Yellowstone Club Fallout
Tim Blixseth Takes Legal Action to Identify NewWest.Net Commenter
By Jonathan Weber, 2-25-09
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As reported yesterday by the Associated Press, Tim Blixseth has filed a legal action in Massachusetts seeking to obtain the identity of an anonymous commenter on the NewWest.Net website.
It’s always slightly awkward to write a news story when you’re in part the subject of the story, but we do feel it’s important to explain what’s happening here from our perspective.
As any follower of the comment threads on the Yellowstone Club bankruptcy stories is aware, there is some very lively conversation there, and some of the commenters have, shall we say, strong points of view about the situation and some of the individuals. The comments are not screened in advance, and while we encourage commenters to be candid about who they are, we do not require that people provide real names.
We don’t like to remove comments, but we do so from time to time when comments violate our comment policy and our terms of service.
Last month, we were contacted by Michael Flynn, an attorney for Tim Blixseth, who demanded the names of two NewWest.Net commenters, “Sharkbait” and “Blockhead”, who had posted nasty comments about his client. We declined to turn over any information, though we did remove several comments which violated our policies against personal attacks (as we have done on various occasions in the past).
Early this month, “Sharkbait” posted a comment which included the following: “I am very suprised one of you so called friends have not put some lead between you eyes you POS!” A sentence later, the same comment said: “Go home and wait for that dreaded knock on the door!”
Michael Flynn was extremely agitated about this, asserting that this was a direct threat and his client’s life was in danger. I agreed to remove the comment and provide the so-called IP number of the commenter, since I didn’t know who the commenter was, there had been a lot of contentious comments from this person in the past, and I didn’t feel I could make the judgment at that time that it was not a real threat. It was the day of the February 10 Yellowstone Club bankruptcy hearing in Butte, and shortly after I arrived at the courthouse to cover the hearing, I was sought out by court security officers, who told me the FBI and the federal Marshals Service - presumably alerted by Flynn - were concerned about a possible threat to the court and wanted whatever information we had, including the text of the comment itself. I agreed to provide the information to the court security officers.
About a week later I received a phone call from “Sharkbait.” We had a long conversation, and I now know this person’s identity and his/her relationship to the case. Based on this additional information, and the fact that there has been no further contact from law enforcement, we do not believe that the comment represented a threat, nor do we believe that this person is a threat to Tim Blixseth’s safety.
Last week, Blixseth filed a complaint in federal court in Massachusetts against Bresnan Communications, the internet service provider for “Sharkbait”, demanding that Bresnan, using the IP number, turn over the identity of “Sharkbait.” The action was filed as an “emergency” petition on the grounds that “the threat is ominous and the Plaintiff’s life is in imminent danger,” and asked the court to bypass the federal law which requires Bresnan to notify a subscriber and give them a chance to respond if someone seeks their identity via a court subpeona. Blixseth also asked that the motion itself be sealed (i.e. kept secret from the public). The court has denied the emergency motion.
The court action is remarkable in several respects. First off, it paints a picture of a conspiracy involving “Sharkbait,” other NewWest.Net commenters, and CrossHarbor Capital Partners to undermine Blixseth’s attempt to re-take control of the Yellowstone Club, and possibly even kill him. (The supposed involvement of CrossHarbor, which is attempting to buy the club, is the reason the action was filed in Massachusetts).
“The plaintiff believes that Sharkbait, or his associates, have a financial motive in excess of ten million dollars to kill him or prevent him from bidding in the pending bankruptcy,” (emphasis in the original), according to the emergency motion.
That is an extraordinary theory, and based on everything we know about the commenters and the case we are very confident it’s as crazy as it sounds.
The complaint also misstates the actual content of the comment in a way that makes it appear more menacing. The pertinent portion of the original comment reads as follows: “I am very suprised one of you so called friends have not put some lead between you eyes you POS! At least you would make good sharkbait then except your are such a little man--only half a meal that probably would not taste good. Go home and wait for that dreaded knock on the door!” The court filing refers to “a threat that Plaintiff will get ‘lead between the eyes when you open your door.’”
