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International Group Wins Flamingo Marina Bid

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By Ralph Nicholson and Zoraida Diaz
Friday, April 18, 2008

Santa Cruz Gives Nod To $91M Bid And 442 Slips

An international consortium of Costa Ricans and Americans has won the right to build and operate the long-awaited international marina in Playa Flamingo.

An extraordinary session of the Municipal Council of Santa Cruz on Saturday voted five to two to award a concession to Desarrollo de Marinas Matapalo DEMM S.A., almost five years after the current facility was ordered closed.

The winning consortium, made up of a handful of US and Costa Rican businessmen, beat out three other contenders for the concession.

At $91 million, Matapalo DEMM was the biggest and most ambitious project among the four.

The company’s plans call for a new breakwater plus 442 boat slips, some capable of handling mega-yachts of up to 45 meters (150 feet). There will be coastguard, immigration, police and refueling facilities, a 20,000-square-meter hotel, a commercial center and an unspecified number of condominiums. The facility will also include an extended pier for cruise liners.

“I am going to resurrect Flamingo as the sports fishing center of Costa Rica, fish permitting,” said a clearly delighted, Donald Brooks, who is part of the winning consortium.

The Council’s Flamingo Marina Commission considered four final bids, but rejected two — Inversiones Rigilcom S.A., and Tamarindo Lifestyles S.A. That left Matapalo DEMM and Willily Ocean View S.A., the same company developing the Bahía Escondida Marina, presently under construction in Golfito.

In fact, Victor Ledezma Varela, a legal counsel hired by Santa Cruz, urged the municipality to award the concession to Willily Ocean View, arguing in a prepared report that Matapalo DEMM’s project was inconsistent with the master plan, and would generate “great fills and movement of soil” and have “an adverse impact on the other part of the bay.”

Instead, in a 32-page report read to the council, Municipal President Adrian Rojas ignored the legal advice, saying Matapalo DEMM had shown coherent time frames, a financial capacity to develop the marina, plus a project which was bigger in scope and price than Willily Ocean View.

With their decision the Municipality stands to make $459,000 a year in concession leases, about $175,000 a year more than if they had awarded the concession to Willily Ocean View. It was a fact not lost on the marina commission.

“…the group Matapalo DEMM S.A., will pay the municipality an annual canon that is much greater than the one offered by Willily Ocean View, with which the municipal finances would be better served with the possibility of developing more social and communal projects that benefit the population,” Mr Rojas told the meeting.

In reality the concession fees may be smaller than projected.

Developers must now present an environmental impact study before SETENA, the National Technical Secretariat of the Ministry of Environment. Further, their plans must pass scrutiny by the Comisión Interinstitutional de Marinas y Atracaderos Turísticos, (or CIMAT), the government department charged with overseeing all technical aspects of this and other marinas.

Both departments are likely to seek changes to the original plans.

“The drafted project is now subject to technical analysis, and eventually the public area that they are interested in developing could be cut,” said Oscar Villalobos, CIMAT’s Technical Secretary. “It will be transformed and it will mature and end up being different: this is a fact.

“What must be understood is that the scope of the project, once it is presented before SETENA, could completely change, for it must adjust to all the requirements of the Law of Marinas and environmental viability.”

Only when both SETENA and CIMAT are satisfied can the developers formally apply to the municipality for the concession.

Matapalo DEMM is made up of a handful of investors, including the $500 million Rodblu Investment Fund and its two principles, Carlos Rodriguez and Stephen Blumenthal. Mr Rodriguez, a Costa Rican, owns the Flamingo Beach Hotel, via Cardel Hotels LLC. He is also Executive Vice President of Driftwood Hospitality Management LLC, which includes more than 40 properties. Mr Blumenthal is a Miami real estate developer and broker.

Mr Rodriguez said he hoped to have all the paperwork completed within six to 12 months.

