brand of Vieques, Culebra and Puerto Rico

• Utilize the inherent amenities of the Roosevelt Roads property

• Articulate a compelling vision

• Create a non-derivative homerun“The Caribbean Riviera”

• Gaming

US

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European

Asian

Island/Caribbean

Framing the OpportunityOverview of Gaming & Tourism Markets

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• Caribbean Tourism

Current

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Competition

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• Tremendous land availability

• Key central location to Caribbean tourism, as well as Cuba, Bahamas and Central America

• Abundant natural amenities

Framing the OpportunityPhysical Potentials of the Roosevelt Roads Property

• Abundant natural amenities and attractions

• Deep water port

• Airfield opportunities

• Ability to create a unique destination context

• Ability to offer multiple “invitations” for visitors

THE OPPORTUNITYRoosevelt Roads as an Economic

Development Initiative for Today

• A unique approach to leverage assets and strengths toward economic redevelopment

• Capture the world’s largest growth industry – Travel/Tourism/Entertainment

• A “destination-building” initiative - focus is not merely gaming aloneis not merely gaming alone

• Leverage the unique amenities and eco-tourism draw of the surrounding area

• Strengthen and enhance Puerto Rico’s investment in convention and trade industry outside San Juan

• Support existing local business and assets in Ceiba, Naguabo, Vieques, Culebra and Eastern Puerto Rico

• Create new employment and sustainable industries


• Successful integration of casino gaming as part of a destination

• Signature components of the total entertainment and tourism development program

Gaming and Tourism PrecedentsSignature Developments

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• Examples from other world-class cities

– Grand Casino, Monte Carlo

– Casino De Montreal, Montreal

– Fallsview, Niagara Falls

– Atlantis, Bahamas

– Sun City, South Africa

– Genting Sentosa, Singapore

– Genting Highlands, Malaysia

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• A 140 year old success story

• Originally conceived as an economic development engine to build tourism industry

• A catalyst for economic development program

Gaming and Tourism PrecedentsGrand Casino – Monte Carlo

development program

– grand hotel

– opera house

– theater

– railroad/transit system

• Architecturally, a source of civic pride and public image

– to Monaco and to the entire Mediterranean

Gaming and Tourism PrecedentsCasino de Montreal - Montreal

• A very successfully integrated urban casino referred to as a “jewel in the skyline”

• Forged strong relationships with local artisans, theatrical venues, visitor amenities, civic foundations and the likecivic foundations and the like

• ±100,000 SF of gaming area

• ±3,100 slot machines and 124 gaming tables

• More than 6.5 million visitors in 2003

• Casino workforce over 3,300 employees

Gaming and Tourism PrecedentsCasino Fallsview - Niagara Falls

• Great success in achieving broader economic development aspects

• ±130,000 SF of gaming area

• ±3,000 slot machines and 150 gaming tables

• Approximately 30,000 visitors per day

• Casino complex workforce of about 5,000 employees

• Extensive spin-off benefits for area hotels and businesses

Gaming and Tourism PrecedentsAtlantis, Paradise Island - Bahamas

• World renown +170 acre Bahama resort

• Largest Caribbean casino at 50,000 SF including over 1,000 slots, 100 table games and race and sports book bettingbetting

• 6 hotels with over 3,700 rooms including 21 restaurants and 19 bars/nightclubs

• 100 Acre “aqua park”, one of the largest in the world

• 18 hole golf course

Gaming and Tourism PrecedentsAtlantis, Paradise Island - Bahamas

Recent Atlantis Comments

“The prospects are very good and we think occupancy will be maintained in excess of 80 percent. We've invested approximately $2 billion so far approximately $2 billion so far here in Paradise Island. In terms of what's ahead, we still have some great beaches and some great undeveloped real estate.”

Atlantis Management

Gaming and Tourism PrecedentsSun City - South Africa

• One of the first “resort” casinos, built in 1970s drawing 25,000 visits daily

• Located 100 miles from Johannesburg

• Four hotels - 1,300 rooms

• Full range of table games, slots and salons

• Includes 45 acre water park, two championship 18 hole golf courses, 6,000 seat arena

• Adjacent to 135,000 acre Pilanesberg National Park and game reserve

Gaming and Tourism PrecedentsGenting Highlands - Malaysia

• 19.6 Million visitors in 2007

• 6 hotels, with over 10,000 rooms

• 200,000 SF of gaming space

• 500,000 SF Indoor Theme ParkPark

• 40 minute drive from Kuala Lumpur

Gaming and Tourism PrecedentsResorts World Sentosa Island – Genting - Singapore

• 120 acre $6 billion resort development located 25 miles from Singapore airport to open 2010

• Expected to add $2.7 billion to Singapore’s GDP and create 10,000 direct jobscreate 10,000 direct jobs

• Program includes 6 hotels -1,800 rooms, Universal Studios, Marine Life Park Oceanarium, a water park, Hard Rock hotel, and 10,000 seat amphitheater

• Casino 150,000 SF with 1,600 seat Theater

THE KEY METRICSClear Strategic Objectives

• Gaming Revenueprovides resources to invest in the region

• Development Investmentkey focus for Roosevelt Roads, Vieques, and Culebra

• Employment & Broad Impact

potential for multiplier benefitspotential for multiplier benefits

• Enhanced (unique) Tourism Branda competitive advantage strengthening all area resorts