We believe that the identity of “Sharkbait” and all NewWest.Net commenters is protected by both the Montana Media Confidentiality Act and the First Amendment of the U.S. Constitution. A threat of physical harm is clearly a special situation, but at this stage we do not believe there is any threat and we will resist any efforts to force disclosure of information about commenters.
Anonymous comments present a lot of challenges for a publisher, but we allow them because people often have good reasons for remaining anonymous. We believe this kind of legal action is aimed in part at suppressing negative commentary and intimidating both the commenters and New West. From both a legal and journalistic standpoint, the more we know about commenters the easier it is for us to protect them, both as sources and as citizens exercising their First Amendment rights. Ultimately, commenters are responsible for their own words, but as publishers and journalists we’ll always aim to stand by them.
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Comments
Seems like most failed entrepreneurs need excuses to protect their fragile egos, so looks like Tim is adding fear to his many reasons for failure.
This also explains why blockhead has been a Tim Blixseth sycophant for the last 2 weeks.
A tiny man with big lawyers. It seems as if that's the new Montana. Sad.
At least Sharkbait had the POS part right!
Only Cross Harbor have that kind of 'financial motive' to gain from a lack of competition. What a complete stretch of a conspiracy theory.
I don't think there is any connection between CH and sharkbait...Tim is just trying to affect the bidding process by throwing legal stones and accusations at CH.
Pathetic also that Tim tried unsuccessfully to keep this out of public view...pathetic and desperate
Looks like the judge saw through his latest charade.
You are needed at the New West gossip counter.
what a crock!
Timmy you are SO SPECIAL
regards
David
http://www.daniweb.com/blogs/entry4024.html
STFU already!
(And why isn't Edra going after the Doctor who performed her facelift? I'd say that's an even bigger case of fraud and overvalued transactions than the entire YC brouhaha?)
I really don't have anything more I can say about Blixseth without violating your rules against personal attacks and hatred. Although I do think the YC is patently offensive and thus should not be allowed to be defended in the comments.
His objection to CH has nothing to do with the threat issue. It doesn't state above anything about a CH conspiracy to do him away. Do you genuinely believe that a garden variety internet flame was a credible threat to his safety from CH and that he genuinely fears for his safety as a direct result of it?
Spare us this 'I am neutral' rubbish. You've stated several times that you wait for his bid with bated breath and that it will be the best one...now you say he has some great points.
You are completely fawning over him. Say what you like, but stop this 'I am neutral' joke when you are clearly his biggest supporter.
I personally think "Sharkbait" should be prosecuted on grounds of horrid grammar.
Ask your self in the mirror one morning " do people like me for me?"
So Sharkbait calls up and says "yeah it was me" and you believe them because you can trace the call, link it to the IP, do voice recognition and are 100% certain that you are talking to the person who made the threat. Really? The FBI should be so lucky as to have the psychic technology at your disposal.
And after listening to this person talk about their involvement with the project, you reversed your opinion and decide that threatening homicide, in this case, is acceptable. You, under the guise of protection of anonymous posters, believe you are not only capable, but responsible for deciding which public threats are and are not valid.
This seems like an extraordinary leap for a news organization, and one that not only makes your business complicit and liable for any actions taken, if, say Blixsoth were now murdered, but completely undermines the perception that you are unbiased.
Comments are not sources. Had the threat been made against a public servant (POTUS, mayor, police officer) I seriously doubt you would be so willing to justify your actions under the guise of "privacy".
Posters here may well have a valid complaint against Blixsoth, and offering them an opportunity to voice their opinion is a service you provide as a marketing tool. You allow comments to keep people coming to your site and engaged, it increases your web traffic. Using this marketing tool to now manufacture a "story" and perpetuate it as you are here is highly suspicious at the least, and journalistically unethical.
New West is not doing this more coverage. It was already the best source for the club story. Just call up Bloomberg, WSJ and Forbes and ask them who they track.
Tim, you need to stick to fighting the battle you can win. Many people will provoke you. The best way to show everyone you are serious is do an exclusive with NEW WEST and tell them your plan. Word on the street is you have a great plan, cash to pull it off and almost 'Triple' of the rejected offer / auction proposed. You will gain alot of respect by putting your assets back into the 'Pot' pumping cash into the club and paying off all the unsecured. Lets keep in mind that the 'B' shareholders need to recover as well. Greg L received more than his lion's share!
