Puerto Peñasco Post

Interesting reads....

What I've been reading this past week...

A recap of Tianguis Turistico 2008 from Mexico Premiere.

The World Economic Forum on Latin America also was held this week in Cancun, Mexico.

An article about cost of living in Mexico from Brian Flock at Mexidata.

An article on investment in Mexico from 4hoteliers.com.

A great story about a firefighter from Surprise, AZ who saved a life in Rocky Point.

Interesting reads...

An interesting interview by Business News Americas with Claudia Velazquez, the market studies director of Softec, focusing on the Mexico real estate market.  Softec is a real estate consulting and market study firm in Mexico.

President Felipe Calderon's speech this past week submitting his new energy bill to the Mexican Senate.  The major goal of the bill is to allow state-owned Pemex to enter into joint ventures with private companies to increase capacity for deep water oil exploration in the Gulf of Mexico and to increase refinery capacity for Mexico.  Mexico currently does not possess the technology for this deep sea exploration and drilling.  As expected, the bill is running into major opposition from the leftist political parties in Mexico.

CNN International article about the same topic.

An article in the Dallas Morning News about the Mexican real estate market.  It primarily focuses on Puerto Vallarta but does relate to Puerto Peñasco.

Tianguis Turistico, the Mexican tourist promotion conference, is taking place in Acapulco this week.

A very well-written, comprehensive AZ Daily Star article about Americans turning to Mexico for health care [registration required].  This includes a discussion about U.S. health insurance in Mexico.

Interesting reads...

A few articles related to Puerto Peñasco (Rocky Point) that I read this past week...

Arizona Republic article about the continuing widening of Route 85 between Phoenix and Puerto Peñasco.

Reuter's article about the strength of the Mexican mortgage market.

Mexico Premier blog post about the different regions of Mexico.

The Arizona Republic reprints the LA Times travel article from February, instead of taking the time to send someone from their travel page to visit and write up Arizona's most popular seaside vacation destination.

Arizona Republic article about Mexican dentists (that mentions Puerto Peñasco).

Arizona Republic article giving "Tips for Rocky Point first-time renters."

ALSO:  Party pictures from Club Elixir (tip to Myaann)

Cruise Ships and Puerto Peñasco (Rocky Point)

One of my friends from Sonora Turismo sent along a few pictures from the Seatrade Cruise Shipping Convention being held in Miami this week.  A contingent of representatives from Sonora is attending due to the inauguration of the new cruise ship port at the Puerto de Guaymas - just completed in Guaymas, Sonora at the end of last year.  Guaymas is the larger town about 15 minutes from San Carlos, Mexico - a small vacation town populated predominantly by Americans and Canadians.  San Carlos is shaping up as sort of an echo market to Puerto Peñasco (Rocky Point), catering more to full-time and snowbird American and Canadian populations than to the vacation market. Guaymas/San Carlos is expected to benefit when the cruise ships start to visit due to the increased tourism.  Holland America appears to be the first to announce stops in Puerto de Guaymas later this year on two 10-day cruises originating in San Diego.

As Myaann posted over the weekend, Sonora Turismo is working on bringing a cruise ship port to Puerto Peñasco over the next several years to complement the Guaymas cruise ship port.  Puerto Peñasco is approximately 290 nautical miles from Guaymas, so is a logal extension of the route into the Sea of Cortez.   

Even more tantalizing a possibility for Puerto Peñasco is becoming an origination point for cruises leaving for trips to Mazatlan and Cabo.  This makes great sense since Puerto Peñasco is easily drivable for millions of Americans who are retiring and are looking for good vacation options.  One can imagine driving to Puerto Peñasco, staying in a hotel or resort for a couple of days and then taking off for a five or seven day cruise to Guaymas/San Carlos, Mazatlan and Cabo.

More to come I'm sure and I will keep readers updated as I find out more information about the continuing discussions surrounding this effort.

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Carlos Slim to Provide Health Care in Puerto Peñasco (Rocky Point)

Mexidata/Frontera NorteSur are running with the story that Carlos Slim's long rumored play in Puerto Peñasco (Rocky Point) will soon come to fruition.  The following is clipped from the article in Mexidata's Media Watch section:

In partnership with Grupo Star Medica, Slim's Ideal company intends to open new medical centers in Puerto Peñasco, Sonora, and in Los Cabos on the Baja California peninsula.

And more...

With its planned medical centers in Puerto Peñasco and Los Cabos, Grupo Star Medica plans to tap into a new market segment of US baby boomers who are buying second homes in Mexico. Reportedly, sales of vacation homes in Los Cabos and Puerto Peñasco increased 30 percent and 45 percent, respectively, during the last three years.

Slim has been poking around Puerto Peñasco on several recent trips trying to figure out the right way to get involved and it appears medical tourism is where he is set to make his mark.  An article in July of 2007 [subscription required] in the Arizona Daily Star had this interesting exchange between Slim and Governor Napolitano: 

Carlos Slim, who may now be the world's richest man, noted the sharply increased costs of health care in the United States, much of that borne by the federal government in Medicare costs. Slim, who owns Telefonos de Mexico, said that presents an opportunity for Mexico to become a place where retirees can come to get medical care at a much lower cost.

But that, said Slim, will require getting Medicare to cover medical procedures done in Mexico.

"I've read that many retirees are going to Singapore to get their health treatment because they save about 80 percent in health care costs," Slim said.

"This would help the U.S. in its financial situation."

Napolitano, however, said there are too many political obstacles to that.

Similarly, she said the federal government, which finances two thirds of the cost of the Arizona Health Care Cost Containment System, the state's insurance program for the poor, would never agree to paying for medical care out of the country.

But the governor said there are some things that might be done to promote a "health care region" between the two states.

For example, she said health care workers trained in one country could be allowed to work on both sides of the border. And Napolitano said plans already at work in Arizona to put patient health records into a computer database could help provide continuity of care when Arizonans decide to get treatment in Sonora.

As I have discussed before here, acceptance of U.S. health insurance in Mexico is still the key, but I would count on Slim (the second richest man in the world) to figure out a way to solve this problem (at least for private U.S. health insurance) if he truly intends to open up a health care center in Puerto Peñasco catering to Americans.  This could be another major breakthrough for the town as it is situated perfectly for easily-driveable medical tourism for Americans.  You can drive down, get your work done and then spend a few days recuperating in a resort on the beach away from the prying eyes of your friends.

