AGP Executive Report

Puerto Rico Infrastructure: Ferrovial won a $1.08 billion U.S. Army Corps of Engineers contract to expand and upgrade the Río Piedras channel in San Juan, widening it to cut flood risk and reinforcing canal walls with deep concrete piles; the Puerto Nuevo flood-control program is expected to run about six years and support 10,000+ jobs. Bankruptcy & Healthcare: A federal judge in Puerto Rico authorized the sale of Hospital del Maestro as part of its 2025 restructuring, approving a $15.6 million deal that transfers administrative and governance control to González Group LLC. Digital Assets Policy: U.S. lawmakers unveiled a new digital-asset taxation framework aimed at reducing reporting burdens and clarifying rules for common crypto transactions, with a hearing expected soon by the House Ways and Means Committee. Tourism & Real Estate: A report argues Puerto Rico’s tourism boom is increasingly tied to tax incentives that function like financial assets, reshaping development and displacing communities as luxury projects expand. Local Business & Jobs: Puerto Rico’s Made in Puerto Rico push highlights business expansion efforts and inflation-fighting initiatives. Sports & Culture: Puerto Rican radio host “Molusco” is set for U.S. syndication via a new partnership, expanding the show’s reach beyond the island.

Tourism & Travel (Ponce): Ponce is seeing a lift in visitors, driven by expanded air connectivity, more cruise calls, and walkable heritage sites like the Ponce Museum of Art and Serrallés Castle, with 18,019 visitors via Mercedita in 2025 and over 19,000 in early 2026. Hospitality (Puerto Rico): Henderson Park says it has completed its acquisition of the Hyatt Regency Grand Reserve in Río Grande, Puerto Rico, in a joint venture with Pyramid Global Hospitality, adding a 579-room resort to its portfolio. Sports Business (Puerto Rico ties): A Phoenix NBL team is still waiting on defensive standout John Brown’s return, noting his post-season run with Puerto Rico’s Santeros de Aguada in the BSN. Public Policy & Governance: Philippine Senate President Pro Tempore Sherwin Gatchalian points to official records showing a 12-member quorum precedent, arguing it supports the legitimacy of a June 3 session. Regional Economy (Labor/Markets): Singapore employers scaled back hiring expectations for Q3, but many still plan to pay premiums for AI and critical thinking skills.

Puerto Rico Business & Economy: Henderson Park and Pyramid Global Hospitality completed the acquisition of the Hyatt Regency Grand Reserve in Río Grande, Puerto Rico—Henderson Park’s first island investment—adding a 579-room beachfront resort to its portfolio, with Pyramid set to operate the property. Aviation & Travel: A US-registered Gulfstream G200 executive jet crashed in the Dominican Republic while attempting an emergency landing after mechanical issues shortly after takeoff; both pilots were killed, and the flight was reportedly headed to pick up Yadier Molina and family in Texas before returning to Puerto Rico. Local Business & Compliance: Puerto Rico’s oversight board certified its own fiscal plan for UPR after rejecting the government’s proposal, while the fiscal board authorized a $14 million loan for the Housing Department tied to the Miramar hotel. Labor & Hiring Pressure: More young people are seeking summer jobs as the high cost of living squeezes household budgets, with a reported rise in minor work-permit applications. Sports & Culture: Puerto Rico’s Day at the Ballpark returns for 2026, starting June 9 at Citi Field, celebrating the island’s 128-year baseball legacy with music, art, and community activations. Regulatory Watch: ICE updated how Form I-9 violations are classified, expanding potential employer exposure and raising the stakes for audits.

