Cabo Dorado MIA-R (english version)

EXECUTIVE SUMMARY

CABO DORADO: MIA-R

EXECUTIVE SUMMARY Cabo Dorado is an investment project in the State of Baja California Sur; particularly in the area known as “Cabo del Este� (East Cape) in the municipality of Los Cabos. This project aims to promote specialized tourism, about cultural, educational, scientific, and sports exchanges between Mexico and the Asian continent as well as to serve as a common ground for fostering business development. Therefore, area of 3770.5 hectares was allocated to the project.

Cabo Dorado is promoted by the company La Rivera Desarrollos BCS S. de R. L. de C.V., a joint venture between American and Asian investors who are determined to promote a radically different concept from the one of the project that was intended to be developed in the same location and which was placed at issue at the time.

1.

Objectives.

Cabo Dorado project is proposed as part of the consolidation of the development of the municipality, which is considered for tourism purposes; therefore, the proposed project is defined by six elements that make up its objectives: 1.

Promote cultural tourism, and stablish it as a space for permanent cultural exchange through constant exhibitions, events and festivals.

2.

Provide health and wellness tourism through the convergence of knowledge on the subject.

3.

Encourage technological and trade exchange tourism by creating spaces that facilitate physical activity.

4.

Encourage education and research tourism thanks to the creation of a dynamic space dedicated to education and research in multilateral issues.

5.

Promote sports tourism by creating areas dedicated to high performance sports and specialized knowledge exchange among professionals.

6.

Making the best of the beach tourism potential.

As a support the objectives, Cabo Dorado considers the development of 9 hotels, temporary housing for residents and visitors, and two golf courses. Likewise there will be infrastructure to support tourism and deem it as high-quality recreation, health, and sports center and shopping area.

Cabo Dorado is a different and innovative project that, by design, regards the environment and the natural resources as its building blocks. As a result, Cabo Dorado includes environmental elements in its designs, in as much in its floor plan as in water availability; both elements are already defined and accepted thus allowing an efficient and sustainable use of the area and the natural resources.

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Major works and / or activities.

Cabo Dorado must be understood as a real estate development that includes a set of works and activities relating to the preparation and construction, operation and maintenance of various elements such as hotels, condominiums, housing developments, restaurants, commercial facilities, general services and equipment, golf courses and infrastructure for providing the services necessary for the viability of all of the aforementioned, such as a work for water supply and wastewater plant, relocating an airstrip and the consequent change of forest land use resulting from uprooting some of the elements in the project so as to obtain a tourist land use, consistent with the policies development and land use in effect for the area.

In order to contextualize the elements of the project, it is proposed to assume a scale perspective:

Works of the Project: The Full Project The proposal of the project is to develop it in 3,770.5 hectares, which includes a right of way of 7.11 hectares that is necessary for the water supply network.

Works of the Project: Premises The project proposes to allocate 1219.3 hectares to tourism land use (under the Ecological Zoning Plan of the municipality of Los Cabos, Baja California Sur, POELMC), which is equivalent to 32.3% of the total area of the property. The rest of the area of the property (67.7%) will be left as forest land with a preservation use (under the POELMC); therefore, the current vegetation conditions and land use will be kept.

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Elements of the project Element Way 9 public access to the beach 1 airfield 2 water tanks Trade Center Cultural and Educational Center Technology Museum Science and Research Center High-Performance Sports Center Wellness Center Visitants and Transportation Center Beach Club Beach Club of the Wellness Center School Campus Wastewater Plant and General Services Maintenance / General Services Clinic/ General Services Supply/General Services Tree nursery Green area (park) Shops/Restaurants/Multi-family Residential Area Hotels Multi-family Residential Area Single-family Residential Area Gulf Course Gulf Shop (Pro Shop) Use for tourism Preservation Total area of the property

Surface (hectares) 128.5 57 14.3 0.9 2.2 2.2 1.0 1.4 15.3 18.7 4.3 2.2 2.1 26.0 8.4 14.3 2.5 1.6 13.1 30.0 36.1 168.1 173.7 379.9 3.9 0.4 1,219.3 2,551.2 3,770.5

Figure: Distribution of the elements of the project.