As always, the caveat "Believe it when you see it" should be stated and no timelines are given, but this is positive news for Puerto Peñasco.

Full Mexidata article can be read here.  Full Daily Star article can be read here [subscription required]. 

Chicago Tribune Picks Up Puerto Peñasco Travel Article

I noticed the Chicago Tribune (which is jointly owned along with the Los Angeles Times by Tribune Co.) also picked up the Puerto Peñasco (Rocky Point) travel article that ran in the LA Times last week.  It is here and here. 

Good to see my (former) fellow Chicagoans get a chance to read about a much warmer place (Chicago is expecting their 35th measurable snowfall of the winter overnight and lows in the 20's).

Mexican Judicial Reform Advances

An important step in Mexican judicial reform happened yesterday as Mexican lawmakers agreed to a proposed amendment to Mexico's constitution that would do several things to improve their judicial system and move it further toward an American-style system.  The amendment still will need to be approved by 17 of Mexico's 31 states before being ratified, but has strong support from all political parties and President Calderon.

There are several key portions of the amendment (as reported by the Associated Press).  The first is that judges will now be able to hear oral arguments in public from lawyers, instead of relying solely on written arguments.  One of the major hang-ups with the Mexican judicial system is that trials currently take place behind closed doors and take a very long time due to the burdensome system of presenting all arguments in writing.  Oral arguments will speed up the process, thus helping with the large backlog of proceedings many courts have.  And allowing them to be open to the public will provide additional transparency that will limit corruption. [Note that Mexico does not have jury trials - judges decide everything.]

Another important provisions is that Mexicans will now have an assumption of innocence until proven guilty (something most Americans take for granted).

Finally, a more minor, but important, provision is that qualified public defenders will now replace "advocates" (who are often poorly trained and lack law degrees) during trials.

These reforms are being hailed as the most comprehensive judicial reforms in over a century in Mexico and should improve the Mexican court system over time.  Other provisions in the amendment are meant to help Mexico deal with criminals and drug gangs - by toughening some of their laws and procedures.  It should also be noted that in order to get the amendment through the Mexican Congress, a provision allowing warrantless searches of homes in exigent circumstances was stripped from the amendment.  Human rights groups had strongly objected to these provisions.

The AP article on the amendment can be read here.  A more comprehensive article written by the New York Times can be read here.

Las Conchas Resorts Infrastructure & Desalination

I promised last week to provide some additional details about the infrastructure systems that have been completed by a group of developers in the Las Conchas area [Disclaimer: My development group is part of this effort]...

In late 2006, a group of developers owning land in the area directly behind the legacy Las Conchas area (on the north side of Las Conchas Boulevard as you enter the guard gate) formed an infrastructure association to privately fund installation of offsite infrastructure to supply utilities to these undeveloped sites.  The group goes by the name Unión Desarrolladores Turísticos de Puerto Peñasco (UDTPP)

The UDTPP worked over the last year to privately fund, build and install a 1500 residential unit capacity desalination system to provide freshwater to member developer's land, a sewage treatment plant that features an environmentally-friendly gray water return for landscape irrigation, all electrical installations to each parcel of property and roadway improvements - including paving the entrance to Las Conchas.  The first phase of these efforts concluded in late 2007 when the systems all came online.  They are now being utilized by both Corona del Sol and Marbella (which have delivered their first phases of condominiums) and will be soon utilized by Lindavista (which is expected to deliver their first units in the coming months).  Several other parcels of land running along this strip bordering Las Conchas Boulevard also will utilize these infrastructure facilities over the coming months and years. 

Agustin Cortes, who owns most of the land in the area, was instrumental in founding the UDTPP and has contributed additional funds to an effort to beautify the main entrance off of Fremont Boulevard leading into Las Conchas (including paving a boulevard and other aesthetic touches).  Mr. Cortes has also established a conceptual master plan for the land he owns in the area, which will be named "Las Conchas Resorts."  Las Conchas Resorts is anticipated to eventually include additional residential areas, a golf course, shopping and other commercial areas, hotels and entertainment options.  Visitors to Puerto Peñasco (Rocky Point) in 2008 will start to see part of a marketing campaign promoting "Las Conchas Resorts" when they visit.

A particularly important point about these efforts is that by installing these infrastructure systems privately, the UDTPP has taken proactive measures to ensure that its members - and the eventual residents of their developments - have long-term assured access to some of the resources that are becoming more scarce as Puerto Peñasco grows - particularly fresh water.  This alleviates some of the burden on the city to provide this support to developers.   I have provided a few pictures of the infrastructure facilities below.

[Note: I have been asked several times about these efforts in relation to the Las Conchas Homeowner's Association desalination efforts and I should make clear that they are entirely separate systems.  The Las Conchas HOA is in the process of contracting for and building their own desalination facility to supply their member homes, as you can read here.]

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Taking the Salt Out of Las Conchas in Puerto Peñasco (Rocky Point)

There was a short article [Registration Required] in the Arizona Daily Star today about the Las Conchas Homeowner's Association signing a contract with Aguamex to build a desalination facility in Las Conchas to supply water to the nearly 600 homes currently in the area.  This has to come as a relief to many, as the water situation there has been tenuous for the last year.  And I know it has taken several years of effort for the HOA to get to this point (I won't even attempt to rehash the history of trying to bring desalination to Las Conchas on here).  So congratulations to Las Conchas and hopefully desalinated water will be flowing for the area by the end of the year.

In the meantime, the Union de Desarrolladores Turisticos de Puerto Peñasco (UDTPP), the infrastructure authority formed by the developers building condos in the newly designated "Las Conchas Resorts" area, has just completed a large desalination plant directly behind Las Conchas.  This desalination facility has the capacity to supply over 1,500 residential units and in the near term will be utilized by Corona del Sol, Marbella and Lindavista.  So, apparently, there will soon be two separate desalination facilities in the Las Conchas area.

I will write more about the UDTPP and its newly completed infrastructure this week for those who are interested.

A couple of quotes from the article are after the jump...

