No shortcuts in Costa Rica land development today.  If you think doing permitting the right way is onerous, wait and see what happens when you do it the wrong way.

The Costa Rica government is rapidly improving enforcement, significantly increasing the chance that un-permitted construction will get shut down long before the developer has a chance to ask forgiveness. In the year 2008 we saw a series of high-profile crackdowns on construction sites all over the country that should the developer community. The penalties can include everything from fines to even jail time. Also, the government is also making a few key changes in the permitting process – particularly in the environmental review – that promise to make permitting move faster, meaning that bribes, in addition to being a crime, are no longer worth the risk.   Without the meticulous attention to detail that the permitting process requires, you could end up unnecessarily delaying your product an extra year or two – a catastrophic development if your financing is time sensitive. Horror stories abound.

The main problem that developers face is the great variety of permits that must be obtained prior to building. To develop a property larger than 5000 square meters (1.2acres approximately),  you need the OK from at least half a dozen separate entities,and probably more. Developing a subdivision or a condominium adds another layer of oversight from another regulatory body.

In the end  you’ll probably need to have hired at least seven state-certified professionals, including an architect, a civil engineer, a topographer, an environmental engineer, an archaeologist, an anthropologist, and a biologist. All that, and you haven’t even started construction yet.

At Costa Rica Development properties our Land development division, we have arrived at a very carefully planned methodology to both find properties for our clients as well as get them off on the right foot in the development process.

We identify development objectives clearly and seek properties that match up in the areas best suited for this particular type of development whether it be major Hotel and Golf course project or simply project of building lots for sale.

Once we get close to a decision, we take the choices we have narrowed down to and do a very inexpensive Ambiente study by satellite. This gives us a pretty good indication of the land use. When it is decided to go forward with an offer, the due diligence is planned very carefully to give us the best time frame to complete it properly and receive the full information we need to be sure we can do what we want to accomplish on the land.

Our company has personally been involved in a fine project called “Vistas Manuel Antonio”.

In the upcoming posts, I will walk you through the process the we used to get to through all the approvals to date and successfully so, while others were being shut down all around us.

Please feel free to comment or ask questions regarding your devlopment

Costa Rica has been chosen to host the 2009 World Surfing Games, the International Surfing Association announced this week. Besting bids from popular surf destinations like Brazil and Australia, Playa Hermosa in Puntarenas will see hundreds of competitors from 40 different countries descend upon the Central Pacific coast from July 31 to August 9 of next year. The ten-day event is expected to generate between $800,000 and $1 million in event-related spending, according to tourism and local government officials. It is likely to cost $300,000 to hold. Top sponsor Billabong has already agreed to split the bill with the Municipality of Garabito. “A long time ago, [Billabong] was saying right away their first choice was Costa Rica,” said José Ureña, President of the Costa Rican Surf Federation.  They knew where we are positioned in Central America would be perfect, and that with the way surfing is being projected here, they know how big Costa Rica will be in the future,” said Mr Ureña (pictured at right), who has been rallying and readying government support for the ISA games for the past two years.
© Britton Jacob-Schram  
  
 “We’d been trying to organize everything before we even got the event. I made sure to touch upon the most important things with the ICT (Costa Rican Institute of Tourism) and the Municipality. They all knew about this a long time ago and they were on our side, putting a lot of weight behind this from the start.” In the end, the International Surfing Association (ISA) agreed. “Costa Rica is a great place to hold such an important event as the World Surfing Games, which are also known as the Olympics of Surfing; with good waves, great people and warm water,” ISA’s Pablo Zanocchi told The Beach Times earlier this week. Playa Hermosa, about eight kilometers (five miles) south of Jacó, is a black-sand beach surrounded by mountains, and arguably the most consistent surf break in Costa Rica. Counting surfers, coaches and staff, the ISA estimates 500 people will descend upon the small town and surrounding area for the event, while tens of millions will watch the competition as it streams live over the Internet.

The Costa Rican national team’s professionalism played a big part in the ISA’s decision, according to Zanocchi, adding one of the main goals of the ISA is to help develop surfing worldwide. Costa Rica had more or less proven itself as a heavy-hitting surf nation at the World Surfing Games, in Huntington Beach, California, two years ago, when it jumped to eighth best surfing nation. © International Surfing Association (ISA)  
 GOOFY-FOOTED GRACE: Reigning men’s national champion, Gilbert Brown, avoiding Huntington’s pier-pilings during the 2006 ISA World Surfing Games. 
“In the last few years, the Costa Rica Surf Federation showed great progress, with their athletes achieving outstanding results in international competitions and a strong local tour that shows that things are being done amazingly well on an organizational level,” said Mr Zanocchi. In fact, competitive surfing aside, the sport now accounts for 20 per cent of all tourism income.  Most of that is on the Central and Northern Pacific coasts. “Recognition for the athletes of surf has finally happened,” said the President of the National Council on Sport and Recreation (ICODER), Osvaldo Pandolfo. “These surfers have been getting really great results at both national and international levels. And this, without a doubt, will give more initiative to the sport in the country.” “To achieve a world event such as this isn’t easy,” continued Mr Pandolfo, who is also Vice-Minister of Sport. “And for this reason, we should work hard to organize this, so that it can open the door to other competitions of this caliber.”

