special report - terrain.orgloreto and the fertile crescent the region of loreto in baja california...

12 ISSUE TWENTY 2006 BAJA LIFE

LORETO BAY CO. SUSTAINABLE OR GREENWASHING?

LORETO BAY CO. SUSTAINABLE OR GREENWASHING?

A Voracious Appetite for ProfitThreatens Loreto’s FragileBiosphere. Can a Developer Who Purveys SustainabilityDeliver on the Promise?

A Voracious Appetite for ProfitThreatens Loreto’s FragileBiosphere. Can a Developer Who Purveys SustainabilityDeliver on the Promise?

S T O R Y B Y B R I T TA N Y PA R K I N ✯ P H O T O S B Y E N R I Q U E VA R G A S

S P E C I A L R E P O R T


The “imperialist” would answer Yali’s Question by suggestingthat New Guinea is behind simply because its people are less intel-ligent and too primitive to make the leap from agriculture toindustry. But Diamond’s research compelled him to answer bywriting an entire book defending the view that “…the striking dif-ferences between the long term histories of peoples of the differentcontinents have been due not to innate differences in the peoplesthemselves but to differences in their environments.”2 In otherwords, the gap that exists between technologically advancedsocieties and those that still rely heavily on agriculture has far less

to do with native intelligence and more to do with an environment

lacking in sufficient resources to bridge that gap.

One such geographical location, the Fertile Crescent, located

partially in modern-day Iraq, enjoyed a tremendous head start

during early human existence. The former Fertile Crescent, now an

arid, virtually rainless terrain was once covered in woodlands. Its

transformation from a region abundant with crops and domesti-

cated animals to a parched desert is a testament to the fact that

human interaction with ecologically sensitive environments can

lead to their ultimate ruin. Once at the forefront of humanity, the

early humans of the Fertile Crescent “had the misfortune to arise in

an ecologically fragile environment” and ended up committing

“ecological suicide by destroying their own resource base.”3

History has taught us that the intelligence of a region’s inhab-

itants have far less effect on the ultimate fate of these peoples than

the productivity of the environment itself. The demise of the

Fertile Crescent tells a story of how a fragile ecosystem was lost at

the hands of too many humans using its precious resources too

quickly. Placed in a more modern context, we learn that no matter

how “intelligent” a development plan may be, there is no escaping

the fact that some particularly sensitive regions are simply not

prepared for rapid population increases and subsequent overuse

of its limited resources.


his Pulitzer Prize winning book,Guns, Germs, and Steel, Jared

Diamond proposes a theory to explain theapparent gap between the First World andthe Third World. His thesis was sparked bya question posed by a New Guineannamed Yali who asked the Europeans upontheir arrival to his country in 1972, “Why is itthat you white people developed so muchcargo and brought it to New Guinea, but weblack people had little cargo of our own?”1

YALI’S QUESTION

BAJA LIFE ISSUE TWENTY 2006 15

LORETO AND THE FERTILE CRESCENTThe region of Loreto in Baja California

Sur is characterized by a similarly fragileenvironment that is on the verge of beingrapidly developed at very high density. If werecognize that the region of Loreto is amodern microcosm of the Fertile Crescent,we have the benefit of avoiding anotherpotential collapse from too many humansinteracting with a delicate ecosystem anddepleting its limited resources. If we are trulyto protect an ecosystem so diverse in marineand animal life that Jacques Cousteaudescribed its waters as “the world’saquarium”, then it is our duty to carefullyscrutinize developers who plan to buildthousands of homes along such a shortstretch of the coast of the Sea of Cortés.

LORETO NATIONAL MARINE RESERVE ANDWORLD HERITAGE SITE DESIGNATION

Over 800 species of marine animalsinhabit the Sea of Cortés, making it one ofthe richest seas on the globe. Due to the

diligent efforts of the Loreto community,the Bay of Loreto National Marine Park wascreated by a Presidential Decree andapproved by the Mexican Federal Congresson July 19, 1996. Creation of regulationsfrom which to manage the park andsupport for that management was left to thepeople of Loreto to develop. That task hasbeen taken on by the local ecological orga-nization, Grupo Ecologista Antares (GEA).Over the last ten years, the prestigiousUnited States-based Nature Conservancy,the International Community Foundation,and numerous other organizations anddedicated individuals have been workingclosely with GEA to develop ways tosupport the management and protection ofthis amazing and unique ecosystem. In July2005, the United Nations added the 244islands, islets, and coastal areas of the Gulfof California to its list of protected WorldHeritage Sites in an effort to protect the bio-diversity in the Sea of Cortés.4

Loreto is rich with plant and animallife, but it is not rich with essential

resources, especially water. Loreto has yet tobe developed into the bustling town that itsoon will be, but it has already begun toshow signs of degradation due to inappro-priate use of natural resources and lack ofadequate conservation efforts.5

LORETO AND FONATURIn the late 1960s, FONATUR, Mexico’s

government agency charged with tourismdevelopment, identified five destinations inMexico with the highest tourism potential.

These destinations included Cancun,Los Cabos, Ixtapa-Zihuatanejo, Huatulco,and Loreto. Today, all of these locations areprime tourist destinations except for Loretowhich has remained relatively untouchedfor the past thirty years. However, a catalystto Loreto’s future growth occurred in 2003when FONATUR signed a partnershipagreement with The Trust for SustainableDevelopment, a federally charteredCanadian not-for-profit corporation. TheTrust’s chairman, David Butterfield, is a

LEFT AND ABOVE: The “touristic corridor” referred to as Nopolo is located afew miles south of the town of Loreto and includes a golf course, the Inn atLoreto, a few private residences and several new condominium complexes.The Loreto Bay Company plans to develop 6,000 homes along the golf courseand the estuaries that front the Sea of Cortez and the Loreto Marine Park.

prominent Canadian developer and has abackground in sustainable development.Butterfield has been quoted as saying,“When building a community, the mostimportant factors are economic develop-ment, social responsibility, and ecologicalprotection. When these factors cometogether, you have a sustainable develop-ment.”6 Within the Trust is The Loreto BayCompany, the organization marketing anddeveloping the sustainable seaside townalong the Sea of Cortés. It is not the intentof The Loreto Bay Company to developLoreto into a clone of Los Cabos or La Paz.In fact, its plans to build using sustainableprocesses are an effort to develop Loreto ina way that is quite different from otherfamous Mexican resort destinations. This isa positive message for local residents whotake pride in Loreto’s unspoiled landscapeand its small, family–oriented resortcommunity atmosphere.7 Loretanos dowant responsible growth and the benefit ofmore facilities, but some skeptics of theLoreto Bay development fear that the hopefor more amenities and a stronger economyis blinding Loretanos from the potentialloss of their pristine and uncrowdedbeaches in the process.