Cabo Dorado is conceived as a space to house 3,770.5 hectares of estate, facilities for the development of cultural activities such as dance, music, and visual arts, and hotel and residential facilities to support said activities; beach clubs, golf courses, school campus, medical clinic and services infrastructure. Thus, the construction of nine (9) hotels with large preservation areas between the units and well below the maximum allowable occupation limits set in environmental regulation is also part of the project. As a result, only 1,219.3 hectares (32.3% of the total area of the estate) will be used for the development of all the works of the project and the remaining 2, 551.2 hectares (67.7%) will be used for preservation purposes and will be kept in natural conditions under a protection scheme proposed by the petitioner company of the project.

3.

Area and/or Region Where It Is Located.

The Cabo Dorado project will be located in the municipality of Los Cabos, south of the village of La Ribera (which is the Municipal Delegation), in an area of 3,770.5 hectares.

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Location

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The estate owned by Cabo Dorado is formed by 3 large areas or polygons, within which it is proposed to implement the project in five phases encompassed as follows: Polygon 1 (Encompasses Phase I, Phase II and Phase III) with a total area of 1,394.7 hectares, equivalent to 37%% of total area of the estate.

Polygon 2 (Encompasses Phase IV) with a total area of 619 hectares, equivalent to 16% of the estate.

Polygon 3 (Encompasses Phase V) with a total area of 1755.6 hectares, equivalent to 46% of the estate.

For the purposes of the project, the concept of Phases must not be understood in a chronological or temporary manner, but as chapters of the project’s development. Each Phase is part of the set of elements that make up the Cabo Dorado project.

The Regional Environmental System (SAR) where the project is located was divided into two main areas, a land one and a marine one. Hydrological, terrestrial vegetation and land use, and administrative boundaries (POELMC and Cabo Pulmo ANP) were the criteria used for the delineation of (land) SAR. The criteria used in defining the marine SAR considered one kilometer offshore area adjacent to the SAR, surf, tide, and the administrative area of the Cabo Pulmo National Park. Importantly, even when the marine environment was

EXECUTIVE SUMMARY

CABO DORADO: MIA-R

taken into account, the project will not have any interference on the marine environment, for all his works will be developed on land within the limits of federal maritime zone.

Regional Environmental System

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Six environmental units were demarcated as a result of the analysis and matching of the thematic detail mapping and the results from the identification and assessment of environmental processes. It should be noted that the description and analysis of the "Project Site" was carried out after the SAR; therefore, the demarcation of Environmental Units (topographies) of the "Project Site" fully matches the environmental elements that define the Regional Environmental System. In this way the environmental units are clearly described and identified in geo-referenced site plans.

4.

Incidence and/or Consistency with the Main Regulatory Instruments.

The context of legal provisions analyzed to establish the interference and/or legal consistency of the project are the following: Of Binding Nature and Applicable To the Project. 

Political Constitution of the United Mexican States.

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General Law of Ecological Equilibrium and Environmental Protection and its Regulation on Environmental Impact Assessment.

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National Water Law and its Regulations.

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National Property Act and the Regulations for the use and exploitation of the territorial sea, waterways, beaches, federal maritime zone and land reclamation.

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General Law on Sustainable Forestry Development and its Regulation.

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General Law for the Prevention and Integral Management of Wastes.

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Program for the General Ecological Management of Lands

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Plan of Land Use Regulation of the municipality of Los Cabos, Baja California Sur Mexican Official Standards

Of Binding Nature, Not Applicable to the Project as They Regulate a Different Site From the Proposed One. 

Decree establishing the Protected Area with National Park status, Cabo Pulmo June the 6th, 1995.

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Program Management of the Protected Area with National Park status, Cabo Pulmo November the 13th, 2009.

