BajaNomad - Loreto Bay Foundation

Loreto Bay Foundation

Phil C - 6-5-2006 at 05:35 PM

This makes for good reading... My name is Mark J. Spalding and I am the President of The Ocean Foundation, which is the US host of the Loreto Bay Foundation Fund. The Loreto Bay Foundation Fund is receiving 1% of all sales which take place as part of the Villages of Loreto Bay development in Nopolo.

I wanted to introduce myself, the foundation, and share with you its first annual report.

If you have any questions or comments, please let me know. In addition, if you would like a hard copy of the annual report, please send us your mailing address and we will send you a copy.

All the best,

Mark

About the Loreto Bay Foundation Fund:
<www.loretobayfoundation.org>
To read a copy of the Loreto Bay Foundation annual report for 2005 (this is a large PDF file, it may take a long time to load if you are not using a high speed connection):
<http://www.loretobayfoundation.org/index.php?tg=fileman&idx=get&inl=1&id=1&gr=Y&path=&file=2005+Annual+Report.pdf>
About our host:
<www.oceanfdn.org>
About me:
<www.markjspalding.com>

I ordered a copy from the website and it arrived in a few days. Not much depth in the financial report,but it seems something beneficial is being done with a realitvly small amount of money. Of $523,461 in contributions $249,192 were spent on various grants and expenses, most of which seem valid and helpfull to the town of Loreto. Hopefully the remainder of the pleged funds will appear (I think they are claiming 3Mil. in sales x 1%) and more will be done.Good Luck Loreto.

Bruce R Leech - 6-5-2006 at 06:42 PM

here we go again :?:

Capt. George - 6-5-2006 at 06:48 PM

yada,yada,yada

Paula - 6-5-2006 at 08:07 PM

I got nuthin' ta say....NUTHIN. And if I think of anything I'm gonna keep it to myself. :biggrin:

Dave - 6-5-2006 at 08:32 PM

Quote:

Originally posted by Phil C
Hopefully the remainder of the pleged funds will appear (I think they are claiming 3Mil. in sales x 1%) and more will be done.Good Luck Loreto.

3Mil in sales ain't jack and 1% of 3Mil is 30K.

Whoop-dee-doo! :lol:

Don Alley - 6-5-2006 at 09:11 PM

I think they have sales of 300 million contracted, and 3 million pledged to the foundation.

Now here is a grant that caught my eye: ten grand for "Totoaba Sport Fishing in Loreto Bay National Park study."

I'm thinking of writing the foundation to ask what's up with that.

Phil C - 6-5-2006 at 10:50 PM

Don, I thought the Totoaba study was off key too. $10,000."Seven detailed outcomes listed in the proposal. The main product will be a report." Coments were, "A rather academic style reasearch project, but with a conservation goal." Who got the 10k and have they ever gone to Loreto to study "Totoaba"? Maybe they were in San Felipe and got confused. 10k could do that. The other thing that caught my eye was "grant support and reasearch" $140k, thats more than half of all the money spent, I guess all these type programs are top heavy.

[Edited on 6-6-2006 by Phil C]

Skeet/Loreto - 6-6-2006 at 03:33 AM

Phil C:
Will Mr. Sparlding be in Loreto on June the 13th and 14th?

if so I would like an eyeball to eyeball with said mr. Spaulding/
Questions I will ask Him.

1. What is being done about the future Medical needs of the People?

2. What is the Long range plans for Water and where will it come from?

3. Have Flood Plans been made in case there is another Hurricane , such as Lisa?

4.What plans are there for Water when the next "7 year Drought " Arrives?

5.Who is the person or final Authority that disperses the "Talked about Money".

6. Name the People, Places, times of the people in Loreto that have benefitted from said Money.

I will bring my recorder and camera so that the News Media will have a chance to see and judge the Invividual/s making the Statements.

Skeet/Loreto

here is some response I got from the head honcho

capt. mike - 6-6-2006 at 06:41 AM

After i sent him a letter inquiring about a few of the issues several seem to hit on.

"Dear Mr. Goering:

Thank you for your feedback. I understand that there will always be skeptics about any large development so I am more than happy to address your concerns regarding the topics brought up in the recent Gringo Gazette articles. I am very pleased to assure you that the situation in Loreto is far more positive than the Gringo Gazette has painted it. As a developer yourself Im sure you can appreciate our dedication to preserving Baja and our commitment to sustainability. The following information comes from our team of highly qualified sustainability experts.

