La Prensa, Financial Tuesday

Panama, 14 November 2006
Translated by MultiPanama.com

The Costa del Este development, promoted as the most ambitious urban development project in all of Panama, is like visiting one of Florida's (USA) most exclusive suburbs. Everything perfectly placed. The 310 hectares that make up the project -eight time larger than Punta Paitilla- are an example of integrated planning rarely seen in Panama. Costa del Este is a replica of American urban planning projects.

Connected to the city by means of a 2-kilometer long bridge partly over the bay, Costa del Este is sufficientely close -about a 10 minute drive- and sufficicently far -behind the ruins of Panama La Vieja- to be considered a city apart.

To the north, it is close to the Nuevo Panama gymnasium, the horse track, the Iglesia Gerardo Mayela church, the La Fontana and Campo Lindgergh nighborhoods, and the Corredor Sur tollway. To the east Cost del Este is bordered by the mangroves of Juan Diaz and Llano Bonito.

Two broad, four-laned avenues, each 30 meters long, separated by eye-catching gardens that run the length of Costa del Este, welcome you to the development, that since its beginnings was conceived by its architects and designers to be the largest planned project in the country.

As of this date more than 400 million dollars have been invested in the project. Panamanian businessmen such as the Motta Brothers, Casimiro López, and Herman Bern and promoters like SUCASA, Ventaviv, and PROVIVIENDA are all project participants.

Since 1996, a master plan was developed down to the last detail under the careful leadership of Bermello, Ajamil & Partners, Inc. Architects. The design and zoning of Costa del Este have been key to the success of the project, where, as of this moment, slightly more than 700 residencial homes have been built. As it is, the project practically sells itself.

Wheras the majority of multimillon dollar projects require an army of salepersons to move residences and apartments, Costa del Este seems to do well with just the help of a secretary, messenger, and a web page.

Customers materialize by themselves, say Casimiro López, who directs and is aware of each detail of the residential project.

López, a Spaniard from Galicia who arrived in Panama at the age of 18, was one of the visionaries of the project along with brothers Roberto, Felipe, and Alberto Motta, and Herman Bern. In 1993 this group of businessmen decided to buy the land that abutted Panama City's old landfill, some rice fields, pasture, and part of the race track. At first, there was much skepticism regarding the sanitary improvements and development required by the area.

The conversion of a garbage dump into a model residential project and high-calibre development took sweat and tears. Under the direction of the environmental engineering firm Dame & Moore, the construction company CUSA removed 30 million cubic yards of rubbish and together with Lopez's firm Dragados y Desarollo, S.A. proceeded to sanitize the affected area.

The sanitation consisted of scientifically relocating the garbage to a hermetically closed landfill above which was built Felipe E. Motta Park, completed three years later. In the same vein the Matías Hernández river was channelled to increase its flow and eliminate risk of flooding.

Costa del Este was brought to public attention in 1995, as a post-modern project in the Panamanian spectrum. The project's use of public and private spaces, design of green areas and shared spaces, signalled a change in urban planning. In the form in which it was conceived the development has been exceedingly generous in providing spaces for public use. It has broad sidewalks, a park, recreation areas, a large central plaza, rest areas, and a pier almost four kilometers long, similar to Avenida Balboa.

Instead of building in stages, which, economicially is the ideal because it is more lucrative, we did everything together, López stated, who never ceases in his search for new ideas to improve the project.

Zoning

Costa del Este had the advantage -and the luxury- of meticulousness in the design of each aspect of the Master Plan, with chalk and chalkboard. In that way the space was divided and future construction determined for each site.

The Master Plan subdivides the area into 11 distinct zones. The commerical park was the first stage of the project and consists of more than 20 businesses distributed in 22 hectares protected by a 16-foot tall perimital wall and controlled entrance. The rest of the project consists of a an additional high-density commerical area, an office park, high-density residential area, Felipe E. Motta Park, city center, central plaza, low-density residential area, mixed-use areas, and public service areas.

In the areas designated as low-density residential areas will be single-family dwellings without any other kind of construction. High-desity residential areas, such as the pier, are intended specifically for the contruction of condominiums and apartments.

