INDUSTRIAL DEVELOPMENT COMPANY.

LEGAL AUTHORITY

Act No. 188 of May 11, 1942, as amended, known as the Industrial Development Company Law, created the Puerto Rico Industrial Development Company. In accordance with the Reorganization Plan No. 4 of June 22, 1994, as amended, the Industrial Development Company became part of the Puerto Rico Economic and Commercial Development Department.

MISSION

To encourage the industrial and economic development of Puerto Rico through the promotion, creation and retention of employment and to attract capital investment in manufacturing, services, science and technology for markets in Puerto Rico and abroad.

VISION

To work in a coordinated fashion by using state of the art technology to develop our human resources to the maximum and promote our worldwide competiveness, without harming the environment.

ORGANIZATIONAL STRUCTURE

The Industrial Development Company is comprised of the following organizational units:

  • Real Estate
  • Business Development
  • Finances
  • Marketing and Communications
  • Administrative Services
  • Board of Directors
  • General Auditing Office
  • Taxes and Legislative Affairs Office
  • Organizational Development and Human Capital Office
  • Office of the Secretary and Legal Consultation
  • Information Systems
  • Office of the Executive Director

GEOGRAPHIC LOCATION

The Industrial Development Company is located in the Industrial Development Building, Suite 404 No. 355 F.D. Roosevelt Avenue in Hato Rey. It also has regional offices in Ponce and New York State.

PROGRAMMATIC STRUCTURE


POSITIONS FILLED

Authorized and Proposed Positions 2009 2010 2011 2012
Sept./08 Sept./09 Sept./10 Feb./11 Proj.

 

Total amount of positions 330 337 329 325 325

Data comes from the Agency's Certified Headcount Reports. Figures for Fiscal Year 2011-2012 were estimated during the budget formulation process.


PROGRAMS

General Management and Administration

Program Description

Develops management and administrative controls to support: operational programs; Executive Director's activities; and relations with other governmental agencies and the private sector. It manages and coordinates industrial sector activities and establishes mechanisms to support Puerto Rican rum promotional activities in the United States.

Objectives

  • Promote the development of the Agency's human resources in order to support and maintain service quality.
  • Develop satisfaction indicators through direct contact activities (meetings, questionnaires, etc.) to identify client service needs and expectations.

Statistical Data 2010 2011 2012

 

Development of advertising campaigns 1 1 1

Statistical data provided by the Agency during the fiscal year 2011-2012 budget formulation process.

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 61 56 55 55
Total, Positions 61 56 55 55

Tax Exemption Claims Evaluation

Program Description

Analyzes the applicability of the industrial tax incentives laws (Act 8, Act 135, and Act 73) and recommends the granting of tax exemption decrees to businesses supported by the provisions of said laws. It offers legal consulting services regarding the manufacturing, services, renewable energy and real estate dedicated to industrial development, maritime transportation, air transportation, beer and rum manufacturing. It prepares, comments on and analyzes legislation related to industrial and economic development in Puerto Rico.

Statistical Data 2010 2011 2012

 

Legal reports on orders and projects 318 403 425
Legislation 93 55 25
Tax exemption applications processed 305 363 400

Statistical data provided by the Agency during the fiscal year 2011-2012 budget formulation process.

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 7 7 7 7
Total, Positions 7 7 7 7

Special incentives to establish industries

Program Description

Grants and administers incentives to encourage the establishment or expansion of industries and promote the creation of employment on the island.


Objectives

  • Identify, attract, establish and expand industries to strengthen Puerto Rico's industrial ecosystem.
  • Offer industry resources immediate attention to expedite industrial projects that create more and better employment opportunities.
  • Administer special incentive programs that, together with the Puerto Rico Economic Incentives Law, allow for the effective distribution of industrial incentives.
  • Facilitate access to financing and development capital for the establishment and expansion of industries.
  • Increase the expansion rate of existing industries

Statistical Data 2010 2011 2012

 

Foreign industries to be promoted 54 67 80
Puerto Rican industries to be promoted 20 24 30

Statistical data provided by the Agency during the fiscal year 2011-2012 budget formulation process.


Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 7 7 7 7
Total, Positions 7 7 7 7

Real Estate Program

Program Description

Develops real estate management strategies and strategic alliances to maximize the use of Company real estate resources and identify new opportunities for the development of their properties. Enters into agreements with private businesses to develop new parks and industrial properties. It also administers and manages Company properties. Finally, it coordinates and supervises Company projects from the planning, design, building construction and industrial expansion points of view as well as the physical maintenance of buildings and industrial parks.

Objective

  • Offers industry resources immediate attention to expedite industrial projects and to create more and better employment opportunities.

Statistical Data 2010 2011 2012

 

Develop and enable the construction of projects 392 18,945 15,030
Evaluation of cases to be promoted (permits) 329 499 499
Industrial buildings maintenance 3,266 5,720 5,220
Industrial projects program 3,658 26,665 24,250
Location queries for industrial projects 8 14 14

Statistical data provided by the Agency during the fiscal year 2011-2012 budget formulation process.


Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 64 62 59 60
Total, Positions 64 62 59 60

Business development program

Program Description

Promotes the strengthening of our industries by creating and retaining employment in the bio-sciences, information systems, telecommunications, the aerospace industry, engineering design services, advanced technology manufacturing and exportable services. It offers the necessary services and support to established industries in conglomerated strategic industrial sectors. It designs strategies for different sectors developed in Puerto Rico. It develops permanent economic studies for those events, situations, and international economic industrial planning models that guide the Company's promotional strategy. It delineates and implements a marketing strategy to promote Puerto Rico and make its geographic, economic and industrial locations known.

Objectives

  • To improve Puerto Rico's competitiveness through promotional programs, new projects and incentives.

Statistical Data 2010 2011 2012

 

Additional businesses and extensions 24 41 47
Projects to be promoted 74 91 110
Sponsored jobs 4,180 4,906 6,488

Statistical data provided by the Agency during the fiscal year 2011-2012 budget formulation process.

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 74 103 86 89
Sales and Marketing Services 18 0 7 0
Total, Positions 92 103 93 89

Puerto Rican Rum Marketing in the United States

Program Description

Promotes rum produced on the Island in the United States. Provides incentives to rum distilleries and rectifiers to increase manufacturing and support for marketing in the United States.

Objective

  • Continue to be the leading rum producer on the Island and in the United States; to increase rum related tax collection to $450,000,000 or more.

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 2 3 2 3
Sales and Marketing Services 2 2 10 2
Total, Positions 4 5 12 5

Auxiliary Technical Services

Program Description

Offer administrative support to all Company programs.

Objetive

  • Provides administrative and managerial support to the programs and operational units.

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 92 94 93 94
Other Safety and Protection Staff 3 3 3 8
Total, Positions 95 97 96 102

FISCAL YEAR 2011-2012 ADOPTED BUDGET

The adopted consolidated budget for Fiscal Year 2011-2012 is $90,887,000. The funding includes $15,000,000 from State Special Funds, $312,000 in Federal Grants and $75,575,000 from Revenues from Internal Sources.

Operational Expenses reflect a net reduction of $6,163,000 in comparison with the funding assigned for Fiscal Year 2010-2011, resulting from the implementation of cost control measures.

State Special Funds are generated from taxes on exported rum as provided by June 30, 1969 Law Num. 143, as amended. They are used to maintain an aggressive publicity campaign in the United States and to continue offering incentives to liquor businesses.

Federal Grants are the result of a collaboration agreement between the Industrial Development Company and the United States Defense Department to finance the Centers for Technical Assistance. Currently, the Federal Government contributes 75% of the funds necessary for its operation and the Company is required to provide 25% in matching funds. The purpose of the center is to provide technical assistance to industries that promote their products and services to the Federal Government.

