New commercial and residential real estate development projects are cropping up across Ponce's Historic District thanks in part to Puerto Rico Law 212, an initiative to revitalize Puerto Rico’s urban centers with generous tax credits to developers.

Since 2004, development projects are up more than seven times previous years, demonstrating that Puerto Rico’s South Coast, known also as Porta Caribe, has become an appealing place to visit, relocate and start your own or new business.

With tax incentives under Law 212, developers can reduce the overall cost of projects as 100 percent of monies invested in construction materials and labor can be returned to the developer in tax credits. Since the governor approved the law in 2004, 179 real estate development projects in Ponce have qualified for the incentive, 28 of which have already been completed.

As a result of the tax credit, Ponce’s Historic District has seen 85 new housing units and six remodeled buildings.

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Ponce’s Municipal Administration officials have described the effects that the Law 212 has had in Ponce’s economy as monumental. They have stated that during fiscal year 2004 - 2005 private developers have invested $5.5 million.  In fiscal year 2006 -2007, total investment is reported to be $ 17 million.

During the past three years Ponce’s Historic District has also seen a surge in population growth of nearly 5,000 new residents, double that of 2005, and a direct result of Law 212.

Ponce Mayor Francisco Zayas Seijo said that by 2012 the Ponce Historic District population grow by another 8,000 people due to the addition of 1,200 new housing units.  

Two Major Projects

Two particular projects have benefited from these incentives – two multi-story buildings inside the Historic District.

The first building – Isabel Segunda Building – is on Isabel Street (near Ponce’s La Perla Theater and the Ponce History Museum) and the other one is near the Dora Colón Clavell Urban Park, located in the center of Concordia, Jobos and Marina Streets.

(See our section on Ponce Puerto Rico Tourism Information, including Ponce’s Mercedita International Airport, and the Port of the Americas, and our Ponce, Puerto Rico Hotels section for much more.)

It expected that 120 new development projects will begin during the second half of 2008. These new development projects will include:

•    681 new housing units
•    38 revitalize non-historic buildings
•    And 29 renovations to historic buildings

As of today these figures don’t include international investors who have bought properties in anticipation of an expected economic boost to the region when the Port of the Americas begins its operations in the coming years.

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