Well, I have heard nothing from the HOA manager or the developer regarding the status of the restaurant, swim-up bar and convenience store supposedly amenities told us when we purchased over 2 years ago. The lack of communication is most frustrating and this is not the first time it has been mentioned. Homeowners better get involved - this is a big investment. I hope the transition committee is having a better line of communication with the developer or the association will not be in a very good position to take over. We need to know if a report will be generated that discusses: grounds, maintenance, finances (most important, are all homeowners paying their monthly assessments and is the developer pursuing those that are not - the cost of this action can be expensive and I think the association should not have to pick up the tab), etc. Dave Sardella/Sandee Bennett (Baja 402/Bonita 403B)

All quiet on the Sea of Cortez front. Noticed no new pictures on our owners web site since June 1... ?? Several owners going down over 4th of July. let's have a Cheeseburger at the new Resturant

Sorry about the lack of pictures. We have not been at Las Palmas since the first part of June. Will be back, for a short time, in the next couple of days and will update the gallery. GH Robins

1) Restaurant and bars. Bob Miller posted a reply the other day and he today sent a reply to some questions Nancy assembled from the meeting on June 25, 2005. Personally, I think Villas Bonitas has bent over backwards to finish the construction for these areas. I gather the people that were going to do it have not moved ahead. In the last day or so, I understand the Developers have received a proposal from the people that supply the Coffee and Donuts - "Candy Cake". This is not yet a "done deal" as I gather they have to both agree on the lease conditions. I understand that once they do agree, they hope to have something open within 3 - 4 weeks. I hesitate to say this as many things can go wrong and they have no control over how long the liquor license may take. 2) Transition Committee. Originally they had hoped to start the Transition in July or August and that has now been pushed back to September or October which gives everyone a little more breathing room. If the transition was in Arizona, these are the types of issues we would be dealing with: Transition Issues - July 7, 2005 1) Is the HOA's current budget accurate and adequate encompassing all expenses of the HOA 2) Is the HOA's current assessment rate adequate to properly operate the HOA per the provisions of the budget 3) Are the HOA's bills and invoices current 4) Is the HOA doing the best job possible in collecting delinquent assessments and: 5) Has a recent audit been performed 6) Perform a reserve analysis 7) Is the reserve fund fully funded 8) Ensure that all common area of the HOA has been conveyed to the HOA 9) Are any taxes due on that transfer 10) Inspect all the common areas to ensure that they are in proper maintenance 11) If the common areas need repair, petition the developer to bring up to standards 12) Review all vendor contracts and relationships to insure they are in the best interest of the HOA If some are not in the best interest of the HOA, the Transition committee should consider canceling the contract or relationship 13) Review the insurance policies to insure they adequately protect the HOA's interest. 14) Review the status of all current violations of the CC&R's to insure proper action is being taken concerning the violation 15) Review the HOA CC&R's, Bylaws, articles of incorporation architectural guidelines, rules and regulations and any other policies to insure they are in line with Mexican Law 16) Obtain all documents in the possession of the developer that may affect the HOA: Articles of Incorporation Bylaws CC&R's, including all amendments Rules and regulations Architectural guidelines Corporate annual reports Tax Returns Public Report Plat Maps Insurance policies Deeds of Common Areas Minutes of board meetings and board resolutions Budgets Financial statements Audits Accounts Paid and payable invoices Bank statements and records List of Members "As built" drawings of all buildings, facilities, water and sewer systems, roads, etc. Landscape and irrigation drawings Architectural submission records Rule and Restriction Enforcement records Warranties Schedule of Major capital items (roofs, streets, etc.) and date of installation and live expectancy List of manufacturers Paint specifications Material specifications List of construction subcontractors Existing contracts (e.g. pool, propane, management, trash, etc) Inventory and location of all HOA assets Marketing/Sales materials used by the developer. Did we miss anything? Since the transition is a Mexican Transition, we need more input from Francisco and others. Please note none of the transition issues deal with "Operational issues" or "Rental Issues". The developer has full control of these until after the transition occurs. Please keep the questions coming and everyone, please go easy on the 5 Transition Team Volunteers. We will be dealing with Transition issues only. Thank you GH Robins

Great list of transitional issues. We should all be very appreciative of the volunteers who have taken on the task of Transition Committee member. I would think the transition period will take about six months or longer to complete especially since the members are not at Las Palmas all the time. In the states we start the transition process a year before turnover actually occurs. Let's not rush this. One side note - maybe we don't want the liquor license in the name of the HOA (liability issues)? Do the other resorts contract vendors who have their own liquor license? When we contract here for our golf course restaurant/bar operation, the liquor license comes with the contracted entity. Thanks for keeping us informed. Sandee Bennett