Aviation Tragedy: A US-registered Gulfstream G200 carrying two American pilots crashed during an emergency landing attempt at La Romana International Airport in the Dominican Republic, killing both crew members; the jet was registered to Aibonito Aviation in San Juan, Puerto Rico, and had been chartered to pick up baseball legend Yadier Molina and his family for a flight back to Puerto Rico. Health Watch: Medicare Fraud Prevention Week highlights common scams targeting beneficiaries, urging Puerto Rico residents to review Medicare notices, avoid sharing Medicare numbers, and report suspicious activity to the Senior Medicare Patrol. Air Connectivity for PR: Southwest Airlines launched nonstop service from Indianapolis to San Juan and added a new Columbus, Ohio route, projecting about $2.3M in economic impact and roughly 3,130 additional passenger arrivals. Business & Policy: Puerto Rico’s private sector group CUD criticized the sudden departure of DDEC secretary Sebastián Negrón Reichard, warning about lost continuity and stability for economic reforms. Tourism Safety: The Puerto Rico Tourism Company rolled out SwimSafe P.R. 2.0 to strengthen water safety across the island. Legal/Regulatory: Puerto Rico’s high court clarified how to enforce assigned non-competes and exclusivity provisions in independent contractor relationships.

Air Connectivity Boost: Southwest Airlines launched nonstop service from Indianapolis to San Juan and began ticket sales for new Columbus, Ohio–San Juan flights, with Puerto Rico Tourism Company projecting about $2.3M in economic impact and roughly 3,130 additional passenger arrivals via Luis Muñoz Marín International Airport. Local Business Expansion: Sobao opened its fifth Puerto Rico location in Guaynabo, investing over $300,000 and creating 25 jobs, aiming to grow from Puerto Rico while serving Plaza Caparra visitors and nearby residents. Federal Funding for Puerto Rico: Resident Commissioner Pablo José Hernández said the U.S. House approved the FY2027 appropriations bill covering Agriculture, Rural Development, FDA and related agencies, including funding for PAN and community projects, with CPF allocations such as $803,000 for Hormigueros landfill remediation and expansion. Legal/Competition Watch: Puerto Rico’s high court clarified how to enforce assigned non-compete and exclusivity clauses in independent contractor relationships. Tourism Disruption: Norwegian Cruise Line canceled Norwegian Viva itineraries from San Juan for late 2027–early 2028, offering refunds and future cruise credit. Food Safety Alert: Federal regulators and major retailers issued urgent Salmonella-related recalls, including Motor City Pizza Co. 5 Cheese Bread, urging shoppers to check batches and packaging.

Air Connectivity Boost: Southwest Airlines launched a new nonstop from Indianapolis to San Juan on June 6 and added Columbus, Ohio service, targeting about $2.3M in economic impact and roughly 3,130 extra passenger arrivals via SJU. Tourism Investment: La Concha Resort broke ground on LUXE AZUL, a $6.5M beach club in Condado expected to create 20+ direct and 100+ indirect jobs. Retail Expansion: Sobao opened its fifth restaurant in Guaynabo (over $300,000 investment), creating 25 direct jobs and bringing its locally rooted menu to Plaza Caparra. Food Safety Watch: Federal regulators and major retailers issued urgent Salmonella-related recalls, including Motor City Pizza Co. 5 Cheese Bread, urging shoppers to check labels and discard affected batches. Business Policy & Governance: CUD criticized the sudden resignation of DDEC Secretary Sebastián Negrón Reichard, warning about lost continuity and asking for stability as leadership transitions. Legislative Funding: Puerto Rico’s Resident Commissioner said the U.S. House approved FY2027 appropriations covering PAN nutrition assistance and community/agriculture projects, including landfill remediation funding for Hormigueros. Legal/Competition: Puerto Rico’s High Court clarified how non-compete and exclusivity clauses should be enforced in independent contractor relationships. Cruise Disruption: Princess Cruises reported a temporary main-power loss on the Caribbean Princess while sailing from San Juan, leaving guests without air conditioning for about 1 hour 15 minutes.

