Picturesque and Fragile Dunes in Todos Santos

If you are interested in buying a house or raw land in Todos Santos, do your homework and chose your agent carefully. Ricardo Amigo, AmeriMex, A. Paraiso Realty, Coldwell Banker, Encanto, and Milagro are the most well known real estate agencies operating in Todos Santos. There’s no licensing required for real estate brokers in Baja and little regulatory framework. Reputation is important (and whether the person giving the referral receives any benefit, direct or indirect). Like in any small town, all of the “locals” have strong opinions about everything, with respect to brokers this is typically shaped by their personal experiences and, whether rightfully or wrongfully gained, the individual’s reputation. While you should take all information as hearsay and take it with a grain of salt, unfortunately some brokers have been accused of selling property without disclosing all the facts to buyers unfamiliar with all of the local laws, customs etc. Although arguably falling short of what we think of as ‘fraud” in the US, you may not end up with what you bargain for and full disclosure is a legal requirement in the US. Issues of inadequate information range from lack of adequate water, title issues, historic legal conflicts not reported, conflicting easements, or, the subject of this post, lots being sold in environmentally sensitive areas. I can tell you with confidence, if you buy and build on the dunes, beyond any legal or structural repurcussion you may have, you will not be popular in the community of Todos Santos.

Although you can buy oceanfront property, the vast majority of the community in Todos Santos strongly opposes building on the dunes. The owner of one such ocean front lot has the privilege of introducing himself as “I am the guy that everyone in town hates.” And this is a small town where it’s difficult to avoid interaction. Why would you want to with such an incredibly diverse and eclectic group of people?

Todos Santos has some of the most beautiful and pristine sand dunes you could find in such proximity to a developed area. Not only they make you feel like you stepped back in time when you stroll on the long sandy beaches, they are also a critical habitat for certain species, most notoriously they serve as nesting grounds for some endangered sea turtle species. Additionally, the dunes serve the purpose of protecting the land against potential ravages by storm waves from the sea during major storms and hurricanes. Building on the dunes not only puts the community at risk, but disrupts the normal nesting habits of endangered Olive Ridley and Leatherback turtles that nest on our beaches. Losing a house built on the dunes is also a very real risk when building in such close proximity to the ocean on unstable ground. The storms and hurricanes can cause huge waves and very strong winds to hit the coast. Beware of real estate agents who will try to minimize the impact and dangers of building on the dunes. In 2005 a group of committed citizens in Todos Santos were already working to prevent a major development project from destroying the dunes.

Below is a report they submitted to then Mexican president Fox.

The Impact of Proposed Housing Development On The Barrier Dunes of Todos Santos, Baja California Sur, Mexico (this was written by the Todos Santos Stop Dune Development Committee)

The Ecological Impact

- Destruction of the dunes

- Erosion of the beach

- Potential flooding of land now protected by dunes

- Destruction of turtle habitat (endangered leather back)

- Development proposed despite world-wide restrictions on building on dunes

- Buildings exacerbate wind erosion by raising the dune profile

- Could lead to removal of the foliage in the huerta

- Existing environmental standards are seldom enforced due to under funding for environmental personnel

The Impact on the Unique Natural Beauty of Todos Santos

- Natural beauty and uniqueness of Todos Santos would be destroyed

- Approval of this proposed development would lead to explosive development on all the dunes fronting Todos Santos

- Todos Santos would resemble Cabo San Lucas – Lack of architectural standards and effective controls would mean anything could be built, including buildings of three stories

The Impact on Infrastructure

- Water – Sewage – Roads – Schools

-Social Problems

- Bomberos

- Dunes development will proceed faster than traditional development and therefore have a greater impact

The Economic Impact

- Very few if any new construction jobs for local population

- The only long term job development would be for service sector jobs

- Destruction of our uniqueness would result in fewer tourists and the departure of those who came here because of the unique natural beauty

- The local economy will be damaged – For good reason Fonatur designated Todos Santos as an art colony, not a destination resort like Cabo San Lucas

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If all this seems like WAY too much of a hassle, please contact me at registration@calycanto.com and I can put you in touch with an individual that can register your car for a nominal fee. In fact, the cost is several hundreds of dollars a year less than California.