SUMMARY OF AVAILABLE RESOURCES

Consolidated Budget  (thousands $) 2009 2010 2011 2012

 

Program  
Operational Expenses Actual Actual Budget Adopted
Ancillary Technical Services 10,546 10,523 11,101 13,648
Business development program 9,589 8,705 9,640 10,328
General Management and Administration 12,598 11,147 11,440 14,717
Puerto Rican Rum Marketing in the United States 24,864 25,000 25,000 15,000
Real Estate Program 17,290 12,615 15,056 12,384
Tax Exemption Claims Evaluation 487 564 563 560
Subtotal, Operational Expenses 75,374 68,554 72,800 66,637
 
Subsidies, Incentives and Donations
Special incentives to establish industries 5,000 0 0 0
Subtotal, Subsidies, Incentives and Donations 5,000 0 0 0
 
Capital Improvements
Real Estate Program 39,606 37,850 26,665 24,250
Subtotal, Capital Improvements 39,606 37,850 26,665 24,250
Total, Program 119,980 106,404 99,465 90,887
 
Funding Sources  
Operational Expenses  
Federal Grants 0 0 338 312
Revenues from Internal Sources 50,510 43,554 47,462 51,325
State Special Funds 24,864 25,000 25,000 15,000
Subtotal, Operational Expenses 75,374 68,554 72,800 66,637
 
Subsidies, Incentives and Donations  
Special Appropriations - General Fund 5,000 0 0 0
Subtotal, Subsidies, Incentives and Donations 5,000 0 0 0
 
Capital Improvements  
Revenues from Internal Sources 39,606 37,850 26,665 24,250
Subtotal, Capital Improvements 39,606 37,850 26,665 24,250
Total, Funding Sources 119,980 106,404 99,465 90,887
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 24,282 22,289 23,334 22,656
Rent and Utilities 469 342 345 365
Purchased Services 15,445 10,375 11,975 11,364
Donations, Subsidies, and Distributions 415 0 760 322
Transportation Expenses 895 705 1,050 937
Professional Services 9,804 9,473 8,436 6,476
Other Expenses 1,879 3,824 3,359 10,945
Equipment Purchases 4 5 5 0
Office Supplies and other Materials 265 166 145 155
Advertising and Media Expenses 21,916 21,375 23,391 13,417
Subtotal, Operational Expenses 75,374 68,554 72,800 66,637
 
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 5,000 0 0 0
Subtotal, Subsidies, Incentives and Donations 5,000 0 0 0
 
Capital Improvements  
Capital Improvements Program 39,606 37,850 26,665 24,250
Subtotal, Capital Improvements 39,606 37,850 26,665 24,250
Total, Expense Category 119,980 106,404 99,465 90,887


SUMMARY OF RESOURCES BY PROGRAM

General Management and Administration

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Revenues from Internal Sources 12,598 11,147 11,440 14,717
Subtotal, Operational Expenses 12,598 11,147 11,440 14,717
Total, Funding Sources 12,598 11,147 11,440 14,717
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 6,179 6,336 6,584 6,240
Rent and Utilities 6 0 0 0
Purchased Services 2,464 56 139 95
Donations, Subsidies, and Distributions 415 0 175 10
Transportation Expenses 80 51 55 77
Professional Services 2,164 1,692 1,596 1,438
Other Expenses 1,265 2,979 2,641 6,825
Office Supplies and other Materials 25 33 30 32
Advertising and Media Expenses 0 0 220 0
Subtotal, Operational Expenses 12,598 11,147 11,440 14,717
Total, Expense Category 12,598 11,147 11,440 14,717
 
Tax Exemption Claims Evaluation

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Revenues from Internal Sources 487 564 563 560
Subtotal, Operational Expenses 487 564 563 560
Total, Funding Sources 487 564 563 560
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 472 527 519 523
Purchased Services 12 6 8 4
Transportation Expenses 2 0 3 2
Professional Services 0 30 30 30
Other Expenses 0 0 1 0
Office Supplies and other Materials 1 1 2 1
Subtotal, Operational Expenses 487 564 563 560
Total, Expense Category 487 564 563 560
 