WHAT IS SUSTAINABILITY?It must first be understood that “sus-

tainable” is a difficult term to define. Interms of development, the concept of sus-tainablity is relative to locale. A sustainabledevelopment in Florida cannot be directlymeasured against a sustainable develop-ment in Loreto because each locationpossesses its own unique and limitednatural resources. So to what standards ofsustainability does The Loreto BayCompany adhere? According to the LoretoBay Company press kit, the Trust for Sus-tainable Development has a mission tocomply with the United Nations’ Brundt-land Commission’s definition ofsustainability: “meeting the needs of thepresent generation without sacrificing theability of future generations to meet theirown needs.” In particular, Loreto Bay


ABOVE: Two divers surface in the warmlight of the Loreto National Marine Park,created in 1996 to protect the breedinggrounds for some of the most prolificconcentrations of marine life in theworld, many of which have beendesignated as commercially extinct.RIGHT: Schools of barracuda swarm overshallow reefs and sea mounts in searchof food. OPPOSITE PAGE: A favoriteactivity is snorkeling in the warm, clearwaters of the many protected bays foundin the offshore islands.

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addresses sustainability in three key areas:economic, social, and environmental. Itsthree ecological promises are to producemore energy from renewable resourcesthan it consumes, to harvest or producemore potable water than used, and to createmore biodiversity, more biomass, and morehabitat than originally existed. With anunconventional motto like, “Live Fully,Tread Lightly”, Loreto Bay envisions adevelopment that will leave little impact onthe existing environment. Herein lies thedanger—sustainablity in development is arelatively new phenomenon with very fewpeople who are informed on the subject.Therefore, it is important to maintainvigilance when “sustainable” is being usedto describe a development.

RATING SYSTEMS FOR GREEN ANDSUSTAINABLE BUILDING

Eco-lodge expert Hitesh Mehta states,“Atrue eco-lodge has three basic elements: It

protects the environment, benefits localcommunities, and helps guests learn aboutthe local surroundings while they explorethem.”8 The Loreto Bay Company hopesthat it can become an international modelfor sustainable development where no suchinternational model yet exists. The WorldGreen Building Council (WGBC) will saythat “a sustainable property industry willbalance environmental, social and economicissues to ensure a viable and valuableindustry for future generations”, but itcannot provide a specific rating system thatwill apply in every region of the world.Instead the WGBC assists its members con-sisting of Green Building Councils from theworld over in developing their own nationalrating systems. The U.S. Green BuildingCouncil (USGBC) has developed the Lead-ership in Energy and Environmental Design(LEED) Green Building rating system whichis a voluntary, consensus-based nationalstandard for developing high performance,sustainable buildings.

According to Ross Spiegel, LEED AP,Associate/Senior Specification Writer/GreenTeam Leader at Fletcher-Thompson, Inc., theConstruction Specifications Institute’s (CSI)Liaison to the USGBC for the last 12 years,and co-author of Green Building Materials: AGuide to Product Selection and Specification,the Mexico Green Building Council iscurrently in the process of developing aNational Green Building Rating Tool calledSICES. Spiegel says, “I do not know thetimeline for the development of the ratingtool but initially they intend it to cover com-mercial buildings and low income housing,neither category applicable to the Loreto Baydevelopment.” Without its own ratingsystem, sustainable developers in Mexico stillhave the option to submit the project forLEED Certification through the USGBC. It isSpiegel’s suspicion that “Loreto Bay isclaiming to be a sustainable developmentwithout using any measurement tools toprove it or without making an actual effortto do so and hoping that no one will notice.”


The demise of the Fertile Crescent tells a story of how afragile ecosystem was lost at the hands of TOO MANYHUMANS using its precious resources TOO QUICKLY.

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“Sustainable” remains an elusive word.The Loreto Bay Company’s vision appearslegitimate, but it remains to be seen if theywill adhere to the true definition and fulfillthe promises they have made. Since there iscurrently no official rating system thatevaluates sustainable developments, can theLoreto Bay Company legitimately claimthat they are “the largest sustainable devel-opment under construction in NorthAmerica today”?9 In Spiegel’s opinion, “it isdisingenuous to claim to be a ‘sustainabledevelopment’ when no standard measure-ment tool exists to gauge the accuracy ofthe statement. Unfortunately, given thegeneral state of the environment in Mexico[highly polluted and no controls] it shouldnot be too difficult for them to make theclaim of being a sustainable development.”

GREENWASHING AND ACCOUNTABILITYCatch words such as “sustainable” and

“green” promise many things to the unin-formed consumer—it may be difficult todefine sustainability, but fortunately, it ismuch easier to determine what is not sus-tainable. “Greenwashing” is a term thatdescribes the relatively new phenomenonof “claiming to be green for the economicbenefits without delivering on thepromise.”10 So, what are the economicbenefits of building green? Why might adeveloper be inclined to “greenwash”?According to Hitesh Mehta, “The word‘eco’ has been hijacked. Like organic food,yoga and feng shui, ecotourism hasentered the realm of the lucrative fad,where exploitation is inevitable.”11 Thebottom line is that words such as health,happiness, eco-friendly, and organic,invoke positive feelings in people becausethey make them feel as though they aredoing something good for themselves andfor the Earth. The real question is, when adeveloper pitches sustainability and“green” to a health-obsessed audience, arebuyers getting the real deal or are theybeing duped?