The Municipality of Garabito met early this week with Mr Ureña to set up a committee to deal exclusively with the event.
© Beach Times Files  For Garabito’s Mayor, Marvin Elizondo, hosting the world games was a no-brainer. “We have champions here and our athletes have participated in important international events,” said Mr Elizondo. “Out of the entire world we were chosen and this is an important achievement.” Costa Rica’s reigning men’s national champion, Diego Naranjo (at right), agreed. “It means a lot to the country,” said Mr Naranjo. “It’s going to bring a lot of good things, especially for Jacó, for the monetary reasons of people renting cars, hotels and doing some of the area’s other activities. It’s going to be a lot of money for the community.”

The surf school Mr Naranjo runs with his wife, six-time national women’s champion, Lisbeth Vindas, has already benefitted from the event, says Ms Vindas. The Costa Azul Surf School has been chosen as the official surf school for the event and Billabong, she adds, has signed on with them for Costa Azul to become a Billabong Surf Camp. “It’s a big opportunity for the world of surfing in Costa Rica,” she said, adding the news has only motivated her more on both the national and international stages. “We have the best waves and now that we have the world cup, the television, the media — everyone will be getting involved. It’ll be bringing so many opportunities to the country.” “I think the sponsors will realize how big surfing actually is,” added Mr Naranjo. “It’s the beginning of a new era.”

If you are seeking a great location for a surfing vacation home, you need to  contact Carol Odonnell of Costa Rica Retirement Vacation Properties   Her knowledge of the area coupled with her son’s  vast surfing experience combines to make her an expert on surfing real estate.  She will match you up with best location,  your budget and a place that will rent when you are not there.

Carol Odonnell: Cell: (506) 8318-0717
Office: Hermosa/Jaco beach
Position: Marketing Director Central Pacific
Telephones: Office (506) 2643-5113
Toll Free: 1 (866) 374 -8522
Email: carol@costaricaretirementvacationproperties.com

Guanacaste’s golden coast is a haven for development; foreign investors flock to the beautiful sand beaches and bright blue skies, banking on their own slice of paradise. Yet not all is perfect in paradise, as twelve home and business owners recently found out, when they were notified that their buildings and additions would be torn down.

By law, all Costa Rica beaches are public, and 50 meters back from the water line are inalienable public lands – under no circumstance whatsoever may anyone build on these first 50 meters. An additional 150 meters are given to the municipality, to be sold at its discretion. Per law, the municipality may place rules and regulations on this land ownership.

The Municipality of Carillo began demolition on several homes and properties yesterday, all of which were illegal resting on public lands, or the first 50 meters from the shoreline. “We hope that by the beginning of next year, the 49 kilometers of Carillo beachfront will be free and clear for the 50 meters of public space,” the mayor of Carrillo, Carlos Cantillo, explained.

In total, about twenty buildings encroach on public land in the municipality of Carrillo. Regardless of the law, several Costa Rica property owners sought protection from the Sala Cuatro, asking that they disallow the demolition of their properties. Five homeowners were granted a stay of execution, and will not yet be demolished. Their future is unknown.

This is the second round of demolitions in Carrillo; the first occurred last November. Like its predecessor, yesterday’s events were conducted peacefully. “The municipality plans to build a boulevard, dock, and recreational [parks] for national and international tourists; thank God there no conflicts arose from the demolitions, because all those affected were notified by the Carrillo’s municipality,” the vice mayor, Kattia Quirós, confirmed. Only one injury was reported, when a senior couple, who had been renting the same home for 15 years, didn’t know where else to go. The municipality quickly obtained a pickup truck to help transport the couple and their belongings to a new home.

In addition to the twelve buildings knocked down yesterday, the Carrillo municipality sent 72 total demolition notices to property owners whose constructions are in violation of the 50-meter free zone. Only eight cases are currently held up in court proceedings, so more demolition is soon planned. “Next week two home’s [cases] are on the docket; if the matter is resolved in favor of the Municipality, we will demolish then,” Cantillo explained.

Playa Hermosa and Ocotal will soon be investigated. All properties constructed on public beach in those areas will also be notified of the problem, and demolition will soon follow. “We’re ready to obey orders when and whenever they are legal,” director of the Natura Cultura Foundation, Edgar Castrillo, said.

The moral of today’s story is simple: before you build or buy on beachfront property in Costa Rica, make sure you are within your legal rights to do so. As evidenced by yesterday’s demolished houses, not every promise of beachfront rights is backed by law.

Sustainability in Costa Rica: Not Just Talk              by Andrew Cohan

In January, 2008 a team comprised of Yale and Columbia University researchers released the first comprehensive country rankings of “green-ness” based on an Environmental Performance Index, or EPI.  The EPI incorporates 25 categories of statistics and indicators to arrive at a composite score between zero and 100, with 100 representing a “perfect” EPI score. Five countries of the 149 analyzed scored an EPI of 90 or higher.  Of the five, Costa Rica was the only country representing the Americas (Switzerland and three Scandinavian nations round out the top 5).  This accomplishment is even more compelling when one considers that Costa Rica has a per capita GDP that is less than one third that of any of the other “top five” countries.

