| Rocky Point Exposed |
| Be Careful, Be Very Careful! |
This real estate development was marketed to the public in 1999 using full page, four color ads in local Rocky Point newspapers and magazines. A luxurious sales office was set up on Fremont Boulevard, managed by Estela Palacio, wife of one of the North Beach property owners. Scale models of the development were shown and expensive, glossy sales brochures were distributed to potential investors. Emphasis was placed on the purchase of condominiums identified as Kasitas, and beach front lots called Las Gardenias and Sunset Beach, at introductory "pre-construction" pricing -- provided full payment was made at the time of purchase. Several investors used equity in their homes as a means to acquire property in the development. Documents were produced by Mrs. Palacio's sales team (headed by Frank and Morris Jackson), indicating a level of legitimacy to the development. (See above sign.) Sales contracts were provided to buyers with promised delivery dates for condominiums and lots clearly specified. Bank trust fees were quoted at $1500.00 - $2000.00. While sales of the properties were ongoing, and delivery dates were promised (with penalties to be paid by the seller for late delivery) later investigations revealed that the following was never disclosed to potential investors: A lawsuit had been initiated disputing ownership of North Beach property, yet sales were continuing. The sole administrator, and the signatory of agreements on behalf of Barlovento S.A. de C.V. and Penasco Country Club S.A. de C.V. never had authorization from the land owners of North Beach to sell the properties. Yet properties continued to be sold, while sellers collected over $2.5 million dollars from investors. Further investigation suggested that the signatory of agreements and the corporations listed above never existed! A grand opening, attended by many local politicians and dignitaries was held celebrating the beginning of construction of Kasitas and the first hole of the golf course. During construction, the selling corporation advised investors that lots and condominiums would be completed shortly and requested bank trust fees ranging from $6000 - $8000. When questioned by the investors about the discrepancy in fees, the sellers did not respond and no monies were sent. Promised delivery dates on the condominiums and lots had come and gone. All construction was halted. The sales office on Fremont Boulevard was closed. Investors repeatedly sent letters to the sellers (the corporations) requesting information regarding delivery of property and status of the development. The corporations responded with statements that were clearly lies. The investors began requesting refunds from the sellers. Requests were returned as "undeliverable". The investors hired lawyers who proceeded to investigate and subsequently discovered potential fraud. Since the selling corporations appeared to be non-existent, negotiations between the investors and the property owners of North Beach, the Grijavlvas, Martins and Palacios began in 2003 (after resolution of the first law suit) for refund of monies or bank trusts. These negotiations, mediated by Raul O'Farrill, lasted almost three years and ended in 2005 with no resolution. It can be concluded that the sellers/property owners had no intention of completing the development and over $2.5 million dollars of investors money has disappeared. A new lawsuit was initiated in 2005 between the Grijavlvas and Martins regarding ownership of the land identified as North Beach. This ongoing lawsuit precludes any further development in the area, costing past and current investors in other developments including Playa Azul, Riviera Real and Playa Dorado, many millions of dollars, while casting a black cloud over future real estate transactions in Rocky Point. Despite this fact, the real estate community has done everything in its power to shove this issue under the rug. |
Kasitas
Sabina Hotel
North Star Condominium
| Paquime Single Family Golf Course Homes |
Las Gardenias Ocean View Lots
Six
Jim Fazio
Golf
Courses
Jim Fazio
Golf
Courses
Status of North Beach As of 2010
Kasitas
Six Jim Fazio Golf Courses
North Beach as advertised
The History of North Beach 1999 - 2010 |
Las Gardenias beach front lots,
homes and streets
homes and streets
| "I can't believe how stupid I was believing this development was "guaranteed" by the Mexican government." North Beach investor |
| "I took a second mortgage on my house to invest in North Beach. After eleven years, I've got nothing to show for my investment." North Beach investor |
The following statements appeared in an unsigned article printed in the January, 2008 issue of the Rocky Point Times, "Some readers may be aware that a golf course designed by Fazio was built during this period, as were streets, lagoons, a water desalinization plant, and a water treatment plant. The full electrification of the property was also accomplished during these difficult years." As of 2009, there are no golf courses, no lagoons, no streets! Desalinization and water treatment plants were never completed. It was later determined that the author of the article was Raul O'Farrill. He was the mediator who was intimately involved in unsuccessful negotiations between North Beach investors and landowners. |
| Visit www.rockypointexposed.com/blog to post a comment. |
| Since its introduction in 1999, investors have never received title or trust to the property and have, for all intents and purposes lost their entire financial investment in this development. |
In late 1999, this private golf, polo and yacht club development, located in the area known as NORTH BEACH, was offered for sale to the general public. The area of approximately 7500 acres is located 15 miles east of the town of Rocky Point. Only a small portion of this area known as the development of North Beach was offered for sale at that time. Advertised as part of the largest master planned development in Rocky Point, it offered a host of amenities which included: golf course lots, private condominiums (KASITAS), beach front lots and homes (LAS GARDENIAS AND SUNSET BEACH) , a multi-unit condominium (NORTH STAR), a large hotel (SABINA), shopping centers, an RV park, SIX JIM FAZIO designed 18 hole golf courses, equestrian trails, a 200 slip full service marina, yacht club and a 1000 acre lagoon with island properties, as well as many other features. Pre-construction pricing was offered to investors as an incentive to purchase lots and condominium homes at very attractive rates - provided full payment was made up front. Investors provided over $2.5 million dollars in payments to the North Beach developers. |
North Beach development
Participants in North Beach Juan Luis Martin Jr. & Sr.- Land owners Eberardo Grijalva - Land owner Reynaldo Grijalva - Land owner German Palacio - Land owner Estela Palacio - Sales Manager Frank & Morris Jackson - Sales Agents Raul O'Farrill - Attorney/Mediator |
| 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! |
Visit www.rockypointexposed.com/blog to post a comment. |
"The North Beach project is a travesty" Kent White, President, (AMPI) |
| Because of the non resolution of the current 5 year old lawsuit between the Martins and Grijalvas, and the apparent unwillingness on the part of the Sonora government to resolve this issue, it is highly unlikely that investors/buyers will ever see this project completed, nor will they ever recover their money! |
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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.
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.