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Convention on Wetlands of International Importance RAMSAR Site, Natural Protected Area Cabo Pulmo.

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Marine Ecological Program of the Gulf of California POEMGC (published in the Official Gazette of the Federation on Friday, December the 15th, 2006).

Regionalization Instruments, Non-Binding, Lacking Regulatory Nature. 

Relevant Area for the Preservation of Birds-AICA

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(CONABIO) Priority Hydrological Regions CONABIO

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Priority Terrestrial Regions

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CONABIO Priority Marine Regions

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Mexico's National Commission for the Knowledge and Use of Biodiversity (CONABIO)

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Analysis of gaps and omissions in the preservation of terrestrial biodiversity in Mexico: spaces and species (The National Commission on Natural Protected Areas ) CONANP-CONABIO

Regarding the authorization for changing the Land Use of Forest Lands (CUSTF), with respect to the conditions of use, development, change in land use from forest lands to tourism lands, impacts to the biodiversity, the vegetation cover, the soil and the environmental services, all these elements were assessed in due course and authorized by SEMARNAT through its Federal Delegation in the State of Baja California Sur, under the provisions of the General Law of Sustainable Forestry Development, as set in the CUSTF. The aforesaid conditions have been cleared and executed according to the procedure set in the LGDFS and its

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Regulations; therefore, these rights are valid and applicable to the estate in question and to any and all projects submitted which are located in the authorized area. In view thereof, the project proposed to EIA complies with the authorization of CUSTF and with the use from which the aforementioned authorization arises. Therefore, CUSTF’s authorization is valid and enforceable and supports the rights acquired. Such rights are legally protected by the provisions of the Constitution, as stated herein above.

Regarding the use and exploitation of water: the authorization issued by the National Water Commission, which sets the volume for the exploitation and use of water found in the estate where the tourism project is being developed, is valid by operation of law. Therefore, the authorization holds the rights protected by the Constitution and is not subjected to interpretation or correction as the environmental and legal conditions that gave rise to it remain unchanged to this date and that and the project to develop in this estate meets and does not modify the conditions set in the authorization.

It is important to highlight that the use of water granted under concession to the owner does not threaten the ecological balance of ecosystems or the access of other stakeholders to water, this based on the NOM011-CONAGUA-2000 and in the Update on Mean Annual Availability of Groundwater in Santiago Aquifer (0320) State of Baja California Sur, as published in the Official Gazette of the Federation on August the 28th, 2009 in what follows that the Aquifer from which the project will be supplied of water has no deficit, shows availability for 4.15 million m3, considers concessions for use for 15.7 million m3, and the Natural Dedicated Discharge is guaranteed by a volume of 4.6 million m3. Since the concessions were granted to the owner in 1994 and 1996 and have been considered in the Update on Mean Annual Availability of Groundwater in Santiago Aquifer (0320) State of Baja California Sur, as published in the Official Gazette of the Federation on August the 28th, 2009 in compliance with NOM-011-CONAGUA-2000.

The analysis done on linking planning instruments and applicable laws and regulations showed that the SAR is in a context regulated and planned by said instruments, with “touristic” and “preservation” uses; therefore, the development of the area was planned having this two basic criteria as guideposts. Moreover, in this analysis it was determined that the project is compatible, as it conforms to the tourism and preservation land use and as it complies with the occupancy limits set out in POELMC. Regarding the Ecological Zoning Plan of the municipality of Los Cabos, Baja California Sur (POELMC) published in the Official Gazette of the State of Baja California Sur on August the 31st, 1995, the proposed project has an area of 3,770.5 hectares regulated by the POELMC, which classifies the territory of the municipality into Environmental Management Units and grants an Environmental Policy and Land Use Zoning to each one of them.

