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Paseo Caribe Project

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Paseo Caribe Project
Case Analysis
Trouble in Paradise: Stakeholder Conflict in the Paseo Caribe Project Executive Summary

Paseo Caribe project involved multiple parties with differing values and interests which resulted in the controversy and conflict. A collaborative approach in a transparent public platform would allow for better communication, free flow of ideas and the creation of a better product.

Problem/Challenge Statement

This project involved multiple parties with differing values, interests and opinions. A breakdown in communication, transparency, and collaboration delayed the project from the beginning. Each group fought for their own interests causing conflicts which hindered the progress of the project and negatively affected the reputation of both the country and the construction sector. Irregularities and revisions clouded the legality of the construction project as stakeholders squabbled to make their voices heard.

Key Facts/Background The territory of San Juan was purchased from the United States in 1991. Regulation 23 was passed two years later defining the zoning of the property as a tourism area. In 1999, Hilton International purchased the property with the intent to develop it into a tourist oriented center with apartments and hotel rooms. A year later, Arturo Madero purchased the land in as a third-lane good faith buyer and began the development process. Arturo Madero’s project intended to construct near upscale tourist areas such as historical sites, convention center, and ports. The project was financed with $200mil. by the First Bank of Puerto Rico. Preliminary data anticipated the project would created 2,000 jobs during the construction phase and an additional 2,200 jobs following the completion of the project.
After all the permits were issued and construction began, different parties voiced concerns about the legality and irregularities of the project plan. The first irregularity addressed the rapid change in

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