With the recent arrival of words like“green” and “sustainable”, most lack the

ABOVE: Once abundant with fish so numerous and diverse that Jacques Cousteau referredto them as “The aquarium of the World”, Loreto’s reefs are in need of protection. Years ofunregulated over-fishing have decimated many areas. On a positive note, the efforts oflocal individuals, the community and NGO’s such as GEA have made significant strides inreversing the continued degradation of Loreto’s fragile marine eco-systems. OPPOSITEPAGE: The south end of Isla Danzante appears as the tail of a sleeping dragon as its jaggedpeaks slide into the waters of the sea.

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expertise to know which questions to ask. Arecent article in Men’s Journal lays out bothbroad and specific questions one shouldask any developer that is claiming to be sus-tainable. These questions provide thefoundation for the following Q&A section.

QUESTIONS & ANSWERSAll developers claiming to be sustain-

able must be prepared to answer questionsconcerning the true sustainability of theproject. The questions posed below willilluminate the fact that sustainablity istedious and far more involved than simplybuilding some solar-powered condos onthe beach. It is important to remember thata truly sustainable development must takeinto consideration the current social,economic, and ecological environment ofthe region to be built out. It is important torecognize that building a truly sustainableproject requires extensive research, expertadvice and exhaustive planning. Thefollowing interview compares responsesgiven by The Loreto Bay Company to thoseprovided by local residents and expertsincluding comments from Rodolfo Palacios

Castro, Hugo Quintero Maldonado, HeidiSanborn, and Linda Kinninger. RodolfoPalacios Castro became a board member ofGEA and a member of Loreto 2025, anorganization committed to developing analternative development plan to Loreto Bay.This followed his move to Loreto when hishometown in Los Cabos grew out ofcontrol and became a heavily-travelledtourist destination. Hugo QuinteroMaldonado is a local civil engineer and thecurrent Director of El OrganismoOperador Municipal del Sistema de AguaPotable y Alcantarillado de Loreto (TheLoreto Water and Sewer Department).Heidi Sanborn has an extensive back-ground in waste management. LindaKinninger is a prominent resident of Loretoand an active participant in environmentalaffairs in the Loreto region and Wallace J.Nichols, Phd. is a leading researcher andadvocate for protection of Baja’s sea turtles.

1) What has Loreto Bay done toprotect the local flora and fauna?

Loreto Bay: According to David Veniot,Loreto Bay’s Vice President of Sustainability,Loreto Bay’s plan isn’t simply to protect local

flora and fauna – they are committed toprograms that will increase biodiversity andbiomass in the region. In order to increasebiomass and biodiversity in the Loreto region,Loreto Bay plans to increase the amount of waterthey collect by capturing excess rainfall and con-structing a series of dams. Loreto Bay hasconcluded that the combination of these effortswill elevate the ground water, allow them toimprove the existing local aquifer, and thusimprove habitat by attracting wildlife, bird life,and marine life. Part of Loreto Bay’s commit-ment to protect local flora and fauna is LoretoBay’s Agricultural Center, now one of Baja’smost extensive mangrove propagationprograms. The idea is to germinate over 10,000mangrove seeds per year starting two years fromnow. Additionally, through The Loreto Bay Foun-dation, the company has supported the last twoturtle conferences, an annual event that bringstogether NGO’s, individuals and world expertsto stave off the extinction of various sea turtles.Recognizing that they have really only scratchedthe surface when it comes to protecting flora andfauna in the delicate region of Loreto, Loreto Bayplans to conduct more research and find moreways to protect the ecosystem throughout the 12to 15 year life of the project.

Like virtually everyone alive today, I was born into a DEGRADING ENVIRONMENT. My goal is to die in a place that isregenerating. Everything I have done up to this point has been a warm up, even back to the early 70’s as a HIPPIEORGANIC FARMER, founder of the Lund Farmers Coop and aspiring carpenter, an aspiration which somehow determined mycareer in real estate. THE VILLAGES OF LORETO BAY IS MY LIFE’S WORK.

—David Butterfield, President, Trust for Sustainable Development

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Baja Life: While the Loreto Bay Companyclaims that it is working with various conser-vation groups to ensure the health andvitality of the local marine and animal life,their plan is to build 6,000 homes in 3,000acres while setting aside the remaining 5,000acres as a nature preserve. The highestdensity part of the development rests alongthe coast with as many as 40 homes per acre.Rodolfo Palacios Castro’s main concern isthe coastline because the coast, including thereef, is 20 times more productive than therest of the sea. Rodolfo is skeptical of theplans to build a golf course that is danger-ously close to a sensitive estuary. He is alsoconcerned about the drastic increase in theamount of people walking along the beacheswhere many animals, some on the edge ofextinction, are nesting. Not only do endan-gered sea turtles nest in the sand where theVillages will soon stand, but also certainendangered birds who bury their eggs there.Rodolfo is concerned that residents of theVillages will inadvertently step on the eggsthus contributing to the potential extinctionof these species.

Furthermore, the nearby highway lightingthat has recently been added to the highwaycoming into Loreto Bay is a problem to thesea turtles. As constructed, the light isdirected outwards instead of downwards andcan be clearly seen all the way from a bluff inLigui located almost 20 miles south of theLoreto Bay development site. Lighting that isdirected downwards does not the pose therisk of confusing sea turtles nesting onnearby beaches.

Since much of the land in Loreto belongseither to developers or FONATUR, LindaKinninger approached Loreto Bay hopingthat The Loreto Bay Foundation woulddonate a small piece of land for a turtleresearch station. When Loreto Bay refused tomake the donation, Ms. Kinninger could nothelp but feel that The Loreto Bay Company isnot as concerned about sea turtles as theyclaim to be. According to J. Nichols, “Lownumbers of Olive Ridleys (Lepidochelysolivacea) nest along the shores of Loreto,including the beaches in front of the airportand in the Nopoló area. As the Olive Ridley

population begins to recover, due to success-ful conservation efforts and strong laws thatprotect them, we should again see largernumbers of this species on Loreto's beaches.Right now there are a dozen or so nests eachseason throughout the Park. In theory,building a sea turtle hatchery for the region isthe responsibility of the Park. Nests wouldbe collected and protected there opportunis-tically, since patrolling such a large area forfew nests would be very inefficient. And itwould of course be a popular attraction forany development to maintain the sea turtlehatchery. In short, turtle nesting in theregion has not been the highest priority.More important are the green and hawksbillturtles in the bay that use the water yearround as feeding grounds. As a nationalmarine park and an important area for seaturtles, it's my opinion that everyone shouldbe involved in conservation, especially thosebusinesses that benefit directly from thenatural beauty and diversity of the region.That includes contributing to the protectionof the area's MOST endangered group ofanimals--the sea turtles.”

