NICARAGUA: MARINA PUESTA DEL SOL, S.A. INVESTMENT PROPERTY

UNCLAS MANAGUA 000889

SIPDIS

STATE FOR WHA/CEN GSCHIFFER, EB/IFD/OIA, L/CID AND WHA/EPSC
TREASURY FOR INL MDONOVAN AND GCHRISTOPOLUS, OWH/ASCHWARTZMAN
STATE PASS TO USTR

SENSITIVE BUT UNCLASSIFIED
SIPDIS

E.O. 12958: N/A
TAGS: EINV ECON EWWT USTR KIDE NU
SUBJECT: NICARAGUA: MARINA PUESTA DEL SOL, S.A. INVESTMENT PROPERTY


1. (SBU) Summary: On January 24 2007, a band of armed men forcibly
assumed control of a strip of land owned by Marina Puesta del Sol,
S.A. in the department of Chinandega. Ostensibly, the man behind
the invasion is Mr. Jerez Lacayo, who has asserted ownership by
virtue of a debt incurred by the spouse of a prior, but fraudulent,
title holder. As of March of 2007, Marina Puesta del Sol, S.A.
remains in legal limbo as a result of contradictory laws, judicial
wrangling, and armed invasions. Catering to a wealthy clientele,
the marina is increasingly well-known as a desirable stopping off
point for sport fishing and as a final destination for seagoing
journeys on the Pacific Coast of Central America. Post is closely
following developments and has raised the issue with high ranking
government officials. End Summary.


2. (SBU) On January 24 2007, a band of armed men forcibly assumed
control of a strip of land owned by Marina Puesta del Sol, S.A. in
the department of Chinandega. A promising marina and beachfront
property, the investment represents a commitment to future tourism
in Nicaragua. Amcit Roberto Membreno and son have invested ten
million dollars, with plans to expand the hotel and marina. The
invasion has put their expansion plans on hold.

Land Invasion
--------------


3. (SBU) Amcit Roberto Membreno, original investor and father of
majority stockholder Amcit Mark Membreno, told Econoffs that Puesta
del Sol purchased the property in question from the Augusto Cesar
Sandino Cooperative in 2003. Shortly thereafter, a former
Sandinista official named Larios appeared, claiming that the land
belonged instead to a second cooperative named, interestingly
enough, Augusto Cesar Sandino 2. After a brief legal investigation,
Roberto Membreno ascertained that the recently created cooperative
was headed by Josefa Dolores Bravo Baez, Larios' own spouse.
Nicaraguan land cooperatives have historically suffered from
checkered sales records, contentious litigation, and multiple
ownership claims.


4. (SBU) Roberto Membreno claims that both the title and Augusto
Cesar Sandino 2 cooperative are fraudulent. Representatives of the
Augusto Cesar Sandino 1 cooperative promised to address the
accusations to reconcile the problem. To date no resolution has
been reached.


5. (SBU) Ostensibly, the man behind the invasion is Mr. Jerez
Lacayo, who has asserted ownership by virtue of a debt incurred by
Larios' wife, Josefa Dolores Bravo Baez, precipitating the transfer
of the property to Jerez Lacayo. This claim on the land is what
prompted Jerez Lacayo to occupy the land in January. In response,
Roberto Membreno filed a grievance with local police. Two days
later, the police persuaded the group occupying the land to leave,
only to see them return several weeks later with a court lien
authorizing Jerez Lacayo to take possession. According to Roberto
Membreno, the rationale behind the legal court order is derived from
an August 2006 resolution awarding the property first to Ms. Bravo
Baez and subsequently to Mr. Jerez Lacayo.


6. (SBU) As of March of 2007, Marina Puesta del Sol, S.A. remains in
legal limbo as a result of contradictory laws, judicial wrangling,
and armed invasions. Despite a February 2007 nullification order
filed by Marina Puesta del Sol, S.A., control of the crucial strip
of land is in the hands of heavily-armed invaders. Claiming
irregularities and fraudulent judicial procedures, Marina Puesta del
Sol officials insist that at no time were they properly notified nor
given the opportunity to file a timely appeal. Post is closely
following developments and has raised the issue with high ranking
government officials.

The Investment
--------------


7. (SBU) Marina Puesta del Sol is a fairly high profile foreign
investment in Nicaragua's fledgling tourist sector, having been
featured in yachting and travel magazines. Currently the marina
offers a 19-room boutique hotel and docking facilities for at least
28 oceangoing yachts. The design calls for expanding the number of
rooms and docking facilities. Catering to a wealthy clientele, the
marina is increasingly well-known as a desirable stopping off point
for sport fishing and as a final destination for seagoing journeys
on the Pacific Coast of Central America.


8. (SBU) Not quite contiguous to the yacht marina and boutique
hotel, the invaded strip of land is at a higher elevation than the
marina, situated in the nearby small town of Aposentillo, also in
the northwest department of Chinandega. Strategic to the success of
Puesta del Sol's investment, the invaded property is where Membreno
built his fresh water storage and supply station, without which the
marina cannot function. Membreno said that plans also call for a
seven million dollar investment to build a private airstrip on the
contested strip of land.

TRIVELLI