Brace yourself. This post is growing incredibly detailed and not for the weary; however, it is one of my most popular posts so I try to ensure it has the information you require. Please comment if something is missing from this post and I will try to include it.

California vehicles are readily admitted into Baja with California plates. However, if you plan on leaving your car outside of California (e.g., Baja) you need to make a few decisions when the registration expires. You can certainly file a Statement of Non-Operation to avoid California registration fees. Many people do this and seem to get by, some for many many years if they are off the beaten track of the authorities, e.g., on a ranch. However, vehicles on most roads in most jurisictions, including in Mexico, are typically required to be registered… somewhere. A vehicle with expired tags is begging for harassment… anywhere. Even though you may fly under the radar, if you spend time driving in a major city in Mexico, e.g., La Paz or Cabo San Lucas, you are just begging for trouble. In a small town like Todos Santos, you probably could get by. If you meet the right conditions you could register your car locally, or import your vehicle, e.g., into Mexico, Canada or another state in the US. In fact, even the DMV agents will tell you that the regulations cited below are intended to encourage people who leave their cars outside of California to register them where they (the cars) “reside”. However, cost aside, importing a vehicle has its own set of issues which is not the primary purpose of this post. In fact, in some cases, for a variety of reasons, it’s simply not possible. In Mexico imported cars may have higher insurance premiums which is a discincentive. Also, you need to satisfy the local regulation such as paying an import tax and likely an agent’s fee. With importation you will receive local plates. More importantly, however, to drive a car with local plates in Mexico means that all drivers are required to have a valid Mexican driver’s license. Excluding rental cars, this requires some skill with Spanish and a blood test. Many people simply cannot accomplish the former… and may never be able to do so. The California DMV doesn’t seem to understand that you may live in California, have a home in Cabo San Lucas, and simply cannot register in Mexico. In this case you don’t have any options.

For the adventurous Spanish speakers among us, if you still simply want to import a car into Mexico, find a custom’s broker, e.g. in San Diego and/or Tijiuana. On the other hand, if you decide you would rather not import your car due to the various headaches mentioned above, and would simply prefer to drive with US plates, you have a dilemma. [Note: if you're a real bargain shopper, you can even avoid sales tax (by having your Baja-bound vehcile delivered to the border)]. Namely, what do you if yo have a car that’s a 1976 or newer model and your registration tags expire and it is a year in which you are required to renew your smog certificate (bi-annually)? If you are willing to drive home, there’s no need to read this. Note: as an aside, it’s even more difficult when the mechanic pulls off your catalytic converter because “they don’t sell those here” and I couldn’t see why you would need yours. If it’s not obvious that there’s no California smog certficates issued in Mexico, then go back to start. And, without current registration tags, the police can impound your car. More likely, an officer will hassle you and stick out their hand (if you’re lucky). Additionally, although I have been unable to confirm this and am a bit sketical if it is a legitimate company, some insurance companies reportedly won’t honor their policies in an accident if your registration is not current (whether or not your policy contains a clear exclusion). I have confirmed my insurance (Lewis & Lewis) covers me even with expired tags. Yours “should” as well (God forbid you forget to renew your plates for 24 hours and get in an accident). You should ask your insurance carrier about this directly. Here’s what should be the holy grail. I wish it was that easy. CA DMV Form 256 provides an exemption to the Smog Check requirement that will allow you to register your car and receive new tags without driving your car back to California — if your vehicle is more than 1,000 miles from a US border. Here’s the form: Statement of Facts (right click and choose “Save As”). Here’s the next hoop you need to jump through. Unfortunately, most of the staff at the California DMV seem to be confused by their Form (it is admittedly confusing) and unfamiliar with the exemption. Nonetheless, if you follow these instructions, you should be okay. Completing the form is fairly straight forward but there are a few traps for the unwary. Complete the sections that ask for your license plate, VIN, and year/make of the vehicle. In Section “B. Statement for Smog Exemption”, check the box “It is located outside the State of California”.

