Transcript BAHIA KINO

BAHIA KINO
Project
KINO BAY, Sonora
This lovely beach resort was named after Father Eusebio
Kino, a Jesuit priest who, in the 1700's, built 25 missions in
the desert regions surrounding the Sea of Cortez. Isla
Tiburon, just off the Kino Bay coast, is now a wildlife refuge
supporting seals, sea lions, many species of birds and an
abundance of land tortoises ambling along its shores
Located just 240 miles south of the U.S. border, Kino Bay has
ample water and electric power, miles of lovely white sand
beaches, a warm arid climate, material and substantial other
resources available just 55 miles to the east in Hermosillo, is
accessible by auto, boat, train and air and encompasses what
should ultimately become one of Mexico's largest and most
successful marinas.
Kino
Bahia Kino Project
Village of a Thousand Miles
The overall development plan over a five to seven year period would
encompass 622 acres comprising 14.5% of the total land area.
The Permits for Kino and the Presidential Decree for the Marina are Current
This would include:
* the construction of additional infrastructure
*roads
*landscaping
*705 Attached and Detached residential units
*45 units of employee housing
*2 restaurants
*an 800 slip marina and associated facilities
*2 golf courses
*a recreation complex
*a Yacht and Racquet Club
* 660 Hotel Rooms
* Shopping Center
* Shrimp Farm
Sequence of Development
Phase One: preliminary dredging on bay side of
peninsula; start up of a sewer plant and
preliminary build-out of main marina at top of
peninsula.
Phase Two:
1. "EL GALEON" - condominiums & restaurants
2. "LAS FUENTES" - duplexes and recreational
complex
3. "KINO YACHT AND RACQUET CLUB"
condominiums with wholly owned boat slips and
marina
4. "LAS VILLAS" - large villas with semi-private
docks
Phase Three: Shrimp Farm Development
Advantages of this Planned
Community
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1. Mexican Government will welcome an industrial
complex in the Sea of Cortez Region, already
designated a high priority development zone in Mexico.
2. Property is 240 miles from the Arizona border
(around 300 to Tucson); 400 air miles to San Diego, and
less than 800 to Silicon Valley.
3. Ample power and water are available to support a
major development, encompassing both industrial and
residential; direct and indirect employment creation, with
a resort atmosphere for living.
4. Sustainable development approach; the
infrastructure would be installed in accordance with state
of the art green building criteria.
Advantages (Cont’d)
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5. It is just 55 miles from Hermosillo, the state capital of
Sonora which has a population approaching one million and
an industrial base including a Ford Motor assembly plant; it is
a modern city with amenities such as Wal Mart, Sams Club,
Costco, Home Depot, a Baylor University Hospital and many
other conveniences.
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6. Hermosillo boasts a skilled labor force, from local
university graduates that would likely prefer to stay in the
region rather than seek employment elsewhere in Mexico or
the U.S. Without a need for the HB-1 visa required in the
U.S., technicians would welcome the opportunity of a lifestyle
less expensive than in the U.S.
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7. The demographics of the Planned Community, thus,
become diversified creating a viable tax base for this
community to grow and be able to offer its citizens a satisfying
life style without the hassles of a major city.
Phase Three: Shrimp Farm
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Will occupy only a part of currently available land
in Bahia Kino area, already owned by same
investor
Will be developed independently of residential
phases
Though geographically separte, will blend in with
the planned residential community and in
harmony, environmentally
Ocean Gardens, a known and knowledgable
company in this field, will manage the project
Land owner will be a principle in the project
Shrimp Farm Project
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Background:
 Demand for shrimp increases with rising income,
and most established global producers face
declining output due to pollution.
 This project will farm a tested area adjacent to
successful shrimp facilities; external infrastructure
is in place, and project will employ sustainable
production methods.
 Mexico currently supplies 8% of world demand
 Ocean Gardens would commit to assume the
project’s total shrimp production, & can provide a
Letter of Intent to this effect.
Shrimp Farm Project
 Background
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(Cont’d):
Ocean Gardens would provide technical assistance in
project.
Mexico has installed industrial capability to process
shrimp, but what has been needed is a major
expansion and the use of up to date techniques to
broaden the market.
Periods of harvest of shrimp with the highest volumes
are August to December, with problems of saturation
of capacity when capture of the wild shrimp coincides
with good water temperatures
Shrimp consultant has already completed a project
design and environmental report, and it will be
updated.
Shrimp Farm Project
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Project Land:
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Approx. 1,280 hectares (3,000 acres)
Appraised at U.S.$ 31 million
Unencumbrered and zoned for aquaculture
Located on bay, and runs to main highway to Hermosillo
Property title is guaranteed by First American Title, partner in
Global Corporate Partners Group
Additional 2,000 hectares of coastal land owned and available
for expansion
Assumptions:
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That permits from SEMARNAT, CONAPESCA
and State of
Sonora will be obtained.
Current price for shrimp size 21 is $4.50/lb (dollars) - 7.5% of
commercialization fees
Average Production Yield: 5 to 6 Tons per Hectare
Cost of shrimp production = $3.26/lb
1,000 hectares to be used in project
Shrimp Farm Project
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Scope of Investment (Financing Req’d):
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Capital Equipment
$ 10,000,000 U.S.
Engineering & Installation
3,400,000 U.S.
Deferred Expenses
600,000 U.S.
TOTAL INVESTMENT:
$ 14,000,000 U.S.
• Above excludes cost of land.
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Scope of Expected Revenues/Exp:
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Production: 5,000 Kg/hectare = 11,000 lbs
• 11,000 lbs/hectare x 1,000 hec = 11.0 million lbs
Revenues: 11.0 million @ $4.50/lb = $ 49.5 million/year
Expenses: 11.0 million @ $3.26/lb = $ 35.9 million/year
Operating Income: $ 13.6 million/year
Final Objective
A Village of a Thousand Miles
From Bahia de Kino in the north to Acapulco in the south.
Presently, there is approximately one million in population as well as
one tenth of a trillion dollars in developed build-out.
The fact that this village would be able to add nine million in population
and nine tenths of a trillion dollars in additional sustainable build-out.
It would seem this would make an alternative to those seeking the
quality of life in neighboring countries
The village of a thousand miles would be of mixed use. Residents
would have the option of living over their places of work or industry.
Other residents would have the option of walking to industrial and
manufacturing plazas.
These entities would contain
1. Childcare
2. Health Centers and family planning
3. Unions
4. Technical training
Final Objective
A Village of a Thousand Miles
Continued
Still other residents in the villages would be accessible to work on small
farms associated with a cooperative, with owner occupied land.
This would seem to be the highest level of self fulfillment.
This village would be accessible to a fiber optic line from Los Angeles to San
Diego across the Gulf of California to Bahia de Kino and through the village to
Guadalajara and Mexico City. The village would be sustainable with solar
panels and mitigated from hurricanes. The highway would encourage use of
hybrid vehicles. An electric train would run parallel to present tracks
We ask the CalPERS entity to do the incubation funding for
the U.S. and Mexico to partner with. The Bahia de Kino
project would serve as collateral.
Saludos
Presentation by:
Joseph R. Chapa
Government Advisor
Monterrey Mexico
Reeves Research
and Development
52 Mission Circle # 122
Santa Rosa, CA 95409
(707) 539-7336
[email protected]
Design By:
Justin Ebersole