Steve Case, founder of AOL, has invested some US $800 million to acquire and develop a 650 acre parcel of land located in Guanacaste, Costa Rica. Since Mr. Case left AOL-Time Warner he has started a new venture known as Revolution, LLC. The mission of Revolution, according to its web site, is to "to drive transformative change by shifting power to consumers. Our mission is to give people more choice, more control and more convenience in the important aspects of their lives - and build significant companies in the process." The company is investing in areas of health, real estate development, resorts, and financial services, among others.
The resort in Costa Rica will be known as Cacique. It is located specifically between the beaches of Playa Hermosa and Playa del Coco. According to the web site the resort will "integrate some of the industry's most prestigious brands, including One&Only Resorts, Miraval: Life in Balance, Exclusive Resorts, Tom Doak 18-hole golf course, and an Agassi-Graf Tennis & Fitness Center. Only a portion of the 650 acres will be developed and Cacique will offer for sale only 300 home sites. The balance of the property will be a nature preserve. The goal of Case is also to give back to the community and in that regard plans to do the following:
- The donation of 1 million trees to the government-chartered Foundation for the Balance between Conservation and Development
- The donation of hydro-geological studies of the Panama aquifer and watershed
- The donation of computer learning centers to the towns of Filadelfia, Hermosa, Panama and Sardinal
- A $1 million investment to encourage and support the development of local non-profit efforts. Modeled after The Case Foundation's Make it Your Own Awards, Revolution Places will make grants of up to $35,000 to individuals and local organizations that develop initiatives to improve and protect the Costa Rican environment. A panel of judges from the region will be responsible for selecting those who receive the grants. Full details of this program will be revealed in the summer of 2008.
In addition to environmentally friendly architecture, the resort will buy power generated by renewable resources. There are also plans for recycling and solid-waste management programs, as well as on-site waste water treatment facilities. Cacique is scheduled to open in phases beginning in 2010.
An interview with Case appeared in the December 2007 issue of Summa (an investment magazine for Central America). In the interview Case reveals what drew him to Costa Rica and his philosophy in developing an environmentally-friendly resort. In the article Case says he has visited Costa Rica nine or 10 times and finds it much like the Hawaii that he grew up in 50 years ago. Case says that while Costa Rica is not part of the U.S. as is Hawaii, because of its peaceful history and geographic location it offers a similar level of security and is much closer for folks in the U.S. to visit. Case states the he is only developing 20% of the 650 acres, with the remaining 80% being conserved as a nature reserve. Only 300 home sites will be offered for sale and the hotel will only feature 300 rooms (a previous development plan for the same property proposed 2000 home sites and a hotel with 1,500 rooms. Gates says the he sees enormous opportunities in Costa Rica and expressed his pleasure that the country finally approved the trade agreement with the U.S. (the TLC). He sees political instability as the foremost risk in investing in a Latin American country, which is why he chose Costa Rica as opposed to another Latin country. He also noted that while Nicaragua is a country with incredible natural beauty, he did not get the same feeling of security there that he did with Costa Rica. Case says that his family, especially the kids, love Costa Rica. He feels a bit worried that they may actually like it more than Hawaii, where he grew up and where his parents still reside.
As a U.S. citizen who lives in and loves Costa Rica, I see the attitude of Case as encouraging. I have written recently in this Blog of other developers who are doing things the wrong way. Case, on the other hand, seems to have a desire to do it right. I did read that there were some problems with the initial environmental impact study, but it appears those problems have been corrected and the resort has a green light to begin construction. It is a little disconcerting, however, that the resort will cater only to the super-rich. I don't want to see Costa Rica becoming a haven for the wealthiest of the wealthy and thereby raising prices to the level that it can't be enjoyed by the rest of us. I prefer to count the stars in our beautiful skies at night rather than the stars of the hotel where I am staying. Personally I can be just as happy in a 1 star as in a 5 (or 6?) star resort, as long as the place gives me a unique opportunity to experience the natural beauty of Costa Rica, as many of the far less expensive resorts here do. That said, I hope Case's objectives are genuine and that the resort not only offers a positive experience to the rich North Americans that visit there, but also to the Ticos that have to live next to it.