Regarding the treatment of our workers:

Since our Director of Mexico Operations, Bob Toubman, took on his new role with our company at the end of last year he has made the treatment of the workers and their living conditions a top priority. The scope and scale of Loreto Bay requires that we work with multiple general contractors. These companies have a total of 400 to 700 constructions workers on site at any given time. In accordance with Mexican Law, Loreto Bay Company has required all contractors to provide decent, safe and affordable housing for their workers. Unfortunately not all contractors have complied; several of the contractors have been terminated due to not improving their worker camps. In addition, we have taken the following steps to improve the situation:

Outlined minimum standards for worker housing in accordance with Mexican and United Nations standards to all contractors.
Required all contractors to provide detailed description and plans for worker housing before contracts are signed and before a contractor is allowed on site.
Worked with city officials to identify overcrowded or substandard housing situations in town.
Loreto Bay Company representatives have performed routine spot checks.
Hired a bilingual director of construction who is able to go into the field and speak directly to the workers about their concerns.
Added amenities to each camp.

Loreto Bay Company has hired Stephen Zubkoff, one of the nations top experts in affordable housing. Stephen has been a consultant on this and related issues and served as Executive Director of Habitat for Humanity. He is well qualified and tells us that we have a real challenge on our hands. Our intentions have always been to build enough housing so that those who fill the 5,000 permanent jobs that are created by Loreto Bay Company can afford to live nearby. We extended that effort to include construction workers building Loreto Bay, though they technically do not work for us, but for general contractors. However, we quickly found a very wide cultural gap. Most notably, the construction workers expressed that they did not want to bring their families to Loreto, and that they would rather have the extra pay than have us spend any additional money on better housing. We pressed the issue at the beginning but really couldnt change their minds. We finally decided that it was better to admit that our American sensibilities were not the final word on this.

There is also high turnover within our contractors, meaning that workers come and go and we often learn of overcrowding after the crisis has passed. The general contractors are not willing to participate in the cost to build worker housing, which also takes time and serviced land (both in short supply here). Finally, we are just creating our comprehensive strategy to deal with this situation long-term. Stephen has been with us just a few months and has spent this time researching the situation as well as monitoring housing conditions.

While we dont claim to have all the answers, Loreto Bay Company is committed to facilitating the opportunity for all our employees to enjoy decent, safe and affordable housing in Loreto. Here are two examples of what were doing in that direction:

There are several Government programs to assist all Mexican citizens to purchase homes. The most common is a program called Infonavit. Unfortunately the majority of the construction workers do not qualify for these programs as they have not earned enough credits to qualify for the Infonavit program. Furthermore, the contractors are not following Mexican Labor Law in the reporting of wages and this makes it impossible for these workers to ever qualify. As part of our research process, we have interviewed the majority of the construction workers and very few are interested in purchasing a home in Loreto at this time, as they are migrant workers who plan on returning to their homes. Thus we are focusing our efforts on facilitating housing for the service workers and permanent employees of Loreto Bay and the Inn at Loreto Bay. Again many of the workers do not have enough Infonavit credits so we are working with the Mexican Government to provide a rent to own program that will allow workers to rent a home until they earn enough credits and then can purchase the home outright.

Loreto Bay is currently in negotiations with the State and Ejidos to purchase land for large scale new town development that will provide not only housing but will be part of the master plan for the future growth of Loreto. This plan will include community and social services such as shops, parks, schools, etc. Additionally, Loreto Bay Company has entered into a joint venture with a local developer to build 50-75 apartments in Loreto and anticipates receiving permits and starting construction in 2006. This is an attempt to alleviate some of the pressure until the rent to own program is operational.

Regarding your concern on our construction progress:

I am very proud to tell you about the many exciting construction highlights happening at The Villages of Loreto Bay. We have sold over 600 units and have had less than five percent back out or resell, and these have been due to financial or health reasons. We admit that we are delayed in our construction due to ramp-up time and the challenges of working in a remote area. However, we are making great progress at overcoming these obstacles. Construction has started on approximately 100 homes located in four clusters of The Villages. We have over 30 homes completed, accepted and being occupied right now with 12 more closing this month and more closing next month. All completed homes now being turned over and accepted have been well received and consistently exceeding our buyers expectations.