As stated hereinabove, the property covers an area of 3,770.5 hectares, of which 2,741.96 hectares (72.7% of the total area) are located within the UGA T-13; 336.7 hectares (8.9% of the total area) are located within the UGA T-14; and 691.8 hectares (18.3% of the total area) are located within the UGA T-19. POELMC sets the following policies, land use and ecological criteria for UGA T-13, UGA T-14 and UGA T19:

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EXECUTIVE SUMMARY UGA T-13

CABO DORADO: MIA-R Policy

Preservation

Land Use Zoning Suitable for tourism with a gross density up to 10 rooms/hectare and low-density and low environmental demand preservation use.

T-14

Preservation

Suitable for tourism with a gross density up to 10 room/hectare and low-density and low environmental demand preservation

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use.

T-19

Preservation

Suitable for preservation and low density and low environmental demand productive activities for Nature preservation and forest use.

Moreover, it defines that the following ecological criteria will apply to each UGA: Ecological criteria applicable to UGA T-13: A 1, B 1 to 5, C 1 to 4, D 1 to 2, K 18, E 1 to 4, F 1 to 4, F

6 and 8, I 1 to 22, J 1 to 6.

Ecological criteria applicable to UGA T-14: A 1, B 1 to 5, E 1 to 4, F 1 to 4, F 6 and 8, H 1, H 3 to 6,

I 1 to 22, J 1 to 6, K 19 to 23.

Ecological criteria applicable to UGA T-19: D 1 and D 2 In the portion of land located within the UGA T-13, the project includes the construction and operation of infrastructure for tourism, with a total area of occupancy of 1,130.7 hectares (41.3% of the area of the state located within the UGA T-13). Therefore the land use will change from forest land to tourism land under UGA T-13, thus meeting the “tourism suitability� of the land use.

UGA

Policy

Land Use Suitability

Applicable Ecological Criteria A-1

T-13

Preservation

Suitable for tourism with a gross density up to

B 1-5

10 rooms/hectare and low-density and low

C 1-4

environmental demand preservation use.

D 1-2 K18

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The tourist devoted area will have an installed capacity of 4,020 hotel rooms distributed in 8 hotels and 6,061 households (equivalent to 18,183 hotel rooms); which amounts to a gross density of 8.1 rooms/hectare. It is important to mention that, given the area of 2,741.96 hectares of land spread over the UGA T-13, that portion of the estate has a maximum installation potential of up to 27,419 hotel rooms; therefore, the project complies with the gross density allowed "up to 10 rooms per hectare" for that UGA T-13 and shows a lower density limit than the one set in POELMC. In the fraction of land located within the UGA T-13, the project allocated 1,611.24 hectares (58.76% of the area of land located within the UGA T-13) as Reserve with preservation purposes; thus, complying with the land use foreseen for UGT T-13 regarding the “low density and low environmental demand preservationist use."

The project is located in a property with a total area of 3,770.5 hectares, of which 336.7 hectares (8.9% of the total area) are located within the UGA T-14. The following policy, land use zoning, and ecological criteria correspond to UGA T-14: UGA

Policy

Land Use Suitability

Applicable Ecological Criteria A-1 B 1-5

T-14

Preservation

Suitable for tourism with a gross density up to

E 1-4

10 rooms/hectare and low-density and low

F 1-4, 6 and 8

environmental demand preservation use.

I 1-22 J 1-6 K 19-23

Of the total land; 336.7 hectares are located within the UGA T-14 (8.9% of the total area of the property). In the fraction of land located within the UGA T-14, the project includes the construction and operation of infrastructure for tourism, with a total occupancy area of 88.6 hectares (26.3% of the area of land located within the UGA T-14) in which the change in land use from forest land to tourism according to UGA T-14 zoning will be carried out; therefore, the project meets the land use purposes regarded as “suitable for tourism”.

The tourist devoted area will have an installed capacity of 60 hotel rooms distributed in 1 hotel and 80 households (equivalent to 240 hotel rooms); which amounts to a gross density of 9 rooms/hectare. It is important to mention that, given the area of 336.7 hectares of land spread over the UGA T-14, that portion of the estate has a maximum facilities potential of up to 3,367 hotel rooms; therefore, the project complies

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with the gross density allowed "up to 10 rooms per hectare" for that UGA T-14 and shows a lower density limit than the one set in POELMC. In the fraction of land located within the UGA T-14, the project allocated 248.1 hectares (73.7% of the area of land located within the UGA T-14) as Reserve with preservation purposes; thus, complying with the land use foreseen for UGT T-14 regarding the “low density and low environmental demand preservationist use."

