 | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  |
| Rocky Point Exposed |
| Be Careful, Be Very Careful! |
Several independent developers purchased land from the owners of the master planned property known as North
Beach. Their intent was to build luxury condominiums and private homes. Construction and sales began Potential
buyers invested approximately $8 - 10 million dollars in the Playa Azul project. The developer alleges that he
invested approximately $13 million dollars. North Beach land owner Grijavla filed suit against his partners Martin (the
same players in the North Beach development) and named as additional defendants each entity or individual that
had acquired property, including Playa Dorada, Playa Azul and Riviera Real. Construction on Playa Azul was halted.
Beach. Their intent was to build luxury condominiums and private homes. Construction and sales began Potential
buyers invested approximately $8 - 10 million dollars in the Playa Azul project. The developer alleges that he
invested approximately $13 million dollars. North Beach land owner Grijavla filed suit against his partners Martin (the
same players in the North Beach development) and named as additional defendants each entity or individual that
had acquired property, including Playa Dorada, Playa Azul and Riviera Real. Construction on Playa Azul was halted.
DEVELOPMENT INTRODUCED IN 2005
STATUS IN 2008
| This letter about Playa Azul was posted on the internet on a public forum. ------------------------------------------------------------ June 18, 2007 To Playa Azul Buyers: As you are all aware we have been dragged into a legal proceeding regarding our Playa Azul property. The litigation between the development partners began early in 2006. Our attorneys, O’Farril and Associates, were advising us throughout 2006 that the problem should be resolved quickly. Our title insurance company, First American Title Insurance Company, also led us to believe throughout 2006 that the problem would be resolved. As of this date the issue has not been resolved. This year, (2007) after three months of attempting to meet with the development partners we were given a meeting in early April, (2007). The negotiations had completely broken down between the partners. Consequently, resolution is not expected in the short-term, foreseeable future. If the litigation continues through the court system in Mexico it could take several years before the situation is resolved. All the legal experts that have been consulted on the case are confident that our side will prevail and we will retain ownership of our land. Once that happens we will proceed and complete the project as planned. In the unlikely event that we were to lose the land, Playa Azul has a $15 million title insurance policy on the property. Playa Azul will pass along to you the equivalent of 75% of your deposit from the proceeds of the title policy. The policy requires First American Title to resolve the situation in a “reasonable time”. A reasonable amount of time is a matter that may ultimately be determined by the US court system. |
This unfortunate situation is affecting both the
buyers and all of us at Playa Azul. We have tried
over the last 12 months to raise enough funds
to complete the C Building, the first six or
seven villas and adequate infrastructure to
service these units. It has been very difficult to
collect money from buyers, current or
potential, financial institutions or the investor
community. All money collected from customers
has been invested in the project. The situation
being as it is makes it impossible for Playa Azul
to refund any money at this time or to continue
building. Also, we are open to speaking with
any legal advisor you, the Playa Azul buyer, may
have.
Playa Azul is currently planning to complete
beach homes as the first phase, as funds are
collected from respective home buyers. If the
economy recovers and customers in the C
Building are willing and able to pay $3 million of
the $9 million owed for their completed units
and we collect another $1.5 million from new
buyers for C Building units we would have
sufficient funds to complete Building C through
the 13th floor. In addition we would require
signed mortgage obligations from buyers who
have money due on their respective units at
the time of completion. This option would
require buyers to put in additional money
without having title insurance covering the
additional amount. Playa Azul is not anticipating
this level of commitment from our current
customers. However, if you would be
interested in putting additional money in,
please contact Shannon Viola who will be
keeping track of cost to complete and
customers’ committed cash.
This is an extremely unfortunate situation.
We are all victims. Playa Azul wishes we had a
better resolution. The fact of the matter is –
we do not. You, of course, may contact Hiram
Roche in Mexico at 480-626-1095, Shannon
Viola at 480-497-6004 or Al Young at 480-363-
4939 to discuss the situation. However, we
are at the mercy of the Mexican courts and
will update you when any significant legal
proceedings occur. It would be greatly
appreciated if you would not take your
frustration out on Hiram, Shannon or Al as
they are simply passing along the information
given to them.
Let’s all hope the legal proceedings move
quickly. We will all be excited to see this
project under construction again.
Sincerely,
Steven J. Seymoure
We are all victims. Playa Azul wishes we had a
better resolution. The fact of the matter is –
we do not. You, of course, may contact Hiram
Roche in Mexico at 480-626-1095, Shannon
Viola at 480-497-6004 or Al Young at 480-363-
4939 to discuss the situation. However, we
are at the mercy of the Mexican courts and
will update you when any significant legal
proceedings occur. It would be greatly
appreciated if you would not take your
frustration out on Hiram, Shannon or Al as
they are simply passing along the information
given to them.
Let’s all hope the legal proceedings move
quickly. We will all be excited to see this
project under construction again.
Sincerely,
Steven J. Seymoure
Playa Azul
| "Every time I look at that skeleton of a building, I get heartsick. All that money invested and who knows when we'll ever be able to enjoy our condominium." A Playa Azul investor |
| "Can you imagine? The people who sold this and are associated with this development don't want us to take our frustration out on them. Are they kidding?" A Playa Azul investor |
| Visit www.rockypointexposed.com/blog to post a comment. |
| Participants in Playa Azul Eberardo & Reynaldo Grijalva - Land owners Juan Luis Martin Jr. & Sr.- Land owners German & Estela Palacio - Land owner Steven J. Seymoure - Developer Raul O'Farill - Attorney |
| 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. |