Webguy's note: I snatched this story from an older Forum that I decided to delete, but this article is so good that I have saved it to this blog, but I can't take credit for the story. It is by Jack Ewing of Hacienda Baru and was submitted some time ago by Geinier of La Cusinga. Thanks guys!

One afternoon a couple of years ago, near a well known beach and tourist area, the following conversation was overheard in a bar where real estate buyers and sellers congregate.

Developer Dave: “You know Bob, that beautiful forested beach we saw today has got to be the most spectacular property I have ever seen. What does Playa Boscosa mean?”
Broker Bob: “It means “Forested Beach,” and I agree, it’s exceptionally beautiful, just the ticket for an environmentally friendly project like yours.”
Developer Dave: “I think I’ll call them “Eco Condos. What do you think?”
Broker Bob: “You’re a genius Dave. They’ll sell like hot cakes.”
Developer Dave: “Will there be a problem when I have to cut a few trees to make the roads and prepare the land for construction?”
Broker Bob: “Listen Dave, I’m not like other real estate brokers. I’m not going to tell you that everything will go smoothly. Sure you’re gonna have problems, but successful people, like you, don’t let problems get in the way. Problems are there to be solved. You have to look at the overall picture. The rights to Playa Boscosa are going to cost you a million bucks. In order to develop it you’re going to have other expenses. Like I explained earlier, beach front is not titled. You lease it from the government. Before you can build anything, you have to have a concession, which is like a long term lease. Before you can get a concession the beach has to have a zoning plan (regulator plan.) Let’s say that the entire zoning process costs you 300k, and that includes greasing a few greedy palms. Once the zoning plan is approved, you grease a few more palms, let’s say another 100k, and you’ve got your concession. With the concession in hand you can get construction permits. You’ll have around a million and a half invested and you’re ready to build your 20 ecological condominiums. How much do you figure each one will cost to build?”
Developer Dave: “About $200,000 each, and there’s going to be 22 of them.”
Broker Bob: “If you sell ‘em for 500k each, you only have to sell four to get your entire investment back. The other 18 are pure profit. I don’t have to do the figures for you, but that’s nine million bucks. Where on this earth are you going to find another deal like that?”
Developer Dave: “The only problem is that I don’t have a million and a half. I already told you, I’ve only got $800,000, and I can’t come up with any more.”
Broker Bob: “You must be kidding. That’s the easy part.”
Developer Dave: “Maybe it’s easy for you, but not for me.”
Broker Bob: “Listen Dave, I’ll introduce you to a guy who can do a web page you won’t believe. You put your “Eco Condos” out there on the net and start selling. Get an advance payment of 200k from each buyer, with the balance due on delivery. Four buyers, and you’ll have all the cash you need. With the ecological angle you’re pushing, people will flock to buy your condos. I tell you, there has never been another opportunity like this.”
They closed the deal, and Dave went to work. He hired a large architectural firm to do his zoning plan, and just like Bob had said, he had to make a few payoffs to get it approved, but things went pretty smoothly. Surprisingly the biggest problem was from a pesky environmental organization that objected to any development at all on Playa Boscosa. They even claimed it was illegal to develop a forested beach. Dave tried to explain to them that his condominiums were ecological. After all, they would be built in a natural forest, and the buyers would be living an ecological experience. Even so, the group just couldn’t understand that it would be necessary to cut a few trees and do some bulldozer work to prepare the land for his project. But their objections didn’t make any difference. All of the government agencies approved the zoning plan, and now all Dave needed was the concession from the local government (municipality.) Maybe he’d have to shell out another $100 grand. But money was no longer an issue. That web master that Bob had recommended milked the ecological theme for everything it was worth. They priced the condos at $550,000 each and had already sold ten, taking 50% of the purchase price up front. He was showing a profit of over a million dollars and hadn’t even built the first condo yet. What a bonanza!
Before Dave was able to get his concession approved by the municipality, however, an unforeseen problem poked its ugly face into the deal. One day he phoned Broker Bob.
Developer Dave: “Bob, thanks for taking my call. Man, do I need your advice. Some government agency called the Controller General stuck its nose into my deal. I think that damn group of nature lovers put them up to it. Anyway this Controller started messing with the politicians and bureaucrats. They’re all scared as hell and won’t help me anymore. I took real good care of those guys, and now they’ve abandoned me. My lawyer won’t even answer my phone calls. I don’t know what’s going on. What am I gonna do? Talk to me man.”
Broker Bob: “ Dave, I’m real sorry to hear about that. It’s a crying shame. That was such a sweet deal. I always liked that ecological angle of yours, Dave. Listen, I can’t talk right now. I’m with a client. I tell you what, I’ll call you back when I’m free.” Broker Bob hung up.
Once a zoning plan has been elaborated, the boards of directors of both the Tourist Bureau (ICT) and the Urban Development Institute (INVU) must vote their acceptance before it is sent to the local government for final approval. The Controller General is a government watchdog agency that reviews bureaucratic proceedings with an eye for anomalies and illegalities. In our fictitious case with Developer Dave’s “Eco Condos of Playa Boscosa,” things were far from legal. A forested beach may not be developed. Nevertheless, his zoning plan for Playa Boscosa was approved because a few public officials were willing to accept gratuities in return for overlooking certain legal requisites. In the end, the whole mess caught up with him, and Dave’s sweet deal came to an abrupt and disastrous end.
Recently, the Controller General’s office has been focusing a great deal of attention on beach front development. Local governments, the ICT and INVU have been ordered to revoke zoning plans and concessions containing irregularities. If these institutions refuse to comply with the Controller's orders, their board members may face criminal charges. Additionally these institutions are obliged to investigate the proceedings that led to the illegal approval in question, determine who is guilty of irregular proceedings and take appropriate action. Dave and the corrupt government officials who helped him could end up doing jail time.
The story of Developer Dave’s Eco Condos of Playa Boscosa is purely fiction. However, many of the occurrences described in it have happened, are happening and will continue to happen in many places in Costa Rica. The Controller General started bringing order to Guanacaste several years ago and is now focusing attention farther south. They are getting very close to Dominical.
It may take longer to do things according to the rules, but it can save you a lot of grief in the long run.