• World Class Qualitya source of pride for all of Puerto Rico


THE VISIONA World-Class, Signature Development

• High quality gaming venue

• Riviera-style destination resort

• International airport

• International cruise port• International cruise port

• Partnership initiative with Vieques/Culebra

• Stewardship with Conservation Trust

• A true economic development strategy


Conceptual ApproachCreating a Development Vision

• Puerto Rico as The Caribbean Riviera

– Central location and hub to Caribbean tourism

– What Monte Carlo is as icon to the Mediterranean, Mediterranean, Roosevelt Roads can be to the Caribbean

– Right vision will elevate all of Puerto Rico


• Roosevelt Roads as the Transformational Economic Engine of the Region

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• A natural extension of the eco-tourism icon of El Yunque

• Linked with Vieques and Culebra to form a most unique cruising and recreational paradise

• Launch point for the islands, and other parts of the broader region

• Support for the Puerto Rico resorts and tourist amenities (including Bahia Beach, El Conquistador, Coco Beach, Palmas del Mar, “W” Vieques, Rio Mar, Cayo Largo)

• The heart of new employment and investment: on-site, off-site, across the region

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• Creatively Leveraging Inherent Amenities

– Abundant Natural Amenities:

El Yunque, coastal, marshland and mangroves, topography, beaches)

– Reuse potential: deep water cruise port, destination airport, inner harbor and high-speed ferry hub)ferry hub)

– Unlike anything else in Puerto

Rico or the Caribbean: multiple

invitations, a collection of many

activities

– Vieques and Culebra linked as economic development

partners

Bold Ideas and Initiatives• Inner Harbor

– International cruise hub and yachting center

– High speed ferry link to Vieques, Culebra, resorts

– Destination shopping and wharf district

– Theater and entertainment

– International Quality Casino

– Hotels, lodging and premier destination resort

– Waterfront corniche and new city fabric

• Eco-Tourism Adventure– Diving, exploration and link with islands

– Environmental education

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– Environmental education

• Island Paradise– International yachting harbor and center

– Resort residential

– Villages and towns

– Port Grimaud

– A living community

• Destination Airport– Gateway to South America and Caribbean

– Direct access from EU countries

– Enhancement of Puerto Rico airside infrastructure

• Landside Development– Community, schools, retail and support

– Employee housing

– Future expansion potential

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The Heart of the District

Color plan aerial of core district









Boston Singapore Casino Morongo Sidney Harbor

State-of-the-art Ferry Terminal

Wharf-front Marketplace

Premier Seaside Resort

Theater and Entertainment

Signature Retail

International Cruise Hub

Destination Airport

International Cruise Hub

Waterfront District Trolley

Theater and Entertainment

Destination Airport

Signature Retail

International Cruise Hub Sustainable Architecture

Resort Residential Courtyard

Waterfront Residential

Premier Seaside ResortFull Range of Gaming

Premier Seaside ResortResort Residential Courtyard


Premier Seaside ResortLive Performance Venues



Full Range of Gaming

Variety of Dining

Premier Seaside ResortLive Performance Venues


Premier Seaside Resort


Waterfront Plaza

Premier Seaside ResortHigh Quality CasinoDistrict Trolley

Waterfront Plaza

Premier Seaside ResortHigh Quality Casino

IMPACTS AND BENEFITSThe Fiscal Results of a Strategic Vision

Total Phase One Investment - $1.9 Billion

Permanent and Temporary Jobs

• 17,000 Phase One on-site jobs

• 42,500 Phase One total jobs

• 3,000 Temporary Construction Jobs

Direct and Indirect Fiscal Benefits

• 1.7 million visitors night annually

• Increased hotel occupancy

• Sales, hotel, income, property, gaming and other tax receipts

• Gross resort sales volume - 2,500 rooms and 130,000 SF casino- $1 billion

• Over one half billion dollars of new incremental spending


Regional Employment

• Vieques and Culebra - Absolute partners in tourism product-substantially expanded tourism at these destination islands

• Ceiba, Fajardo, Luquillo, and Naguabo – key employment centers

IMPACTS AND BENEFITSThe Fiscal Results of a Strategic Vision

Naguabo – key employment centers serving the project

• Necklace of resorts that will benefit and expand their tourism base:

– Bahia Beach

– El Conquistador

– Coco Beach

– Palmas del Mar

– “W” in Vieques

– Cayo Largo“The Caribbean

Riviera”

“ T h e C a r i b b e a n R i v i e r a ”

Essentials for Success

• Unique destination placeleveraging assets of Roosevelt Roads

• Competitive Gaming Regulatory structurecritical to attract quality companies

• Competitive Gaming Investment Structure

“ T h e C a r i b b e a n R i v i e r a ”

• Competitive Gaming Investment Structureconsider a range of options

• Incentives and Catalystsability for government to be the driver

• Industry Insightsunderstand gaming economics and industry issues


An Economic Development Strategy toRealize Tomorrow’s Vision Today

Business

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