Puerto Peñasco (Rocky Point) Infrastructure Improvements

Defrente has a good article this week about anticipated investment in infrastructure in Puerto Peñasco (Rocky Point) during 2008.  The highlight of the article is that Mayor Renteria has apparently secured Federal funding of just over $9 million USD to continue paving streets in town.  It is anticipated that by the end of 2008, up to 40% of the streets will be paved - a major improvement over the estimated 10-20% now paved.  Sidewalks will also continue to be installed.  Paving, along with the other measures mentioned in the article, will improve both the aesthetics of the city for tourists and livability for the local population.  I especially think the pavement will cut down on much of the dust pollution that exists in the town (and clings to everything everywhere).

There is also mention of the aesthetic improvements that are to be made to the facades of buildings in the Old Port area to give it a more uniform and inviting look for tourists.  This project was being discussed about eight months ago in the developers association meetings, but I wasn't sure it was still in the works.  It appears to still be in the plans.  If it is undertaken, expect the Old Port to be spruced up significantly over the next couple of years to create a more inviting central shopping and commercial destination for tourists.

The full article can be read here.

Life Improving for Mexican Citizens

A good article in the Arizona Republic today highlighting the changing economic situation in Mexico for many Mexican citizens.  It highlights job creation, a stable economy, the emerging middle class and the booming real estate market.  The article can be read here.

Kicking Off 2008 in Puerto Peñasco (Rocky Point)

After a brief hiatus, I am back to posting and hope to be able to continue to provide some insight into the business and real estate communities in Puerto Peñasco (Rocky Point), Mexico. Not a lot has happened over the last month as much of Mexico goes on an extended holiday break during the Christmas/New Year’s season. So for those of you keeping close tabs on the construction progress of your chosen condominium community, don’t expect to see a lot of change from the early part of December until now. About Wednesday of this past week, the town started to bustle again and businesses were reopening after the break.

While I was in Puerto Peñasco this week, I did notice several condominium developments starting to take shape going into 2008. Tessoro (located at the end of Las Conchas) has finished their foundation work and is putting up its steel structure. Corona del Sol (in the Las Conchas Resorts area) has delivered their first phase and has started construction on their second phase. Lindavista (also in Las Conchas Resorts) is finishing their common area and appears poised to deliver their first phase in March.

In Sandy Beach, Sonoran Sky has delivered their entire project in record time. I also noticed that the site for the Marriott Hotel being put in by Grupo Questro as part of “Peñasco Bay” (next to Esmeralda) has been surveyed and staked for excavation work to begin. Having a major hotel chain in Puerto Peñasco will be helpful as hotels tend to have extended promotional networks and will bring more visitors to Puerto Peñasco from places other than Arizona (a key to broader development in Peñasco). Marriott’s presence will also be important in the continuing development of international commercial flights into Puerto Peñasco, as the Puerto Peñasco international airport readies for operation in 2009 and flights between the U.S. and Puerto Peñasco increase in number.

On the commercial side of things, a couple of new restaurants have opened in Sandy Beach. Sonoran Sky has opened their restaurant which has large windows looking out onto the beach. Also by the entrance to the Sonoran Spa and Sonoran Sea resorts, a new restaurant/bar named Chango’s has opened. These restaurants will provide some additional options for vacationers staying on the Sandy Beach side of town (I haven’t tried either yet).

In town, we have regularly been going to Capone’s Pizzeria in Mirador (on Sinaloa past Reggie’s and the old Best Western) and it has become quite the popular hangout pretty much every day of the week. I have been seeing a lot of families there for lunch and dinner and then a younger crowd later in the evening. It’s also a good place to catch an NFL playoff game or college basketball. I recommend people check it out. Opening in the new Mission del Mar commercial plaza by the entrance to Las Conchas Resorts is Blue Buddha, a Spanish tapas and paella restaurant/lounge. Haven’t had a chance to try this out yet, but I have talked to the owners (who are from Scottsdale). They are aiming to create a casual lounge environment similar to something you might see in North Scottsdale. The interior is well done and hopefully the food matches the environment. I expect to see the Mission del Mar plaza fill up pretty quickly with some of the commercial services needed in Puerto Peñasco. Various shopping options, clothing stores, medical services, food shops and other stores are expected to go in here.

Finally, on the way into town, visitors will notice a good-sized new commercial plaza on the west side of Benito Juarez receiving some finishing touches. This plaza will be anchored by a grocery store with other shops surrounding it. It will provide vacationers on the way into town a good place to stop and grab supplies for their stay.

I encourage everyone to start planning and booking their trips to Puerto Peñasco in 2008 to see all of the latest developments in this growing resort destination!

Article about President Felipe Calderón

One of the things I mentioned in my article yesterday in the Republic was that President Felipe Calderón has had a good first year in office, forming alliances with the opposition party and keeping the economy on track despite the U.S. economic slowdown.  I read a well-written article today in the Latin Business Chronicle which details much of President Calderón's successful first year in office.  I encourage everyone interested in investment in Puerto Peñasco (and Mexico in general) to take the time to read it.  It can be found here.

The Reality of Rocky Point (Puerto Peñasco) - Article in AZ Republic

Today, the Arizona Republic published the article I wrote about “The Reality of Rocky Point,” busting some of the negative myths about purchasing property in Puerto Peñasco (Rocky Point), Mexico. They also included several tips I give for ensuring safe property purchases in Puerto Peñasco. The main article can be viewed online here, but I haven't been able to find the tips on proper purchasing in the online edition.  So if you are in Puerto Peñasco today, have a friend in Arizona purchase a paper to see the entire section.

The article appears on page V3 of the Viewpoints section of the Sunday, December 16, 2007 edition and is on a full page accompanied by additional letters to the editor from Republic readers telling their stories about positive buying experiences in Puerto Peñasco. The letters can be viewed here.  A picture of Sandy Beach accompanies the article with the caption reading “A dinner-cruise vessel sails out of the old harbor past new condos in Puerto Peñasco, Sonora. The city, popularly known as Rocky Point, is a growing, safe place to enjoy a laid-back lifestyle that includes fishing, having fun and eating seafood.” Quite a departure from the earlier articles in the Republic that mischaracterized the town.

It would have been nice to be on at least the front page of the Viewpoints section (or even on the front page of the entire newspaper like the original article), but it is helpful that the Republic allowed us this forum to spread the positive word about what is going on in Puerto Peñasco and how to safely invest in Mexico.

