Following is a letter we received from TSD (Trust for Sustainable Development) Loreto Partners, the company used by Citigroup to manage the Loreto Bay development, which they then used to hide behind after they decided to stop construction in June 2009. Since abandoning the Loreto Bay project, TSD has been nothing more than a shell company - stripped of assets and acting as a dummy company to shield Citigroup from litigation and public scrutiny. But before we get to the letter, I've got a few things to say...
A brief history should explain this situation: This is the company that left us with unfinished homes and no idea if we'd ever be able to recoup the MILLIONS of dollars we'd all sunk into this project. This same company is now very upset that people have decided to seek redress for those losses in a court of law. Wow, the nerve!
These folks also stole money from home owners in the amount of $1.3 million for infrastructure work that was never started. This work was signed off on by representatives of TSD who knew the work was not done. But what nerve for home owners to call them on it! (And, of course, special thanks go to Stewart Title International for being a party to that theft.)
So now they're upset that home owners are fighting back? How dare those of us who were left high and dry show some totally righteous anger and seek legal counsel!
It's just incredibly surreal to hear them whine about how badly the abandoned home owners have treated them. These folks are the real deal when it comes to crazy.
But after re-reading this self-serving piece of garbage, we should thank Mr. Embree C. "Chuck" Bedsole for one of the funniest letters we've ever read, because this has to be a joke.
Let's recap: This is the company that abandoned construction, tore up the only road through the project leaving it a pot-holed, barely passable nightmare, absconded with our $1.3 million in utility infrastructure money, left Mexican contractors and workers unpaid, left a huge local tax and utility debt unpaid, who never bothered to communicate with home owners in any kind of meaningful way after leaving us high and dry and they're upset with us? See what I mean? It's gotta be a joke.
Tuesday, September 28, 2010
As you know, TSD Loreto Partners S. en C. por A. de C.V. (“TSD” or the “Company”) has been diligently working with its secured lenders, FONATUR, local and state government authorities, federal tax authorities, contractors, homeowners, Beck Construction, and unsecured creditors to try to secure new funds and develop a reasonable plan to provide continuity to Loreto Bay (the “Project”) as a whole. Unfortunately, the Company has not been able to secure sufficient funds to continue the development of the Project as originally envisioned.
During this process, many homeowners have not met their obligations, creditors have exercised their contractual and legal rights and Company assets have been subject to liens and foreclosure actions. Nonetheless, the Company has used its limited resources to work with creditors to reach agreements on substantial reductions in the amount of their legal claims, and to work with homeowners who defaulted on their contracts prior to June 6, 2009 to arrange payment programs. The balance of our resources have been committed to defending claims from third-parties who have attempted to take an unfair advantage of the current situation based on false, unfounded or misleading claims.
TSD understands that despite the significant efforts expended by the Company to achieve the best outcome for the overall Project, not every homeowner has been or will be satisfied with these results or with TSD’s responses to their inquiries regarding the status of the Project or his or her individual unit. Even though TSD has tried to resolve many of the issues for which TSD is legally responsible and to keep the lines of communication open on these issues, TSD cannot resolve the remaining outstanding issues to the homeowners’ complete satisfaction, regardless of how many times or in how many different forms the issues are presented. Nonetheless, TSD believes that it has responded candidly to all issues raised by homeowners when and where possible.
Finally, there has been much speculation regarding the purchase of certain assets of the Project by Homex and the relationship between Homex and TSD. To set the record straight and avoid future misunderstandings, TSD has no contractual or legal relationship with Homex. An affiliate of Homex is the owner of certain assets of the Project that were previously owned by the Company and foreclosed by TSD’s creditors. TSD, in its efforts to assure the continuity of the Project, is cooperating with and providing information to Homex as required even though this acquisition of assets by Homex did not create any legal or economic relationship between TSD and Homex. TSD continues to be a separate and independent entity solely responsible for its obligations and prepared to defend its rights against third-parties that continue to try to affect TSD’s interests, including defending against those homeowners that have opted to initiate a harassing and defamatory battle against TSD’s and its officers based on false, unfounded or misleading claims.
It is unfortunate that the Project, as originally envisioned by TSD will not be achieved; however, we believe the foundation has been set out for future development companies to make Loreto Bay a destination homeowners may enjoy.
TSD Loreto Partners S. en C. por A. de C.V.
By: Embree C. “Chuck” Bedsole, as attorney-in-fact.
But just in case this self-serving piece of garbage isn't a joke: Bring it on, Mr. Embree C. "Chuck" Bedsole! And best regards to you, too.
On second thought, though, the joke is on Mr. Bedsole and company because Agua Viva home owners have left them far behind. Sorry, guys, but you're ancient history at this point. We picked up the pieces and made something good from the mess you left behind. It wasn't easy and it wasn't fun, but we have a community now that has nothing to do with Citigroup or TSD. We did it without your help and in spite of your hindrance. Good for us. Now go away and leave us alone!