Loreto Bay news: second email update from Embree Bedsole
Dear Homeowner,
As a follow-up to the general communication mailed Saturday June, 6th, 2009, TSD Loreto Partners, S. en C. por A. de C.V. (the “Company”) regrets to inform you that as of June 8th, 2009 all construction related activities for Loreto Bay (the “Project”) have been indefinitely suspended until the Company is able to secure new funds for the Project’s overall operation and completion.
Major construction activities include general infrastructure and Agua Viva home (“AV”) construction. The Company understands that individual homes are at different stages of construction and as such, the Company is diligently working with several third-party construction management companies that will provide homeowners feasible alternatives to finish the construction of their homes.
We are aware that this is not the envisioned outcome, but due to the financial circumstances, we believe it will be the most cost efficient way to have your home finished. As follow-up to this letter, a subsequent communication will follow that will provide you with this alternative.
Again, we regret to inform you that until funds are secured, all hospitality related and construction activities will remain suspended.
Best Regards,
Embree C. “Chuck” Bedsole
Interim President TSD Loreto Partners, S. en C. por A. de C.V
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Everyone is asking me what becomes of the Loreto Bay Foundation in light of the shut down of the construction at Nopolo and closing of the Inn at Loreto Bay (which is where I was supposed to be this week).
Here is the answer:
For now the Loreto Bay Foundation is protected by the Master Development Agreement. The MDA says that whoever the developer is must give 1% of gross to the Foundation. Also, we are protected on 1% of all resales by the trust agreements, which list the donation to the Foundation as mandatory at closing on re-sales of property.
However, I am well aware that Fonatur (Mexico’s tourism development fund) MAY decide to bend over on this requirement should a new buyer of the project demand it . . . — and thus our protection in the MDA could go away. By the way, this is not really up to CitiBank, it is in the contract for whoever steps into the shoes of the Trust for Sustainable Development or is assigned the contract (absent an amendment).
Loreto Bay Company’s attorney thinks Fonatur would fight to protect the Foundation provision if the shares are purchased or the contract is assigned…the risk, (he thinks) is that the contract (which is an option agreement which governs future purchases) would be terminated. So in his mind, if the contract survives (and it’s a valuable contract), the 1% to the Foundation provision will survive (and LBC’s attorney will do what he can to try and make sure it does).
To download the latest report on Loreto Bay Foundation, please go to
Let me know if you have any questions,
Mark J. Spalding, Executive Director Loreto Bay Foundation
Hi Mark – Thanks for the update.
Can you include the link to download the latest report for on the Loreto Bay Foundation? Missing from the comment you posted.
Loni,
I put it in. I think the system does not allow links.
I will put it in here again:
http://www.loretobayfoundation.org/index.php?ht=d/sp/i/308/pid/308
If it does not come through, please Google “Loreto Bay Foundation” and then click on “reports”
All the best,
Mark