2023 Laws of Puerto Rico › TITLE TWENTY-THREE - Public Planning and Development (§§ 1 — 11273) › PART IX - Economic Development II (§§ 11001 — 11273) › Chapter 251 - Puerto Rico Film Industry Economic Incentives Act (§§ 11001 — 11008c) › Subchapter V - Film Development Zones (§ 11005) › § 11005 - Establishment

(a) The Secretary of Development shall designate parcels of land (contiguous or noncontiguous) as “film development zones”. Such geographical areas shall consist of real property for the development, construction, and operation of large-scale studios and other related developments consistent with the purposes and the provisions of this chapter, regardless of who is the owner of such property. In those cases where the owner of a parcel is a private person or municipality, a film development zone shall only be designated as such with the consent of such landowner or municipality.
Notwithstanding the above paragraph, a film development zone is hereby established in the Autonomous Municipality of San Juan. Said film development zone shall consist of those parcels of land (contiguous or non-contiguous) designated by the Autonomous Municipality of San Juan and notified to the Secretary of Development. The applicability of subsections (b) through (h) of this section shall be subject to the consent of the Autonomous Municipality of San Juan.
In addition to the aforementioned provisions, a film development zone is hereby established in the Autonomous Municipality of Cabo Rojo. Said film development zone shall consist of those parcels of land (contiguous or non-contiguous) designated by the Autonomous Municipality of Cabo Rojo and notified to the Secretary of Development. The applicability of subsections (b) through (h) of this section shall be subject to the consent of the Autonomous Municipality of Cabo Rojo.
(b) Parcels of land designated or to be designated as being part of the film development zones owned by the Government of Puerto Rico may be transferred upon such consideration, terms and/or conditions as agreed to by the owner of the parcels in question and the Secretary of Development; provided, however, that such a transfer shall not be a prerequisite to the designation of a film development zone. Any law, rule, regulation, policy, norm or guideline limiting the terms or conditions for the transfer of such parcels beyond those terms and conditions that would ordinarily apply to transactions between private persons shall be inapplicable to the transfers contemplated in this subsection. The owner of the parcels shall have discretion to negotiate such terms and/or conditions for any such transfer as he/she deems consistent with furthering the development, construction, expansion, and operation of the film development zones and furthering the purposes of this chapter. The Secretary of Development may impose such conditions on the transfer of real property being part of the film development zones as he/she deems consistent with furthering the development, construction, expansion, and/or operation of the film development zones and furthering the purposes of this chapter.
(c) Upon establishment of the film development zones, the Secretary of Development, together with the President of the Puerto Rico Planning Board, in accordance with the provisions of the Organic Act of the Puerto Rico Planning Board, §§ 62 et seq. of this title, and §§ 4001 et seq. of Title 21, known as the “Autonomous Municipalities Act of 1991”, shall promulgate and adopt a joint zoning regulation that shall govern all development and land use within the parcels of land designated by the Secretary of Development as film development zones. All development and land use within the film development zones shall be governed only by such joint zoning regulation and shall not be subject to any other existing zoning law, rule, regulation, policy, norm or guideline issued by the Puerto Rico Planning Board or by any municipality with jurisdiction over the designated parcel(s) under the Autonomous Municipalities Act of 1991.
(d) The parcels of land comprising all or any part of the film development zones may be encumbered by such restrictive covenants, governance systems, rules and regulations, and architectural, design, and construction guidelines as the Secretary of Development from time to time may establish, and any such restrictive covenants, systems, rules, regulations, and guidelines may be amended, cancelled or modified at any time and from time to time with the approval of the Secretary of Development.
(e) The Secretary of Development shall have the authority to:
(1) Impose regular, general or special charges, quotas or fees against any and all parcels in the Film Development Zones, and
(2) impose and collect fees upon the transfer of any real property interest in the film development zones and/or upon the construction of any improvements in the film development zones, to pay for common area improvement and infrastructure construction, maintenance, and repairs to common areas, landscaping, security, signage, lighting and the rendering of common services; provided, however, that such charges, quotas or fees shall not constitute the imposition of a tax.
This subsection shall not apply to properties owned by a municipality.
(f) A legal lien is hereby created to secure the collection of assessments and fees imposed and/or assessed upon parcels of land in the film development zones. This lien shall have priority over any other lien, except for the lien securing transferred outstanding tax debts as provided by §§ 5921 et seq. of Title 21, known as the “Tax Debt Sale Act”; the lien in favor of the Municipal Revenues Collection Center (“CRIM”, by its Spanish acronym) securing the collection of real property taxes; the lien securing the collection of assessments under §§ 6601 et seq. of Title 21, known as the “Puerto Rico Tourism Development Districts Act of 1998”; the lien securing the collection of the special tax on properties located within a business improvement district or a residential improvement zone authorized by the Autonomous Municipalities Act of 1991; and any other lien securing the payment of assessments used to fund public infrastructure. After the first transfer of any parcels of land in the film development zones, a voluntary transferee shall be jointly and severally liable for any then unpaid assessments and fees. Such voluntary transferee shall have the right to be reimbursed by its seller any amount that he/she paid to satisfy any assessments and fees that are unpaid through and including the day of the closing of the transfer in question. This subsection shall not apply to properties owned by a municipality.
(g) The Secretary of Development may enter into agreements for the development and operation of the film development zones with any person and may impose any conditions he/she deems consistent with furthering the development, construction, expansion, and/or operation of the film development zones and furthering the purposes of this chapter.
(h) The Secretary of Development shall have the authority to certify the compliance of any transfer with the rules, requirements, and/or obligations of this section.
History —Mar. 4, 2011, No. 27, § 6.1; Apr. 8, 2016, No. 28, § 1.