Here’s where it gets a bit tricky. The form says “(Exception: Nevada and Mexico). This seems to suggest if your car is in Mexico the form is inapplicable! This caused a lot of confusion for DMV staff and I can understand why (DMV: PLEASE change this). In fact, the staff agent I dealt with directly on this issue pointed to that language as evidence that Mexico is excluded from an exemption for smog certificates. Others have had the same result. However, the regulation states that cars that located over 1,000 miles from the border are exempt from the smog test (even if the car is in Mexico). While not in the California Vehicle Code or in the form — drum roll please — in section 27.150 of, get this, “an online DMV manual” (unfortunately I couldn’t get a better description of what I was reading from the agent) this issue is directly addressed with the following text: “27.150 Vehicles Located Outside of California A smog certificate is not required when a vehicle is located outside of California. The registered owner must complete a Statement of Facts (REG 256) or submit a letter explaining that the vehicle is out of state. The exemption for vehicles located outside of California does not apply if the residence or mailing address of the registered owner/lessee or the address where the vehicle is garaged is in any of the following cities [Note: I did not include various Nevada cities that are also listed; however, it is important to note that ONLY SPECIFIC CITIES IN MEXICO ARE LISTED AND THEY ARE NOT 1000 MILES FROM THE BORDER ANYWAY ]:

Mexico

• Tecate
• Tijijuana
• Tijijuana Baja CA

So, near the “(Exception: Nevada and Mexico)” language, write “Over” or “See Next Page”. Then on the next page under section “G. Statement of Facts”, write: “The car is in Baja in the town of [insert location], [insert number greater than 1000 miles] below the border. The car will not be re-enter the U.S. without a smog certificate.” Make sure you also have a copy of your auto insurance policy that will cover your car in Mexico (or wherever it is located). Currently the DMV is making a big push to ensure all registered cars comply with Regulation 33.040 Evidence of Financial Responsibility (Vehicle Code Section 16020). This section establishes what documentation will be adequate to ensure you are adequately insured in an accident. Again, this is another landmine where many of the DMV staff gets confused, primarily because of bullet point 3 which is not relevant for most of us (more below). Here are the types of documents that “should” satisfy the DMV per this section:

• “A document or insurance card from an insurance company indicating the vehicle is insured.” [Note: THIS SHOULD BE ALL YOU NEED but the third bullet confuses the staff and typically starts an endless dialogue on this issue.]
• “An insurance document or ID card from Canada.”
• “A Mexico resident insurance policy may be accepted when the vehicle record shows a resident address in Mexico or the owner changes his/her address to show a residence in Mexico and completes a Statement of Facts (REG 256) that certifies he/she is a resident of Mexico and gives his/her Mexican resident address. Attach the REG 256 to the DMV file copy.” [NOTE: this does not apply to most people reading this as they are not residents of Mexico and they do not hold a Mexican resident insurance policy -- which, as far as I can tell, Mexican resident insurance is typically only available for cars registered in Mexico! So, when they try to tell you that you need to file a change of address and to indicate you are a Mexican resident, they are wrong. Presumably your "travel" policy is only valid for NON-RESIDENTS and is, by its terms, NOT a Mexico resident policy! In fact, even the language of this section tries to clarify. The text continues by saying, " A Mexican resident policy will be labeled as such or will indicate that it is only valid for coverage of Mexican residents; it is not valid if the insured is not a Mexican resident. Do not confuse a Mexican resident insurance policy with a "travel" policy which does not contain such residency exceptions. " Query whether this means that a long term, e.g., one year travel policy is adequate but why wouldn't it satisfy the first bullet since it is insured?]
• There are 4 other approaches that don’t apply to most people but, at a high level, include:
  • A DMV letter for self-insurers
  • A surety bond
  • A CA Proof of Insurance Certificate
  • Evidence that the vehicle is owned or leased by a public entity
  • Motor Carriers with insurance on file under the PUC or DMV.