2) How does Loreto Bay help thelocal communities?

Loreto Bay: According to Debra J. Stevens,Vice President of Marketing for Loreto Bay,her company will help local communities via

programs and donations. Loreto Bay willimprove the health and welfare of the Loretocommunity by dedicating one percent of thegross proceeds of all sales and re-sales toThe Loreto Bay Foundation to assist withLoreto’s social and sustainability issues.Loreto Bay plans to create significant newjobs in Loreto that will enhance the localeconomy. Loreto Bay hopes to develop andimplement a Regional Affordable HousingStrategy in cooperation with Loreto citizensand all layers of government based on thepremise that people who work at Loreto Bayshould be able to afford to live nearby. Fur-thermore, Loreto Bay has contributed$800,000 toward the construction ofLoreto’s first full-service medical center.

Baja Life: The Loreto Bay Companyclaims that it is hiring local people tocomplete the project, but according toseveral locals, it has become apparent thatLoreto Bay is using the term “local” verybroadly. Testimonials from several localresidents confirm that the laborers workingon the Loreto Bay project are actually frommainland Mexico because Loretanoswould not accept the low pay that LoretoBay contractors are offering. Thesemainland workers are very poor and arebeing paid very low wages. Apparently,they are subjected to poor living conditionsin which as many as twenty men arecorralled into a small room and left to sleepwith only blankets on the concrete floor.Granted, Loreto Bay is trying its best tocomply with Mexican Law which requiresall contractors to provide decent, safe, andaffordable housing to its laborers, butsince the contractors are not complying, itis clear that Loreto Bay must pursue othermeasures. Either way, the current situationis one in which labor is not from Loretoand they are not being treated fairly. Addi-tionally, the presence of these poorlaborers from the mainland increasescrime in Loreto and, in turn, adverselyaffects the quality of life for the locals.

Another concern is cement production.Whereas Cemex, a Mexican cementcompany, was previously being used tomake the cement for the project, Loreto Bay



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has since changed to an American-basedcement company to save money, accordingto local residents who have been followingthe progress of the Loreto Bay development.

3) What interpretive opportunities(cultural or ecological) areavailable to buyers?

Loreto Bay: According to Debra Stevens,interested buyers who visit during one ofLoreto Bay’s four-day Selection EventWeekends will have the opportunity to learnabout the marine park, the medicinal plants ofthe Sonoran Desert and the natural features ofthe Baja region. They will also tour LoretoBay’s earth block production facility wherethey learn about energy conservation and theefficient thermodynamics of building withadobe. Tours of the Loreto Bay AgriculturalCenter offer an opportunity to learn aboutnative plants, edible plants of Baja, and low-water usage landscaping. Future opportunitieswill include Spanish language immersion,turtle and whale conservation, and digital pho-tography. Loreto Bay’s long-range plan is tooffer many opportunities for lifelong learningwithin The Villages of Loreto Bay.

The development itself is meant tocapture authentic Baja. The “ventana deservicio” is an optional add-on in the Villagesof Loreto Bay. This “service window” isdesigned to be the authentic way in whichlocals have food and beverage delivered totheir homes. Authentic architectural designincorporates the construction of a cupola, atower similar to a chimney that providescooling and heating options by opening orshutting the cupola windows.

Baja Life: According to a Loreto Bay salesmeeting invitation, the sustainable practicesof the Loreto Bay development ensure thatLoreto “will forever remain authentic Baja.”While Loreto Bay claims to offer educationalopportunities for current and prospectiveresidents, it seems as though they are alsotrying to retain Baja’s authenticity throughthe architecture of The Villages itself.However, whether the environment andarchitecture is “authentic” or not is difficultto determine if you are an American, or aCanadian, or a European who knows very


ABOVE: Two kayakers enjoy the solitude floating above the transparent waters of IslaCarmen. Several tour companies offer multi-day kayak excursions to explore the desolatebeaches and view whales, sea lions and playful porpoises that patrol the islandsoffshore.OPPOSITE PAGE: Scuba diving is very popular in the Park. Sea mounts and sunkenwrecks provide protected habitat to fish populations that are on the rise again.

The real question is, when a developer pitches SUSTAINABILITY and “GREEN”to a health-obsessed audience, are buyers getting the REAL DEALor are they BEING DUPED?

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little of the nuances specific to the Loretoregion as compared to other regions ingreater Mexico. In fact, while Loreto Bayclaims that The Villages reflect the localarchitecture of Loreto in particular, HugoQuintero argues that the style is actuallytaken from Guatemala Antigua. This isprobably something that only a Loretanowould know, or perhaps only something anexperienced civil engineer from Loreto likeHugo Quintero would know, but neverthe-less, the architecture is not derived fromLoreto and is instead derived fromsomeplace entirely different.

4) How does Loreto Bay handletrash and recyclables?

Loreto Bay: According to David Veniot,waste will be separated into three categoriesin the homes and other buildings related tothe project: recyclable waste, organic com-postable waste and non-recyclable waste.The recyclables and organics will be taken toa waste management center.

Baja Life: While Loreto Bay claims thatwaste will be separated and taken to a wastemanagement center, Loretanos cannotconfirm the existence of any such waste man-agement center. Litter infested streets are stillvery much the norm in much of Mexico, so itis very hard to believe that such a manage-ment center exists. When asked how trashand recyclables were going to be handled, aLoreto Bay representative stationed in Loretoanswered by saying that waste would betaken to the nearest dump. Ideally, construc-tion workers should separate out theirmaterials and recycle them, but this requiresthat the workers are educated in this processand that a recycling program actually exists.According to Hugo Quintero, aluminum fromjunkyards is currently being recycled, but he isunaware of any means by which to recycleother materials such as paper, plastic, andstyrofoam, all of which are being used in theconstruction of The Villages.