Aviation & Tourism: Southwest Airlines is adding new Puerto Rico connectivity, launching a route from Indianapolis and starting ticket sales for Columbus, Ohio—expected to bring about 3,130 additional passengers and generate roughly $2.3M in economic impact at SJU. Local Business Expansion: Sobao opened its fifth restaurant, investing over $300,000 and creating 25 jobs in Guaynabo’s Plaza Caparra area, signaling continued growth in the island’s dining market. Workforce & Economy: Puerto Rico’s job market shows opportunity alongside new pressure from AI, as the unemployment rate is reported at a record-low 5.6% while employers and workers adjust to automation. Public Funding & Agriculture: The U.S. House approved FY2027 appropriations that include PAN nutrition support plus community and agricultural funding for Puerto Rico, with Resident Commissioner Hernández highlighting allocations tied to local projects. Legal & Contracts: Puerto Rico’s Supreme Court clarified how non-compete and exclusivity clauses can remain enforceable for independent contractors after a valid contract assignment. Consumer Protection: DACO says supermarket inspections found no proof behind social media claims about tampered expiration dates, though surveillance continues. Healthcare Services: Alivia Health expanded home infusion care with a specialized nursing network to administer IV therapies outside hospitals when clinically appropriate. Hospitality Development: La Concha Resort broke ground on LUXE AZUL Beach Club in Condado, a $6.5M project expected to create 20+ direct jobs and boost tourism experiences.

Puerto Rico Business & Economy: Made in Puerto Rico names Islandwide Group leader Pedro Rosaly as its new president and CEO, aiming to turn the brand into a broader “movement” for local businesses while pushing enrollment growth, training, and international market expansion amid ongoing inflation. Health & Services: Alivia Health launched a specialized nursing network to strengthen Alivia Infusion Services, expanding home-based IV therapy and specialized medication administration to reduce repeat ER visits and improve care continuity. Tourism & Hospitality: La Concha Resort broke ground on LUXE AZUL, a $6.5M Condado beach club expected to create 20+ direct jobs and 100+ indirect jobs during construction and operations. Water Safety: The Puerto Rico Tourism Company rolled out SwimSafe P.R. 2.0, adding new technology and real-time water-safety information for beaches and waterways islandwide. Business Law: Puerto Rico’s Supreme Court clarified how non-compete and exclusivity terms can be enforced in independent contractor relationships after valid contract assignments. Telecom Benefits: T-Mobile Puerto Rico marked 10 years of T-Mobile Tuesdays with expanded rewards and experiences for members.

Tourism & Safety: The Puerto Rico Tourism Company rolled out SwimSafe P.R. 2.0, expanding real-time water-safety tools for beaches, rivers and other waterways. Hospitality Investment: Henderson Park and Pyramid Global Hospitality acquired the 579-key Hyatt Regency Grand Reserve in Río Grande for $190M, with plans for capital improvements aimed at boosting both leisure and group business. Local Healthcare: Mayagüez kicked off a $6.28M renovation at San Antonio Hospital, targeting upgrades to patient rooms, the PICU, delivery and operating rooms. Consumer Protection: DACO said it’s found no irregularities after inspecting supermarkets tied to social-media complaints about allegedly altered expiration dates and damaged goods, while keeping active surveillance. Pharma Leadership: Yilda M. Acevedo, founder of PharmPR Inc., was recognized for advancing operational excellence and regulatory compliance in Puerto Rico’s pharmaceutical sector. Business Performance: La Rosa Holdings reported 2025 results, with revenue up 17% to $68.5M year over year.