The project is located in a property with a total area of 3,770.5 hectares, of which 691.8 hectares (18.3% of the total area) are located within the UGA T-19. The following policy, land use zoning, and ecological criteria correspond to UGA T-19: UGA

Policy

Land Use Suitability

Applicable Ecological Criteria

Suitable for preservation and low density and T-14

Preservation

low environmental demand productive

D1

activities for Nature preservation and forest

D2

use.

In the fraction of land located within the UGA T-19, the project will allocate 691.8 hectares as Reserve with free infrastructure preservation use, which fulfills land purposes for UGA T-19 regarding states that are "Suitable for conservation and productive activities of low density and low demand on environmental protection and forestry use."

In the fraction of land located within the UGA T-19 there is no real estate density.

After an analysis of all the binding and non-binding regulatory instruments mentioned hereinabove, it can be said that the project complies with the applicable legal provisions.

5.

Major environmental impacts.

The assessment of environmental impacts was conducted at "multi-scale" level with a focus on three scales; each is focused on assessing in a context according to the different levels of complexity of the project. Thus, the environmental impacts were identified and assessed considering interactions "Project at SAR scale", "Environmental Components Project" and "Elements of the project-Environmental Components". Out of the analysis carried out, adverse impacts were identified, in all three scales, but none significant. Beneficial impacts were found in “Project at SAR scale" and "Environmental Components Project", which contributes to the consolidation of the use of the land for tourism and preservation purposes as set in POELMC. Only in "Project at SAR scale" were found accumulative beneficial and adverse impacts. In the current state of SAR,

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none of the identified impacts caused significant changes in the ecosystems and natural resources or in the health, which could jeopardize the existence and development of man and other living beings and the continuity of natural processes.

The adverse environmental impacts identified at "Project at SAR scale" are: a) Decrease in the width of environments present in the SAR, caused by the use of the land for tourism purposes; b) Pressure on the Administration of Natural Resources and Services due to the change of land use in the SAR, according to the foreseen development policies; and c) Pressure on the Administration of Natural Resources and Services due population growth (temporary and permanent residents) in the SAR according to the foreseen development policies. The benefits resulting from the project development are: i) Consolidation of tourism and preservation purposes under the PELMC for the UGS T-13 and T-14 and the preservation purpose of the UGA T-19; and ii) Contribution to the consolidation of the development model provided by the government of Baja California Sur. The water used in the economic activities of the project will be treated and reused from the beginning of the project, without discharges of wastewaters to the environment. This will be implemented through a comprehensive strategy for the efficient use of water throughout its cycle, from the extraction and transportation from the wells to the project site to the facilities were it will be used and up to its treatment and reuse for watering and maintenance of the golf course and the green areas in the project; thus favoring infiltration and improvement of micro climatic conditions in the project site. All this is shown in a water availability program and a comprehensive hydrology and costal processes program where the strategies, lines of actions and efficiency and efficacy measurement mechanisms are defined.

Aware of the magnitude of the project, besides a sustainable planning and design regarding water consumption, power consumption is also a key element in the design; therefore, the use of solar power for lighting all public areas and for supplying basic services in hotel, residential, and services facilities was also part of the project, thereby obtaining less energy from the power supply network and reducing the ecological footprint. The Asian investment group is leader in the development, use and implementation of clean energy generation technologies, particularly solar power; therefore this element is project’s strength and ensures the application of state-of-the-art technology and an efficient use of energy.