Regarding your concern about our water situation:

I have attached the letter that FONATUR provided our company at the very beginning of our relationship, assuring us that water quantity and quality were appropriate for our development plans. The reality has been far more complicated than the letter led us to believe. Since you are in Mulege, Im sure you know that as in any desert region water is a very politically charged issue with complex solutions. That is why we brought in some of the worlds foremost experts to create and manage our comprehensive plan for water usage, which may include desalination. However, every decision we make is based on our promise to create more potable water than we use and to do so in a way that is consistent with our sustainability mission.

Here is the information I received from David Veniot, our Vice President of Sustainability and former Executive Director of Earth Day International.

We will ensure that the salt brine is diluted to safe levels by discharging it into existing sea water aquifers via deep injection wells. In this way, the brine is mixed with sea water underground, and by the time it actually reaches the open sea some distance away from shore, it will be diluted to a concentration very close to that of sea water. This technology for desalination was recommended by the Save our Shores organization in collaboration with the Monterey Bay National Marine Sanctuary. It is also recommended by the California Coastal Commission.
We will be using an existing reverse osmosis (RO) injection well desalination plan in Puerto Penasco as our model for salinity and biological testing prior to installing our own plant. The Puerto Penasco plan was the result of two years of research by a concerned community before installation.
We are also talking with the Loreto Bay Marine Park Authority and the Mexican Water Authority (CNA), both of which agree with injection well technology. Finally, we will be complying with the strict requirements of the Mexican Environmental Protection Agency (SEMARNAT) as we prepare our environmental impact assessment application for approval and permitting.

As you can see, these issues are extremely complex. Even when we have the opportunity to tell our unique full story, it rarely gets full coverage because of the complexity and length it requires. While Loreto Bay Company looks at many options for achieving our ultimate goal, we will not compromise our commitment to achieving it in a manner that preserves and enhances the natural environment.

I appreciate the opportunity to share this update with you and trust it eases your concerns.

Sincerely,

James J. Grogan"

I'd say he acquits himself fairly well. But time will tell.

Diver - 6-6-2006 at 06:49 AM

I bet if they paid american wages, they could get enough construction workers to stay there instead of crossing the border.

Phil S - 6-6-2006 at 06:58 AM

I anxiously await the "critics" review of James Grogans letter!!!!!!!!!!!

Roberto - 6-6-2006 at 07:39 AM

Quote:

Originally posted by Skeet/Loreto
I will bring my recorder and camera so that the News Media will have a chance to see and judge the Invividual/s making the Statements.

What news media are you referring to?

Osprey - 6-6-2006 at 10:37 AM

If the General Contractors don't sign up for and pay IMSS, AFORE and INFONOVIT for every worker for every day he works, The Loreto Bay company will owe huge, continueing penalties. Their statement sounds like they are some extra-legal 3rd party -- no such thing in Mexico.

They call it development

Sharksbaja - 6-6-2006 at 11:15 AM

Quote:

Loreto Bay is currently in negotiations with the State and Ejidos to purchase land for large scale new town development that will provide not only housing but will be part of the master plan for the future growth of Loreto. This plan will include community and social services such as shops, parks, schools, etc. Additionally, Loreto Bay Company has entered into a joint venture with a local developer to build 50-75 apartments in Loreto and anticipates receiving permits and starting construction in 2006. This is an attempt to alleviate some of the pressure until the rent to own program is operational.

I call it a cancer.

Skeet/Loreto - 6-6-2006 at 02:39 PM

Roberto: Ayone one with the Balls to Print it; :La times, USA Today: Sierra Club News Letter,Dallas Morning News, New York times, Wall Street Journal
San Francisco Chronicle, Oakland Tribune-Amarillo Globe-News!

Skeet/Loreto

Dave - 6-6-2006 at 03:07 PM

Quote:

Originally posted by Osprey
If the General Contractors don't sign up for and pay IMSS, AFORE and INFONOVIT for every worker for every day he works, The Loreto Bay company will owe huge, continueing penalties. Their statement sounds like they are some extra-legal 3rd party -- no such thing in Mexico.

