PROJECT DESCRIPTION

 

La Flor Del Desierto is being developed in Baja Sur California Mexico. The Baja peninsula is divided into two states, Baja Norte and Baja Sur. Baja Sur is most noted for the resort areas, beaches and golf courses. Many U.S. citizens have chosen Baja Sur to construct either vacation or retirement homes.  The climate, natural coast lines, cost of living, and proximity to the United States are the primary factors which have contributed to the development and growing popularity of Baja Sur.

 

La Flor Del Desierto is a part of La Escalera Nautica, Mexico's ambitious initiative to develop tourism in Baja California, Mexico, by building a "ladder," or nautical route, of marinas and tourism sites along the entire perimeter of the Peninsula, as well as the West Coast of the mainland.  The project will set up a network of 22 tourism ports: ten new ports to be built at Cabo Colnett, Puerto Canoa, San Luis Gonzaga, Santa Rosalillita and Bahia de los Angeles, in the state of Baja California, Bahia de Tortuga, Punta Abreojos and San Juanico, in Baja California Sur, Bahia Kino, in Sonora, and Altata, in Sinaloa; enlargement of seven ports in San Carlos and San Felipe, in Baja California, Loreto, Mulege and Santa Rosalia, in Baja California Sur, Puerto Peñasco, in Sonora, and Topolobampo, in Sinaloa; incorporation of five ports at Ensenada, in Baja California, San Lucas and Laz Paz, in Baja California Sur, Guaymas, in Sonora, and Mazatlan, in Sinaloa.

 

The Project Development:

 

The site is located sixty miles from La Paz the Capital of Baja Sur. Cabo San Lucas regarded as the best known resort community, is located approximately seventy miles directly to the south of the project site.

 

Mr. Jaime de Ia Peña Stettuer a respected businessman and Mexican citizen has acquired 4,853 hectares in Baja Sur. The site features 14.5 Kilometers of Pacific Ocean frontage.  There is also a 1,000-foot wide shallow lake adjacent to coastline, which when dredged, would operate as a safe-harbor and marina.

 

La Flor Del Desierto is being developed as a mixed use project. The project site is highlighted by a lake which is adjacent to the ocean frontage of the property. A marina will be constructed incorporating the lake to accommodate vessels of up to forty feet in length. Marina berthing will be available for long-term lease or on a daily rental basis. The focal point will be an eighteen-hole golf course, and a 250 room Hilton Garden Inn® four-star hotel with 50 attached villas. It is currently planned that the hotel will be situated as to take advantage of the ocean frontage as well as the lake and marina.  The room rates for will range from two hundred fifty dollars per night to three hundred fifty dollars per night for suite accommodations.

 

The resort will be positioned and marketed to the upscale guest. The hotel will be designed to reflect classic Spanish architecture. All buildings will be designed as two story structures which will take advantage of the abundance of land, ocean front and the lake in order to create a relaxed and secluded environment.  The hotel will feature fifty free standing villa units. Each unit will have a private soaking pool. 

 

Additional amenities shall include restaurants, both formal dining and café style. Weekend entertainment will be featured in the entertainment lounge and dinner theater. Sports amenities will include six tennis courts, fitness center, jogging path, and a large swimming pool. A full range of water sports and ocean-going attractions will also be available. These will include water skiing, jet skiing, wind surfing, para-sailing, and deep sea fishing.  The resort is also located near the site of another popular tourist activity: whale watching.

 

In addition to the amenities of the hotel, the resort will also have available a separate health spa. The spa will focus on those who wish to fully rejuvenate their physical and emotional needs. The spa will provide services catering to nutritional as well as physical fitness. Personal trainers and fitness coaches will offer a variety of fitness and exercise classes.  Additional offerings of the spa will include mud baths, mineral soaking tubs, and massage treatments. Spa programs will range from between one to three week stays.  The health spa will be available to the guests of the hotel as well as being separately marketed.