According to Heidi Sanborn, LoretoBay’s answer to this question is highlyinadequate because “the devil lies in thedetails. What ‘waste management center’?Where is it? Who owns it? Is it appropri-


A CLAIM TO CREATE MORE biodiversity,biomass, and habitat in a region thathas been recognized by the UnitedNations as a World Heritage Site due to its DIVERSITY of plant, animal, and marine life may be viewed as a CLAIM PACKED WITH HUBRIS.

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ately operated according to U.S. environ-mental standards? How far do recyclablesneed to be trucked to get recycled? Whereis the current landfill? Who operates it? Isit lined? Does it leak into the groundwater?Does it leak into the ocean? How do theydeal with disposal of E-waste, batteries, flu-orescent bulbs, and other potentiallyhazardous materials that can break, leakingheavy metals into the environment?” Ms.Sanborn also notes that properly handlingwaste is exponentially more importantwhen developing near surface water overaquifers or near the coastline.

5) How does Loreto Bay treat graywater and sewage?

Loreto Bay: According to David Veniot,The Loreto Bay Company strongly proposedthe development of a 60 liter per second, allnaturally constructed, wetlands waste watertreatment system that would have requiredsix hectares of land. Unfortunately,FONATUR has declined the proposal, and ismoving forward with plans for an electrical-ly powered, mechanical sewage system, thesame system that is currently used in Loretoas well as in other areas of Baja and Mexico.

Even though this system will use muchmore electricity than the one Loreto Bayproposed, it will eventually be powered byelectricity from The Loreto Bay Company’swind farm. The provisions of the agreementbetween FONATUR and The Loreto BayCompany require that FONATUR pay forsewage utility infrastructure costs.

In an effort to treat gray water andsewage in a sustainable manner despite theobstacles presented by FONATUR, LoretoBay plans to expand the use of treated wastewater from both the Loreto and Nopolówaste water treatment plants for use on land-scaped areas within Loreto Bay and on thegolf course. The golf course has beenredesigned so that when it is redeveloped itwill use saline tolerant grass and plants thatcan be watered with brackish water andreclaimed waste water.

Baja Life: Implementing a high-energy,completely mechanical sewage system isnot sustainable. Granted, Loreto Bay had amore sustainable process in mind beforeFONATUR decided to invest the money in ahigh-energy sewage system. Regardless, iftoo many obstacles such as this lie in theway, it may be misleading to claim any com-

mitment to sustainability. The plan toconstruct a golf course that can be wateredwith part salt water and even brackish wateris a start, but may not be sufficient for acommunity of 6,000 homes producing tonsof waste.

6) Does Loreto Bay utilize anyalternative energy resources like solar or wind?

Loreto Bay: According to Debra Stevens,Loreto Bay originally planned on imple-menting earth-kind solar energy to powerthe homes and everything else affiliatedwith the project in need of power.However, when it became clear that thesolar plant was going to be costly, LoretoBay decided to build a wind farm instead.The wind farm will be located near PuertoSan Carlos on the Pacific coast and isestimated by Loreto Bay’s experts togenerate over 20 megawatts of power,“plenty [of energy] for Loreto Bay andadjacent municipalities,” according toDoug Makaroff, Loreto Bay Vice Presidentof Planning and Design. Since The Villageswill only require 6 to 10 megawatts at anygiven time, surplus power will be available

RIGHT: A young local girl flashes her bestshy smile. FAR RIGHT: Local womenprepare delicious traditional cuisine atVista Danzante, a nine-room eco-resortlocated south of Loreto in the area ofEnsenada Blanca. OPPOSITE PAGE:Mischievous sea lions play hide and seekwith divers, at times pulling on theregulator or grabbing a swim fin anddarting away. Interactions with these“comedians of the sea” are becoming morecommon as their populations increasethroughout the Park


for sale to the larger municipalities in BajaCalifornia Sur for use in running theirutilities. All of the electricity produced inthe southern Baja region is diesel-generated, so Loreto Bay’s wind facility willensure a significant reduction in harmfulgreenhouse gas emissions.

Baja Life: Despite having carefullyfollowed the Loreto Bay project, RodolfoPalacios was still unaware that the plans forthe solar farm had been scrapped. If solar istoo expensive in a desert with an overabun-dance of sun, Rodolfo wonders how muchLoreto Bay is really saving by building a windfarm in its place. He is also worried that LoretoBay has not done sufficient research on thebird life that lives in the area where the windfarm will be constructed and has not consid-ered how high these birds fly so as to design awind farm that will not harm the local birdpopulation. When asked if research had beendone on the environmental impact of a windfarm, issues concerning the bird populationand other animal life in the area were simplynot mentioned. Rodolfo believes that theseimportant concerns have not been addressed,and that it seems sustainability in Loreto Bayhas become more about saving money thanactually protecting the environment.

7) What is Loreto Bay’s policy onwashing sheets and towels?

Loreto Bay: According to Debra Stevens,many retired and pre-retirees in America arelooking to buy second homes in places likeBaja where beachfront property is cheaperand more readily available. Since the keydemographic for The Villages of Loreto Baywill be second home owners, it is importantto implement eco-friendly policies to whichhomeowners must adhere. Loreto Bay willrequire the use of biodegradable soap, andthe homes will be outfitted with low waterusage appliances. Since the Villages of LoretoBay are not meant to be a resort, but rather acommunity of homeowners with many of theamenities a resort can offer (spas, golfcourses, club houses, etc.), residents willneed to be educated in proper water conser-vation efforts and environmentally friendlycleaning supplies.

Baja Life: It is certainly impressive thatLoreto Bay will require that biodegradablesoap be used in the homes, and this is reallya no-brainer for developers planning a sus-tainable community. However, it is importantto ask how realistic it is to impose a restric-tion on soap for residents of 6,000 homes,many of whom will be renting their homes toother people during the year. It may be thecase that original residents will adhere to thesoap restriction policy, but can Loreto Bayensure that future residents and part-timeresidents will follow the same rules? If LoretoBay can fully implement this policy, how doesit plan to regulate the kind of soap theresidents are buying from local supermarketswhich do not carry biodegradable soap?Linda Kinninger is able to obtain eco-friendlyproducts by flying them in with her ownprivate airplane, but most people do not havethis luxury. Unless Loreto Bay plans toprovide residents of all 6,000 homes with aconstant supply of biodegradable soap, it isvery difficult to believe that a policy such asthis can be upheld.