Not so. a carefully worded contract would indemnify LB. There is such a thing as 'contract labor' in Mexico, you know. Also, shell corporations & white unions for labor issues. It's done all the time.

Roberto - 6-6-2006 at 03:57 PM

Quote:

Originally posted by Skeet/Loreto
Roberto: Ayone one with the Balls to Print it; :La times, USA Today: Sierra Club News Letter,Dallas Morning News, New York times, Wall Street Journal
San Francisco Chronicle, Oakland Tribune-Amarillo Globe-News!

Skeet/Loreto

Thanks! I was just wondering if one of your many occupations included TV reporter.

bajalera - 6-6-2006 at 04:15 PM

Well I'm shocked, Skeet! You seem to be saying it would be a good idea to involve those well-known liberal media, the NY and LA Times, etc. as well as the environmentally whacko Sierra Club.

Are you feeling okay?

Osprey - 6-6-2006 at 04:52 PM

Dave

I don't think the word indemnify fits here. That mean a lega exemption to harm or damages. Osprey is an ex insurance risk manager. I think maybe we are both wrong or unsure what might happen in this strange place but indemnify won't work when talking about who is subject to what in contracts to build --- what's done "all the time" in Rosarita will get you big jail time in La Paz.

Paula - 6-6-2006 at 06:08 PM

Quote:

I don't find anything new in Mr. Grogan's letter. The Loreto Bay website tells us of the well-educated and highly professional entourage of experts who are looking out for the environment, the workers, the buyers, the people of Loreto, and the future of the area. Mr. Grogan has repeated this in his radio interview, and in countless numbers of press releases all over the United States. It is his mantra. I have seen no hard data that builds my confidence in their skills. This is not meant to imply that they aren't honest and competent. They may well be. The problem for me lies in the perception, or definition, of what may or may not ultimately be best for this area.

{quote}Loreto Bay is currently in negotiations with the State and Ejidos to purchase land for large scale new town development that will provide not only housing but will be part of the master plan for the future growth of Loreto. This plan will include community and social services such as shops, parks, schools, etc. Additionally, Loreto Bay Company has entered into a joint venture with a local developer to build 50-75 apartments in Loreto and anticipates receiving permits and starting construction in 2006. This is an attempt to alleviate some of the pressure until the rent to own program is operational.

It is this passage of the letter that I find most troubling. I see arrogance in great measure in the assumption that Loreto Bay should influence the "master plan" for the town, and in the fact that they are buying land for "large scale new town development". Isn't Loreto Bay enough for them? Do they need to create a whole new culture to support it?

I have watched and discussed Loreto Bay development from the beginning. I do not enjoy the discussion. I lived many years in a lovely little town that has recently been "improved" by outside development. I hope such improvement is not what is in store for Loreto. We came to live here because we love it as it is.

The first paragraph in the quote box is my writing, and not part of the quote. The second paragraph is quoted from Mr Grogan's letter to Captain Mike. Some day I will learn how to make a more presentable entry here!

Paula

[Edited on 6-7-2006 by Paula]

Marie-Rose - 6-6-2006 at 06:56 PM

Paula, you expressed my feelings exactly!! I do not deny the developers their right to build, promote, and make huge sums of profit, but it makes me sad to think that this will change and affect the lives of the locals. I know that it is probably quite selfish. We go to these communities to escape what commercialism and progress have done to our communities and we hope that they will keep their "simple" lifestyle so we can enjoy the benefits whenever we decide we need a break. I find it to be quite an ethical delemna.
I see it happening around TS as well (although not in such a huge scale) and it ellicits very mixed feelings! Happy to be able to get some of the comforts of home but hoping the changes will not happen too close to our little bario!!!!

[Edited on 2006-6-7 by Marie-Rose]

Don Alley - 6-6-2006 at 07:31 PM

Last fall Loreto Bay, or perhaps the Loreto Bay Foundation, provided funding to bring guitarist Chamin Correa and his group Los Tres Cabelleros to Loreto for a concert.

Correa is famous throughout Latin America for his guitar virtuosity, and the people of Loreto were thrilled to have him perform here.

We have been to many concerts (hey, our dog is named Fillmore) and this one was truly a memorable concert, for both the artistry of the musicians and the spirit of the audience.

So whatever our feelings towards big developments, kudos to LB for doing this right.

