Updates

Penninsula and Grand Venetian

The beaches of the Penninsula and Grand Venetian abut the Pitiall River. The Grand Venetian also abuts the beach of the Holiday Inn.

This weekend, about 40% of the Holiday Inn beach and waterfront collapsed into the Pacific Ocean. The collapse covers an area about 50 meters wide and 150 meters long. Initial assessment is that the collapse was due to the diversion of the Pitiall River recently completed in order to build the Grand Venetian and Penninsula projects. The river diversion resulted in a water table that was supporting the sand and rocks of the waterfront above it to dry up.

The collapse is yet another risk added to the Penninsula and Grand Venetian Projects.

Icon Vallarta

We were advised by Icon Vallarta that Tower 1 was sold out. We have now been advised that 36 prospective purchasers of the 112 units in Tower 1 have asked for their deposits back. We have also been advised that the sales contracts for Tower 1 were provided to purchasers with a condition that they be signed without a lawyer's review. And that the sales contract includes a provision allowing closings to be pushed out from the initial deadline of December 2009, for a full year without penalty to the developer.

We continue to recommend that any purchaser of Icon Vallarta request their deposit be returned.