“We are currently negotiating with different high-end hotel brands to see whose name will go on the facility,” he said from Miami, Florida. He confirmed it was likely to come from among their own stable of brands, which include Radisson, Wyndham, Crowne Plaza, Sheraton, Hilton, Hampton Inns and Holiday Inn.

Regardless of timing — the construction phase is likely to take three years — the awarding of the concession has been widely welcomed.

“I don t know what the considerations were, nor the technical aspects considered,” said the Minister of Tourism, Carlos Ricardo Benavides. “But I think that a well-made marina in that region is extremely important as it would consolidate the area’s tourism development.”

Gerardo Brenes, President of the Association of Fishermen of the Northern Pacific, which has 32 members, said he had spoken with representatives of Matapalo DEMM, who had committed a number of slips for exclusive use of artisan fishermen.

“It’s not that we were married to any of the groups, but now that this one has been chosen, we welcome them, and they can count with the support of the association.”

The decision is likely to give a boost to local real estate, which has seen prices ease on the back of worsening economic conditions in the United States.

“This is a very good thing for the area,” said Jack Osborne, owner of Coastal Properties in Flamingo, which has about 100 hectares (250 acres) of undeveloped land in the area.

“We are very excited, everybody has been waiting for this for a long time,” Mr Osborne said. “I think it will dramatically increase land prices in the area, especially property directly in Flamingo.”

“The marina announcement is very positive for Flamingo area real estate values,” said Sharon Myers, President of the Costa Rica Global Association of Realtors.

“For the most part, current price levels already reflect some of the anticipated value of the marina project,” she said. “Longer term, once the project is completed, a new economic engine will be created and we expect to see significant demand for Flamingo area real estate.”

James Lynskey, legal representative of Willily Ocean View, was less than enthusiastic.

“We are convinced that the best offer is ours; therefore, we will use all the resources the Costa Rican State of Law guarantees to defend our offer, but we can only decide specifically which legal instruments to use when we have been notified officially,” he said in a written statement.

The adjudication document gives losing bidders ten days in which to appeal.

Tamarindo Plan Gets First Public Airing
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By Catherine Keogan
Friday, April 11, 2008

Building height along the Tamarindo beachfront would be restricted to just two stories, while urban centers would be fixed at three under a proposed regulatory plan for the town.

Farther inland the plan would allow for buildings up to six stories high.

The projected new measures were unveiled on Friday at the first public airing of the long-awaited regulatory plan for the Tamarindo area.

Nearly three years from its inception, the rough draft of the plan was presented to a sparsely-attended audience of residents and developers, initiating a preliminary public debate that will last through June.

The controversial plan will address not only building height, but density, land use, roadways and protected areas, for the district stretching from Playa Avellanas to Huacas, and inland to Cañafistula.

“We are drawing up the projected development in Tamarindo for the next 50 years,” said Héctor Chavarría of the National Institute of Housing and Urban Development (INVU), who spearheaded the project.

The ambitious vision calls for an expansion of the Tamarindo airport, new roadways to link the communities within the district, boardwalks and bicycle lanes, a university and a new civic center.

It will also curb what the planners call ‘spontaneous urban growth’ in the area, imposing limits on what can be built, and where.

“The land use in the district has developed spontaneously for the most part,” reads the draft, “according to market forces and often contrary to established urban legislation.

“As such, the human settlements are monocentric in one place, linear and dispersed in another, without any established pattern, which entails a set of negative social, economic and urban implications.”

Building height is one of the more polemic issues under discussion.

The existing regulatory plan, in effect since 1999, restricts building height in the maritime zone (50 meters inland from the high tide line) to just two stories. That restriction would be maintained in the new plan, and inland, buildings would not exceed 24 meters (78 feet), or six stories, and then only in specially designated high-density zones, at least 150 meters from the maritime zone.

In the more dense urban centers, planners would limit building height to three stories, in order to respect the ‘idiosyncrasy’ of the towns’ physical character, said Mr Chavarría.