This is my understanding: For anyone running the Restaurant/Bars the Developer has insisted on these conditions: 1) The tenants use only New Equipment, furniture and fixtures. (if for any reason the restaurant/bars shut down, all equipment, furniture and fixtures shall stay and become the property of the Las Palmas HOA 2) The liquor licenses must be in the name of the Las Palmas HOA 3) All other licenses and permits must also be in the name of the Las Palmas HOA 4) The tenants must sign leases in both Spanish and English, the Spanish one being the official one. Then if the venture is not successful, the Tenant cannot strip the facility and leave the HOA with an empty space and no licenses to do business. This caveat has discouraged some prospective tenants. I have heard stories where this was not done in other places and it left the HOA in a bit of a mess. I do not know what, if any, liability the HOA could have when the liquor license is in the name of the HOA but I will add it to the list of things to research. Thank you GH Robins

Thanks for putting the liability issue on the transition list - there is nothing in the restaurant/bar area now - so guess we'd just have to start over again if the tenant left. I would just like someone to inquire with the other HOAs - who has talked with any of them? Or is this just hearsay? As I said, why are we having difficulty when others don't appear to have the same problems? When I get down in a week or so, I'll do some investigating. The Sonoran Sun must be well connected to get their restaurant/bar up and running so quickly - maybe the tenants would like to run two establishments? I don't know the answers, but this is disappointing. Please keep us informed - thanks, Sandee

I believe the Developers, in the best interest of the HOA, have made the criteria for operating the Restaurant and Bars, quite stick: 1) You must sign a lease 2) You must install only new equipment 3) All permits and licenses, including liquor licenses, must be in the name of the HOA 4) All equipment furniture and fixtures will remain the property of the HOA 5) Only Owners and Guests of Las Palmas may use the facilities, no one from outside the complex may drink or dine at the Las Palmas. To my knowledge, most if not all, other bars and restaurants in the area are open to the public. With so many restrictions, I am not surprised it is taking a long time to find a suitable tenant. At the same time, although not directly involved in the running or management of the facilities, it will give the HOA some controls, it may not have otherwise. I also feel it is better to start like this and when the transition is complete and if the owners do not like the situation, they can change it. That is, we could loosen up the restrictions. If we did not have the above restrictions and we were not satisfied with the situation it would be very difficult, if not impossible to tighten up later. My thoughts. GH Robins

Well, all I can say is we may have empty rooms for quite some time. And as for only Las Palmas using the facility, if I was going to invest all that time and money, I would want to make sure I had guests. All the restaurants/bars are open to the public (Sonoran Spa/Sonoran Sun/Playa Bonita/Bella Serena will be) and why do you think that is?? Because without the outside guests the restaurant will probably never make enough money to support the operation. I know this from firsthand experience. Especially in the beginning, having the restaurant/bar open to the public is the only way it will make money. We do not have enough clients at Las Palmas to support such an operation unless you are talking strictly hamburgers and hotdogs. The more we talk about this the less I am impressed. If the operation doesn't make money, are we the owners going to have to subside the operation? Or just look at an empty building? I am surprised there are not more owners concerned about this amenity. Sandee Bennett

Sorry Sandee, I am not clear on what you are saying: A) Are you saying that you think the following criteria is not in the best interest of the Owners? 1) You must sign a lease 2) You must install only new equipment 3) All permits and licenses, including liquor licenses, must be in the name of the HOA 4) All equipment furniture and fixtures will remain the property of the HOA 5) Only Owners and Guests of Las Palmas may use the facilities, no one from outside the complex may drink or dine at the Las Palmas. B) Are you suggesting that the Las Palmas Grill and Bars should be open to the public outside the Owners and Guests? C) Or are you saying they might not find a tenant willing to abide by these restrictions? D) Or are you saying if they do find a tenant, the business might not be successful? By the way I personally do not believe Las Palmas was built as a "resort" as such, and should not be compared to the "Resorts" on Sandy Beach. I think this describes it best: - Las Palmas, a complex of Luxury Beachfront Homes and Condominiums, a Family/Adult Orientated Residential Community with Resort Amenities, Owned by Part and Full Time Residents, some who Rent. Thank you GH Robins