Good Daily Source for News About Mexico

One of the first entries I posted on Puerto Penasco Post was providing several good English-language news sources I use to keep up on news and politics in Mexico.  Recently, I have been reading a good daily news brief provided by Ana Maria Salazar on her blog called "Mexico Today."  She provides six to ten daily news shorts about the events of the day around Mexico.  Ana Maria served in various capacities generally focusing on Latin American for the Clinton administration and now hosts two radio shows named "Imagen News" and "Living in Mexico" which are broadcast nationwide across Mexico in English.

Meeting with AZ Republic about Puerto Peñasco (Rocky Point) Articles

As I mentioned a couple of days ago, the Arizona Republic agreed to sit down and listen to the concerns of many about the articles appearing in the Republic earlier this week.  The meeting was held last night between several major Puerto Peñasco developers, the Sonora Secretary of Tourism, several members of the Republic's editorial staff and the writer of the articles.  I was invited to attend as an American developer working in Mexico and spoke on behalf of the developers in Las Conchas.

It was a productive meeting and gave our side of the table the opportunity to express our concern with how the article was written and to speak about its potentially far-reaching negative effects on the real estate market in Puerto Peñasco.  We made it clear that it was an important article to write and that it was well researched, but that we felt it was irresponsibly written to broadly and incorrectly characterize Puerto Peñasco as a place in which it is not safe to invest.  We indicated that a story written the way it was has the potential to actually cause more financial harm to the thousands of Arizonans with financial interests in Puerto Peñasco than any investment losses already incurred in North Beach. We also had the opportunity to further explain many of the positive development in Puerto Peñasco - such as new licensing rules for realtors, new commercial infrastructure such as the coastal highway and international airport, and new services such as flights between LAX and the current Puerto Peñasco airport.  Finally, we had a chance to talk through all the protections that are currently available to buyers for their investments - such as the fideicomiso (bank trust), U.S. title insurance and U.S. mortgages.  These safeguards have all been developed in cooperation between businesses and institutions on both sides of the border in order to allow Americans to safely invest in Puerto Peñasco and are now used almost universally (as opposed to the time when the problems in North Beach began).

For their part, the representatives of the Republic indicated that they are interested in the positive stories and that they have and will continue to report both the good and the bad when appropriate.  They also indicated that they would consider printing a response from our groups in the reader response section of their newspaper.  I will let you know when that is available.  The writer of the article also separately expressed to me by email in advance of the meeting that in future articles about this topic, he would work to make more clear the distinctions between a problem area such as North Beach and the rest of Puerto Peñasco.

I think it was a good meeting in that it established some additional lines of communication between the Republic staff and representatives of Puerto Peñasco and Sonora.  These contacts are important because Republic staffers will be able to more quickly and accurately vet future stories for accuracy.  We were also invited to directly submit all of the good news about the market to them for consideration as articles.   

Everyone agrees that the problems in North Beach reflect badly on the market and it is appropriate that the Republic reported on them.  The important point to note about this whole episode is that these problems are isolated, have been known about for a long time and are easily avoidable by American condo and land buyers by following the appropriate steps.  There are thousand and thousands of Americans who have invested safely, securely and profitably in Puerto Peñasco over the last 10 years and that number will continue to grow rapidly as the area matures into a world-class vacation destination.

Reader Responses to AZ Republic Articles

I have collected a sample of some of the hundreds of letters sent to the Arizona Republic in response to their articles published recently about Puerto Peñasco (Rocky Point). They appear after the jump. Click below to read.

Update on AZ Republic Article about North Beach

Obviously there are a lot of people in Puerto Peñasco (Rocky Point) and Arizona who are understandably upset about the broad generalizations in the article published in the Arizona Republic on Sunday about the North Beach land dispute. Almost universally, the response has been that the story is an important one to be covered because the North Beach issue needs to be resolved, but it was poorly written to make all of Puerto Peñasco appear to have these title problems (it doesn't). Many people from the Sonoran governmental level on down have written letters to the editor to express their disappointment that the Republic took a land dispute (albeit a significant one - but still not that uncommon even in the U.S.) and unfairly turned it into a sensational "don't invest anywhere in Rocky Point" article.  The Republic putting up a forum today specifically to discuss "horror stories about investing in Mexico" also did not go over well with the people I talked to.  Interestingly enough, every one of the commentators on the forum spoke of very positive experiences, encouraged people to keep investing in Mexico and scolded the Republic for its irresponsible article.  Good support from informed investors.

I have confirmed through several sources that the editors at the Republic have agreed to meet with representatives from the Sonoran government and a group of developers from ADITURPP (the Puerto Peñasco developer's association) on Thursday afternoon this week to discuss the article and its effects and what can be done better in the future for more accurate and concise reporting.  So hopefully there will be some progress in correctly portraying Puerto Peñasco in future articles and in making any amends necessary for this article.

Mary Snyder at Puerta Privada is also collecting positive Peñasco investment experiences and letters to the Republic editors about the article and has requested that readers of this blog send her copies of letters they have written or thoughts they wish to convey to the Arizona Republic about this matter. She will compile these to be presented to the Republic at the aforementioned meeting. You can email these to her at privadasales@hotmail.com under the subject heading AZ Republic.  I encourage everyone to contribute.

My Letter to AZ Republic in Response to Sunday's Puerto Peñasco (Rocky Point) Article

This article about Puerto Peñasco (Rocky Point) in Sunday's Arizona Republic was hard to miss. I am posting a letter below I wrote to writer Dennis Wagner in response to his article. It is a bit long, but worth reading for some clarification to his article.

Dear Mr. Wagner:

I want to thank you for your article Sunday about Rocky Point in the Arizona Republic. It was the most thoroughly researched article I have seen to date about the North Beach litigation (which many of us locally in Puerto Peñasco have know about for quite awhile) and I commend you for taking the time to work to get several angles to the story. Many of the articles or news reports I read or see about Puerto Peñasco are usually pretty quick and dirty where it is apparent the reporter hasn’t taken the time necessary to properly research the issue (pretty easy to do when 200 miles away often with a language barrier). So thanks for doing the extra leg work on this report. I have heard various people grumbling about the legal issues in North Beach for awhile now, but the rumors and innuendo about what was really going on far outpaced any facts. So hopefully your article sheds some additional light on the dispute for people who have limited access to this type of information, gives a voice to people who feel slighted and helps serve as a catalyst for dialogue and a settlement between the parties to the lawsuits (and/or causes the Sonoran or Mexican government to try to step in and mediate the issue). Sometimes it takes a bright spotlight on a problem for it to be resolved.

