Redevelopment of Roosevelt Roads lags.

Carlos J. Ríos Pierluisi, current director of the Roosevelt Roads Local Redevelopment Authority (LinkedIn)

Lack of water, energy infrastructure, along with little investor interest, are cited 

By EVA LLORENS

The long-awaited redevelopment of the former U.S. Naval Station at Roosevelt Roads in Ceiba continues to face significant delays, largely due to insufficient water, wastewater, and energy infrastructure, coupled with a lack of investor interest. 

During a roundtable with reporters Monday, Carlos J. Ríos Pierluisi, current director of the Roosevelt Roads Local Redevelopment Authority (RRLRA), provided an overview of the status of the projects, most of which are in the early stages of development.

Although thousands of acres have been transferred to Puerto Rico’s government, the land remains far from ready for large-scale development. The Puerto Rico Ports Authority now controls some 3,302 acres (3,400 cuerdas) of developable land, while another 777 acres (800 cuerdas )are still undergoing federal environmental remediation before they can be transferred. Additional conservation areas have already been assigned to the island Department of Natural and Environmental Resources.

Ríos Pierluisi noted that no long-term project can move forward without rebuilding the base’s aging utilities. The water and wastewater systems, mapped out in purple and light blue across the site, along with the red-marked potable water treatment plants, form the backbone of all future development plans. Most of those infrastructure projects are being funded by commonwealth funds.

The modernization of the potable water system is one of the first major infrastructure projects. It includes rehabilitation of storage tanks, distribution pipelines, and supporting components such as pumps and filters. Despite two unsuccessful bidding attempts, some proposals have now been received, with the project priced at roughly $55 million. Construction is expected to begin in the last quarter of this year, funded through a combination of CAPEX funds and U.S. Department of Agriculture grants.

A parallel overhaul of the wastewater treatment plant is already in final design stages. The $60 million project, financed with CAPEX funds, will completely rehabilitate the system’s storage, pipelines, and disposal mechanisms. Construction is projected to begin in the first quarter of 2027, pending quality assurance reviews and bidding.

Power grid redesign

Another critical undertaking is the redesign of Roosevelt Roads’ entire electrical transmission and distribution system. The RRLRA, which now effectively functions as its own Puerto Rico Electric Power Authority, is preparing to repair three substations and install mostly underground power lines to increase system resilience. The project is currently 35% designed overall, with electrical plans at 50%. By May, officials expect to reach the 50% overall design milestone and then begin the Federal Emergency Management Agency’s (FEMA) environmental review process. With an estimated cost of $84 million funded by FEMA, construction is scheduled for early 2028. In response to a STAR question, Ríos Pierluisi revealed plans to launch a tender for a proposed power generation facility but did not say when those plans would take shape. 

Meanwhile, community-oriented projects continue inching forward. Facilities used by APRODEX are undergoing a design-bid process, with projected costs of $4.4 million. Repairs will restore the building to its pre-disaster condition with improvements to the roof, windows, doors and structural mitigation. The group currently occupies part of the structure while the RRLRA hires designers. Construction is slated to begin in mid‑2027.

A separate $1.9 million FEMA-funded project will support equine therapy services at Roosevelt Roads. It includes demolishing one building and repairing another used by therapy providers who serve both the general population and veterans. Like APRODEX’s facility, the project is also in the designer bidding phase.

Other projects

Additional coastal and community projects are underway. A $1.2 million redevelopment of the Coast Guard Pier -- buildings 2409 and 2262, plus a generator facility -- will repair existing port structures while demolishing others to make room for a future marine research and blue economy center, a project already in design. Construction and demolition are expected to begin in the second quarter of 2027.

All Hands Beach will see a smaller-scale project involving demolition of several structures, removal of 9,000 square feet of concrete debris, and the renovation of an amphitheater-like building that can host cultural, artistic and community events. With an estimated cost of $574,000, work is scheduled to begin around mid‑2027.

One of the most ambitious projects on the horizon is the proposed vertical rocket launch facility, a strategic initiative expected to cost between $750 million and $1 billion. The request for proposals (RFP) opened in December 2024, and multiple proposals were received from well‑known space industry firms. The authority is now reviewing submissions through a rigorous, multi‑committee process involving technical, financial, and expert evaluations. Final selection is expected this quarter.

The project would include launch pads, cargo processing areas, fuel storage, vehicle processing, port access for reentry operations, and designated zones for education, research, and hospitality. Officials acknowledged the complexity of the undertaking and noted that infrastructure deficiencies may require developers to absorb part of the utility upgrade costs.

Other longstanding redevelopment ideas are still unresolved. Efforts to revive Roosevelt Roads’ massive dry dock -- the largest in the Caribbean -- have repeatedly stalled over the years. The authority is now negotiating with the U.S. Army Reserve to exchange nearby land needed to develop complementary facilities such as storage areas and shipyard operations. Discussions continue as the parties evaluate relocation options and land‑use requirements. Previous RFPs for the dry dock yielded no successful proposals, and the authority cannot yet provide a cost estimate.

Similarly, a proposed Fuel Tank Farm RFP from 2022 also received no bids. Although not discarded, the project has been deprioritized.

Another planned initiative is a marine business, research, and innovation center known as EMBRIC. The center, which has already been designed, will be built on the site made available after demolitions connected to the Coast Guard Pier project.

Private-sector development proposals negotiated under the previous administration also remain pending before the Financial Oversight and Management Board. These include a tourism complex with boardwalks and a marina by Prisa Group subsidiary DLCR LLC, as well as another proposal for luxury residences, a golf course, and a residential component that includes some affordable housing. The RRLRA continues supplying requested information to the board and maintains active communication with the developers, who, officials say, remain interested.

Housing is a recurring issue for the surrounding community, which has long called for more affordable housing options on former Navy land. While some residential components exist in private proposals, additional opportunities may emerge from stalled projects such as the Ocean Club, a complex of walk-up buildings currently tied up in court. The RRLRA has filed for partial summary judgment to expedite its eviction case against the original developers. Once recovered, the project will be re-bid, with requirements for a turnkey housing complex that includes upgraded wastewater storage and infrastructure.

Officials acknowledged that many development efforts -- public and private -- remain constrained by the same fundamental issue: Roosevelt Roads cannot fully redevelop until water, wastewater and energy systems are modernized. Until then, both public projects and investor-driven initiatives will continue progressing slowly, as agencies work to resolve longstanding utility deficiencies and navigate complex regulatory, environmental and financial processes.