Puerto Rico Infrastructure & Finance: Resident Commissioner Pablo José Hernández Rivera pressed FEMA and Homeland Security over stalled Puerto Rico reconstruction, citing that nearly $24B remains undisbursed nine years after Hurricane Maria and warning projects could drag to 2051 without faster action. Energy & Capital Markets: PREPA bondholders appealed a court order blocking their push to appoint a receiver or dismiss the bankruptcy, keeping pressure on the island’s power authority restructuring. Hospitality Investment: Henderson Park and Pyramid Global Hospitality completed the acquisition of Hyatt Regency Grand Reserve in Río Grande, Puerto Rico, with plans for targeted capital upgrades across leisure and group demand. Business & Tech: Liberty Business promoted its role as a full-service technology partner in Puerto Rico, highlighting cloud, cybersecurity, IoT and AI solutions for industries from hospitality to finance. Local Economy & Trade: The CT-Puerto Rico Trade Commission is set to focus on key trade priorities, while a separate report says Puerto Rico paid a record $919.7M in tariffs in 2025. Legal & Corporate: A co-founder sued lithium extraction company EnergyX in federal court, alleging he was pushed out during a mental health crisis and deprived of equity tied to its Texarkana-area project. Culture & Identity with Economic Angle: A Puerto Rican heritage arts project and a major Latin music partnership (Concord x Lito Music) point to continued investment in Boricua and reggaetón talent pipelines.

Hospitality Investment: Henderson Park completed its acquisition of Hyatt Regency Grand Reserve in Río Grande, Puerto Rico, with Pyramid Global Hospitality set to operate the 579-room beachfront resort—an expansion expected to bring targeted capital improvements and more group/event capacity. Local Business & Contracting: Fort Buchanan met with the Puerto Rico Chamber of Commerce to boost local small-business participation in federal contracting, highlighting the installation’s $500M+ operating budget and its role as an economic engine. Tech for Enterprises: Liberty Business says it’s pushing beyond connectivity with customized cloud, cybersecurity, IoT and AI solutions for Puerto Rico’s hospitality, healthcare, legal, finance and retail sectors. Tourism & Markets: Costco reported May sales up 14.5%, citing strong U.S. comparable sales and higher gas prices; the retailer operates 639 warehouses including Puerto Rico. Workforce & Economy: Teamsters extended a strike at Breakthru Beverage to additional locations, underscoring ongoing labor pressure in regional distribution networks. Culture & Talent Pipeline: YouTube Music’s Foundry Class of 2026 includes Puerto Rico’s RaiNao, signaling continued global visibility for local artists.

Tourism & Hospitality: Dorado moves to brand upgrade as the municipality signs an agreement to bring the Wyndham Garden flag to a 53-room beachfront hotel in Costa de Oro, targeting a December 2026 opening and new visitor-driven jobs. Local Finance: Puerto Rico’s credit unions held steady in Q1 2026, with an ETI Financial Stability Index score of 0.57 as capitalization strengthened and delinquency eased. Retail & Consumer Demand: Costco reports May net sales of $24.01B (+14.5%) and highlights strong digitally enabled growth, a signal that shoppers are still spending even as costs bite. Business & Compliance: A new look at ICE I-9 enforcement warns employers to tighten work-authorization paperwork, as guidance shifts common mistakes into potentially fine-triggering substantive violations. Media & Transparency: Puerto Rico journalists say they often must sue to obtain public information, including efforts to track missing-person data. Health & Education: An update on Puerto Rico’s broader higher-ed ecosystem includes Berklee’s Puerto Rico enrollment milestone and a major medical-school bid in Delaware won by Jefferson. Corporate/Global Markets: Inditex (Zara) starts summer trading with currency-adjusted sales up 11.5% in May, while Amgen touts new EULAR 2026 data across rare autoimmune and inflammatory diseases.

Tourism & Hospitality: Dorado signed an agreement to bring the Wyndham Garden brand to its Costa de Oro beachfront, a 53-room hotel slated to open in December 2026, aiming to boost visitor traffic and local jobs. Workforce & Cost Pressures: A new look at financial insecurity says many workers lose focus and productivity as they juggle personal money stress during the workday, with knock-on effects for company performance. Co-ops & Lending: Puerto Rico’s credit unions held steady in Q1 2026, with a stability index unchanged at 0.57 as capitalization strengthened and delinquency eased. Cruise & Ports: Norwegian Cruise Line canceled seven months of Norwegian Viva sailings from San Juan in 2028 due to port availability, offering refunds and credits. Energy & Trade Policy: A cabotage waiver let nearly 2 million barrels of U.S. fuel reach Puerto Rico via foreign-flagged vessels, including gasoline/diesel and jet fuel. Public Records & Accountability: Puerto Rico journalists say they’ve had to sue repeatedly to obtain missing-person and death-related government files, highlighting gaps in transparency. Aviation Disruption: A Frontier flight from San Juan to Chicago diverted to Miami after a passenger allegedly tried to open an emergency exit door and assaulted an off-duty attendant.

