May 2009
By Michael Coskey
Wow! The last few weeks have been a blur for all of us, Chrysler going bankrupt, pirates in Somalia, U.S. banks about to go under, stock market rollercoaster, peso in freefall and now swine flu. What's next, grasshoppers? Pestilence, famine? I am being very facetious, but it is evident that nothing is as it seems right now. All of us here at CDDG are aware of your worries and concerns, it is normal under these uncertain conditions. This month, I have only one message... it's all going to be OK.
In regards to our projects in Mexico, the Residences and One Eleven, we have signed the first set of documents with our construction lender for new money into completion and delivery. I know that there have been inferences to this in the past couple of newsletters, but these types of negotiations in this economic climate are lengthy and difficult. This is the first big step in making good on some of the "veiled" comments in previous newsletters. Now, in reality, this is the first in a series of documents that need to be executed before the new money will be seen in the form of more noticeable activity on the jobsites. As this process unfolds, we will try to find the means to keep all of you informed. Through all of this, we have been aware of the concern all of our owners have had in regards to their original deposits on the reservations of the individual condominiums, a primary motivation through this negotiation process with our construction lender has been to help protect that original investment. The signing of this first set of docs helps insure the security of the deposits of these reservation holders.
Also this week, we contracted with Ernst & Young to begin to gather information on an updated market study to develop new strategies for the profitability of the entire project, particularly TheHotel and the Vacation Rental Program for the rental of the individual condominiums. Now, more than ever, we are well aware of the fact that many of our owners are looking to rental of their condominiums to help supplement ownership costs. As concerns of the status of tourism and relocation into Baja have mounted, new information was deemed very important at this time to protect everyone's investment so far. As this study progresses, the information will be made available to our reservation holders and new prospective buyers.
With each step, getting closer to solutions to many unforeseeable situations, this is an exciting time for everyone at CDDG. Knowing that a new plan was getting into place, we have begun to get more and more involved in our real estate community, regaining prestige and recognition. Knowing that pre-construction sales are not actually a reality down here at this time, this is more of a way of showing everyone that we are still here, doing what we can to give back to the community. We have had two Rosarito Limpiecietos, a community-wide effort to clean and beautify Rosarito, both times CDDG played a leading part in these events. Here is a link to a YouTube video showing the impact of this community effort: Youtube Rosarito Clean-up Article
Also, our sales team has joined AMPI, the Baja Realtor association. We hope to begin to play a larger role in our community, as we can learn from the trials each of us has had to go through in these troubling times. This will give us more presence in the area as things begin to slowly come back.
Believe it, or not, CDDG, the Residences and One Eleven will come through these very challenging times healthier and stronger than ever before. We have NEVER stopped moving forward, searching for solutions to the many challenges that have been placed before us. All of us here at CDDG know that the delays, the rumors and the realities have been difficult for all of you, as they have been for us. With the uncertainty that we have come through, we are almost there, don't stop now. Much is happening here in our small part of Mexico. As new developments come about in this ever changing drama all of us are involved in, we will surely try to keep you informed and up to date. We wish all of you the very best.