I am, however, disappointed that you failed to make a better distinction between the North Beach development area and the rest of Puerto Peñasco, particularly in the first several paragraphs of your article. I understand that part of writing newspaper articles is creating a hook to get people to read the rest of the article – but I think the title and first paragraph in particular should have clarified that this dispute is an isolated incident in one small area of Sonora and not a widespread problem. I also think more attention should have been paid throughout the article to letting readers know that most of the land in Puerto Peñasco does not suffer from the legal disputes in North Beach (problems which frankly also occur in the U.S.), and to better emphasize that thousands of American investors have made safe, secure, legal and profitable investments in Peñasco real estate which are not in any jeopardy. While you occasionally threw in a reference to these successes and included a sidebar about property buying guidelines, I think the article unnecessarily broadly generalizes what is an isolated (but admittedly important) legal dispute.

While I would like to give Republic readers more credit, I suspect that many Americans after reading your article today will be tempted to not take any chances and to forego a potentially profitable investment in Mexico despite the safe and simple ownership rules for Americans. As you know, there are many Americans with financial interests of varying sizes in Puerto Peñasco. Negative articles in such a widely circulated Arizona newspaper without the balance of positive articles about the area have the potential to cause collectively as much or more financial loss for Americans as the disputes happening in North Beach today - due to a loss in investor and buyer confidence in the area.

So I hope that you also take the same time and effort to cover many of the extremely positive developments in Puerto Peñasco, including the strong commitment by the state and federal governments to building Puerto Peñasco into a world class vacation destination, development of the new international airport, the new coastal highway, commencement of commercial air service to Los Angeles International Airport, new licensing rules for real estate agents, a renewed commitment to the commercial tourism infrastructure of Peñasco by local developers and the local government, and the other strong vacation market fundamentals that will propel Puerto Peñasco through the infant stages of a sustainable 25 year growth period. Puerto Peñasco will grow steadily over the years hand-in-hand with Arizona and I hope the Republic commits itself to objectively covering this important resort town to the south – through both its growing pains and its successes.

I hope you will stay on top of this particular story to flesh out additional details (of which I know there are many) - especially from governmental officials and the Mexican courts. And I trust you and the Republic will treat any favorable resolution of the situation as news that is worthy of receiving the same type of publicity and placement as your article today. I would only request that you better clarify the limited scope of this particular dispute in future articles and work to better reassure current and future American investors that if they follow proper procedures and do their due diligence, their investments in Puerto Peñasco will be safe. For more information about the many positive developments in Puerto Peñasco, I invite you to visit my business, tourism and real estate blog at www.puertopenascopost.com and I would be more than happy to assist you in collecting additional information about the many positive developments in Puerto Peñasco.

Please share my thanks and concerns with your editors and best of luck as you pursue these stories.

Best Regards.

CEDO in Puerto Peñasco (Rocky Point) Wins Award

As part of National Conservation Week in Mexico, the Centro Intercultural de Estudios de Desiertos y Oceanos (CEDO) or the Intercultural Center for the Study of Deserts and Oceans, located in the Las Conchas area of Puerto Peñasco (Rocky Point), received a prestigious award recognizing their group as the top non-governmental organization working for nature conservation in all of Mexico.  The Arizona Daily Star has the full story here.

I think CEDO is often overlooked by newcomers as an important part of the cultural scene in Puerto Peñasco.  So I would encourage visitors to take the time to contact them through their website and go visit their center in Las Conchas.  In particular, I think this is a good cultural activity for everyone who feels there aren't that many options other than the beaches in town.  I know CEDO is more than happy to teach visitors about the diverse species in the Sea of Cortez and the surrounding desert.  You can read more about their activities, tours and events here and here.

CEDO is also in the process of a fundraising drive to raise money to secure title to their land in Las Conchas.  There was a recent title dispute between their organization and neighboring landowners that was settled.  However, as part of the settlement CEDO needs to raise money to help pay to secure their title.  So I would encourage tourists and locals not only to visit, but also to donate to CEDO's Property Rights Fund.  More information can be found here.

Lukeville Border Crossing Expansion Announced for Puerto Peñasco (Rocky Point)

Big news coming out of the Arizona-Mexico Commission Fall Plenary Session taking place this weekend in Ciudad Obregon, Sonora.  Arizona Governor Janet Napolitano announced that the Arizona Department of Transportation has agreed to partially fund expansion of the border crossing in Lukeville, AZ to help handle the vacation traffic traveling from Puerto Peñasco (Rocky Point) back home to Arizona on weekends. ADOT will help fund two additional processing lanes, bringing the total to six lanes (including one commercial lane). Funding will be contingent on additional private money being raised from Puerto Peñasco developers and businesses, which is expected to be secured.

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Proposed Scenic Corridor in Puerto Peñasco (Rocky Point)

Recently plans have been announced for a $50 million USD scenic corridor that will connect the Malecon/Old Port to Mirador with landfill and a new boulevard around the seaside edge of Whale Hill.  This is exciting news for Puerto Peñasco. One of the difficulties experienced by tourists and residents alike is the lack of continuity across the town's tourist districts. Currently, visitors must travel all the way around Whale Hill from Old Port to get to Mirador, the other main entertainment district in town. This interruption in public tourism spaces has stunted the growth and redevelopment of both areas and presents problems with traffic flow in the city.

Not only will this new boulevard around the sea side of Whale Hill connect the two main tourism/entertainment districts, it will also create an opportunity for additional tourism spaces, featuring restaurants, hotels, bars and public gathering areas along the new boulevard.  This proposed area has the potential to become the central tourism zone for Puerto Peñasco.

According to my sources, money has not yet been appropriated for this ambitious project and therefore no start date has been set. It remains to be seen where this money will come from, but my sense is it will be primarily private development money.  So like most large projects proposed in Puerto Peñasco, I wouldn't get too excited about it until the day when machinery is actually at the site and working.  Nevertheless, this proposal shows forward thinking on the part of government officials in Puerto Peñasco and Sonora and it is good to see these types of creative projects proposed.  If it becomes reality, it will be a great boon for the city.

