March 2010 - An Important Message From The Residences & One Eleven

For months now, we have been hearing requests for no “fluff” and more direct information about the status of the projects. In reality, this was not an easy task, for there has been periods where we really did not have any “new” news to report and since June of last year, when we entered into a “fideicomiso” (Spanish for Business Trust) with Banorte all of the newsletter text had to be approved by their legal department, which sometimes turned out to be an exercise in patience! Lately, I have spoken with many of you on an individual basis and am very willing to explain most everything in detail. We are not hiding anything from anyone; in fact we need for all of you to understand this long tedious process has not been easy and to get to this point, where the project is going to finally move forward to completion is an amazing feat. For any of us, including you, the reservation holders on the individual condominiums to get ANYTHING worthwhile from our investment into this project, we MUST finish. I truly hope that all of you understand that fact and from some of the actions that a few of you have taken or are thinking about taking, is beyond my comprehension. What I am trying to say is: we MUST find a way to be a bit more patient. We are weeks away from having a final solution for funding for completion with a comprehensive plan for the operation and integration of the condominiums and hotel for the best possible opportunity for success and profit for the entire project. To take any kind of adverse action with or against the project at this time is not in anyone’s best interest. Believe me when I say this.

Right now, there are four (4) legitimate offers and propositions being considered by Banorte and ourselves, looking for the best possible option for success. If you ask why now and not before, I cannot give you an answer, for the time factor is beyond me. Regardless, the fact of the matter is all of the waiting is almost over and it is time to begin to make plans for the future. What are you (the reservation holders) really going to do? Last month, rather than reporting progress on the progress of the project, we sent a survey asking your opinions on a variety of topics and received great response from most everyone. In fact, the positive response regarding closings on the condos was incredible, over 85% are eager to close on their condo and begin enjoying their dream of living on the beach! And because of this, we are sending the survey again this month and we NEED your response: no matter how good or how bad, this information will help us get the best outcome for all of the condo owners!

We know that some of you are not real happy with how all of this has turned out and the ups and downs of investing in Mexico have been difficult to understand for everyone concerned. This has been a very hair-raising ride for all of us. Fortunately, from where I am standing, it looks like there is an end in sight and if we play our cards right, no one is going to get hurt financially. This may seem a bit over optimistic, but there is enough language in all of the new documents that assures me of this. But back to this survey: the information will be used to negotiate various options for the owners as we finally get closer to delivery, financing, closing procedures and costs, some type of recognition for the time gone by, etc. We know that some of you have a lot to say: Please, I invite you; I need you to say it. There are places for comments at each question and finally a comment section at the end of the survey for more detail. Please help me. Respond to this request for information; it truly is very, very important. Granted, the information will help us as a company, but it will also help all of the people that are planning to close on their reservations. I think it needs to be said, that over this period of time that has passed, we have gone through some difficult circumstances together and a friendship and connection has developed with most of you and we want the best outcome for all of you. I will close my request with this: If you have more questions, please call me or better yet, come to the project and let me show you around and explain some of various options that we have discussed with potential investors. With that, I am finished. Please take a few minutes and send your completed survey back to us. Looking forward to hearing from you soon. Thank you.

The Residences/THEHOTEL/One Eleven

619-819-6759 Office U.S. Number

664-631-2787 Office Mexico Number

Please Visit: www.THEHOTELBAJA.com

Sales Office Hours: Monday through Saturday 9:00am until 4:30pm. Closed Sundays.

Check: CDDGNEWS.COM