Trouble in Paradise: Stakeholder Conflict in the Paseo Caribe Project

Trouble in Paradise The government of the Commonwealth of Puerto Rico, a territory of the United States, acquired from the U.S federal government a piece of land at the entrance of the San Juan Islet. This land was located in the Golden Triangle of San Juan, the island s capital, the Condado, and the Old San Juan. The government of Puerto Rico developed a Special Land Use Plan and regulation for the entrance of the San Juan Islet in 1993. The Plan also known as Regulation 23, coincided with Commonwealth of Puerto Rico s economic development plans and could not be altered unless an amendment was made. In 1999, the government sold the land to Hilton International in order to develop the land.. Further the opposition to the project also came from the local residents in the area. Who opposed the change of the zoning from residential to tourist area and further to the proximity to the project; they were also opposed to the increase in residential and the visitor density. Later it was found that there were many irregularities in the approval process that was undertaken to approve the projects as there were many laws that were not taken care of. Further there were also certain studies conducted by various government organizations whose results were not consulted before the passing of the project. Later a investigation was proposed for the whole approval process of the paseocribe. The issue turned in to a conflict and many violent protests were planned. There were series of protest organized by various organizations and people. Later the government intervened and stopped the project from going ahead. This also lead to protest from the industries sector as the industrialist in the real state sector said that issues like this would deter the foreign investors to invest in the country in the real estate sector. Later the company took the government to the court against

its decision to hold up the development of the property. The company won the battle and was allowed to