Loreto Bay Company - It looks like this is the end

The breaking news this weekend is that Loreto Bay Comapny has closed their office in town, stopped construction, and the hotel, golf course and other hospitality services are suspended until further notice.

The Loreto Bay websites LoretoBay.com and LoretoBayNews.com both have been replaced by this letter:

Loreto, BCS, June 6, 2009

Dear Homeowners,

TSD Loreto Partners, S. en C. por A. de C.V. (the “Company”) regrets to inform its clients and stakeholders that, due to the challenging situation in the international real estate and financial markets, all operating and construction activities for Loreto Bay (the “Project”) will be suspended.

To assist in securing new equity funding and a long-term suitable buyer for the Project the Company hired Cushman & Wakefield. Several potential buyers and investors have visited the Project over the last few months, yet in the context of the current economic crisis and credit shortage, the Project has been unable to secure a buyer or new investor.

We regret to inform you that until new funds are secured, as of June 7th, 2009 all hospitality related operations will be suspended and as of June 8th, 2009 all construction related activities will be suspended.

Please note that all homeowners with a home under construction, and all other homeowners will receive further information as it becomes available.

Best regards,
Embree C. "Chuck” Bedsole
Interim President
TSD Loreto Partners, S. en C. por A. de C.V.

The Inn at Loreto Bay web page is down (discoverloretobay.com). If you have reservations you may want to give them a call and see they have to say.

Pam Bolles in Loreto reports that the Loreto Bay office next to the Mission closed up this week, the signs were painted over and she saw workers removing furniture and fixtures.

People are posting breaking news at the Silver Creek web page. I'll post more information as I get it.

Although I had high hopes in the beginning, it quickly became obvious back in 2004-2005 that this project was questionable a best. When it appeared that much more money was being spent marketing to gullible Americans and Canadians than on building infrastructure, sustainable or otherwise, I became concerned. And when Loreto was temporarily overrun with brand new Mexico experts who had learned everything they knew about Loreto from LB sales material I knew it was doomed.

As the "I got burned" in Mexico stories hit the press remember that it was a team of Americans and Canadians who took the money and ran. Ironically, the Loreto Bay development was started on land that was part of an earlier failed development - Nopolo. Maybe I'll write something about that story one day.

For now at least if you are nostalgic for the LB marketing dream check out explorelorteobay.com. It likely won't be up much longer.