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Authority of Public Buildings outlines plan to modernize assets, smooth rental cashflow and grow revenues
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Summary
Authority of Public Buildings director described a constrained fiscal starting point, a 667‑property inventory, rental‑canon constraints from the debt adjustment, and new revenue efforts including a tier‑3 data center, diesel distribution and an online leasing platform to raise recurring income.
The Authority of Public Buildings told the transition committee that it has reorganized operations, prioritized cashflow stability and is pursuing new revenue streams to shore up maintenance for hundreds of public properties.
Executive Director Lic. Yamil Ayala said the authority began with limited operating cash and an insurance‑reimbursement profile that left little immediate capital for prioritized reconstruction. He described an inventory of roughly 667 properties (about 315 active), including schools, police stations, fire stations and courts, and explained that the plan‑of‑adjustment for government debt constrains how the authority may repurpose or monetize assets: a portion of properties must remain for public use to preserve certain tax‑exempt treatment tied to bond conditions.
Ayala outlined several operational reforms and new business lines intended to improve resilience and generate income. The authority published a new online platform (AP.PR.GOV) to advertise available properties and accept direct rental or purchase requests; a committee will screen proposals for compliance with public policy and, when multiple applicants target the same property, initiate a competitive process. Ayala said direct leasing is intended to be transparent with a target adjudication window of 30–45 days once a complete request is filed.
On revenue diversification, Ayala described a multi‑pronged approach. AP is expanding a tier‑3 data center already operating on Minillas and expects to rent rack space and kilowatt capacity to federal and private tenants. He also presented a diesel distribution initiative to ensure generator fuel supply during emergencies and generate income, and a document‑digitization/data‑center project to monetize storage and services. The authority’s conservative revenue target is about $30 million over the next two years.
The authority also reviewed FEMA and other federal project flows. Ayala cautioned that FEMA reimbursements are processed after insurance offsets and deductibles, so gross project values do not translate immediately into cash on hand; he estimated that, after deductions, net FEMA receipts in the pipeline could be materially below headline project totals and will arrive over a multiyear schedule. He emphasized the need to maintain an operational reserve for July–September cashflow gaps tied to the fiscal calendar and urged legislative or budgetary mechanisms to smooth receipts.
Committee members requested follow‑up: a detailed schedule of incoming reimbursements and a line‑by‑line explanation of forecasted revenue, and asked for documentation to assess whether vehicles and procurement practices met federal procurement rules when federal funds were used. AP agreed to provide requested breakdowns and additional documentation.
Ayala closed by saying the authority has already opened the platform and has a pipeline of applications, but that operationalizing a larger leasing program will require continued attention to transparency, a robust competitive process when multiple applicants express interest, and close coordination with the Fiscal Oversight Board and OGP.