Loreto Bay is a sustainable develop-ment comprised of homes rather thanhotel rooms. Since being a homeowner

requires cleaning your own house, takingout your own trash, and washing your ownlaundry, Loreto Bay will not have the sameoversight and involvement in theseprocesses as they would if the develop-ment were comprised of full-service hotelrooms. The certainty is that Loreto Baymust consider that its buyers may or maynot be committed to sustainable practices.If there is a way to ensure that Loreto Bayhomeowners are truly committed to sus-tainability, then Loreto Bay mustimplement it. Furthermore, if Loreto Bayreally wants a recycling system to workamongst a community of largely Americanhomeowners, it must ensure that recyclingis as easy as taking recyclables from thehome to a very close recycling bin.

8) Does Loreto Bay have any other water conservation measures?

Loreto Bay: Aside from installing lowwater usage appliances in the homes,Loreto Bay has planned the construction ofa desalination plant to ensure that TheVillages of Loreto Bay and everything affili-ated with it will have sufficient water in adesert region where water is far fromabundant. According to David Veniot, thecurrent plan is to build a desalination plantthat is 48 feet by 56 feet adjacent to the golfmaintenance building near the highway. Atfirst, energy consumption by the desalina-tion plant is expected to be about 3Megawatts, but could require as much as 6to 9 Megawatts after the plant is doubled insize as planned. Expected production of thedesalination plant will be 1,232,000 m3/year(325 million gallons/year) which, accordingto Loreto Bay, is more that adequate to meetthe needs of the development. In fact,expansion by another fifty percent ispossible and would ensure that Loreto Baywould be the net producer of water in theentire Loreto region.

Loreto Bay’s research has culminated atthe decision to implement the best reverseosmosis (RO) technology available. LoretoBay’s model was adopted from the PuertoPeñasco plan, a project that is highly regarded


for its history of salinity and biological testing.This RO model will ensure that the dischargedsolution is not warmer than the ocean itself,and solids, metals, and chemicals will be pre-filtered before the solution is deposited backinto the Sea of Cortés.

In the long term, Loreto Bay plans toincrease groundwater levels in the ElZacatel and El Tular aquifers by placingborders and gabions (rainwater flow-slowing dams and diverters) in strategictributary locations in the hills, selectivelyfencing areas to prevent overgrazing, andreplanting the tributary with many layersof indigenous plants and trees. This willresult in the increased percolation of waterthrough the soil which, over time, willenrich the soil and facilitate re-vegetation,thereby increasing the aquifer’s ability toreceive and percolate increasing amountsof water. This program is projected to takedecades to complete as groundwaterlevels are increased to a level that cansupply a significant portion of LoretoBay’s water demand.

Baja Life: In a region where water isscarce (it has rained only once in thelast fourteen months), a desalination

plant is really the only way a developercan create more water for the increasedpopulation that its development willinevitably generate. Both the AlternativeFutures for the Region of Loreto Reportsconducted by Harvard and HugoQuintero confirm that desalination isreally the only way to create more waterin Loreto.12

As discussed previously, there are manyimplications to the desalination process thatmust be addressed. According to HugoQuintero, one liter of salt water yields onlyhalf a liter of fresh water. What is left over isdense salt or “salmuera”. In Los Cabos,leftover salt is deposited back into thePacific. This is acceptable in Los Caboswhere the Pacific is more open and less eco-logically sensitive, but in Loreto saltdeposits cannot go back into the Sea ofCortés without hurting the delicateecosystem there. Salt may be processed forconsumption or chlorine may be extractedfrom the salt and used to treat sewage. Inany case, Loreto Bay must have a sustain-able method by which they dispose of orreuse the remaining salt as all the ocean infront of Loreto Bay is part of the federally

protected marine preserve. Loreto Bay hasreceived expert advice from the CaliforniaCoastal Commission and the “Save OurShores” organization in collaboration withthe Monterey Bay National MarineSanctuary to find ways to reduce thenegative impact of salt deposits on marinelife. As recommended by the CaliforniaCoastal Commission, sparging tubes ordeep injection wells can to be used to mixexcess salt with sea water underground sothat by the time the salt reaches the openocean it will be sufficiently diluted andtherefore benign to marine life. Currently, itappears as though Loreto Bay is receivingenough expert advice on the subject towarrant that they have good intentions.

Heidi Sanborn is very concernedabout Loreto Bay’s plans to build damsthat will artificially fill the existingaquifers. She comments that “any timeyou dam a river or creek, especially in adesert, whatever is downstream dies andwhatever is getting flooded will changeplant life to a more water loving plant.Trying to artificially fill an aquifer by overwatering the surface will change thefauna. Without a full review by an inde-


RIGHT: Blooms pour forth from toweringCardon cacti in the springtime, providinga valuable food source for birds which inturn disperse the seeds and continue thecenturies-old cycle of propagation. It isestimated these cacti can live to 500years old or more. OPPOSITE PAGE: Thenumerous branches of a Pitahaya Dulce, aspecies of cactus that provides a favoritesweet, edible fruit that is made intocandies and jams, provide a trio of white-winged doves an afternoon perch.


ABOVE: Historically, very little rain falls inLoreto and sometimes these periods ofdrought can last over a year. The desertbecomes completely dormant and devoid offlowers until a seasonal summer storm bringswater to the parched region. Within days, theplant’s stored up power is unleashed,creating a burst of vibrant color of every hue.LEFT: Loreto is known as the place “whereeven the mountains swim”. Steep cliffs dropvertically into the Sea of Cortez andnumerous islands dot the horizon.

…it is ESSENTIAL to have a longterm plan that addresses all theECONOMICAL CONCERNS…

“ “


pendent hydrologist and plant biologist, Iwould not be convinced that this is anappropriate way to obtain water.”

As Vice President of the Board ofDirectors for GEA, Linda Kinninger isconcerned about Loreto Bay’s plans tofence areas to prevent overgrazing. GEA iscommitted to providing a management andprotection program for the big horn sheepthat graze in the mountains, but Loreto Bayfencing may serve as an obstacle to thatend if it cuts the animals off from theirwater supply.