Another controversial theme raised in the proposed plan is the reclamation of land for green zones, which Mr Chavarría warned could entail expropriations.

“Some of the proposed projects will require expropriations, needed to maintain equilibrium. Not everything can be commercial,” he insisted.

The threat of expropriation is likely to raise strong opposition, but Mr Chavarría maintained the necessity of such bold moves to ensure the needs of the community in coming decades.

“The more irresponsible ones will object to the regulatory part that imposes restrictions on building height and density,” he said bluntly. “Those areas now privately owned, destined to be public zones to attend the future needs of the community, they will be expropriated — and the value of the expropriations to be set by the tax authority won’t be to the liking of the current owners.”

Zoning will establish which areas will be converted to public, protected land, with at least one national park envisioned for the district. The plan also emphasizes the need for pedestrian walkways, including a beachfront boardwalk, as well as bicycle paths along primary and secondary roadways for cyclists and horse-drawn carriages.

Two new access roads into Tamarindo town would bypass Villareal center (through which the main road currently runs), diverging instead from Santa Rosa on the north, and Los Jobos to the south.

Planners hope to relieve the choked congestion in the heart of Tamarindo town, and convert the tourist center into a pedestrian-only zone.

New roads would also better connect the Tamarindo airport to nearby towns. The landing strip at the airport would be expanded, and an aerial terminal built to accommodate the anticipated growth in domestic air traffic.

In Villareal, 4000 square meters of municipal land (about one acre) would house a civic complex, complete with a bus and taxi terminal, firefighters, police station, Red Cross, parks and cultural center.

Despite its grand scope, the project is still in its very early stages.

Representatives of INVU will continue holding preliminary public meetings in coming weeks to field written questions and comments from the community regarding the details of the plans.

However, the Asociación Pro Mejoras de Playa Tamarindo (Tamarindo Association) must also find another $10,000 to fund the required Environment Fragility Indices (IFAS) for non-coastal areas before it can be sent to the municipality for approval.

The IFAS are an analysis of the environment’s more fragile components, such as watersheds, resources, and endemic wildlife, which then determine the uses to which the land can be put. At the moment, only the IFAS of the coastal regions have been determined.

Once the IFAS are completed, public debate will begin in earnest, after which the final draft of the regulatory plan can be completed.

“It must be clear that although we have made a significant advance in the matter of regulation,” said Mr Amador, “the reality is that if we don’t conclude this in the coming months along with other corrective measures, there will be nothing left to regulate, as Tamarindo will suffer unplanned development with serious consequences on the landscape, the beach and within the community.”

The regulatory plan, once approved, will be implemented in stages with the input of the Municipality of Santa Cruz, MOPT, the Ministry of Health, and others.

“Given that Tamarindo will be a big city our vision of growth must be divided into stages,” said Mr Chavarría.

Arias Signs Planning Decree For Guanacaste

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By Ralph Nicholson and Zoraida Diaz
Friday, April 11, 2008

Law Seeks To Control Building Height, Density

President Óscar Arias signed into law on Wednesday a sweeping decree that will radically restrict development along the Guanacaste coast.

The decree, which sidesteps local municipalities, reins in construction in terms of height, density and minimum easements from the coastline to about four kilometers (2.5 miles) inland.

Beachfront development, up to 150 meters back from the high-tide mark, will be restricted to 16 meters (about 52 feet), which the government says could be three or four stories, depending upon building design.

The new law, known as the Decree of Territorial Organization for the Chorotega Region, is expected to be published in the government’s official newspaper, La Gaceta, within days.

Further, the government now intends to turn its attention to Puntarenas, concentrating on the central Pacific coast and the Osa Peninsula.

Jorge Woodbridge, the Minister of Competitiveness and arguably the chief architect of the proposal, confirmed they were drafting decrees for both the central and south Pacific.

“It will be faster for the other regions,” Mr Woodbridge told The Beach Times after the signing. “The decrees for the central and south Pacific will be ready within 15 to 22 days.”

