Thursday, February 19, 2009

A new player in the wings?

A new post by LB home owner Kaz on his Nopolo News Web site brings a twist to the Loreto Bay bidding drama currently under way. An email sent to Kaz from former LB owner David Butterfield claims there is yet another possible bidder for the property, one with ties to Butterfield himself.

Here's the email:

Hi Kaz,

For the last six months I have been working as Executive Chairman of a waste to energy company I co-founded seven years ago. It’s been an incredible experience. It’s still in the sustainable world but doesn’t satisfy my passion for building beautiful towns and buildings.

At the moment, I’m in Loreto helping an old friend, Kevin Kelly, to prepare a bid to buy Loreto Bay from Citi. Kevin and I were partners in the new town of Civano. He’s the one that really pulled it off. Until Loreto Bay, Civano was arguably the most sustainable project in North America. If Kevin wins the bid, Loreto will be transformed from the somewhat saddened state it is in now. Kevin completely gets sustainability and hospitality. His plan is to bring Canyon Ranch to Loreto. His passion is on a par with all of us who dreamed of what Loreto could be.

You are free to use this information and let people know what is going on. You can find out more about Kevin at

This news throws what little we know - or think we know - about the bidders into question.

From all that we've read over the past few months, we assumed the bidding process was well under way and that the bids were from three possible players: The team that is heading up the new Marriott development in Loreto Bay; a Mexican businessman/investor (could be Carlos Slim) and a SF bay area developer. (Although the way this news has morphed over time, those possible contenders may be a figment of our imaginations or I may have lost track. If that's the case, please forgive me.)

Does this news mean that Citi has rejected the bids that may have been offered? Has anyone actually offered a bid?

The January 18th letter from Alvarez & Marsal's Embree C. "Chuck" Bedsole, the interim president of Loreto Bay, states quite clearly, "At present, we are in serious negotiations with several prospective buyers and we should have important and exciting news in the next few weeks."

OK, it's been more than a few weeks since that news hit. Four weeks and four days, to be precise. So, what's going on?

Is the news that Butterfield's old friend is interested in buying the property good news or bad? Who knows.

What we do know is that an update on the status of the bids from A&M would be greatly appreciated.

1 comment:

Penny Gwilliam Davis said...

I had thought, by now, we would have known.

Would be nice to know what is going on.