Now, give us your plan! You do not need the info on the club, you know it by heart. Shut up this crowd of Nay-sayers and go exclusvie. There is only two bidders now, you and Mr. Byrne. Its like the wold wild west. Its a show down. Now, lets see who is man enough to do whats right and pay the correct figure to the club. Enough talking from both sides. Its a game of poker, 'Who is going all in'? Enough of waisting court time, legal expenses and more on strategy. Save the F-in money for the club, vendors and employees. Someone, do the right thing or get the hell out of the game. Everyone needs to show the cards. CS, are you jumping in to team up with Tim? Going at it alone and years of legal fighting to seize your notes? Foolish! Team up and get a deal done!
I would like to make a couple of points in response to Andrew's comment above. For starters, it was not our choice to "enter this fray," we were obliged to make various decisions as a result of the actions of others, including Sharkbait, Tim Blixseth and his attorney, and the federal marshals service. I decided to write about it because I thought it best that people know how we think about these kinds of things and what we do or don't do behind the scenes.
A key point in all this is that Michael Flynn was pressuring me to turn over information about Sharkbait and Blockhead well before there was any threat. I believe the "threat" comment was seized upon as a lever to obtain information. The comment itself was ambiguous at best as to whether it constituted a threat, but I erred on the side of caution in the first instance and released the information we had at the time so that law enforcement might make their own judgement. Law enforcement has evidently judged it not worth pursuing. As I obtained more information and spoke to Sharkbait, it became clear to me as well that no real threat existed.
The legal action filed in Massachusetts is based on a ludicrous theory and seeks to overturn privacy rights that are well-established in federal law. It also names "Does 1 through 100" and seeks discovery of third parties, which clearly suggests that this action is not just about Sharkbait but about other New West commenters as well - people who did not threaten but simply expressed opinions, or offered information. That's a big part of why I think it's important to defend Sharkbait, even if the comment in question was out of line.
Finally, we don't view comments as "marketing tool," but rather as a means to broaden the conversation. We do think it helps build audience and community, and that is a great thing. But believe me, if it were just about the traffic it wouldn't be worth the time and trouble ;-)
Thanks again everyone.
What freedoms we now currently enjoy may be threatened if Mr. Blixseth prevails. Federal jurisdiction in this matter may violate Montana's Tenth Amendment Resolution. Let's see how this thing plays out.
It's merely underhand fact-finding. If Tim feared for his safety he'd leave it to the FBI rather than pursue it himself. It's just a feeble and desperate stunt. Why did he try to keep his investigations sealed?
PS Blockhead I love your 'inside' theory that an astute businessman, like your most fawned over, would offer triple the other party in a two horse race. Unless, of course the denomination is in Blixseth IOUs, in which case why not offer a bazillion gazzillion dollars as that debt will be divorcable.
You are by far the greaatest, most gifted writer of all times. So articulate, so brilliant. Are you getting the picture yet?
I think its great TB wants to know who we are and why we spend ourtime writing on this blog. Bored? Nothing better to do? Listen, lets get the facts straight. TB wants to know who I am becuase I was not being nice in the beginning with my comments. I actually got 'Blixsethed' and I did in fact work for TB. Mr. Flynnn I do know and actually talked to him in the past, especiall during the starting days of the divorce. Mr. Flynn is bored. After all how would you like to be known as the lawyer who files such a non-sense lawsuit and try and force privacy laws to change for TB. We have a word for this, PUPET! Mr. Flynn, if you will recall, my advvise to TB was to get fire people like you as your a drain of his potential. You are a hanger-oner and sorry to say, you waisted your money at law school if this is how you spend your days by taking money from wealth familes to file such non-sense.
