| Rocky Point Exposed |
| Be Careful, Be Very Careful! |
| The information herein has been obtained from various sources and is not guaranteed by rockypointexposed.com. Prospective investors are advised to conduct their own investigation of the information contained herein before proceeding with any real estate investment in Rocky Point (Puerto Penasco). The information contained on this site is not legal advice. While the highest standards were used in compiling this information it should not be considered legal advice and all legal questions should be handled by appropriate representation. Copyright rockypointexposed.com. All rights reserved. Web Hosting by Yahoo! |
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It should be repeated once again that the intent of this website and the blog are not to hurt the town of Rocky Point and its great people,
but to make it a place that all can safely enjoy. Many thanks are due to those people who constructively participate in the blog, and who
have written to the Arizona Real Estate Commission, and are continuing their efforts to clean up Rocky Point. We still have a long way
to go -- and the fight will continue!
I HAVE CANCER AND THEY OFFERED US A TYLENOL.
After waiting three long months, North Beach investors hoped Sonora officials would make good on their
promises of March 5 to provide some viable solutions to the problems at North Beach. Instead, as one
disappointed investor put it: “I have cancer and they offered us a Tylenol”.
A meeting was held at the Arizona Department of Real Estate on June 19, 2008 for the purpose of the Sonora government
addressing serious problems brought to their attention at a previous meeting held on March 5, 2008. At that March 5 meeting,
Sonora government officials were made aware of problems relating to North Beach including land fraud, and an on-going law suit,
tying up millions of investor and developer dollars. The officials promised that, within three months, they would investigate and
provide solutions to the investors at the June 19, 2008 meeting concerning the following North Beach properties:
Las Gardenias, Kasitas, Sunset Beach (North Beach)
Playa Azul
Riviera Real
Playa Dorado
Four separate ½ hour meetings were arranged by the Arizona Department of Real Estate to be held with investors and Sonora
officials, leading us to believe that individual properties and their problems would be addressed. Much to the disappointment of the
approximately 75 investor attendees, the Sonora officials presented the same SONORA PROPOSAL shown below at each meeting.
No individual properties or problems were addressed! According to the Sonora officials, they allegedly conferred with their
governor, developers, private business people, and Puerto Penasco officials to come up with this proposal designed to address all
North Beach investors.
Below is the proposal submitted by the State of Sonora:
MEETING WITH NORTH BEACH INVESTORS
LOCATION: ARIZONA DEPARTMENT OF REAL ESTATE
June 19, 2008 PHOENIX, AZ
SONORA GOVERNMENT PROPOSAL:
OBJECTIVE: Offer North Beach property buyers an incentive program in which they could recover up to 100% of their down payment (made in
North Beach), through credit incentives applied towards the acquisition on a new property in Puerto Penasco, without declining rights to the
ongoing legal process.
INCENTIVE DESCRIPTION:
1) Agreement with Puerto Penasco Developers to offer the following incentives:
a. LAS PALOMAS: 50% credit of down payments made in North Beach properties applied towards
the acquisition of a property (Las Palomas) of equal or greater value.
b. BELLA SIRENAS: 50% credit down payments made in North Beach Properties applied towards
the acquisition of a property (Bella Sirenas) of equal or greater value, limited to $50,000.
NOTE: Both developments currently have an Arizona Subdivision Disclosure Report (public report).
2) 100% exemption of closing and transaction costs.
a. Registro Publico de la Propiedad (Property Tax)
b. Traslado de Dominio (Transfer tax)
c. Honorarios de Notarios Publicos (Public Notary fees)
d. Avaluos (Appraisals)
NOTE: There will be nominal fees that apply in some instances, in such case, Sonora will absorb all costs.
3) Possibility of a capital loss tax write off in the United States for the investment made in North Beach (please consult your accountant
and/or tax advisor).
NOTE: All transactions under this Program must be closed before August 31, 2009.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Not one attendee of this meeting found anything encouraging. We asked people from each of the 4 developments
involved what they thought, and all felt it was a complete waste of time.
Because each meeting was only ½ hour, of which the Sonora officials took 15 minutes, and because we had questions regarding the
litigation, there was little time to fully digest the offer, but upon closer examination, the following points emerged:
• Under the BEST of circumstances, the buyer loses ½ of his down payment and if he elects to purchase a property at
Bella Sirena, the maximum he can be credited with $50,000. In most cases, the down payments at both Las Palomas and
Bella Sirena were in excess of $100,000.00.
• Both of these developments are having such a difficult time selling their properties, that any “live” buyer could most likely
get the same discount.
• Las Palomas has just raised its Homeowners Association fees to $850.00 per month. As a result of this increase, it has been
reported that claims have been filed for refunds in the amount of approximately $4 million by people who have met the refund
criteria within their contracts with Las Palomas.
Part 2 of the proposal would be considered a step in the right direction if anyone chose to take advantage of Part 1.
