Costa Rica Palo Seco

[Neilgriffin]

I’ve currently got deposits on two lots of concession property in Palo Seco. One deal is with a Costa Rican family and the price is excellent and the history of their land permit has all been provided. The other is with an American and is more expensive and is directly by the main access road. There are clearly several investors building or getting concessions along the road, but I’m nervous about this second investment in particular given the lack of a paper trail I’ve received. Does anyone have any advice or insight about the concession deals happening currently in Palo Seco? Neil

[koty]

My husband and I have bought a concession lot in Palo Seco and have several contacts with people in the area. I understand it as this. The municipality has submitted the Plano Regulador but it has not yet been accepted. It has been verbally approved. However, before they got it approved there arised a dispute betweeen MINEA and the municipalities about who has the right to grant concessions. This matter is still being debated and there is no indication about how long it will take before it is resolved. The good news it that MINEA has already determined that the Palo Seco area is excellent for development for residential and tourism projects. So either way it is decided the area will be ok. No one along this area has been granted concessions as the plano regulador was never officially accepted. The municipality did go ahead and grant building permits to several people who had all of the paperwork in order except the concession being granted. The legality of these building permits are in question but I would doubt anyone would bother to do anything about it. There was some question about bribes being paid to the municipalities in certain areas to get building permits but do not know if this applies to Palo Seco. Right now the municipality is no longer granting ANY building permits until the matter is resolved with MINEA. I know we are very disappointed but are thinking when the concession comes through we will have a nice piece of property (concession) that is worth quite a bit more than what we paid. It will take a LONG time to resolve this as I have heard it is REALLY SCREWED UP. Ok, there, I probably just made the value of my property go down but I think everyone should know what it is they are getting into. By the way, Where are the lots you are looking into? I know several property owners in the area. If you do decide to buy I would be interested in touching base and perhaps helping each other keep a watch over the property.

Sincerely,

Koty

[koty]

Oh, by the way this hold on concession granting is for all of Costa Rica, not just Palo Seco.

Koty

[Fran]

That´s a very good information about it, Koty.
But, I would have to say, there are a few titled properties still available in Palo Seco.
That is very important, cause you will be the owner, and you don t have to pay for the canon ( taxes ).
I bougth a small lot there, just a few days ago, at 300m from the beach.
If someone has interest in buying, I would be glad to help, and have neigbors there.

Edited on Mar 07, 2006 12:34

[koty]

I hope my information is accurate, I am only going by what I have heard and would love to hear what others know. I would be interested in looking at some titled properties away from the beach while waiting for the concession to come in. What do you know is available?

Koty

[Neilgriffin]

thanks Koty, this information is very insightful. What do you consider a LONG TIME – a year, two, more? I know you’d just be guessing…the two lots I’ve got options are as follows:

The first is the area just to left of the restuarant/bar as you enter the beach area. The lot was divided into three parcels, I’m currently suppose to close on the middle parcel, but have concerns about its size as it’s only been measured by the front mahone, and we were unable to locate the back mahone. At just 525 square meters, I’m fearful it may be reduced based on the location of the back mahone…so we’re doing more research on that…the front mahone actually extends to the other side of the road, but, I doubt we’d be able to petition to have the road moved so that our land was actually expanded. But, who knows, maybe when the road is paved, if that happens.

The other lot is on the road in back of the main road where you take a left about midway down between the restuarant at the beginning and Timarai toward the end…take a quick left and then another left and the lot is next to a small blue house and across the street from a local family who watches over it…it’s a bit of a dumping ground now, but it’s about 1,000 square meters and has a well. There’s a empty lot to the other side and a house for sale just down the street toward the end of that road.

We like Palo Seco very very much and would love to build there both a nice beach property and a nice community of people who can help each other and watch over properties etc. My partners family lives in San Ramon and with 15 children, they’re ready, able and willing to clean up the lot and watch over it — as well as use it for camping etc. until a building permit is granted.

You can email me directly at Neil@jamagency.com — and I’ll also continue to monitor this thread.

I would also be very intersted in titled land opportunties in palo seco — there must only be a few and I suspect they’re very close this second property I mentioned only further back toward the mangrove…

thanks again for your insight. Neil — Washington, DC

[koty]

Given that we have now owned the lot for one year and NOTHING has happened that supposedly was going to happen any time now… i.e. road being paved, the concessions being granted the Plano Regulador being approved…. I would think another 1-2 years if not more. We also had concerns regarding the majones. Our lot was based on a neighbors Majones that he claims mean nothing as he as moved them many times. We have many things to do before we can even think about building, regardless of the state of concessions being granted. I am wondering if your lot is behind our lot that we bought. We have bought a lot (concession) that is in a cross section of the beach road and another road going inland about half way between the bar and timarai. Across from and next to the brown stucco two story. (right next to the two roads and very distinctive). Very hard to describe isn’t it? From the rumors I have heard, they are trying to straighten out the beach road and some people may have their lots reduced and some increased. Supposedly the road is planned to go right through our neighbors living room, which is an occupied house. Of course these rumors have been circulating for many years and nothing has happened. He claims they will simply take the cheapest route which is to follow the current road. I think it is unpredictable and am glad we will be forced to wait and explore what is going on before building. I will contact you by email soon. Mine is jrknee@centurytel.net

Koty

[Neilgriffin]

thanks again Koty, let’s definitely plan on speaking and taking this conversation offline, unless others are interested in our Palo Seco updates! I would very much like to talk to you. Do you live in the US? I live in Washington, DC — my partner is closing NOW – this moment — on the first parcel which appears to be right around the corner from where you are…It should all be final today.

The other parcel I’m worried about given the road situation. I love stone and natural materials, but don’t think I’d like a paved living room…

[Neilgriffin]

Does anyone have any updates on this concession situation in Palo Seco? We closed on two lots on the back road in 2006 and have been waiting to receive our concessions on both these lots ever since. Marvin at the municipality at one point said they were coming (round 2008-2009) but then he changed his tune and said whoever had done the enviromental plan for Palo Seco had made a mistake and did not include the back road and that only the lots on the main beach road were being given concessions until the Plan Regulator could be updated. We’ve since inquired as to progress on the concessions, and get shrugged shoulder responses from the municipality. We’re not sure if Marvin knows or has any authority in this regard any more, but would be curious to hear from others who may know the situation. It’s important for the value of everyone’s property on Palo Seco that the back road lots be concessioned — especially given the beach destruction that’s happened on the far end by Timari etc. We need to be able to develop this widest part of Palo Seco to avoid having Palo Seco be further disregarded by the government.

Thoughts, adivce, insight or any news much appreciated!
Thanks.

[Andrew]

It’s certainly disturbing to see that you posted here when you first bought the lots which is now six years ago Neil!!

What did your attorney in Costa Rica say about this when you originally purchased the land?

[Neilgriffin]

We entered the deals in 2006 with a good understanding of the risks involved. Our attorney made it clear that concession property was inherently risky. We’ve not engaged the lawyer since then on the matter, since we’ve been focused on other investments and projects. Since people were finally receiving their concesssions in Palo Seco we were optimistic about our own coming up soon….but since the market crash etc. it seems that there’s been far less discussion of the entire topic — seems like everyone is on hold. Wondering if it’s best to escalate our conversations beyond the MUNI level at this point– but not sure who or where to start the conversation with in MINEA or elsewhere. Given the market situation, you would THINK it would be in the interest of the gov’t to empower folks like us who are waiting for concessions in order to invest in development. Everyday that goes by without a concession, is another day Palo Seco and Costa Rica is deprived of potential investment dollars…..

[Author]

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