Paseo Caribe Case Study

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Paseo Caribe was an incredible investment for any developer who wished to expand real estate opportunities to influence job growth, private investment and a transition to methods of sustainable construction in Puerto Rico. Arturo Madero saw this property as a brilliant opportunity to take advantage of each of these aspects and make an influence in the Condado real estate demographic. As seen in the Arnold chapter on sustainability, “the principal of sustainability, in effect, licenses the pursuit of quality of life insofar as this is compatible with a similar quality of life for all, including future people” (Arnold, 2013). Although Madero’s actions were in good faith, by trying to promote a more sustainable aura for the Condado community, many activist groups, agencies and high-powered government officials were in opposition to Madero’s development. This main source of opposition stemmed from the “irregularity” in Madero’s legally accepted construction permits that he received from the Planning Board. Although the permits Madero received from the planning board were in his view valid; Madero should have completed a more thorough due diligence review, before relying solely on what the government issued to him, that allegedly satisfied all of the stakeholders’ interests surrounding the development project Paseo Caribe.
The 6 acre parcel located within Condado’s “golden triangle” had many zoning restrictions applicable to the desired development. For example, back in 1993, the government of Puerto Rico initiated a “special land use plan and zoning regulation for the entrance of San Juan Islet” (Trouble in paradise, 2010). This regulation brought forth Regulation No. 23 that strictly stipulated the zoning ordinance could not be a...

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...ne or more acres… are regulated under the National Pollutant Discharge Elimination System (NPDES) storm water program” (EPA, 2014). Although Madero made a crucial error during the due diligence process which ultimately lead to considerable legal disputes, his development idea mirrored a similar sustainable development as seen by the current ownership of Paseo Caribe. As seen in a recent article conducted by (newismybusiness.com), Mark Lipschutz, CEO of Caribbean Property group, recently gained control over Paseo Caribe. He points to the impact the development will have for the community long term, “Our enhanced involvement with Paseo Caribe and our re-envisioning of Dorado Beach only reinforces and elevates the island’s luxury resort and residential offerings and our commitment to the growth and success of the Puerto Rico community” (News is my business RSS, 2014).

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