I have obtained the presentation showing graphic renderings and conceptual designs of the proposed project. You can view it by clicking below. It is a large file so will take a bit of time to load.  I encourage everyone to take the time to watch it.

Play Presentation

Banco Wal-Mart Someday Soon in Puerto Peñasco (Rocky Point)?

Wal-Mart reportedly hasn't yet settled on where it is going to build in Puerto Peñasco (Rocky Point), but multiple sources say it is eventually going to put a store in the area.  News out yesterday is that Wal-Mart de Mexico SAB has opened up consumer banking branches in four of its Wal-Mart stores in Mexico and is planning on eventually rolling out branches in many of its stores across the country.  The idea being to provide bank accounts to Mexicans who don't currently have them because of the high fees the major Mexican banks charge and minimum balance requirements that many cannot meet.

Presumably when Wal-Mart does take the leap and opens up a store in Puerto Peñasco, it will include a Banco Wal-Mart branch that will provide low-cost consumer banking competition to the other banks in town.

So capitalism is alive and well in Mexico and Wal-Mart is a big part of the picture.  For anyone worrying about Banco Wal-Mart stepping on the toes of locally owned banks - don't.  All the major banks in Mexico are owned by powerful international banking conglomerates such as Citicorp, Bank of America, Scotiabank, HSBC and BBVA.  So the result of this new venture by Wal-Mart will probably be current Mexican banks losing some market share and needing to contemplate lowering their rates to maintain their account and deposit levels - thus benefitting the consumer, particularly low income Mexicans.

The full Bloomberg article can be read here.

New Tourism Police in Puerto Peñasco (Rocky Point)

I received word today that a special branch of tourism police is being designated this week in Puerto Peñasco (Rocky Point).  I don't have more details other than that it will consist of 10 patrol cars (not sure whether they are state or local police).  I am working to find out more and will provide additional details when they are available.  There is a ceremony this afternoon to inaugurate the new branch.

This is a step in the right direction to help control some of the recent issues the town has had with police collecting bribes from tourists.  It is one of the reforms I previously called for in my post on police corruption that you can read here.

Confirmation of Flights to LAX from Puerto Peñasco (Rocky Point)

Thanks to Mary Snyder from Puerta Privada for heading out to the Puerto Peñasco (PPE) airport yesterday to confirm the Aeromexico Connect flights to LAX actually happened (it's sometimes a necessity in Peñasco to confirm these things with a trusted set of eyes).  Mary sent me this picture of the airplane.  Looks like they are flying the Saab 340 and haven't yet had a chance to repaint the planes with the new Aeromexico Connect colors and logos.  The plane holds 33 passengers.

Aerolitoral now Aeromexico Connect

To clear up any confusion about the flights between Puerto Peñasco (PPE) and Los Angeles International (LAX), the flights were scheduled to begin on October 23rd.  The date was pushed back to tomorrow (the 30th) by Aeromexico (Aerolitoral's corporate parent) due to the recent sale of Aeromexico to Banamex.  The sale caused some short term organizational turnover that delayed flights commencing by a week. 

In connection with the sale, Aeromexico has announced that the Aerolitoral name will no longer be used and Aeromexico's regional service will now carry the name Aeromexico Connect.  Flights can be booked on Aeromexico's website.  This is a good development for promotion of the flight as the Aeromexico name is much better known in the western hemisphere.  And it also consolidates operation of the HMO-PPE-LAX routes under a major carrier's name.

A note that Aerolitoral's website that I have linked to several times in past posts is no longer up and running.  Also a reminder that passports are required for flights between LAX and PPE.

Flights! LAX to Puerto Peñasco (Rocky Point)

Saw a beautiful thing today (while sitting in my living room on the internet).  I went to Expedia.com and did a search for a flight from LAX to PPE on Tuesday, October 30th.  It came back with a ticket ($176 one-way - which includes taxes and fees) on Aeromexico (operated by Aerolitoral).  To complete the round-trip coming back on November 4th totals $352.  If you book directly through Aeromexico's website, you will save $8.  There are probably start-up promotions that are happening but I do not have information on that yet.

L.A. Press Conference Announcing Flights from LAX to Puerto Peñasco (Rocky Point)

The press conference announcing Aerolitoral flights from Los Angeles International (LAX) to Puerto Peñasco (PPE) that begin on October 23, 2007 and will fly three times a week will be held on October 24, 2007 at The Westin Los Angeles Airport Hotel at 10 am with representatives from Aerolitoral (Aeromexico), ADITURPP and Sonora Turismo present.  I have uploaded to Youtube the promotional video that will be shown at the press conference.  Following is the video.

Confirmation of Flights to LAX from Puerto Peñasco (Rocky Point)

I spoke with the director of our developers association this morning and she indicated that the Director of Planning at Aerolitoral has confirmed that the Aerolitoral flights between Puerto Peñasco (PPE) and Los Angeles International Airport (LAX) will begin on October 23rd and will run on the schedule I previously posted here.  A press conference will be held in Los Angeles on October 24th to publicize the flight.  The Aerolitoral commuter jets carry 33 passengers.  I will post more information as it becomes available.

Puerto Peñasco (Rocky Point) International Airport Update and Pictures

A friend provided me some pictures of the new Puerto Peñasco (Rocky Point) international airport during the Border Governor's Conference a couple of weeks ago.  As you can see, the runway is complete and striped and was used for parking jets during the conference.  Governor Bours reportedly landed his plane at the airport for a dedication with Mayor Renteria, and other conference attendees used the airport as parking for their jets.

My source indicates that "the new airport will be available to commercial operations in the first quarter of 2009. Aeromexico Connect [Aerolitoral] will move its current operations at the Municial Airport (PPE) to the new instalations and probably new routes to both Mexico and the US will follow; there are several airlines that are looking at this new market."   So commercial airline operations to Hermosillo, Los Angeles and soon Las Vegas will ramp up using the Puerto Peñasco (PPE) airport as I have written in previous posts here and here and will eventually shift to the international airport as demand dictates.  Good news for the future growth of Puerto Peñasco.

