Dev Plan 0001 PR

Development Plan for Raw Property in Arecibo, Puerto Rico (Updated)

 

This reflects the changes in the roles and responsibilities of the stakeholders, with the Adult Child Survivor taking the active leadership role while the Surviving Parent serves in an advisory capacity.

Stakeholders and Their Roles

  1. Director, Title Holder Under Family Trust, and Property Management Director ( Adult Child Survivor Managing the Property )

    Roles:

    • Director: Oversees the entire project, ensuring that strategic decisions align with the long-term vision for the property. The director will manage investor relationships and ensure that financial goals are met.  This role will be met by the adult child survivor.
    • Title Holder Under Family Trust: Holds legal ownership of the property under the family trust. As the designated title holder, the adult child is responsible for the property’s overall management and ensuring that the trust’s objectives are maintained.  The title holder is the adult child survivor with an advisory role managed by the surviving parent for familial needs assessment and genealogy.  The surviving parent does not have final say for financial disbursements.  It is that accounting and finance is managed by the Adult Child Survivor with accounting and reporting requirement.
    • Property Management Director: Actively manages the day-to-day operations of the property. This includes overseeing development projects (residential, agricultural, bio-tourism), managing farm operations, organizing community or spiritual activities, and handling leases or rents. The adult child survivor will also receive all equity based on improvements made to the property and income generated.  Including but not limited to equity based on educational, farm, tourism, marketing, development, and improvements.

  2. Co-Title Administrator (Surviving Parent)

    Role    :

    • The surviving parent remains as co-title administrator, working alongside the adult child survivor to ensure the proper legal and administrative management of the family trust and property title.
    • Advisory Role: Due to their age, the surviving parent will primarily serve in an advisory capacity. They will provide valuable guidance on the property’s development and trust-related matters but will not take on active management responsibilities.
    • They may read reports and financials and agree to not disclose financials or secure information and reports regarding the property as to not depreciate efforts in improvement and securing internal planning.  Consideration for Non-Disclosure Agreement.  Confidentiality of Property Planning.

  3. Two Absent Children (Inactive)

    Role: No current involvement in property management or development decisions. Their interest in the property will remain on hold until further notice

    Role: Listed as stakeholder but currently inactive. These children are not involved in the day-to-day management or future development at this time.  They do not live on the property at this time.

Current Assessment of the Property

Property Status:

  • Location: Arecibo, Puerto Rico.
  • Topography: The property includes flat land suitable for residential and agricultural development, alongside a natural forested mountain area designated as a bioreserve. This area will include a prayer and meeting space for spiritual and community activities.
  • Access: The property has adequate road access but will require improvements for better transportation, construction, and accessibility to all areas of the property.
  • Utilities: The property is equipped with electricity, but utilities will be improved significantly, including the addition of water, sewer or appropriate septic systems, and other necessary infrastructure.
  • Zoning: The property has a grandfathered zoning status, meaning it is already approved for mixed-use development, including residential, agricultural, and tourism-related projects.

Recent Past Assessment by Adult Child Stakeholder

The adult child survivor (property management director) conducted a thorough assessment of the property, identifying the following development opportunities:

  • Residential Development Potential: The flat land is ideal for both residential development and agricultural initiatives. The property offers the potential for vacation rentals, farm stays, or community housing.
  • Agricultural and Agro-Tourism Opportunities: The land can be used for sustainable farming, with plans to produce crops for local consumption. Agro-tourism opportunities can be expanded through farm tours and on-site activities.
  • Bio-Tourism: The forested mountain area is perfect for bio-tourism. Trail development, eco-tourism activities, and spiritual retreats in the prayer and meeting area are potential revenue streams.

Improvements Made by the Property Management Director (Adult Child Survivor)

The property management director (adult child survivor) has initiated several key improvements:

  • Infrastructure Improvements:

    • Roads have been cleared, graded, and improved for better access to all parts of the property.
    • Utility upgrades (water, sewer, and electricity) are underway to provide the necessary infrastructure for future development.

  • Agricultural Initiatives:

    • Sustainable farming operations have been started, with crops for local consumption, including organic produce and farm-to-table experiences.
    • Initial stages of agro-tourism development have begun, with plans for farm stays, educational farm tours, and workshops.

  • Bio-Tourism and Prayer Area:

    • The bioreserve is being mapped for eco-tourism activities, including hiking trails and nature tours.
    • A prayer and meeting space will be developed to serve as a peaceful retreat and community gathering spot.

Equity Compensation for Adult Child Survivor Managing the Property

Equity Compensation:
The property management director (adult child survivor) will be compensated with equity from various income sources, including improvements made to the property and financial gains generated by the following:

  • Equity from Improvements:
    The adult child will gain equity based on the value added by:

    • Renovating existing structures.
    • Developing new residential or commercial buildings (e.g., eco-tourism accommodations, agricultural facilities).
    • Improvements related to farming operations and agro-tourism development.

  • Income from Rents and Leases:
    The property management director will receive a share of the income from:

    • Residential Leases (if any units are rented out).
    • Tourism and Agro-Tourism Leases, including income from farm stays, nature retreats, and educational programs.

  • Farm Produce for Consumption:
    Income generated from the sale of farm produce will contribute to the equity of the adult child survivor.

  • Bio-Tourism Revenue:
    The property management director will earn equity from revenue generated by bio-tourism activities, including tours, educational programs, and use of the prayer and meeting space for spiritual and community gatherings.

  • Other Developments:
    Any future acquisitions or unforeseen developments (including forested or agricultural expansions) will be subject to the same equity compensation structure.

Property Reversion Clause and Expansion Rights

Property Reversion Clause:
In the event that the family trust decides to sell or repurpose the property:

  • The adult child’s equity will be calculated based on improvements made and financial returns generated.
  • The adult child has final say in all matters regarding purchase of additional properties, sale of additional properties, and management of title of the current property.
  • The property may revert to the family trust at the discretion of the stakeholders, with the trust holding the right to sell, lease, or re-purpose the property.

Expansion Rights:

  • The family trust reserves the right to expand its holdings and acquire additional properties to complement the current property, enhancing its agricultural, residential, and tourism potential.
  • The adult child’s equity compensation structure will extend to any additional properties acquired under the trust.  Any additional property real or otherwise will be managed and directed by the adult child survivor.

Communications Requirements

Clear and effective communication will be maintained throughout the development process:

  • Monthly Status Reports: The property management director will provide detailed updates on the progress of improvements, farming operations, bio-tourism development, and financial performance.

  • Quarterly Stakeholder Meetings: These meetings will allow for progress reviews, decision-making, and issue resolution. All stakeholders, including the surviving parent (in an advisory capacity), will be invited to attend.

  • Emergency Communication Protocol: In case of urgent issues, the property management director will notify the stakeholders within 48 hours and outline necessary actions.

Conclusion

This updated development plan incorporates the changes to stakeholder roles and responsibilities, with the Adult Child Survivor now holding primary leadership positions as Director, Title Holder Under Family Trust, and Property Management Director. The Surviving Parent will continue to serve as co-title administrator with an advisory role, providing guidance on legal and trust matters as needed. The plan reflects a clear structure for compensation, communication, and future development, ensuring that the property is managed effectively with sustainable growth in mind.