He warned height restrictions in those areas may be even more stringent.

“It could possibly have less than the 16 meters allowed (in the Guanacaste decree),” he said.

Developers will have a six-month moratorium within which to operate. Any construction, provided it receives all necessary permits within the next six months, can begin under previously existing rules.

The decree has been more than a year in the making, and will stay in effect for four years, a time period that can be extended by the next government. That duration represented something of a stumbling block with the document’s negotiators. The timing had to be short enough to encourage local municipalities to come up with their own regulatory plans, but long enough to overlap a new government.

Further, Mr Woodbridge confirmed he was working with the National Technical Secretariat of the Ministry of Environment (SETENA) to prepare what he called evaluaciones ambientales estratégicas, or strategic environmental evaluations, of the most adversely affected urban centers along the Pacific coast, such as Tamarindo and Jacó.

“These are studies to reflect river basins, mangroves and other environmental fragility indicators,” Mr Woodbridge said. “This is to protect the water resources and the aquifers, which have been adversely affected by unfettered development.”

The government has identified four zones in the plan.

The first is the Maritime Public Zone, 50 meters (about 160 feet) from the high tide mark, upon which nothing can be built. The second, or Restricted Zone allows buildings up to 16 meters from the 50 to the 200-meter mark. The height allows for a three-story building, but the government says with a creative architectural design it could be four stories, provided the maximum height of the structure is 16 meters.

The third zone, is know as the Intermediate Zone, which allows heights of up to 24 meters (78 feet), which the government says can be six stories, up to 800 meters inland.

Finally the Internal Zone, which covers the next four kilometers (2.5 miles) allows for building heights of up to 24 meters (about 120 feet). The government says that can be nine stories high.

In all three building zones, construction cannot exceed 65 per cent of the property area, including car parks, swimming pools, decks and other covered external areas.

“In reality, the actual buildings allowed will have to occupy more like 40 per cent of the total area,” Minister Woodbridge said.

The decree also calls for proven availability of water, access to a public road, and environmental viability studies.

The Minister for Tourism, Carlos Ricardo Benavides, a strong proponent of the decree, told journalists Costa Rica had to protect it’s branding as a tourism destination associated with its natural bounty.

“There has been a tendency towards an accelerated housing and tourism development…and overcrowding has hurt us,” said Mr Benavides. “Urban growth has and must have limits to the way land is used.”

Minister Benavides said the decree was also in response to what he called “the municipalities’ inability to deal with the unchecked growth”.

“The municipalities have not approved the regulatory plans needed,” said the Minister. “This development obliges the municipalities to provide basic services; we demand of them potable water, sewerage systems, garbage collection services —things for which the municipalities are ill-prepared.”

Guanacaste’s municipalities have reacted generally with optimism to the decree.

Carlos Cantillo, Mayor of the Municipality of Carrillo, said the decree is extremely important for the canton.

Rosewood Begins With A Sustainable Tone
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By Ralph Nicholson
Friday, March 14, 2008

The long-awaited Rosewood hotel and spa breaks ground on a 45 hectare (112 acres) property fronting Playa Guachipelín in Guanacaste this month, but the first structures will not be concrete block and mortar but rather mild-steel and reinforced canvas.

The developers behind the Rosewood Costa Carmel, as the resort will be known, have begun building a small tent village just a stone’s throw from the ocean, but far from roughing it, the first guests will live in the height of luxury.

Eight people will be brought in to set up the three South African-built, luxury tents, each of which will have its own power and air-conditioning and include a chef, a butler and maids. Further, the inside of the tent-suites is designed to replicate a Rosewood hotel room, right down to the linen on the bed and the towels in the bathroom.

“My role is to see the tented operation reflects Rosewood standards,” said Gert F. Kopera, Director of Operations for Rosewood Hotels and Resorts, who flew into Guanacaste last week.