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Breaking News - Flights from Puerto Peñasco (Rocky Point) to Los Angeles (LAX) to Begin

I just received confirmation that the Aerolitoral flights from Puerto Peñasco (PPE) to Los Angeles International Airport (LAX) have been approved and are tentatively scheduled to begin October 16th or 18th (following some final paperwork).  This is great news for Puerto Peñasco (Rocky Point) as the town is finally connected to flights through an international airport.  Visitors are now able to fly into Puerto Peñasco from anywhere in the world.  This will greatly expand the breadth of tourists in town and will be a big factor in the continuing growth of Puerto Peñasco into a world-class vacation destination.  Next on the list for Aerolitoral are flights to Las Vegas (LAS) - which should be coming soon.  See my previous post here for more details about Puerto Peñasco's airport status. 

Flight times are tentatively scheduled as follows:

Tuesdays, Thursdays & Sundays
Depart Hermosillo (HMO) to Puerto Peñasco (PPE) - 9:00 AM
Arrive PPE - 10:00 AM

Depart PPE to Los Angeles International (LAX)- 10:40 AM
Arrive LAX - 12:10 PM

Depart LAX to PPE - 1:30 PM
Arrive PPE - 3:00 PM

I do not have information on the final leg of the flight, but I am assuming the last flight from PPE to HMO will leave around 4:00 PM and arrive in HMO at 5:00 PM.  A reminder that passports will be required for U.S. citizens flying on the flight between PPE and LAX.

A big thanks to the local developers group, ADITURPP, and all the members who were able to contribute to providing a temporary subsidy to Aerolitoral to get these flights started.

No "Deadly Amoeba" in Puerto Peñasco (Rocky Point), Mexico

In case you were wondering, there is no deadly amoeba in the beautiful Sea of Cortez (Gulf of California) or on the sandy beaches of Puerto Peñasco (Rocky Point).  The amoeba exists in warm freshwater (such as the sad tragedy documented at Lake Havasu), but not in saltwater (such as we have in Puerto Peñasco).  So enjoy the great fall season in Puerto Peñasco and enjoy the beaches!

Good News for Mexican Secondary Mortgage Market

HSBC Mexico announced yesterday that it sold $321 million of Mexican mortgage backed bonds, the first non-governmental sale of Mexican mortgage backed securities since the subprime meltdown a couple of months ago in the U.S. The Bloomberg article I am posting below points out something that distinguishes Mexican mortgages from U.S. subprime mortgages - they are much less risky due to the tight controls banks place on issuing credit in Mexico and, for Infonavit loans, the required direct employer contributions. See my post on the Mexican mortgage market and the follow-up discussion and clarifications on the market from several industry leading mortgage brokers in Mexico.

The continued growth of the Mexican secondary market for mortgages is an integral piece of Puerto Peñasco (Rocky Point) development. As the secondary market continues to mature, mortgages for vacation home and condo buyers will become more and more attractive, helping Puerto Peñasco to continue its sustained growth.

The full article is posted after the jump.

Border Governor's Conference News Report

Good to see ABC 15 in Phoenix do a story about the growth of Puerto Peñasco (Rocky Point) in the following report from the recent Border Governor's Conference. Sometimes I feel that the Arizona press focuses way too much on writing negative stories when it comes to Mexico - thus promoting negative perceptions and stereotypes of Mexicans and Mexico.  Kudos to ABC 15 for taking the time to focus on the real story of Puerto Peñasco - sustained growth and prosperity of the town through cross-border collaboration.

Sonora and Puerto Peñasco Business Article

I wanted to share one of the best articles I have read recently about the business climate and opportunities in the state of Sonora, and in particular Puerto Peñasco (Rocky Point), Mexico.  It was written by Ronald Buchanan in the North Mexico BizNews.  The article is a little lengthy, but for anyone doing business in Puerto Peñasco or considering doing business in Puerto Peñasco (in any field), it is a must read in its entirety.  The first section is about Sonora, the second is about Puerto Peñasco and then it also includes some great economic statistics about the region.

I am reprinting it after the jump to preserve it in my blog archive, so click below to read, or click here to read it on the site. 

Border Governor's Conference Wrap-Up

There was plenty of pomp and circumstance at the Border Governor's Conference in Puerto Peñasco (Rocky Point), Mexico this past week, some of which I have documented in my prior posts below. I just wanted to recap a few points about the conference.  My thoughts are after the jump.  Please read and post your own comments on the event.

Border Governor's Conference Press Reports

A couple more links of coverage from the second day of the Border Governor's Conference that wrapped up yesterday in Puerto Peñasco (Rocky Point).

Channel 12/AZ Republic
International Herald Tribune

Border Governor's Conference Press Reports

The following are some news links that mention the Border Governor's Conference in Puerto Peñasco (Rocky Point).  I also confirmed that Secretary Chertoff will be in attendance at the plenary session today.

Governor Schwarzenegger's Press Release and Video of Remarks
BBC News
Houston Chronicle
Chicago Sun-Times
USA Today
KVOA Tucson
Channel 12 News Phoenix
ASU Cronkite
Arizona Daily Star
KTAR Phoenix
Sierra Vista Herald
PR Inside (Austrian public relations service)

Border Governor's Conference Pictures

Today is the big day of the 25th Annual Border Governor's Conference in Puerto Peñasco (Rocky Point), Sonora, Mexico.  Security was tight with President Felipe Calderon in town.  Not too often you see a Mexican Navy destroyer patrolling the coast of Puerto Peñasco.   

I took pictures of the events so far today (forgive my photography).  The first is of the stepped up security.  The next couple are from the morning tourism roundtable where the heads of the tourism boards of the participating states discussed collaboration on tourism.   The next ones are from the inauguration of the conference, where Governor Eduardo Bours, Governor Arnold Schwarzenegger and President Felipe Calderon gave speeches to the delegates, conference attendees, the other governors in attendance and what seemed like about 200 members of the press.  Expect plenty of articles tomorrow about the event.  Governor Richardson from New Mexico was unable to make the trip due to the debate last night in New Hampshire.  Governor Perry from Texas also did not make the trip and we have not seen any sign of Secretary Chertoff yet here.  Maybe he will be at the dinner tonight.  As expected, the real stars of the event were the three speakers and it was good to see such strong support for Puerto Peñasco from the Sonoran state and Mexican federal government at the event.  Governor Schwarzenegger managed to get at least two "I'll be back's" into his speech, to the delight of the crowd.

The last set of pictures is from the inauguration of the new Governor's Square in the Old Port/Malecon area of the city.  It was well attended by the people of Puerto Peñasco and everyone in the crowd was very excited to see Governor Schwarzenegger, who was kind enough to take the time to shake some hands in the crowd.