9) Does Loreto Bay use environmentally friendly buildingmaterials and native plants in the construction and landscapingof the homes?

Loreto Bay: The homes will be construct-ed out of adobe (compressed block) that ismade from local materials and that is,according to Loreto Bay, “bugproof,windproof, sunproof, and bulletproof.”According to Loreto Bay landscaper, RobKater, The Villages will be landscaped withbougainvillea, mangroves, and cooling,edible plants. Debra Stevens adds that themixture used to paint the homes is madefrom lime, cactus, and water instead of paintbecause this mixture does not produceharmful emissions.

Baja Life: According to Hugo Quintero,adobe block is a poor choice for buildingoceanfront homes because the humiditycauses the block to lose its strength. Adobemay be “bugproof, windproof, sunproof, andbulletproof” as Loreto Bay claims, but appar-ently it is not humidity proof. Hugo Quinteroalso suggests that Loreto Bay use plants forlandscaping that require very little water, likedesert plants, to reduce the amount of waterneeded. The grass on the golf course alonewill take a vast amount of water even if it canbe watered with part saline, brackish, andreclaimed waste water.

Furthermore, there are concerns about themixture Loreto Bay is using to paint thehomes. A mixture of lime, cactus, and watermay produce fewer emissions than regularpaint, but there are several underlying issues.

First of all, a permit is required before cactuscan be dug up and consumed. So where isLoreto Bay getting the cactus? Linda Kinningeralso points out that “when lime seeps into thesoil, nothing can grow there. It kills everything.Wouldn't plain old lead free paint be friendlierto the environment in this case?” This is a verygood question and it really illuminates the factthat more research needs to be done beforeLoreto Bay can be sure.

RAPID GROWTH AND THE LORETO ECONOMY

Besides the many concerns that thisseries of questions intend to address, it isalso important to ask Loreto Bay how it isprepared to deal with the economic growththat its development will inevitably create.What is Loreto Bay doing to ensure that theeconomy will not overwhelm itself in thelong run and that the cost of living will notoutpace the income of the local residents?

Richard Kiy is President and CEO ofInternational Community Foundation,the public charity that funded the LoretoAlternative Futures Harvard Reports, andhas extensive expertise in EnvironmentalEconomics. According to Kiy, “Rapideconomic growth can lead to growingsquatter communities and strains on thepublic infrastructure. A large developmentcould overwhelm the public infrastruc-ture.” This begs the question: who is goingto pay for the public infrastructure in thelong term? Loreto Bay will undoubtedlybring growth to the region of Loreto in theshort term, but it is essential to have a longterm plan that addresses all the economi-cal concerns that arise out of a large scaledevelopment such as Loreto Bay.

With regards to a possibly over-whelmed public infrastructure in thefuture, The Loreto Bay Foundation wasspecifically created to give Loreto thefinancial resources to manage its growth.According to David Butterfield, by pledgingone percent of sales and re-sales, TheLoreto Bay Foundation has a stream offunding in perpetuity. Citigroup Invest-ment Partners, Loreto Bay’s equity partner

in the purchase of the Camino RealHotel—now called The Inn at LoretoBay—was so impressed with this plan thatthey committed one percent of resort salesto the foundation as well.

WHAT COULD THE LORETO BAYCOMPANY DO DIFFERENTLY?

According to Hugo Quintero, if hewere to take over the building plans fromhere, he would build fewer, more expensivecustom homes instead of the high densityproduction homes that Loreto Bay isbuilding. He feels that Loreto Bay canmake as much or more money by sellingfewer homes with a higher price per unit,in addition to using fewer resources. Theclaustrophobic nature of the existing infra-structure does not allow for sufficientairflow during Loreto’s sweltering summermonths. Homes are packed together sotightly that there are literally “no walkzones” indicated by gravel pits in eachhome where residents may not venture.These no walk zones are designed toprotect the privacy of neighbors whosehomes and rooms can be clearly seen oververy low walls. The bottom line: Lesshomes, less people, less consumption oflimited resources, as much or more profit.It is not hard to conclude that building sus-tainable would be far easier if thedeveloper limits the amount of people whowill be living or vacationing there.

In Rodolfo’s opinion, “the beachesshould be there for us to enjoy with ourfamilies, for the turtles, and for ourvisitors. Why should we give the beachto the hotels and the outsiders who aremoving here? Why do we even need tobuild on the beach at all? Loreto Bay sitson the most visited beach by the locals,and we will no longer be able to enjoyit.” Rodolfo’s alternative developmentplan would mandate building awayfrom the beach. This would pose far lessrisk to the marine life, and would ensurea greater possibility that local familiesand existing marine life can carry onwithout interference.


LIMITING FACTORSA sustainable development is sustain-

able only by virtue of the environment inwhich it is built. That said, can the region ofLoreto support a sustainable developmentas dense as the Loreto Bay development?The most important and limited resourceconcerning the Loreto Bay project is water.Currently, underground water is pumpedfrom the San Juan Londó aquifer. Theamount of water pumped varies dependingon the need. At the very most, 120 liters persecond is pumped. The average need forwater is 250 liters per person per day. TheLoreto Water and Sewer Department iscurrently pumping enough for about40,000 people with an estimated currentpopulation of 15,000. More is pumpedthan is required because there are frequentleaks in the lines and many locals wastewater because out of 4,000 contracts forwater in Loreto, only 1,800 have meters.Those without meters pay a flat rate of 50pesos per month ($5 USD) and can easilyexploit the amount of water they use. HugoQuintero says, “There is no need for morewells right now. Currently, there is enoughwater for ten years or even more if mydepartment can fix the leaks and meterproblems. Since Loreto is already pressedfor water, natural resources should be kept

for existing resident needs. New develop-ments must find another way, and it seemsthat desalination is the only way. With aplan to build 6,000 homes and water a hugegolf course in a parched desert, Loreto Baymust realize that their job is not impossible,but it will be very difficult if they do nothave a specific plan when it comes to har-vesting and producing potable water.”Hugo adds, “I don’t tell them [Loreto Bay]what they want to hear. If I find throughstudies that there’s not enough water, I willtell them and then it will be up to them tofigure out how to create more water.”

