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Family Guy
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Americans Stake Claims in a Baja Land Rush
October 26, 2003
Americans Stake Claims in a Baja Land Rush
By TIM WEINER
OPAL?, Mexico ? Slowly but surely, acre by acre, Mexico's Baja Peninsula is becoming an American colony.
"For Sale" signs are sprouting all over the 800-mile-long peninsula, offering thousands of beachfront properties. Americans are snapping them up. They
have already created communities where the dollar is the local currency, English the main language and Americans the new immigrants transforming an
old culture.
"Everything's for sale, every lot you can imagine," said Alfonso Gavito, director of a cultural institute in La Paz, the capital of Baja California
Sur, a state with 400,000 citizens and some of the last undeveloped beaches in North America. "It's like 20 years of changes have happened in three
months."
This new land rush, involving billions of dollars, tens of thousands of Americans, and hundreds of miles of coastline, is gaining speed despite the
fact that Mexico's Constitution bars foreigners from directly owning land by the sea.
Mexico's government wants foreign capital as much as Americans want a house on the beach ? maybe more. So it worked around the Constitution. In 1997,
it changed the law to allow foreign ownership through locally administered land trusts. A Mexican bank acts as trustee, the foreigner its beneficiary.
It took about four years before that new system worked smoothly. But now, most often, it does. One result has been a boom in migration, speculation
and permanent vacation. "It's human greed ? it's human nature," said David Halliburton, who owns a hotel outside Cabo San Lucas, on Baja's southern
tip, where uncontrolled growth already strains the social fabric. "The amount of money coming in here through overzealous developers and buyers is
staggering."
Baja is closer by land and air to the United States than it is to the rest of Mexico; state officials recorded more than 30 million trips by Americans
who spent well over $1 billion last year. They say they have no idea how many Americans are living in Baja today, because a certain number are illegal
immigrants who never register their presence. Anecdotal and statistical evidence suggests that the number is more than 100,000, probably far more, and
growing fast since the Sept. 11 attacks and the souring of the economy in the United States two years ago.
"Since 2001, we have seen a boom in real estate sales, and the full-time population of Americans is growing rapidly," said Tony Colleraine, an
American in San Felipe, about 160 miles southeast of San Diego. He said about one-quarter of the town's roughly 30,000 residents were Americans, many
of whom want to "get away from the regulations and rhetoric, and get out of the bull's-eye" in the United States.
In Rosarito, an hour's drive south of the United States border, about one-quarter of the 55,000 residents are Americans. "An increasing number of
Americans are moving here to escape their government's policies and the costs of living," said Herb Kinsey, a Rosarito resident with roots in the
United States, Canada and Germany. "They find a higher standard of living and a greater degree of freedom."
At least 600,000 Americans ? again, an acknowledged undercount based on government records ? are permanent residents of Mexico. That is by far the
largest number of United States citizens living in any foreign country.
Americans living throughout Baja say their new neighbors include professionals in their 30's and 40's putting down roots, not just retirees in
recreational vehicles. In Rosarito, the new home buyers include lawyers and members of the military who commute across the border to San Diego, where
housing costs are about five times higher. A pleasant house by the Pacific in Rosarito can cost less than $150,000; property taxes are about $75 a
year.
The Americans living in Rosarito set up a municipal office in April. Two members are Ed Jones, an entertainer, and Rita Gullicson, a teacher.
Americans "want to claim Baja as part of the United States, and they always have," Ms. Gullicson said. Mr. Jones finished her thought, saying, "And
now they are doing it with money."
Baja's future, Mexican officials say, lies in American land investment. The government strongly promotes foreign direct investment, which is the only
reliable source of economic growth in Mexico.
Here in the empty streets of Nopal?, the future is coming on fast. A totally American town is about to be built.
The site of a failed government-backed tourist development, Nopal?, which means "place of vipers," lies just outside the town of Loreto, founded in
1697, population 11,000. American and Canadian developers plan to build 5,000 new homes for 12,000 fellow citizens.
Their master plan depicts a particularly affluent suburb, with houses selling for up to $2 million each. The developers plan to break ground in
January. They envision a $2 billion investment over 15 years.