Certainly a historic day for the town of Puerto Peñasco.  Enjoy the pictures.

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Border Governor's Conference Registration

Took some pictures around Puerto Peñasco (Rocky Point) tonight for the beginning of the Border Governor's Conference.  Registration is tonight for the delegates and guests at Las Palomas' new conference center. 

The pictures include a picture from Peñasco del Sol's pool, which is decked out for the event.  The hotel is reportedly housing the press and has a cocktail meet and greet tonight.  A second picture from their pool looking at Sandy Beach.  Then three pictures from inside their new conference center.   Three pictures from registration inside the new conference center at Las Palomas.  Then four pictures from the new Governor's Square, where they have polished the "Shrimp God" statue and are setting up for the inaguaration of the square tomorrow.

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Border Governor's Conference Update

The Arizona Republic this morning has what is one of the first mentions by the main stream media about the 25th Annual Border Governor's Conference.  They appear to confirm that Carlos Slim, the World's Richest Man, will be in attendance at the conference.  Slim took a trip earlier this year to Puerto Peñasco (Rocky Point), flying into Guaymas and then hopping aboard his yacht for a trip up the coast of Sonora to Puerto Peñasco.  He was reportedly looking for business opportunities related to the Puerto Peñasco tourism boom on his trip and must have liked what he saw.

The full article can be read here.

Border Crossing Update & Proposed Solutions

For those weekend warriors wondering what is being done about the increasingly long wait times at the Lukeville border on the way back into the U.S. from Puerto Peñasco (Rocky Point), our friends over at puerto-penasco.com and Defrente have done some investigative reporting on the situation. From their reporting, it appears that state and federal officials are aware of the situation and are working to rectify it as quickly as possible. For the full article, click here.

I have more thoughts on the situation after the jump, so click below to read on…

Border Governor's Conference Advance Pictures

Even though it was a bit overcast (a rarity in Puerto Peñasco), I went out to take a few pictures of the venues where some of the events will be happening for the 25th Annual Border Governor's Conference next week.  Thanks to my business partner Brad for lending me his camera to take some of these. 

The first pictures are of the new Governor's Square on the Malecon in the Old Port, where they are just completing an overhaul of the original plaza that was built a few years ago.  It came out really well and will be an excellent central meeting point for the people of the town for years to come.  They have installed a commemorative plaque for each governor attending the conference.  I took a picture of Gov. Schwarzenegger's plaque.  The governors will dedicate this new space next week (See the schedule here).

The second set of pictures is from the temporary pavilion they built on the beach next to the Esmeralda construction site.  This venue will host the larger group events for the conference.  They are still finishing up preparations at both sites.

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Border Governor’s Conference

Probably the most important event in Puerto Peñasco since Al Capone left town is happening next week. Puerto Peñasco will be on the national and international stage as hosts for the 25th Annual Border Governor's Conference from September 26th-28th. Governor Eduardo Bours of Sonora is hosting the conference along with the Vice-Chair of the Conference, Governor Arnold Schwarzenegger of California. They will welcome U.S. Governors Janet Napolitano of Arizona, current Presidential candidate Bill Richardson of New Mexico and Rick Perry of Texas, along with Mexican Governors Natividad Gonzalez of Nuevo Leon, Jose Reyes Baeza of Chihuahua, Eugenio Elorduy of Baja California, Humberto Moreira of Coahuila and Eugenio Hernandez of Tamaulipas.

Also expected to make appearances in Puerto Peñasco are Mexican President Felipe Calderon (his first visit as President) and Secretary of U.S. Homeland Security Michael Chertoff.

Puerto Peñasco Airport(s) Update

I managed to get a couple of updates on the existing airport and the new international airport.

Aerolitoral

As many of you know, Aerolitoral is now offering the first regular commercial airline service into Puerto Peñasco (PPE) from Hermosillo (HMO), flying in and out of the current Puerto Peñasco airport on Tuesday, Thursday and Sunday.  This is major news as now visitors can fly directly into Puerto Peñasco instead of having to fly to Mexicali, Phoenix or Hermosillo and driving in. I have heard different prices for this flight from various sources, but it sounds like it will cost around $300 USD round trip – not cheap, but much quicker than the five hour drive.

Puerto Peñasco News Sources

There are several good online sources to get information on Puerto Penasco that I use regularly.  The most comprehensive site for all things Puerto Penasco is Puerto-Penasco.com.  The site administrator keeps a running blog of all English-language news articles mentioning Puerto Penasco and helps publish the English-language version of weekly articles from DeFrente.  Puerto-Penasco.com has been operating for quite awhile so has quite a comprehensive listing of topics for vacationers and residents alike and can answer a lot of questions about traveling to, and living in, Puerto Penasco.

For monthly articles on local news, check out Join Us or Rocky Point Times.   Both provide great articles on items of interest to tourist and ex-pats in Puerto Penasco.  Discover Sonora and Penasco Magazine also publishes pdf versions of their monthly magazines online for free.  Check them out.

Mexico News Sources

To keep up to date on news in Mexico, I rely on several English-language news sources.  The first I read is the North American page of the Washington Post, which includes a lot of articles on Mexico.  The Miami Herald just (unfortunately) discontinued their English-language newspaper that they jointly published with El Universal.  But I recently was alerted to Mexidata, which publishes news and opinions on happenings in Mexico.  Mexidata appears to be updated weekly with news articles and opinion pieces (not all of which I agree with).  Mexidata also has a user-friendly calendar, which includes holidays and important political days in Mexico.  This is useful for those travel to Mexico or doing business in Mexico, as holidays are widely observed and you will often find businesses, banks and government offices closed on days that Americans may be working (and vice versa).

If you are interested in reading more about the activities of President Felipe Calderon, his office maintains a comprehensive English-language website with information about his administration, Mexico, his political agenda, his travels and other information, such as his recent first State of the Union address.

For more general information about Mexico, a lot of good information can be found at both mexonline.com and mexconnect.com.  Mexconnect tends to be more regularly updated and has a lot of great information for people traveling to Mexico, planning to do business in Mexico or planning on moving full-time to Mexico.  Portions of it are subscription-based.

I will write a separate post with news sources for Puerto Penasco.