Like in any development project, the assessment of direct and indirect environmental impacts had allowed to design a preventive, mitigation and compensation strategy that ensures the sustainability of the project’s site without compromising the ecological balance of the area. In this sense, the removal of the vegetation cover, as set in the authorization of the change of land use of forest lands, besides providing economic compensation resources to the Mexican Forest Fund (under the General Law for the Development of Sustainable Forests), implies the creation of a Germplasm Bank. Said bank will favor actions of reforestation and restoration of the vegetal cover with endemic species of the site and will contribute to the federal, state and municipality governments’ programs. Thus, the governments rest assured that they will have access to the endemic genetic

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material, through the Germplasm bank, which contributes to preserve the flora diversity of the area.

Regarding fauna: 67.7% of the total surface of the state was allocated to preservation purposes. Within that area, a rescue and relocation program for wild animals will be in place so as to guarantee, by its implementation and results assessment, the continuance of evolutionary processes of endemic fauna.

Another characteristic of the development of society is waste generation; therefore, the wastes management and final disposal of residues is an inherent element of the project; thus, the design, construction and operation of facilities for urban solid wastes management will be a joint commitment with the municipality, as nowadays the service does not exist in the Cabo del Este area. In this way, not only Cabo Dorado will enjoy the service, but also all the nearby towns, such as La Riviera and Cabo Pulmo, where wastes are either buried or burned nowadays, with the corresponding negative impact on the environment.

In line with the climate change mitigation and adaptation commitments, Cabo Dorado has included in the development a series of elements coherent with such mechanisms so as to reduce the carbon footprint. Firstly, the buildings located in front of the coastal line, besides protecting and preserving the active coastal dune of the beach (with a height of -2 meters above sea level), have set a construction height limit of +6 meters above sea level for buildings with beach front. In order to do it, the models on the sea level increase in the next 50 years were taken into account, as well as the tidal waves in extreme cases. This measure allows the preservation of ecological balance in the beach and in the sea front, as well as protects the population and serves and climate change adaptation mechanism. Regarding air emissions: the project pretends to limit the use of automobiles in the area by implementing an internal transportation system so as to reduce the use of vehicles and favors the decrease of greenhouse gases. On this regard, the Asian investment group is a leader in the development of public transportation projects and equipment, which facilitates access to state-of-the-art technology and its use in the project.

The implementation of an exchange and training mechanism on development and research issues is an strength of Cabo Dorado, who will be the means through which the youth population will have elements for participating in educational and professional programs that are expected to be part of the project. This entails the strengthening of business activities and increasing the quality of life of the population in the region. The creation of the Investigation Center of the Gulf of California, as a mechanism for exchanging and developing human resources is intended to strengthen the protection and preservation activities of the National Maritime Park of Cabo Pulmo with environmental promotion and educative actions, development of investigation lines and knowledge generation regarding this ecosystem and the numerous and valuable natural resources of the Gulf of California and its islands.

6.

Mitigation, Compensation or Restoration Measures.

The management of strategies for preventing and mitigating environmental impacts, through the proposed Comprehensive Environmental Management System (SIGA), has two scopes. The first is as the planning area

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which is made up by three sub-systems providing information for “environmental strategies”, “environmental actions” and “environmental indexes”. The second scope is the operation, which includes a “general environmental compliance program” and 11 specific programs. The implementation of SIGA will prevent and mitigate environmental impacts in the project while allow the planning, implementation, review, and measurement of the activities carried out during the development of the project.

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EXECUTIVE SUMMARY 7.

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Justification for Choosing the Site over Other Alternatives.

The project is located in an area that was assessed and defined under democratic and participative processes for defining the development alternatives, as the State Development Plan, the POELMC and the set of authorizations granted to the holder within the powers of other related authorities delimit the alternatives for complying with the environmental policies of the POELMC and the tourist and preservation purposes for the estate. Therefore, the site was the only alternative for developing the project.

Cabo Dorado is a project conceived as means to amalgamate the best of the cultures in the Pacific Rim, within a sustainably planned and developed area, with a broad participation of local and regional population so as to contribute to the sustainable development of Baja California Sur and Mexico, in an innovative development scheme in harmony with the environment and the local population.

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