In short, a travel policy from a US carrier should suffice, especially if it’s issued for a term of 6-12 months and is available only for ex-pats (rather than Mexican citizens); however, I have been advised that the DMV may frown on short term travel policies. They also seem to want it to have a Mexican address on it, but that opens a whole can of worms since then they are targeting a Mexican resident policy and you are probably not a Mexican resident. A California address should (is supposed to) be fine. I had my carrier add a Mexican address but left the US address on the form as a mailing address. Why the DMV would care if you are insured in Mexico is beyond me, especially given the insurance doesn’t apply in the US by its terms. So you could technically get a smog exemption, have no US insurance and drive over the border from Mexico into the US… without insurance here anyway. LOL. To give the legislators the benefit of the doubt, maybe it is driven by a reciprocity clause under a treaty with Mexico or some other countries, e.g., we’ll let your cars on our roads and vice-versa… if they are insured. But you can go to jail here and in Mexico without insurance. Also, you can get insurance and cancel the next day if you want to so it seems somewhat silly. Mexico will enforce their own laws re insurance and the US is in no position to police this anyway. When you show up at the DMV and provide the above documentation (2 documents — insurance and statement of facts), you “should” receive a smog exemption and be able to register your car. “Should” because not all the agents, in fact very few agents, are readily familiar with this regulation, in which case you will need to ask to send the case to Sacramento.

The junior agent and supervisor I spoke to said I could only do this one time. I asked why and she said that’s just the way things were working now. Not sure what you do when your tags expire in Mexico, you have no smog certificate and you can’t get the car back to the US, 1,000 miles away, for a $40 smog check. She had no answer other than register it there (which is not only impractical but impossible for me for a variety of reasons cited here). Admittedly I walked through this all myself and succeeded; however, it took 2 hours and the senior agent surrendered only after being put on hold by Sacramento for 20 minutes and giving up (after telling me she was unwilling to put her job at risk for an hour).

So, although I am generally confident in most of this analysis, I have not yet received any senior staff sign-off in Sacramento. Please comment if you have been successful, especially after April of 2009, at the Sacramento level.

Rather than undergo the hassle and expense of renewing my California license plates, you can also register with the state of South Dakota which is a much more service-oriented organization (and apparantly wants the revenues). South Dakota does not require smog checks or proof of insurance and they are much less expensive. Even out of the country you can expect new plates and tags in about a week. The new title will take 2-4 weeks as it is processed at the state level. The cost is about $338. The good news is that, thereafter, annual renewals are $38 and can be accomplished by mail. If you are interested in this, email me at registration@calycanto.com and I will connect you with someone who can help you with this.

Good luck! -jim

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Reports of Guzman’s recent activities, gathered through U.S. informants, wiretaps and other means, have prompted a flurry of warnings to local, state and federal authorities in border states. They said they have been instructed to use extreme caution when confronting people suspected of smuggling drugs and illegal aliens north from Mexico, or ferrying weapons and cash south from the United States, officials familiar with those warnings said.

Some of the U.S. intelligence suggests that Guzman, the leader of the Sinaloa cartel, is on the defensive due to enforcement efforts in Mexico and the U.S., and no longer can afford to ditch valuable cargoes if rival traffickers or authorities interdict them as they make their way north. Thomas M. Harrigan, the chief of operations in the U.S. Drug Enforcement Administration said virtually all of the violence remains in Mexico, but that U.S. authorities are alarmed that attacks on police, soldiers, government officials, journalists and other potential opponents have intensified near the border.

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 NEW YORK (Reuters) – Rosetta Stone Inc <RST.N> shares priced at $18 in the company’s initial public offering, above the estimate range, a source with direct knowledge of the deal said on Wednesday, making it the fourth IPO on a U.S. exchange in 2009 as equities markets struggle to stabilize.

Rosetta Stone sold 6.25 million shares, raising $112.5 million, after shares priced above the estimated $15 to $17 range, the first IPO to do so since pumpmaker Colfax Corp’s <CFX.N> deal in May 2008.

Investors’ embrace of Rosetta Stone stands in contrast to the reception given Tuesday to college operator Bridgepoint Education Inc <BPI.N>. which had to shave 30 percent off its estimated price to get its IPO to the market.

Analysts believed that Rosetta’s success was due to a lack of publicly held competitors.

“They have brand strength — nothing compares to Rosetta Stone, everyone has seen their ads,” said Ben Holmes, publisher of research and analytics firm Morningnotes.com.