Cruise Tourism Watch: Norwegian Cruise Line is backtracking on its plan to homeport Prima-class ships in San Juan, canceling months of sailings on the Norwegian Viva and redeploying the ship to Miami, with affected travelers offered refunds and future credits; the move is already raising alarm in Puerto Rico’s tourism sector over lost cruise-driven spending. Trade & Industry: The Puerto Rico Institute of Statistics says the island paid $919.7M in import tariffs in 2025—up 288.66% year over year and the highest in 15 years—while the effective tariff rate jumped to 4.81%, with the heaviest burden tied to construction and manufacturing inputs like metals and steel. Housing & Credit: Puerto Rico’s mortgage delinquency hit historic lows, with 30-day delinquency at 3% and 60-day at 1% as of Dec. 2025, linked to pandemic-era refinancing, rental income use, and borrowers prioritizing mortgage payments. Local Business & Policy: The Connecticut-Puerto Rico Trade Commission’s first meeting set subcommittees across economy, tourism, housing, education, and healthcare, adding an energy-efficiency focus amid Puerto Rico’s grid and outage challenges. Aviation Safety: A Frontier flight diverted after a passenger from San Juan allegedly tried to open an emergency exit and then choked an off-duty flight attendant.

Mortgage Market: Puerto Rico’s mortgage delinquency is at historic lows, with 30-day delinquency at 3%, 60-day at 1%, and 90-day at 2% as of Dec. 2025, helped by post-pandemic refinancings, rental use of properties, and tighter borrower profiles. Tourism & Cruise Economics: Norwegian Cruise Line will cancel Norwegian Viva departures from San Juan for 2027-2028 due to port availability, with the Puerto Rico Tourism Company estimating about $17M in losses for FY2028. Retail & Local Economy: O’Reilly Auto Parts is leasing the former Rite Aid at 827 N. Center St. in Puerto Rico and plans to open later this year, expanding its footprint across Puerto Rico and the region. Fintech & Homeownership: Sun West Mortgage and Celligence say Angel Ai now automates income calculations in minutes, aiming to speed underwriting and reduce bias for non-traditional borrowers. Business & Culture Spillover: In Lisbon, Bad Bunny concerts boosted business revenue by 8.01% on show days, with transaction growth of 12.03%, underscoring how major music events can move consumer spending.

Puerto Rico Economy & Finance: Inflation is squeezing retirement in Puerto Rico, with AARP’s José R. Acarón saying cumulative inflation since 2020 will top 20% and that a 2.6% 2026 Social Security COLA cushions but doesn’t fix the problem—pushing many older adults to delay retirement or seek extra income. Tourism & Trade: Norwegian Viva canceled select 2028 sailings from San Juan due to port availability changes, automatically removing affected bookings and offering refunds or incentives—another reminder of how quickly travel plans can shift. Business & Consumer Markets: Tres Santos Mezcal marked its first anniversary in Puerto Rico, reporting rapid expansion to 250+ outlets and signaling a new distribution alliance to broaden supermarket and retail presence. Energy & Shipping: A Gulf Coast “emergency fuel hub” is emerging after Jones Act waivers, with shipments including oil and diesel reaching Puerto Rico again—reshaping fuel flows in weeks. Media & Public Sector: David Reyes Vázquez was named president of Puerto Rican Public Broadcasting Corp., taking over after Luis Rodríguez Díaz’s resignation. Culture & Community: Puerto Rican and Latino celebrations kicked off with the San Juan Bautista flag-raising ceremony in Camden City ahead of the June 28 parade.