This planning has given us good market results, said López. People like how we have designed and organized the project.

Two banks, Banco General and Banco Continental will be located in the main avenue, baptized with the name Centenario (Centennial) in homage to the centennial celebration of the Republic of Panama- and car dealerships such as Porsche, Volvo, and Jaguar will soon also open their doors. Also found are a Farmacia Arrocha, supermarkets, restaurants, and a gym. In the area are also two of the most exclusive secondary schools of the city: San Agustín and Academia Interamericana de Panama.


The establishment of different zones assures residents and investors that their property wil not depreciate in value with time and that the rules will not change in the middle of the game with the appearance of a building, highway, or business where supposedly there was to be peace and tranquility. Each buyer knows what they are gettting and what they will have in 10 years.


The Residents

The majority of Costa del Este residents are Panamanian. Relatively few expatriates call Costa del Este home. But even if business executives and foreign business people are not purchasing, they are renting: resdiences and apartments offer efficient security measures and surveillance so that there inhabitants sleep easy. Home rental prices can vary between three to six thousand dollars per month.

Panamanians also see in Costa del Este the opportunity to create a tranquil and safe family life.

Many Panamanians live here in harmony, there is a variety of people, adds López, at the same time assuring that the residence is not class-conscious. There are people with modest incomes, professional people. and people with high purchasing power.

In the beginning stages of construction, Costa del Este promotors sold homes for 40,000 dollars while today apartments are still being sold for 50,000 dollars. There also are homes that start at 250,000 dollars up to one million dollars. The attractiveness of Costa del Este, with its panoramic views of the bay and Panama City, have contributed to the complete sale of all residential property.

However, today there are still some unoccupied lots, waiting for their owners to the build a home to their specifications.

A 50 hectare ocean-front high-density residential area still remains to be finished, which will have towers and condominiums, now under construction. Here will be built the tallest residential building in Latin America with 72 floors.


Ecology, Connectivity, and Security

López says that Costa del Este is within the framework of sustainable development and no environmental pollution. My interest is in arriving in the future with zero contamination and conserving the environment, adds López while he makes a supervisory trip to inspect the construction and gardening effected by teams of laborers.

López is satisfied that adequate space has been reserved for a 30-hectare ecological park between the commercial and high-density residential areas. The park will serve as a lung providing oxygen that will improve the quality of life of the project's inhabitants. There, one will be able to encounter nature and a lake where shrimp, tilapia fish, ducks, and even an alligator will be raised.

López takes seriously the ecological factor. In Costa del Este have been planted half a million large plants and more than 12 kinds of palm trees. In total, there are more than 100,000 palms in the project and more are still to be planted. The monthly gardening maintenance budget is more than 40,000 dollars, or more than $500,000 annually.

The same has been done with water service. Gray waters will be channeled to a treatment plant which will then be discharched into the ocean after 95% purity has been achieved. Maintenance of the treatmant plant costs more than 25,000 dollars per month.

Eletricity and cable telephone systems are of the lastest technology. Cables strung in the air have been eliminated in favor of underground buried cables controlled by computerized panels. Telephone service is a fiber optic system.

Security has also been highly prioritized. Each residential project has its own private surveillance and the streets are patrolled by the National Police force, who have a station located in the public service sector. In the residential areas access is granted only to those designated as guests.

The Promoters

José Manuel Bern, of Empresas Bern, says that Costa del Este has become an almost independenct development, a small city within the larger city of Panama.

Costa del Este will be the new city of Panama and those that buy here will have added value to their property, asserts Bern, who has contructed several residential projects in the area, among them Costa Las Perlas, Palmeras del Este, and Costa Serena. The estimated cost of the three projects is approximately 75 million dollars.

It is difficult to err when investing in Costa del Este, it is a safe investment, assures Bern. Everything sells.

Additionally, Empresas Bern, which has been building in Panama for 25 years, is planning the contruction of a residential project called La Toscana, a development with $250,000, $800,000, and $1 million homes. Currently the company has built 350 houses.

Edgar Hernández, CUSA engineer, responsible for all infrustructure and street construction, says that Costa del Este was designed and built with the lastest techonology as a modern urban development.