 

A planned residential development of up to one hundred free standing homes and several condominiums will be designed for the site adjacent to the lake, ocean, and golf course. The price range of the homes will be between five and seventy-five hundred thousand dollars. The condominiums will be priced from three hundred fifty thousand dollars. In the first phase, twenty condominiums will be constructed and marketed as either private or time-share residences. Residential housing to accommodate employees during the construction period, and later, for use by the hotel staff and personnel will also be established on part of the property site.

 

Recognizing the proximity of the resort to La Paz and Cabo San Lucas, an airfield with an air tower and hangers will be constructed to accommodate corporate class aircraft, as well as smaller commercial commuter (turbo prop) aircraft. The airfield will also incorporate a helipad to service an emergency medical-evacuation helicopter.  This airfield facility will allow for the future implementation of feature attractions such as air shows.

 

Given the desert like terrain of Baja, a large commercial type green house facility will be constructed for the propagation of the assorted varieties of tropical plants and trees necessary to insure the sustained quality of flora on and around the resort. A portion of this facility will be designed as an arboretum and tourist attraction. As a water conservation measure, the golf course will utilize grasses that can be sustained using a filtered salt water irrigation system.

 

Supplemental and alternative backup power generating sources will be incorporated into the development planning. These may range from biomass-generators, organic photovoltaic solar panels, and tidal turbines to windmills. A complete water works will be engineered and installed into the site to provide for waste water treatment and recycling and to supply fresh water sourced from wells as well as a desalinization plant. The entire development will be equipped with water filtration systems in order to insure safe drinking water.

 

As a tourist feature and to serve its guests, the resort will purchase a seaworthy vessel that can be utilized for ocean-going trips such as whale watching.  The resort will also purchase and maintain a “Medi-Vac” helicopter for emergency medical services.

 

Warehousing of crucial replacement parts and equipment as recommended by suppliers or manufacturers will be provided for in order to insure guests and residents of the development of a minimum level of risk to downtime associated with having to wait for replacement of damaged or failed structural or mechanical systems.

 

The Project Agenda:

 

The projected timing for the detailed design, specification, and construction of the project is currently estimated at thirty six months.

 

The general contractor that is selected to carry out the construction of the project will place all the required bonding on the project. These will include but not be limited to a completion guarantee.

 

Once the necessary permit approvals have been obtained, an aggressive pre sale program will be undertaken by the developer, of the homes and condominiums. This program will be managed in conjunction with commercial real estate organizations within both Mexico and the United States.

 

The priority phases of the project will be those components which will provide the most immediate ability for the servicing and reduction of debt. By order of priority, the hotel, homes, condominiums, health spa, and golf course will be the first to be constructed.

 

Each of the above will be separately platted as to allow for sale to a third party should that become part of the strategic planning of the project at some point in the future.

 

The following factors were considered in selecting the specific location for the project.

 

First, Mexico enjoys a solid infrastructure of 9,545 hotels and nearly 400,000 rooms.  The estimated value of this infrastructure is between 25 to 30 billion dollars. Over the last several years the country saw the construction of nearly 30,000 new international quality hotel rooms. The value of this construction was nearly 6 billion dollars. This new construction increased capacity by eight percent. Eighty six percent of this new construction was carried out in the coastal resort areas.

 

Mexico ranks seventh in the world in tourism, with nearly 20 million foreign visitors per year, generating close to eight billion dollars in revenue.

 

A study by the Mexican hotel Association and the bureau of tourism has concluded that resort operators must focus on attracting more upscale long term stay visitors to their resorts.

 

The developers of La Flor Del Desierto have chosen this location and concept as one that will distinguish the resort from the multitude of properties which are now and will in the future be competing for essentially the same tourist dollars.

 

The business model and vision is to provide an environment of exclusivity and first class accommodations where the residents and guests may relax in seclusion, while having the available features and amenities found in the more congested resort locations.