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wilderone
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A Baja golfcourse scam?
A lawsuit claiming that developer Ken Jowdy made off with $25 million that was supposed to be invested in a sprawling Mexican golf resort. The
plaintiffs in the suit, filed in Los Angeles Superior Court, include nearly two dozen National Hockey League players. They're asking for their $25
million back and another $15 million in damages.
The golf resort in question is Diamante Cabo San Lucas, a 1,500-acre property overlooking the Pacific. Two courses are planned, one designed by Phil
Mickelson and the other by Davis Love III.
http://deadspin.com/5296568/financial-scammer-robs-nhl-playe...
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tripledigitken
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Isn't that the same outfit that has plans for a course near El Rosario?
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Bajahowodd
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Exactly! The Diamante Del Mar project. The one that this latest lawsuit is about concerns property that is located on the Pacific side North of Cabo.
According to the NY Post, one or both of these projects is seven years behind schedule. The lawsuit involves the Cabo project. There is supposedly
already a warrant for Jowdy's arrest in Mexico. That sorta put the damper on working there, eh?
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arrowhead
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Real estate fraud in Mexico? Who knew?
Well, the good news is that the fallout from this and other highly public fiascos, like Trump Baja and Loreto Bay, will probably kill off what little
chances Punta Brava ever had of being a real project.
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CaboRon
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| Quote: | Originally posted by arrowhead
Real estate fraud in Mexico? Who knew?
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Cypress
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Golf is a scam.
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BajaNomad
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| Quote: | Originally posted by Bajahowodd
Exactly! The Diamante Del Mar project. The one that this latest lawsuit is about concerns property that is located on the Pacific side North of Cabo.
According to the NY Post, one or both of these projects is seven years behind schedule... |
Slight background - see my note here posted in March '07 from information I received in November '06:
http://forums.bajanomad.com/viewthread.php?tid=23281#pid2116...
[Edited on 6-22-2009 by BajaNomad]
When I was young, I admired clever people. Now that I am old, I admire kind people.
– Rabbi Abraham Joshua Heschel
We know we must go back if we live, and we don`t know why.
– John Steinbeck, Log from the Sea of Cortez
https://www.regionalinternet.com
Affordable Domain Name Registration/Management & cPanel Web Hosting - since 1999 |
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wilderone
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Legacy Properties (who is behind the Diamante del Mar project) website, lists the Cabo project, and also two US golf resorts, including one called
Laurel Cove in Tennessee. The Laurel Cove project went belly up in October 2008, and is on hold indefinitely, with the clubhouse and the usual half
finished, no homes started. They had a $121 million construction loan and the funding went bankrupt, millions in construction liens filed. El
Rosario never got started. Adios, Legacy Properties. Millions of dollars wasted again.
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Bajahowodd
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But let's not forget those folks who made a fortune in the process. Another heart touching story for capitalism uncontrolled.
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bajajazz
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GOLF IN DECLINE
I am sure I have read -- but can't recall where -- that golf as a participant (not spectator) sport is in decline in general, all over the United
States. Apparently, the time and money it takes to play a round of golf are becoming prohibitive, and I imagine the economic downturn has aggravated
this situation. If this is true, it reinforces my personal observation that developers in BCS have drastically overestimated the value of golf
courses as a means of drawing the champagne and caviar crowd to the Baja.
I believe I have also read that of the eleven golf courses in the Cabo area, only one is profitable.
Leaving aside the argument that it is insane to build golf courses that require 500,000 to 1,000,000 gallons of water a day in a desert that's already
in short supply of potable water, it would seem to me that the declining popularity of golf as a participant sport makes investment in a development
anchored around a golf course an extremely dubious proposition.
Does any developer of anything in Baja California perform due diligence in the form of market research before launching a project?
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David K
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I will see if I can find out anything Cindi...
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Dave
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Only if they use their own money
| Quote: | Originally posted by bajajazz
Does any developer of anything in Baja California perform due diligence in the form of market research before launching a project?
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Cypress
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Golf? It's like pool, but the table eats up a lot of real estate.
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dtbushpilot
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Never could get fired up enough over "pasture pool" to take it seriously.....dt
"Life is tough".....It's even tougher if you're stupid.....
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Cypress
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| Quote: | Originally posted by dtbushpilot
Never could get fired up enough over "pasture pool" to take it seriously.....dt |
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bajamigo
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| Quote: | Originally posted by arrowhead
Real estate fraud in Mexico? Who knew?
Well, the good news is that the fallout from this and other highly public fiascos, like Trump Baja and Loreto Bay, will probably kill off what little
chances Punta Brava ever had of being a real project. |
Sure hope so.
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David K
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It is sadly confirmed to be true... I was sent this video link from a good information source.
This news report spells it out as to what's going on... The El Rosario airport is mentioned (not by name): http://www.foxbusiness.com/search-results/m/23127657/nhl-pla...
Diamante del Mar in El Rosario had a concrete airport on the mesa (you can see it west of the checkpoint on Hwy. 1), a two story showroom/ guest
facility, another couple of homes, roads, and they sponsored the Baja-Rosario Cultural Festival in financial assistance for the circus tent rental,
etc.
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lizard lips
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What a sham and a shame. The price to play at a course in Cabo is anywhere from $200 to $450. As much as I play the game I would never pay that and
Cabo doesn't need another course anyway! I would pay that much to play Pebble Beach which has a lot of history as well as Augusta.
I have played El Dorado,Cabo del Sol, and Cabo Real but played for free and the courses were great.
I really don't think this will affect Punta Brava in any way. This could have taken place anywhere but because it was Mexico it just looks a little
more scam worthy to the news media.
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wilderone
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The MO for Punta Brava is no different - inexperienced developers, no loan money, huge-unreasonable building plans, need multimillionaire customers,
no easy, fast access to the property, aside from the actual location of the golf course, there is nothing to draw a millionaire resident/tourist to
the poverty ridden region, megabucks maintenance, megabucks infrastructure and amentities-the cost of which would be borne by the purchasers. Punta
Brava is being sold as residences - second homes - not gonna happen in this political climate and in the middle of a drug war arena. Would you bring
your family there? All the gullible Canadians have already bit into the LB apple, and the hockey players willing to give someone their golfcourse
money have learned their lesson. If anyone buys into Punta Brava as an investment, he will deserve to eventually lose his money as will certainly
happen because there is nothing to point to success of the project and plenty of indicators of how this scenario plays out.
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tripledigitken
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Wilderone,
You certainly point out all the negatives which I agree with.
The proponents keeping saying Tiger will overcome the negatives and bring big buck investors to the plate. Time will tell but that is putting alot of
the future success of Brava on the promise of rubbing shoulders with Tiger.
Ken
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