Part 3 is not an offer at all from Sonora. Anyone can investigate the possibility of a tax write off and it has nothing to do with the
Sonora government participation.
We also came up with the following questions, which we will forward to the Real Estate Department, as well as to the Director of
Tourism of Sonora:
• Is there a limit of $50,000 credit on Las Palomas as there is on Bella Sirena?
• In the unlikely event there is any interest on any buyer’s part, how is the contract between the buyer and the developer,
e.g.. Playa Azul affected? As an example, if I purchased a unit at Playa Azul in the amount of $300,000 and gave a down
payment of $150,000, I am credited with $75,000 towards purchase in Las Palomas. But what happens to the developer of
Playa Azul? Is my contract with him still in effect? And what position does this put the developer in?
When confronted with the issue of fraud being perpetrated, their excuse was that they were part of the Executive branch and not
the judicial branch and there was nothing they could do for those investors who lost $2.5 million dollars in the original North Beach
development. They suggested that these investors file a criminal action against the perpetrators (Martin and Grijavla). It was
pointed out that the criminal statute of limitations was long past and there was an on-going lawsuit (4 years). These very same
perpetrators named in that lawsuit had not even been served summonses to appear in court, therefore how could defrauded
investors serve summonses to these individuals responsible for the fraud. They basically shrugged. Time after time, these officials
made it clear that they were the Executive branch and could do absolutely nothing about fraud. The impression was that they could
care less. When questioned why someone from the judicial branch was not in attendance, they again shrugged. It was made clear to
them that members of the judicial branch should be in attendance at any further meeting between investors and the government.
It became clear to the officials that the media was watching very closely as evidenced by ABC News-15 interviewing investors at the
conclusion of each meeting. We will continue to keep pressure on the Sonora government by actively seeking media involvement
including national exposure to the problems associated with Mexican real estate investments.
After waiting three long months, North Beach investors hoped Sonora officials would make good on their
promises of March 5 to provide some viable solutions to the problems at North Beach. Instead, as one
disappointed investor put it: “I have cancer and they offered us a Tylenol”.
A meeting was held at the Arizona Department of Real Estate on June 19, 2008 for the purpose of the Sonora government
addressing serious problems brought to their attention at a previous meeting held on March 5, 2008. At that March 5 meeting,
Sonora government officials were made aware of problems relating to North Beach including land fraud, and an on-going law suit,
tying up millions of investor and developer dollars. The officials promised that, within three months, they would investigate and
provide solutions to the investors at the June 19, 2008 meeting concerning the following North Beach properties:
Las Gardenias, Kasitas, Sunset Beach (North Beach)
Playa Azul
Riviera Real
Playa Dorado
Four separate ½ hour meetings were arranged by the Arizona Department of Real Estate to be held with investors and Sonora
officials, leading us to believe that individual properties and their problems would be addressed. Much to the disappointment of the
approximately 75 investor attendees, the Sonora officials presented the same SONORA PROPOSAL shown below at each meeting.
No individual properties or problems were addressed! According to the Sonora officials, they allegedly conferred with their
governor, developers, private business people, and Puerto Penasco officials to come up with this proposal designed to address all
North Beach investors.
Below is the proposal submitted by the State of Sonora:
MEETING WITH NORTH BEACH INVESTORS
LOCATION: ARIZONA DEPARTMENT OF REAL ESTATE
June 19, 2008 PHOENIX, AZ
SONORA GOVERNMENT PROPOSAL:
OBJECTIVE: Offer North Beach property buyers an incentive program in which they could recover up to 100% of their down payment (made in
North Beach), through credit incentives applied towards the acquisition on a new property in Puerto Penasco, without declining rights to the
ongoing legal process.
INCENTIVE DESCRIPTION:
1) Agreement with Puerto Penasco Developers to offer the following incentives:
a. LAS PALOMAS: 50% credit of down payments made in North Beach properties applied towards
the acquisition of a property (Las Palomas) of equal or greater value.
b. BELLA SIRENAS: 50% credit down payments made in North Beach Properties applied towards
the acquisition of a property (Bella Sirenas) of equal or greater value, limited to $50,000.
NOTE: Both developments currently have an Arizona Subdivision Disclosure Report (public report).
2) 100% exemption of closing and transaction costs.
a. Registro Publico de la Propiedad (Property Tax)
b. Traslado de Dominio (Transfer tax)
c. Honorarios de Notarios Publicos (Public Notary fees)
d. Avaluos (Appraisals)
NOTE: There will be nominal fees that apply in some instances, in such case, Sonora will absorb all costs.
3) Possibility of a capital loss tax write off in the United States for the investment made in North Beach (please consult your accountant
and/or tax advisor).
NOTE: All transactions under this Program must be closed before August 31, 2009.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Not one attendee of this meeting found anything encouraging. We asked people from each of the 4 developments
involved what they thought, and all felt it was a complete waste of time.