“The college space is becoming very competitive, but Rosetta Stone is in a very uncrowded space,” Holmes said.

Rosetta Stone’s chief rival, Berlitz, is privately held.

The relatively small size of the deal’s “float”, or the number of shares sold, helped Rosetta Stone command a strong price, though analysts said the company could have raised far more money in the oversubscribed deal.

“They left money on the table, but institutions and its retail clientele will remember that, and when Rosetta Stone comes back for a follow-on, they’ll be amenable,” said Scott Sweet, senior managing director of research firm IPO Boutique.

EFFECTIVE ADS

Rosetta Stone, which provides language instruction services to individuals, companies and schools primarily through CD-ROMs, has attracted attention through an advertising campaign that has featured U.S. Olympic swimming gold medal swimmer Michael Phelps.

Another ad shows a farmer wanting to learn Italian in an effort to woo a supermodel.

The Arlington, Virginia-based company offers language instruction products in 31 languages, with its beginners’ French package, for example, selling for $259, according to its Website.

But Rosetta Stone has ramped up efforts to limit exposure to cash-strapped consumers by focusing on sales to corporations and the U.S. government. It plans to develop an Arabic learning product for the U.S. Army.

Rosetta Stone’s main shareholders are ABS Capital Partners, whose shares prior to the IPO gave it 44 percent of votes and Norwest Equity Partners with a stake of 29 percent of votes, according to a regulatory filing. Following the IPO, those stakes will fall to 28 percent and 18 percent, respectively.

Half of the shares offered are being sold by selling stockholders.

In 2008, Rosetta Stone’s revenue rose 52 percent to $209.4 million from 2007, with net income of $13.9 million, according to a regulatory filing.

The IPO’s underwriters, led by Morgan Stanley <MS.N> and William Blair & Co, have the right to purchase up to an additional 937,500 shares of common stock to cover over allotments.

Rosetta Stone’s IPO is the third in the United States in April, following Bridgepoint and Chinese video game maker Changyou.com Ltd <CYOU.O>, making it the busiest month since July 2008.

Rosetta Stone has been approved to list on the New York Stock Exchange under the symbol “RST” and is set to begin trading on Thursday.

(Reporting by Phil Wahba; Editing by Andre Grenon, Bernard Orr)

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Our guests can choose to never leave the premises or participate in limitless adventure and exploration. Watch the whales annual migration or check the surf from the window. Experience pottery being with the same process used for centuries in the nearby Sierra de la Laguna mountain range. Take a Yoga or a Spanish class in the town center. Savor some of the best restaurants in Baja. Relax to a custom compilation of music in your own private palapa. Cal y Canto is not about high-speed internet or cable television (although both are certainly available). Here we offer an escape to simplicity, to tranquility, where time moves more slowly. Where you can share and build memories. Where you can appreciate the quality of life.

 The Pueblo Magico of Todos Santos is part of a unique ecosystem, an environmentally sensitive area with indigenous flora and fauna not found anywhere else in the world. Cal y Canto is an environmentally sustainable project, undertaken only after extensive cooperation with SEMARNAT, the governmental organization responsible for preserving the region. Limited native vegetation was removed or altered during construction and the Cal y Canto Master Plan has exceeded all local requirements, including by the installation of an advanced gray water treatment facility to limit the taxation of limited water resources and runoff. All of our waste water is reused for vegetation. While we are currently utilizing the local electrical provider, we are assessing plans to convert to solar power. Only biodegradable cleaning products are supplied on the premises. Guests are provided with canvas bags for shopping and all organic waste is composted. A percentage of all rental proceeds will be allocated to support Todos Tortugeros, a local organization created to help preserve the last of the leatherback turtles.

 About the Name Cal y Canto. Cal y Canto is a building term that technically means calcium and stone or bricks and mortar. However, canto also means song and the expression has taking on a secondary meaning in the Spanish language as perhaps has been best captured in a book of poetry under the name “Cal Y Canto” by Rafael Alberti. Playing off the secondary meaning associated with the expression, Alberti used colors and texture to evoke strong feelings. The phrase has come to symbolize “Form and Passion” as has the project to all of its founders. 

Directions.

Map to Cal y Canto Casitas

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