"People will come by the hundreds of thousands" to Baja, said one of the developers, David Butterfield. "Mexico gives you an opportunity to build
something you cannot build in the U.S. or Canada today. You cannot build great things in America today. Regulations and litigation prevent change."
There are limits to change in Baja, too. They are set by nature. It rains five inches a year or less in many parts of the peninsula. A barrel of water
here is effectively worth more than a barrel of oil, and it takes many millions of gallons to sustain a golf course, much less a suburb.
There is no drinking water in Loreto ? it is piped in from 16 miles away ? and no place for thousands of construction and service workers to live.
Many Mexicans wonder if the new community will truly be the "sustainable development" its backers promise. "I'm not sure there's anyplace in the
modern world that's sustainable," Mr. Butterfield said. "I hope we're going to create one."
Homero Davis, Loreto's mayor, supports the project, somewhat warily. "The quality of life is a moral issue here," he said. "The culture is at stake.
We don't want to be like Cabo San Lucas," where hotels and condominiums have swamped what was once a little village.
But that scale of development is precisely what Fonatur, the federal agency that promotes tourism in Mexico, has in mind for Loreto and the rest of
Baja.
Fonatur, which conceived and built mega-resorts like Canc?n, envisions marinas for American yachts, four-star hotels and fancy golf courses ringing
the peninsula in a plan called the Escalera N?utica, or Nautical Ladder, which involves $210 million in public money and hopes for $1.7 billion in
investment from developers.
"The whole premise of the Escalera N?utica is to create a land rush, and I'm not sure that's good for anybody," said Tim Means, who has lived in La
Paz for 35 years and runs a respected ecotourism outfit called Baja Expeditions.
Baja was isolated from the outside world until the government paved a road through the peninsula in the 1970's and 80's. The road connected Baja more
closely to the United States than to the Mexican mainland. That connection is deepening as more and more Americans move here. So is a sense of
remoteness, of difference, from the rest of Mexico.
"People on the mainland don't know we exist," said Doris Johnson, the daughter of a Mexican mother and an American father, who runs a hotel in Muleg?.
"They ask, `Do they speak Spanish in Baja? Do you need a passport to go there?' "
Ms. Johnson wonders what will become of Baja as it becomes more and more of an American place. "We have our own culture here," she said. "But we don't
have much influence over what's changing our culture."
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Stephanie Jackter
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Good Article
WE will wind up being the very thing that kills the thing we love. Aint that the way it goes. - Stephanie
When the goin' gets tough, the wierd turn pro
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Family Guy
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We've seen it all too may times. 
What will be interesting to see is how successful development will be between Ensenada and La Paz.
| Quote: |
Their master plan depicts a particularly affluent suburb, with houses selling for up to $2 million each. The developers plan to break ground in
January. They envision a $2 billion investment over 15 years.
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Who are they planning to sell these houses to in Loreto?
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Baja Bernie
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I just recently sold our home of 26 years in La Salina because the area is being totally taken over by a new and basically self involved tide of Norte
Americans. Million dollar homes of 6,000 to 8,000 square feet 'as' beach houses. All we have in this area is fossal water that is being drawn down
very rapidly by people who do not believe that they reside in a desert. Thought of going further south but where. We will just be overwhelmed again.
So Sad!
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MrBillM
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Sounds like the Capitalist free enterprise system working
as it should. If there is any fault to be found with what is
going on, it should be directed at the Mexican Government.
They have control of the legal system and can take whatever
measures are necessary to protect the culture and the ecology.
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JESSE
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Its sad, its incredible to me how american developers build 50,000 dollar houses in the middle of the desert, and then sell them to their countrymen
for 200,000 dollars, what is happening here is simply sad and dangerous, we run the risk of getting to a point where local people are going to start
to ask themselves "how is all this development benefiting my family and my pocket?"
For me as a local, all of this development is doing absolutely nothing positive, the only ones benefiting are the greedy developers who only see $$$.
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JESSE
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I forgot to mention, Baja people are very friendly, but 10 or 20 more years of this, and tensions and resentment can arise, making this are a not so
friendly place.
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Ski Baja
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The end of Baja
First, I agree that the Rosarito Ensenada area has been ruined by the many Americans moving here wanting to change it to what they left in their own
neighborhoods. And, they move here all paranoid thinking the Mexicans are going to rip them off. So they build fences and install security systems so
it sounds just like the dung neighborhoods they moved here from. Basically, southern California. And most of them move to a (Pink House, HOA)
neighborhood surrounded by other Americans where they feel safe.