Special incentives to establish industries

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Subsidies, Incentives and Donations  
Special Appropriations - General Fund 5,000 0 0 0
Subtotal, Subsidies, Incentives and Donations 5,000 0 0 0
Total, Funding Sources 5,000 0 0 0
 
Expense Category  
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 5,000 0 0 0
Subtotal, Subsidies, Incentives and Donations 5,000 0 0 0
Total, Expense Category 5,000 0 0 0
 
Real Estate Program

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Revenues from Internal Sources 17,290 12,615 15,056 12,384
Subtotal, Operational Expenses 17,290 12,615 15,056 12,384
 
Capital Improvements  
Revenues from Internal Sources 39,606 37,850 26,665 24,250
Subtotal, Capital Improvements 39,606 37,850 26,665 24,250
Total, Funding Sources 56,896 50,465 41,721 36,634
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 4,323 3,861 3,946 3,828
Rent and Utilities 1 0 0 0
Purchased Services 9,242 5,812 8,126 6,818
Transportation Expenses 294 222 323 235
Professional Services 3,401 2,700 2,640 810
Other Expenses 5 0 4 676
Office Supplies and other Materials 24 20 17 17
Subtotal, Operational Expenses 17,290 12,615 15,056 12,384
 
Capital Improvements  
Capital Improvements Program 39,606 37,850 26,665 24,250
Subtotal, Capital Improvements 39,606 37,850 26,665 24,250
Total, Expense Category 56,896 50,465 41,721 36,634
 

Business development program

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Federal Grants 0 0 338 312
Revenues from Internal Sources 9,589 8,705 9,302 10,016
Subtotal, Operational Expenses 9,589 8,705 9,640 10,328
Total, Funding Sources 9,589 8,705 9,640 10,328
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 7,292 5,816 6,332 6,195
Rent and Utilities 2 2 0 0
Purchased Services 130 879 183 1,109
Donations, Subsidies, and Distributions 0 0 450 312
Transportation Expenses 217 268 399 422
Professional Services 1,287 1,714 1,740 1,700
Other Expenses 0 0 32 10
Office Supplies and other Materials 36 26 29 20
Advertising and Media Expenses 625 0 475 560
Subtotal, Operational Expenses 9,589 8,705 9,640 10,328
Total, Expense Category 9,589 8,705 9,640 10,328
 

Puerto Rican Rum Marketing in the United States

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
State Special Funds 24,864 25,000 25,000 15,000
Subtotal, Operational Expenses 24,864 25,000 25,000 15,000
Total, Funding Sources 24,864 25,000 25,000 15,000
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 254 359 379 437
Rent and Utilities 17 15 0 13
Purchased Services 1,207 1,207 804 573
Transportation Expenses 30 30 74 47
Professional Services 1,500 1,486 542 553
Other Expenses 543 503 500 505
Equipment Purchases 4 5 0 0
Office Supplies and other Materials 18 20 5 15
Advertising and Media Expenses 21,291 21,375 22,696 12,857
Subtotal, Operational Expenses 24,864 25,000 25,000 15,000
Total, Expense Category 24,864 25,000 25,000 15,000
 

Ancillary Technical Services

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Revenues from Internal Sources 10,546 10,523 11,101 13,648
Subtotal, Operational Expenses 10,546 10,523 11,101 13,648
Total, Funding Sources 10,546 10,523 11,101 13,648
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 5,762 5,390 5,574 5,433
Rent and Utilities 443 325 345 352
Purchased Services 2,390 2,415 2,715 2,765
Donations, Subsidies, and Distributions 0 0 135 0
Transportation Expenses 272 134 196 154
Professional Services 1,452 1,851 1,888 1,945
Other Expenses 66 342 181 2,929
Equipment Purchases 0 0 5 0
Office Supplies and other Materials 161 66 62 70
Subtotal, Operational Expenses 10,546 10,523 11,101 13,648
Total, Expense Category 10,546 10,523 11,101 13,648