Rodolfo Palacio likes the idea of a sus-tainable development, but he is veryskeptical because of the size of the project.It appears as though much of the skepti-cism surrounding Loreto Bay’s plan is duelargely to the density of the project.According to Rodolfo, “It would be fareasier to address sustainable issues if themaster-planned community was smaller inscale and in line with available resources.With fewer homes, Loreto would be betterequipped to grow at a pace that does notoverwhelm itself in the long run.” InRodolfo’s opinion Vista Danzante, a nearbyeco-resort, is a good example of what a sus-tainable development should be. Locatedon a secluded bluff, Danzante is solar

powered and offers nine rooms and a smallrestaurant where all guests can enjoy anightly meal prepared by women from theneighboring fishing village of Ligui.According to Rodolfo, “In this model, itappears that everyone including the envi-ronment is winning.”

Debra Stevens compares her company’sdevelopment to ones such as Cape Cod orSeaside Florida. It should be clear by nowthat these comparisons cannot accuratelybe made because the environments, localculture and economy, and resources are notthe same. Sustainable projects must beassessed independently from othersalluding to the particular geography andresources of the area at hand. In LindaKinninger’s opinion, “A well-designeddevelopment is one that is transparent andhonest in it’s claims. In the case of LoretoBay, there are still many questions that needto be answered.”

It would be wise to learn the lesson fromthe demise of the Fertile Crescent, its people,and its environment. The early humans ofthe Fertile Crescent were not necessarilymore intelligent than those living in NewGuinea or other areas less conducive tohuman progress, but they were both blessedand cursed to have arisen in an ecologicallyfragile environment — an environment they


ABOVE: Uncrowded and unspoiled by development, the sheltered coves and beaches found throughout the Loreto Marine Park offer solitudeand a chance to reflect on the beauty and balance of an ecosystem that is still relatively wild.

To claim sustainability and a ‘TOTAL COMMITMENT to environmental stewardship’, there must be a clear set of minimum standards to which the DEVELOPER ADHERES. “

“


ended up destroying because they overusedits precious resources. Today, Loreto repre-sents the place where the sea, the desert, andthe mountains meet. Marine and animal lifein Loreto is particularly sensitive, andimportant resources such as water arescarce. Achieving sustainability is notimpossible, but it is laborious and it takestime, patience, and extensive research, espe-cially in areas as ecologically sensitive asLoreto, and especially with developments aslarge as Loreto Bay.

“Sustainable” has become an attractiveword to describe modern developments, soit is no wonder why developers employ thisword to describe their projects. It is onething to promise to produce more energyfrom renewable resources that is consumed,harvest or produce more potable water thanis used, and create more biodiversity,biomass, and more habitat than existedwhen the project was started, but quiteanother to follow through and fulfill thesepromises. A claim to create more biodiver-sity, biomass, and habitat in a region thathas been recognized by the United Nations

as a World Heritage Site for its diversity ofplant, animal, and marine life may beviewed as a claim packed with hubris. Topromise to produce more potable waterthan is consumed in a desert region wherewater is scarce is the mark of a plan that mayhave bitten off far more than it can chew.

According to the non-profit Bay ofLoreto website, “the Loreto Bay Foundationis a member of the CGBD InternationalBaja California Funder’s group, with whomwe work collaboratively to create the visionof a healthy Baja California Peninsula andSea of Cortez. The Villages of Loreto Baymay be the largest sustainable resortcurrently under development in NorthAmerica. The goal of the Loreto BayCompany is for The Villages to become aninternational model for how developmentcan enrich an existing ecosystem andcommunity and still be economically viable.The developer’s vision is an integrated stew-ardship process of conservation, protection,enhancement, and regeneration thatbalances the social, economic and environ-mental needs of the community. Thus, The

Villages of Loreto Bay are a proving groundfor the balancing act that ensures economicdevelopment is partnered with ecologicalprotection and enhancement and socialresponsibility. It is central to the developer’saspirations that all three forces of sustain-ability work together, and that theyacknowledge their equal partner status increating a future for Loreto.”

To claim sustainability and a “totalcommitment to environmental steward-ship”, there must be a clear set of minimumstandards to which the developer adheres.Time can only tell whether Loreto Bay willown up to the many promises it has made.There is little doubt that the developer ofLoreto Bay has good intentions, but goodintentions are not sufficient to ensure thatthe many claims by the developer will beaddressed in a truly sustainable way. If wefail to hold developers accountable forwhat they promise, we may think we aredoing something good in buying a “sus-tainable” home when, in fact, we may bedestroying the very environment in whichwe are investing.

1) Jared Diamond, Guns, Germs, and Steel: The Fates of HumanSocieties (New York, W. W. Norton & Company, 1999), 14.



4) Cavelle, Jenna (2005). Islands and Protected Areas of the Sea ofCortez Inscribed As A World Heritage Site by the United Nations.Baja Life, 18, 36.

5) Steinitz, C., Faris, R., Vargas-Moreno, J., Huang, G., Arizpe, O.,Angeles, M., et al. (17 November 2005). Alternative Futures for theRegion of Loreto, Baja California Sur, Mexico.

6) Coleman, Lisa (2005-2006). Loreto Bay—The Future of Mexico: Whatis Loreto Bay? Baja Traveler, 2005-2006 Loreto Bay Special Issue, 9.

7) Steinitz, C., Faris, R., Vargas-Moreno, J., Huang, G., Arizpe, O.,Angeles, M., et al. (17 November 2005). Alternative Futures for theRegion of Loreto, Baja California Sur, Mexico.

8) Lisagor, Kimberly (February 2006). How Green Is Your Eco-Lodge?Men’s Journal.

9) Loreto Bay Sustainable Development. March 2, 2006, fromhttp://www.loretobay.com/ cms/index.html.

10)Lisagor, Kimberly (February 2006). How Green Is Your Eco-Lodge?Men’s Journal.

11)Lisagor, Kimberly (February 2006). How Green Is Your Eco-Lodge?Men’s Journal.

12)Steinitz, C., Faris, R., Vargas-Moreno, J., Huang, G., Arizpe, O.,Angeles, M., et al. (17 November 2005). Alternative Futures for theRegion of Loreto, Baja California Sur, Mexico.

Bibliography


WWW.LORETO.COM

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