We hope we will see more support for music, arts and culture from LB and other "gringo" entities.

Don and Paula

Marie-Rose - 6-6-2006 at 07:39 PM

Wouldn't it be fabulous to have a crystal ball to see into the future! Will the pro's out weigh the cons :?:

Paula - 6-6-2006 at 07:41 PM

Marie-Rose, it IS a diemma! A year or two ago there was a ranking, done by CNN if I remember well, of countries by happiness levels of the citizens. Mexico ranked second, and the US ranked 20-something. It isn't my desire to deny my level of material comfort to others, I just know the sacrifices invoved in the attainment of all our stuff, and that we Americans have paid a high price for what we have. And that it hasn't brought us "happiness".
So let's hope that whatever comes, the people in Baja go on as they always have, with their gentle manners and smiling faces, and their acceptance of life as it comes to them.

Dave - 6-6-2006 at 08:08 PM

Quote:

Originally posted by Osprey
Dave

I don't think the word indemnify fits here. That mean a lega exemption to harm or damages. Osprey is an ex insurance risk manager. I think maybe we are both wrong or unsure what might happen in this strange place but indemnify won't work when talking about who is subject to what in contracts to build --- what's done "all the time" in Rosarita will get you big jail time in La Paz.

Contract law is the same in Rosarito as in La Paz or DF. Only a fool would not specify as to whom is responsible for what. A sub or independent contractor that won't sign such an agreement doesn't get the bid.

Both large and small corporations form shells with zero assets that hire employees. It's standard practice throughout Mexico.

It's only the homeowner/small businessman who doesn't practice due diligence that gets stuck with the tab.

Skeet/Loreto - 6-6-2006 at 08:27 PM

Lera: I thought it would be interesting on How the news would be reported by all the Liberal Rags!
Would they spin it on the Envior Side, or the other side saying that it is ruinng the Area??
the Past:
I watched as the French came in and tried to Develop Escondido-Left with their tails between their legs-Still not Developed!

i watched as the presidente Hotel at Nopollo was built with the golf course touted as the Home of John McEnroe{for $400,000 Cash and he did not show}
Vicki Carr came and gave a Great show- It took ten years to get the First Tee Built.
The only time the Presidente was full was when the Ford Motor Co. brought in a Show and Ex. President Bush showed up for a Day.
It was also a very good place to go on Friday night for a Great Buffet with Food
Flown in from the States.
As the presidente changed Hands a "Clothes Optional Beach was created seperated by Trees. that did not work. the Hungarian Pilot was charging the few customers $50 a wack to fly over and take Pictures of Naked Women{ Not on Motorcycles].

They will come and go , but I think this time it will be somewhat successful as there is a lot more money involved, However that wil all change when the next 7 year Drought comes and a good strong Hurricane hits the Mountains!!

Two more days and I am headed your way, Remember no Politics, Religion , or Sex and if you show upriding a Motorcycle you had better have on at Least a Bra!!!

Skeet/Loreto

"Party Time!!!!!

wilderone - 6-19-2006 at 10:48 AM

"Of $523,461 in contributions $249,192 were spent on various grants and expenses, most of which seem valid and helpfull to the town of Loreto."

Actually, out of the $523,461, only $70,000 was made in grants. The rest was research, management fees, "rent" (?), travel to conferences and meetings - which apparently included a trip to Portugal and Cabo. This foundation is bordering on a sham. Now it states that, as part of its "mission", is to mitigate the impact of all the construction workers in the town of Loreto. It will purchase land, subsize home loans and provide entertainment for the workers !!!!!!!!!!! This is absurd. I find many, many conflicting statements, a lot of fluff, and, by the way, this is their second annual report - not the first. The LBF has their hands in things that is none of their business and outside the scope of the foundation's existence. It is also supposed to be an independent entity which does not exist to support LBC - says so in their first report - but this one says the direct opposite. What a farce. A waste of a lot of money. And why do they need an entire website dedicated to this. Another way for Spalding to get yet another slice of the pie.

Bruce R Leech - 6-19-2006 at 11:18 AM

Quote:

Originally posted by wilderone
"

It will purchase land, subsize home loans and provide entertainment for the workers !!!!!!!!!!! This is absurd.

Wow another hoarhouse. :lol:

good report wilderone. thanks for keeping us informed