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Baja Eco-Resort Project 1


Project Summary 2

 4,000+ acres in Baja, Mexico, 1 hour north of the La Paz international      

airport 3 miles of beach on the Gulf of California March 2008 appraisal of $136.0M No liens on the property Survey indicates abundant ground water Owner is committed to creating a destination eco-resort and sustainable community First phase of development: Resort that caters to people who take ecovacations and who value alternative healing modalities, sustainability, connecting with nature, self-improvement, organically grown produce, looking young and staying healthy Seeking a $7.0M investment (phased over 2-6 years)


Location 3

Property La Paz


More pictures of property 4


Resort components 5

 Hotel offering rooms, suites and casitas – all with views of the Gulf and       

easy access to the beach Restaurant catering to vegetarians, vegans and raw food vegans Spa offering a wide range of spa and holistic healing services Conference center for retreats and events Marina Organic vegetable gardens and orchards General store for guests, residents and staff Staff housing


Resort activities 6

 Spa/holistic healing services  Seminars, workshops, retreats, conferences,

  

lectures and events covering all aspects of nutrition, natural healing, sustainable development, organic farming and alternative energy Swimming with dolphins, snorkeling, scuba diving, wind surfing, sailing, kayaking, whale and sea lion watching, island camping Hiking, horseback riding and mountain biking throughout the 4,000+ acre property Land and sea guided tours and excursions Entertainment


Design specifications 7

 Buildings strictly adhere to the principles of green development

emphasizing clean indoor air, passive heating and cooling, natural ventilation and other environmentally friendly practices  Buildings are light and airy with lots of windows that connect people with the mountains, sea and vegetation  All aspects of the built environment blend in with nature  Water features, lush gardens and landscapes including lots of food bearing species contrast with the desert environment


Hotel 8


Spa 9


Casitas 10

Design specs for casitas  View of the Gulf of California and mountains and easy access to the beach  Light, airy, lots of windows  Courtyards and vegetation provide privacy  Integrate, merge and blend in with lush landscaping  Highest possible standards for indoor air quality  Maximum use of passive heating and cooling principles Proceeds from interval ownership sales of one and two bedroom casitas, along with the sale of lots, fund the development


Casitas 11


Beach 12


Beach 13


Orchards and gardens 14


Marketing 15

 Residential lots and fractional ownership (one to four weeks) of casitas

will be marketed to fund the development  Resort products and services will be marketing once the resort is open for business  The target market for both of the above is a segment of the population referred to as the LOHAS consumer (LOHAS is short for Lifestyles of Health and Sustainability) and those who market to LOHAS consumers  Every detail of the resort’s development and operation is designed to appeal to the LOHAS consumer


LOHAS 16

ď‚— Lifestyles of Health and Sustainability (LOHAS) describes an

estimated $209 billion U.S. marketplace for goods and services focused on health, the environment, social justice, personal development and sustainable living. ď‚— The consumers attracted to this market represent a sizable group in this country. Approximately 19% percent of the adults in the U.S., or 41 million people, are currently considered LOHAS consumers. This is based on surveys of the U.S. adult population estimated at 215 million. ď‚— The following slides summary the characteristics of these consumers and the size of the market for each segment


LOHAS market segments 17

Personal Health Natural, organic products Nutritional products Integrative health care Dietary supplements Mind body spirit products US Market--$118.03 billion

Green Building Home certification Energy Star appliances Sustainable flooring Renewable energy systems Wood alternatives US Market--$50 billion


LOHAS market (cont) 18

Eco Tourism Eco-tourism travel Eco-adventure travel US Market--$24.17 billion

Natural Lifestyles Indoor and outdoor furnishings Organic cleaning supplies Compact fluorescent lights Social change philanthropy Apparel US Market--$10.6 billion


LOHAS market (cont) 19

Alternative Transportation Hybrid vehicles Biodiesel fuel Car sharing programs US Market--$6.12 billion

Alternative Energy Renewable energy credits Green pricing US Market - $380 million


Marketing to marketeers 20

Within the LOHAS marketplace, we will focus our initial marketing of casitas on  People and organizations who are currently marketing retreats, conferences and seminars to LOHAS consumers  Travel agents and others who market eco-tours and vacation packages to LOHAS consumers  Those offering continuing education units (CEUs) to licensed professionals who are in the LOHAS camp (Note: CEUs are required by most licensed professionals and the costs incurred can be written off as business expenses) Thus, we will market to those who market to the types of people who would most like to come to our resort; the following slides show who some of these types of people are


Marketing to CEU companies 21

We will market to those who provide CEUs for  Chiropractors  Naturopaths  Massage therapists  Acupuncturists  Holistic, complimentary

and alternative MDs and DOs  Biological dentists  Nutritionists

 Architects, contractors, engineers

and interior designers who provide construction services for the green development market


Marketing to seminar and retreat companies 22

We will market to those companies who market retreats and seminars regarding (among many others)  Yoga  Nutrition  Self-improvement  Permaculture  Green development  Alternative energy  Organic gardening  The environment


Four key target markets 23

In summary, our marketing will focus on these audiences  LOHAS consumers  Those who offer CEUs to licensed professionals who serve the LOHAS market  Those who market retreats, conferences, seminars to LOHAS consumers  Travel agents and others who sell vacation and eco-tour and ecoadventure packages to LOHAS consumers


The ideal real estate owner 24

 The ideal owners (of a lot or interval ownership in a casita) would, in

the normal course of doing their business, fill our resort with their clients and customers  Those who offer retreats as well as those who provide CEUs are incentivized and rewarded not only by receiving the normal fees for the service they provide but also by earning a commission on the total amount spent by their customers while at our resort  The following slide shows how this works


Incentive program 25

Example of how an casita owner, such as yoga teacher, benefits by having retreats at our resort  She makes her normal profit from her retreat  She uses resort conference facilities at no cost  She stays in her casita  She makes 5% on the total of what all her clients spend at the resort; if for example she has 30 people attending her retreat and they spend a total of $45,000 ($1,500 per person average for food, lodging, spa services, store purchases, etc.), she makes 5% of $45,000 or $2,250


Financing 26

Stage

Amount/ Source

Use of proceeds

Timeframe

1. Planning/ Permitting /downpayment

$1.5M - Source: Investors $7 million down on loan.

Site planning, surveys, environmental studies, permitting approvals, regulatory approval for selling casitas, downpayment on traditional loan.

1-2 years

2. Marketing

$2M - Source: Investors

Produce renderings/marketing materials and website, execute marketing plan

1 year

Intrastructure, hotel, casitas, spa, conference center, store, staff housing, orchards and gardens

1 year

3. Development/ $28M - Source: Construction Bank line of credit or construction loan


Investment opportunity 27

 Investors provide from $9.0M up to $30M to fund Stage 1  Initially, only Stage 1 is funded; when all permits and approvals are in

place to start marketing casitas and lots,  Investment is secured by a first lien on property appraised at a minimum of two times the amount invested (Note: the lien will not be on the land used for developing the resort since the bank will require being in first position on this land; the investors’ lien will be on another parcel and will stay in place as a first lien until repayment of the investment plus profit)  Payout: The full amount of the investment plus profit is paid as a lump sum after the closing on the casitas and lots and is estimated to be four years after Stage 1 is funded  Investment doubled in 3-6 years. Payout of double the amount borrowed.


For more information 28

For more information, contact  Jim Burghorn at 727 596-2629 or jimburghorn@hotmail.com or  Josh Pasmore at 541 550-0352 or greenearthvision@gmail.com

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Baja eco resort project