We moved to a Mexican area because it was tranquil. Until the Southern Californians moved here en masse buying everything from everybody. Now, it is
constant gossip and drunken idiots every weekend. Fortunately, they only come on the weekends. But they all hung out in the same bars in the states
so word spread amongst these characters.
2nd, I disagree entirely with comments about "Americans" buying up anything south of Guerrero Negro. The Canadians have beat the Americans to
everything down there. Most of the communities including Mulege has a majority of Canadians. And some Europeans.
We spent time looking into the different communities and while the U.S. Media was carrying on about some rich folks getting ripped off in Punta
Banda, the Canadians were buying properties all over south Baja. And, they have thriving communities that are selling like Yaquis tacos! And guess
who's buying them all, Canadians.
Because they haven't been mislead by the U.S.Media. So, Nancy Drew would probably be welcomed because in a Canadian community, who do you think is
the butt of their jokes. And why? Well, they are a whole country away from Baja but they beat the U.S. to the punch. Or I guess it coud be called
clobber because look at Nopolo. Isn't that really a Canadian company?
I wonder what Agua Verde is going to be like after there is that many houses right next door. Quiere queso, eh? Hopefully, it will go the way of
P.Escondido and Punta Banda but I don't think so. One thing for sure, the Sierra de la Giganta will never look the same again.
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yosemitejim
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American's purchasing Mexican land
The fidecomisa (not sure of the spelling), or bank trust, has been in existence for a long time. The changes made in 1997 simply expanded the concept
to allow for long term financing from American lenders (and a very few Mexican financiers). With the recent rise in American and particularly
California home values, purchases of the TRUSTS have increased dramatically. However, the Mexican Constutional provision barring foreign ownership
will NEVER be removed because of the history of foreign land ownership.
There is a sector of Mexico that welcomes foreign ownership. However, there is a growing segment that is beginning to resent it as well. Things
could change very quickly as Mexicans are not as enamored with capatalism as are Americans.
Take Care,
Jim
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MrBillM
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Fences ??
In the strictly Mexican areas of the Cities, most of the houses, including
the parking areas, are fenced off like Maximum Security Containment facilities.
I don't think that they are paranoid about keeping the Gringos out. Must be
someone else they're concerned about.
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capt. mike
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Its not "Doris" Johnson.......
Her name is Diana. Weiner needs to get at least the names of whom he quotes right!
And.......why all the bemoaning this? the only thing constant in life is change. Adapt, adopt and get on with yours!!
I can't wait to buy in baja but for now renting is fine. I'll have neighbors, so what?
formerly Ordained in Rev. Ewing\'s Church by Mail - busted on tax fraud.......
Now joined L. Ron Hoover\'s church of Appliantology
\"Remember there is a big difference between kneeling down and bending over....\"
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Baja Bernie
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Jesse,
Sad, but I agree with you that there is relative little in all of this for the native born. You can already see the attitudes change from the old
generation to the younger who are taking over. These younger Mexicans are also the ones aliegning themselfves with the developers. And most of them
could care less about gringos or other Mexicans
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TMW
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If there isn't enough water to support the 2 million dollar homes, maybe I can come in when the owner leaves and get it real cheap. I think there will
always be developements to attract a small number of people but I can't see millions of outsiders coming in. All over Baja you see things started but
not finished, whether it's private or government funded.
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FrankO
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First thing I've ever noticed on when I'm out in the boonies is that the gate posts are the first things in. They usually start rotting a few years
later. It's kind of funny to watch time and the desert wear them down.
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Skeet/Loreto
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Hurrah!!Maybe the Americanos will take over Baja like the Mexicanos have taken over California!!
Is it possibile that all these Greedy Developers will bring billions into the Loreto Area agive people money and jobs?Has developers ever done that in
the Past.With those jobs come an increase in the Standard of living for some very poor people?
The first problem is that here is no Water for a vevelop,emt of that size. The only way to get the water is for Canada to sell it to Mexico and we all
know that Canada can only belly Ache about how bad America can be,much less do such a thing as help out Mexico.
I remember when the old Presidente was built I was there for the opening with Viki Carr.That was the only time it was full.