Because each meeting was only ½ hour, of which the Sonora officials took 15 minutes, and because we had questions regarding the
litigation, there was little time to fully digest the offer, but upon closer examination, the following points emerged:
• Under the BEST of circumstances, the buyer loses ½ of his down payment and if he elects to purchase a property at
Bella Sirena, the maximum he can be credited with $50,000. In most cases, the down payments at both Las Palomas and
Bella Sirena were in excess of $100,000.00.
• Both of these developments are having such a difficult time selling their properties, that any “live” buyer could most likely
get the same discount.
• Las Palomas has just raised its Homeowners Association fees to $850.00 per month. As a result of this increase, it has been
reported that claims have been filed for refunds in the amount of approximately $4 million by people who have met the refund
criteria within their contracts with Las Palomas.
Part 2 of the proposal would be considered a step in the right direction if anyone chose to take advantage of Part 1.
Part 3 is not an offer at all from Sonora. Anyone can investigate the possibility of a tax write off and it has nothing to do with the
Sonora government participation.
We also came up with the following questions, which we will forward to the Real Estate Department, as well as to the Director of
Tourism of Sonora:
• Is there a limit of $50,000 credit on Las Palomas as there is on Bella Sirena?
• In the unlikely event there is any interest on any buyer’s part, how is the contract between the buyer and the developer,
e.g.. Playa Azul affected? As an example, if I purchased a unit at Playa Azul in the amount of $300,000 and gave a down
payment of $150,000, I am credited with $75,000 towards purchase in Las Palomas. But what happens to the developer of
Playa Azul? Is my contract with him still in effect? And what position does this put the developer in?
When confronted with the issue of fraud being perpetrated, their excuse was that they were part of the Executive branch and not
the judicial branch and there was nothing they could do for those investors who lost $2.5 million dollars in the original North Beach
development. They suggested that these investors file a criminal action against the perpetrators (Martin and Grijavla). It was
pointed out that the criminal statute of limitations was long past and there was an on-going lawsuit (4 years). These very same
perpetrators named in that lawsuit had not even been served summonses to appear in court, therefore how could defrauded
investors serve summonses to these individuals responsible for the fraud. They basically shrugged. Time after time, these officials
made it clear that they were the Executive branch and could do absolutely nothing about fraud. The impression was that they could
care less. When questioned why someone from the judicial branch was not in attendance, they again shrugged. It was made clear to
them that members of the judicial branch should be in attendance at any further meeting between investors and the government.
It became clear to the officials that the media was watching very closely as evidenced by ABC News-15 interviewing investors at the
conclusion of each meeting. We will continue to keep pressure on the Sonora government by actively seeking media involvement
including national exposure to the problems associated with Mexican real estate investments.
On Wednesday, March 5, 2008 a meeting was held at the Arizona Dept. Of Real Estate to air complaints from aggrieved
Rocky Point real estate investors. More than 100 investors from Rocky Point were in attendance. This meeting came
about as the result of activists who, after years of fighting, finally got the media’s attention regarding fraudulent real
estate activity in Rocky Point. With the help of the Arizona Republic and ABC-News 15, the Department of Real Estate
finally agreed that something should be done.
Attending that meeting was the Arizona Real Estate Commissioner Sam Wercinski, as well as a representative from
Arizona Governor Janet Napolitano’s office and several officials from the Sonora government, including a
representative from Sonora Governor Eduardo Bours’ office.
One specific action item came out of that meeting. It was agreed that those individuals who have been hurt by
fraudulent or deceitful real estate transaction should complain, in writing to Commissioner Wercinski. He has agreed
to turn copies of these complaints over to Governor Napolitano and Governor Bours.
The Sonora officials will review these complaints and have agreed to meet with complainants on June 19, 2008 at the
offices of the Arizona Real Estate Dept. to report specific action items on these complaints. Here is the result of that
meeting:
| Visit www.rockypointexposed.com/blog to post a comment. |
| Because of the non resolution of the current 4 year old lawsuit between the Grijalvas and Martins, and the unwillingness on the part of the Sonora government to resolve this issue it is highly unlikely that investors/buyers of North Beach properties will ever see any North Beach projects completed, nor will they ever recover their money. Unsubstantiated rumors indicate that the delays in resolving the lawsuit are coming directly from the office of Governor Bours. Some claim that the lawsuit between the Grijalvas and Martin is a ploy to delay any further development on North Beach until Governor Bours leave office in 2009. It is common knowledge that he and his family have invested millions of dollars in real estate developments in Puerto Penasco. Upon leaving office, he and his family would then acquire all of prime North Beach property worth an estimated $650 million to continue multi-million dollar developments, leaving the original North Beach investors holding the bag for millions of dollars of their investments. |
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| The Mexican government will be of no help to any American investor. Do not invest in Mexican Real Estate! |
As of February, 2010, Sonora government officials who promised to meet with investors and officials of the Arizona Real Estate Department before the end of 2008, have NOT been in contact with anyone. THEY LIED! |