Sunday, June 07, 2009

Loreto Bay Company – The Good, the Bad and the Ugly

By now anyone with an investment in Loreto Bay has received the following email sent last night

TSD Loreto Partners, S. en C. por A. de C.V. (the “Company”) regrets to inform its clients and stakeholders that, due to the challenging situation in the international real estate and financial markets, all operating and construction activities for Loreto Bay (the “Project”) will be suspended.

This is a prudent financial decision that is of little surprise to those involved in the project for the past year. However, in its normal inept communication style, Loreto Bay Company had total disregard of how this announcement was handled and how this decision immediately affects peoples’ investments, lives, and their families. I have been a strong advocate of this company from the beginning, even when I disagreed with management and their decisions. There is no justification that a hotel employee finds out he is out of a job today from a guest in the hotel or by an email from a homeowner who is 5000 miles away.

Many of these employees have come and made Loreto their home, and share in our vision of community. They have many friends in this development and downtown. How can they start making plans today, when they won’t know if they will be out of a job until tomorrow? How will we find them again even if it is just to say goodbye?

Perhaps this is big business and a corporate decision made by conference call. However, I made Loreto my home because I thought I could make difference. Yet, the more things change, the more they remain the same. It is discouraging and disappointing to believe that very smart people have such little compassion or lack of common courtesy to simply take an extra few hours to communicate effectively with the people that have been loyal for so many years.

This is my rant and it will probably come back to bite me, but at least I am not condoning the way this was handled by my silence. My friends know I care, and that is all that is important at the end of the day.

Anyways, my advice to homeowners is to not panic. Things will become much clearer in the following days. Just like the phoenix that must burn to ashes before it can rise to live again, I believe this may be what Loreto Bay Company needed to do in order to truly have a fresh start. There are silver linings in every cloud, and here is the positive …

Through the very hard work of many people, most Home Owner Association SubRegimes have now been formed and have an organized structure to move forward with their common concerns. More importantly, there should be adequate funds to keep the common areas, community pool, administration, security and other services going through our initiatives. The Administrator, Bob Toubman will be addressing concerns about Aqua Viva, Golf Course, and other questions as he gets the answers.

Property Management is still in effect and proper notice will be given to clients of any changes. Rodolfo Guerrrero is working very hard on behalf of his clients and friends to ensure that if there needs to be a transition, it will be seamless. Please do not make any rash decisions as it is not necessary. Information will be forthcoming.

Loreto Bay Company is reviewing options for those Village homes under construction. Very little has happened in the past few months, so waiting a few more weeks for the dust to settle will not make any difference. Your home is not going anywhere. For those custom lot owners that do not have a contact person on the ground, feel free to call or email me for some direction.

There is a Mexican quote that a friend told me applies to this current chaos:

En rio revuelto ganancia de Pescadores...
Literally translated it means: “to stir up the river, is a fisherman’s gain
Basically, at this moment there are many people that will want to take advantage of the situation.

Hopefully, this is a new buyer for the development. This does not have to be our neighbors and friends. Take your time, gather your information, and make informed choices. Loreto is economically hurting due to the swine flu and drug cartel news which problems are non existent in Baja Sur. This also means that there are many local people looking for work and it is a good time to get better service at more reasonable prices. Mexicans are very entrepreneurial and resourceful people because there are no safety nets. I think we will see some good competitive business over the next several months which will be to the benefit of all.

The INN at Loreto Bay is closing today, and their registered guests are being met at the airport and taken to other beach front hotels in Loreto. After the initial shock that the staff had about the closing, most were in good spirits and the guests checking out today never knew the employees were turning off the lights behind them. Asi es la vida

The community pool is beautiful and most of the common areas are finished, and we still have the beach, mountains, and a community which includes Loreto itself. Not all is lost. Loreto is like the phoenix and has survived many broken dreams, but there are always new ones around the corner. This has always been and will continue to be a great place.

Although I will not be officially opening my new office until after Labor Day, Dorado Properties Loreto is still conducting Open Houses in Loreto Bay. With the diminished tourist activity this year, our team will be working remotely for much of the summer.

I will be communicating more information with my clients directly, but if you have any business interests, please feel free to email me at Nellie@doradoloreto.com or call me at 602 628 2920.

Stay tuned this week ... as the stomach turns ...

Miss Nellie
centerpointe