“That we are able to show the clients what the final product will be like on a service delivery,” he added. “The amenities in the tents will be virtually identical to eventual amenities in the hotel.”

It’s the first of many visits Mr Kopera will make to the area as he decides what to serve in the hotel’s three restaurants (which will be open to the public), where to source the produce, who can make furniture locally, and how to solve the countless other logistical problems associated with building a high-end hotel.

“That goes for the uniforms, linen, the vase on the table, everything must be sustainable,” says Mr Kopera.

“And food and beverages as well. We are looking for restaurant concepts, based on what we can deliver to perfection, even if we have to help local farmers grow to certain specifications.”

During his visit, for example, the operations manager discovered a butcher he believes can deliver sufficient meat at the right quality to allow for a meat-based restaurant.

A seafood restaurant is a given.

“Just watching what the fishermen bring in…the fish and seafood here is nothing short of astounding,” Mr Kopera adds. “I am sure that we will have 90 per cent of our food produced locally.”

The hotel complex, which is scheduled to open in April of 2010, will be designed by Three Architecture, a Dallas, Texas-based group that specializes in four and five-star hotels, resorts, country clubs and spas. It was founded 24 years ago, and has designed a Rosewood Hotel before — the Rosewood Mayakoba Resort, in Riviera Maya, in Mexico.

The project becomes the third luxury hotel to break ground in Guanacaste in the past 12 months.

The 310-room J.W. Marriott, inside the Hacienda Pinilla beach resort community has been under construction for more than a year, while the 214-room Hyatt Azulera Resort formally broke ground in Brasilito at the end of January.

But the Rosewood’s tent village, which is expected to be completed in 45 days, is not just about showing off the facilities of the 80-room hotel, rather it is part of an aggressive sales and marketing campaign which also kicks off this month.

For in the hills behind the hotel rooms dotted in front of the wide, white-sand beach will be up to 80 one, two, three and four-bedroom homes. Fifteen undeveloped residential ocean-view lots are also for sale.

This week representatives of IMI, the South Carolina-based, international real estate company in charge of selling and marketing the project, left on a tour of London, Paris, Moscow, San Francisco and southern California.

“ Russia, as an emerging nation, brings with it a growing list of millionaires,” says IMI’s Pat Cerjan. "In the World it is among the top three, along with the United States and India.”

Mr Cerjan says Europe was always part of IMI’s sales and marketing plan for Rosewood Costa Carmel, but it can’t hurt that the Euro currency is at record highs against a weak US dollar.

There’s also been interest from South Korea.

“It’s a global world now, and things just don’t come to you,” he says of their strategy. “To have international owners from all over the world, gives the village a good feeling as well.”

The single bedroom studios will sell for about $800,000. Other than that IMI still has to decide market price for the houses they will build, just as they have still to decide whether all 80 available lots will be sold with custom-built homes. Depending upon demand, some may be sold as unimproved land.

They do know the first major structure to be built after the tent village will be a bridge across one of the water courses that snakes around the property. That will allow heavy machinery onto the property during the wet season, and means they can build four model homes.

The 1400 square meter (15,000 square feet) spa will begin at about the same time as the hotel.

There will be an environmental learning center in the complex, walking trails and bike paths.

The resort has no golf course; instead the developers have negotiated a sharing arrangement with their neighbors.

Farther south, the Baltimore, Maryland-based Union Box Company, has agreed a deal for a $100 million, 110-room Ritz Carlton Hotel to be built on 800 hectares (2000 acres) in the Zapotal Valley. That project, which has direct access to Playa Guacamaya, will include a Rees Jones-designed, 18-hole golf course.

Rosewood Hotels and Resorts, which is a privately-held luxury hotel management company, has no equity in the Costa Carmel project and will lend its brand in return for a management contract. The backers of the development are Roger Hall, a developer from Boca Raton in Florida and the owner of the land, and Génesis Desarrolladores, which represents a group of investors.

 
 
   
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