Saturday, August 15, 2009

AV home owner meeting, parte dos

Sorry for the delay in getting this posted. Our Internet time was limited to Beck’s office hours as we didn’t have access in our casa.

One of the most surprising revelations at Monday’s Agua Viva home owner meeting was the statement by TSD’s representative, Hector Medina, that construction monies were put into areas “where they shouldn’t have gone.” Medina , who was responding to a question about where all the money had gone, also acknowledged that TSD had been having cash flow problems. Gee, who knew.

He told home owners that TSD has already reached agreements with contractors and is now in the process of executing those agreements, which involve paying the contractors and in some cases that payment is in the form of land.

As for the estuaries – an important feature of the Agua Viva (Living Water) phase of the Loreto Bay development – Medina said the estuaries have been placed on hold, adding there is no plan in place to finish the canals.

Regarding the infrastructure, Stan Barton of Beck offered some numbers, but acknowledged those costs are uncertain. He said Beck has had substantive meetings with TSD to get detailed information on the cost to finish the utility infrastructure and based on conservative numbers from contractors that figure could be around $1 million. Worth noting is that there is a huge discrepancy between the numbers that Beck has been given for utility costs and the much lower numbers that former TSD employees are putting out as the actual remaining costs.

Also worth noting is that those former employees and TSD are not providing the documents to prove their numbers. At issue is whether the monies paid by home owners and held in escrow by Stewart Title for those utility costs were released before the work was completed.

Other expenses cited by Stan include paving for the walkways, based on the same materials in the Founder’s Neighborhood, which he estimated at $1.7 million. Landscaping is estimated at $600,000.

However, he did say the cost for walkway paving could be substantially reduced by using different materials.

The good news as reported by Stan is that he expects around 40 homes will be completed in the next month or so. Stan is also trying to reduce home owners costs in a number of innovative ways, so keep checking the Beck Web site for details!

On a personal note, George and I have confidence in Stan Barton and his ability and desire to finish this project. George has had a number of conversations with Stan, both before and after this meeting, that lead us to believe that he and Beck are our best hope for living the dream of Loreto Bay.

Next up: Hospitality House is a hit!

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