December marks the beginning of the high season for tourism in Costa Rica. As word has spread of the opening of the new Southern Pacific Coastal Highway from Quepos to Dominical we have already seen a significant increase in traffic driving by Hacienda Matapalo. As the season unfolds we expect a dramatic increase in traffic as the curious and the well informed visit our area to see for themselves what has been largely touted as "the gem of Costa Rica."
My first trip from Quepos to Matapalo some three years ago was about 45 minutes of bumps and potholes plus additional time waiting my turn to cross a few rivers using the one lane bridges. Last week I timed it at 16 minutes from the Quepos airport to Hacienda Matapalo (and no more one way bridges). The new Pacific Coast Highway is a sight to see. It changed everything! For two years we have been telling clients that this road would be complete by the end of 2009 and w have been met by varying degrees of doubt and had our credibility severely tested. Investors know that with major changes in infrastructure comes major increases in property values and for those who were early believers the rewards have been significant. This is still true looking forward. This new road opens up the entire South Pacific Zone all the way to the new hospital in Cortez and the planned third international airport in Palma Norte. There is so much to be discovered in this area and as word gets out about the fantastic beaches and breathtaking waterfalls and the abundance of wildlife, the demand for property will grow exponentially. The surprise will be that there is and will be a very limited supply of homesites and construction. Take the time to consider the reasons now and you can easily forecast what will happen to property values in the future. The situation is unique!!
1. Dramatic changes in the environmental protection laws in Costa Rica have made it very difficult and doubtful that extensive development can take place at all. Many planned developments in the Southern Zone have been halted by the government for environmental abuses and many of these specific sites may never be developed under the new and vastly stricter environmental guidelines.
2. The area between the mountains and the ocean in the Southern Zone is limited and in some areas, non-existent. There are few wide expanses of flat land available for development.
3. The Southern Zone is mostly Primary Forest and cannot be developed. Secondary Forest can be developed to a moderate degree but there is only a very limited amount of Secondary Forest in the Southern Zone.
4. Any development in the Southern Zone requires the cooperation of several governmental agencies, the local population represented by the various municipalities, extensive environmental and engineering studies and requirements, and the patience of JOB. Not many developers are confident that they can succeed.
Because of the limited development to come in the Southern Zone, we believe that a new term needs to be considered in evaluating the future of Hacienda Matapalo…EXCLUSIVE. When there is a large demand for a limited supply of anything, it is by definition, exclusive. As the infrastructure is further defined and realized in this area we expect property values to SOAR. We were in the right place at the right time when we purchased the land for Hacienda Matapalo and you are also in that situation looking to the future.
Our success has largely been a combination of several key factors that are difficult to duplicate and presents a significant challenge to would-be developers in the Southern Zone. Start by having a terrific Tico partner, as we have in Edwin Acosta, with all the correct information and relationships to get things done. Next, I would give credit to having expert legal advisors to deal with the extreme complexities of the Costa Rican legal and governmental systems. Pacheco Coto, our legal advisor, was recently voted the #1 law firm in Costa Rica. Thirdly, and equally important, is to employ the services of top engineering and consulting experts. INDECA has worked with us from before we purchased the land for Hacienda Matapalo and is involved in every engineering task as well as every environmental or governmental step in the process of development. They have been involved in virtually every significant development in Costa Rica as well as doing extensive work for the Costa Rican government in a myriad of public projects.
So this is where our confidence comes from looking forward to the challenges ahead. We are now beginning the construction of our entrance as the seasonal rains have begun to subside. The complex issues of traffic entering and leaving Hacienda Matapalo and december 2009 Hacienda Matapalo Community Newsletter page 2 our commercial center have been finalized with the Department of Transportation. Drainage of more than a square mile of our project has been planned and approved and now we can begin implementing it.
A year and a half ago we applied for a concession to use the water from our springs to service the residents of Hacienda Matapalo. No construction can begin without this official approval and last week we received our official documentation. This process involved not only the National Water Company but also the approval of several governmental agencies and extensive testing and engineering studies. As you know from past issues of your Community Newsletter, we elected from the beginning to share our water supply with the town of Hatillo more than two kilometers away. We are building, at our expense, a pipeline to Hatillo and a water storage facility as well. Because of the extensive initiative we have undertaken to improve conditions in our neighboring towns and to be responsible for the impact that Hacienda Matapalo will have on the local community and because of the opportunities that we will provide to the local residents, we received the highest level of support from the Costa Rican government.
By the time you read this issue we will have in place our new on-site office at Hacienda Matapalo. We had to send a customized construction trailer by ship to Costa Rica because we could not locate one anywhere in Costa Rica that met our requirements. This will blossom into our new visitors’ center just in time to invite travelers on the new Southern Pacific Coastal Highway to stop and learn about Hacienda Matapalo.
Equally important is the high speed internet being installed in this office so the engineers can have what they need to begin construction of our infrastructure. It is necessary to have on-site communications to arrange the materials, equipment and information necessary to begin. Step by step, Hacienda Matapalo is beginning to materialize in front of your eyes. (After two to three months waiting for the rain to stop).
-David Matluck, CEO Pegasus Star Ltda.
Developer of Hacienda Matapalo
For more information, visit us at haciendamatapalo.com