Examples of how Costa Rica has institutionalized sustainability in the tourism sector are several.  First, its Blue Flag program, designating quality standards for the nation’s beaches, has become a symbol of local pride.  When a popular tourist beach lost the Blue Flag designation in 2007, residents and local government quickly mobilized to remedy the situation and have the status restored.

Another program administered by the ICT, Costa Rica’s official tourism organization, has established sustainability rankings for hotels, ranging from one to five “Leaves”.  The levels awarded are based on an analysis of the hotel’s commitment to the local community, to nature, and to minimizing environmental impact.  For example, the Best Western Jaco Beach Hotel was recently awarded a 4-Leaves recognition, representing 80% compliance with the program’s principles.

Incorporating Sustainability in Feasibility and Valuation Practice

The United Nations convened the World Commission on Environment and Development in 1983 to address growing concern about the global nature of environmental policy.  The commission became known by the name of its Chairperson, Gro Harlem Brundtland.  In 1987 the Brundtland Commission released its findings in a document entitled “Our Common Future”.  In this document, sustainable development was defined as that “which meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Sustainability principles have since been incorporated, in varying degrees, by several real estate industry professional organizations. The Royal Institution of Chartered Surveyors (RICS), a UK-based independent professional body analogous to the Appraisal Institute, adopted a sustainability policy in 2005.  In June of 2007, RICS further clarified the policy by publishing a Sustainability Guide for Property Professionals.  The policy states that RICS expects its members to “promote sustainable development through their professional activities and advice.” The sustainability guide emphasizes the consideration by the appraisal profession of a “Triple Bottom Line” of environmental, economic, and social components.  These three perspectives are further detailed in the sustainability guide by property lifecycle stage

Much has been said recently as to how the USA economy is impacting on the  Costa Rica Real Estate market.  One cannot ignore what is happening and how it will eventually affect us in certain quarters.  REMEMBER THIS…. Costa Rica is not part of the problem but is the solution for many. This applies to retirement in Costa Rica  as well as development land in Costa Rica.

For the person seeking retirement in Costa Rica, there are are still some very obvious benefits such as cost of living, climate, friendly nation, quality health care and much more. There are a host of projects ideally suited for retirement in Costa Rica all over the country.  Baby Boomers are prepared and most of them not depending on the sale of a home in the USA to make the move.  Costa Rica is still the number one offshore destination for Americans retiring in Costa Rica with approximately 60,000 here now.

Developer opportunities and why
USA developers are hard pressed to find places to invest these days with all the turmoil they face at present in their markets. Many have extensive experience in Retirement Communities.

Costa Rica Development is very viable.  Development land is still inexpensive. Costa Rica Retirement seekers are not about to stop considering Costa Rica retirement.  There is a very obvious need for full amenity Retirement Communities in Costa Rica both on the coast and inland.

Timing could not be better.  If a development property were to be purchased right now, the time line for getting to sales would be approximately 2 years. That provides ample time to put together a great product, well researched  and a massive high end marketing program.

By then a great number of Baby Boomers will be anxiously seeking locations offshore to retire and the USA problems will certainly be subsiding substantially.

I am seeing a lot of developer inquiry activity at the moment and suspect we are going to see some things very revolutionary happening here in the area of retirement.

One project I met with recently is one of the most polished and well planned full service concepts we have seen in the area of Costa Rica Retirement facilities.   Their timing couldn’t be better in my opinion.

Costa Rica Retirement 

When people retire to Costa Rica they often eat out more not only because of the fine foods but the lower cost as well.

There are any number of levels of and types of restaurants both on the coast and the central valley.  Pricing for the typical restaurants is very inexpensive, the food is good and lots of it.

Many people like to go for cocktails and often the restaurants have nice Boca plates  that are often satisfy many people as if it were a dinner.

On our PROPERTY SCOUTING TOUR, we try to acquaint you with a sampling of these, or at least  point you to them.

There is such a variety of places, one never seems to get tired of the routine if you are a frequent diner. Often you can find nice restaurants in the mountains with gorgeous valley views and others right on the ocean.

If you want to investigate this, come on our tour and find out all about these wonderful spots.

My wife and I dine out 4 times a week and last night we went to one of our favorites in the San Jose area. It is an Italian Restaurant, first class complete with all male waiters, reservations required, usually always full,  best quality food and service and priced very reasonably.  Two main courses and and anti pasta plate with 2 Manhattans and 2 glasses of wine was $55.00. This place ranks with any USA Italian restaurant. It is frequented often by the very wealthy families of Costa Rica.

If you are a frequent out diner and are coming on our tours, be certain to have this place pointed out. There is more to Costa Rica than a good Real Estate selection.

Our Property Scouting Tours are individual and free.  See a sample 3 day itinerary and check i tout.