You Posters should know that there are a great number of people who Hate America and its great success, they ill do and say and write anything to try
to tear down the Best. Most of those people are the weaklings of our Great Society. They may survive in body but think about their minds being so full
of Hate ,The are the Losers of this world !!
Don't worry about Baja ! It will survive in spite of all the False ramblings of the New York Times and their Disinformation.
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flyfishinPam
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Why so much negativity about the Loreto Bay project?
Do you really care about the future of the people of the Baja, or are you being selfish because your "last frontier" is leaving you? The Baja is
easily accessable and so far, affordable which is why so many on this forum love it.
But who would we, the people of the Baja, be to say that WE [so far away and removed from the area in question] should prevent a new project that
will stimulate YOUR local economy and quality of life, if one were proposed in your area that is?
I posted in another area of this same forum the message that the people of Loreto want the Loreto Bay project to be a success. I own a business here
and it would sure make my life eaiser if we could have a successful project happen here for a change instead of a history of past failures. Yes, I am
selfish for this opinion, but it is repeated over and over in this town. Businesses barely making it, struggling to hang on. You have no idea how
difficult it has been since 9-11 here. I have truly been made into a survivor not unlike the Loretanos who have survived here for generations,
through natural disaster, through political disaster and diverted funding...its very diffucult to keep one'shead above water here so to speak.
Loreto Bay will stimulate this economy bringing in new money. What is here at the present time has fizzled out. The gringos that live here bring in
many products from other areas and do not purchase in Loreto, they are not helping the local economy. Loreto Bay will create new jobs, something that
is much needed, and those new jobs will require ever increasing skills- which will stimulate the need for education. Education is the key to freedom,
with it one can make changes. This is the message I am spereading to my own children, to my step-children and their friends and to my students.
Another thing that new jobs will bring are more creative, hard-working folks from other areas in Mexico. The construction boom in Los Cabos in the
early 80's lured my husband to cross the sea from Acapulco at the age of 16.
I for one, think that is is entirely possible to build a sustainable community. Loreto Bay proposes solar generated electricity, more generation than
use by the way. With the number of hours per year of photons we receive in Loreto, this is entirely possible. I believe they are also proposing a
desailization plant to generate water, and reclaimed water to use for plantings and the proposed golf course. As a business owner, a former chemist,
a mother of Mexican born children, the wife of a Mexican man; my plan is to stay here for the long term. So this project and its future is important
to me. Whatever I can do to help, promote, wine and dine, educate, help in the technology...I will. Loreto desperately needs this project to be a
success.
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Ski Baja
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Survivors
"I have truly been made into a survivor not unlike the Loretanos who have survived here for generations, through natural disaster, through political
disaster and diverted funding...its very diffucult to keep one'shead above water here so to speak." And what kind of home do you have compared to
those that have lived there for all those years? Something as unpretentious as their homes I presume.
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Ski Baja
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Converting Loreto
My main concern about populating and the capitalization of Loreto is that I am afraid it will have the same effect it had on the U.S. Family values
and Morals being sacrificed for the never ending struggle for more $$$$. Can't wait to see all those Mexican girls driving around in their Explorers
with their implants and blonde hair.
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flyfishinPam
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What kind of home do I have?
For those who know me and have been to my home, a very modest one and one that I and my husband have built and are building with our own hands.
Construction materials are expensive here so it will take a very long time to complete, if it ever gets completed. We have a palapa with exposed
concrete cinder block not yet emplastered, no windows, we live on a slope and have water delivered to our pila and pvc that runs from there to our
home, gravity fed. We also are electrified with solar electricity. I and my husband work very hard, all day long and what we have is the result of
very hard and creative work. What kind of home do you live in? And what does this have to do with the economic needs of Loreto?
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capt. mike
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right on Pam!! i'm with you! bring on
"Loreto Bay" . anything else is a lot of sour grapes. The area needs something, why not a well thought out project with real funding? See you in
Loreto. and also CJ and Capt. George.
formerly Ordained in Rev. Ewing\'s Church by Mail - busted on tax fraud.......
Now joined L. Ron Hoover\'s church of Appliantology
\"Remember there is a big difference between kneeling down and bending over....\"
www.facebook.com/michael.l.goering |
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