Anyway, I DO support a TB bid because I actually believe he can insure payment to all unsecured and mix all the mistakes at the club. He certainly has the equity and assets to throw into the 'POT' and make this all work. Give him a chance. I find it utterly amazing that anyone would turn down his money simply becaue they feel such strong emotions over him. His money is good but enough is enough. Can we finally see the plans, the real plans of both TB and CH? Come, you both are playing games and I want to see who has the biggest set of 'xxxxx' to pull this off. Mr. Flynn, why not right a legal brief or file a business plan instad of this BS? TB, you said your bidding so how about speaking about it? CH, your plan was rejected by the courts and given how the court is viewing you it would be advisable to distance youself from EB, default her loan and show everyone you did not take advantage of this poor, innocent and frail lady of the Valley. She owes you $35,000,000 plus interest and late charges, why the hell have you not forclosed? Banks who loaned money to EB, what the hell were you thinking and why are you not collecting the money? Warren Trepp, Mr. Blxware, what the hell were you thinking about accepting a promissory note from EB? Seems to me there are a lot of Promises which are being broken lately. How does that go? Oh yeah, Trust me, I a good for it. I stand by my word. I would nevr not pay anyone back. I find it hard to believe people make these statements and then go into complete hiding or not show up to their court appointments? Is this because the je has been siezed or is it because certain people just have no consideration for others or the law? EB, get over it and file Chapter 7 like your son. I advise this before they figure out that the loan from Western Capital of $13,000,000 you defaulted on went to fund you two year divorce and lifestyle and not into Go-Build. I would hate to see your Partner / Son given evidence to this effect as I think you have suffered enough with all the civil suits and people chasing you for their money. Criminal issues you need to avoid at all costs.
This is a saga, one which continues until everyone either files BQ or someone buys the club. It is VERY TRUE, if TB buys the club he gets himself out of the mess of being pursued in court over the Promissory notes between him and his former wife. THIS is why its a good idea to back TB, he actually puts back what he pulled out. WHY IS THIS a Bad thing? TB can run this club and quite frankly who really cares where the money comes from. Even if it had to come from the MOB, at least they know how to run a business.
NOT ONE
David D
Memebers cant sell their houses anyway. There are no buyers? Stick 100 signs in your property and you will not have one buyer. Why they keep a sales departmment is beyond me?
One Bidder is not a good thing. A person or a group who pays off the debt is the best for all and one who pumps cash into the club correct?
Soyou believe TB should not place Turks, Tamarindo, his G4, Western Pacific, and all his cash back into the club? Why not because you HATE him? Why the hell do you care if he owns it or not. Cash is cash. You already invested once with him so it seems to me you're the fool or maybe you should have invested in Spanish Peaks?
Clearly members are thinking CH being the only bidder is a good thing but come on. How. Please educate us stupid Bloogers why CH paying only 100m is a great thing? DLC is cleary is not liked by members or staff. DLC is getting paid 150K per month for those of you who have not seen the payments listed in court. Yes, 150,000 per month to manage what? To do what? I want to see all plans laid out in the open and we judge them on the merits. put your hatred aside about TB until you see his plan. Clealry he is not that stupid to go national in the press and then not bid? This is all bullshit until then plans are made available and from what i can see both are not forthcoming at the moment. By the way, where is EB these days? Where is her private JET? Also, this new law firm of EB, everyone does realize this law firm was recommended by CH? Wonder why?
development that is deemed harmful or destructive to the park.
Yellowstone Club was built very close to the northern border of Yellowstone National Park. When New World Mine submitted the most comprehensive NEPA, in compliance with EPA regulations, to mine near the park; they were denied due to UNESCO protests of environmental harm to the park. I'm betting that many of the residents of Yellowstone Club attend the same cheese and wine functions the global elite frequent when chatting up UNESCO and World Heritage Site interference with sovereign states. I didn't see a major UNESCO outcry of environmental threats to Yellow Stone National Park when the Yellowstone Club was built. The Yellowstone Club guys must have some sort of economic buffer zone that trumps the World Heritage Site buffer zone.
I think Tim hasn't in any way explained why he supposedly near-missed 2 $450 mill sales of the club to get himself out of trouble, yet almost immediately after, values his half at $35 mill by selling out. Tim valued the club at 70 mill while it carried his own IOUs, but now says the CH bid of more is insulting. That's only consistent if he thinks the Credit Suisse debt won't be fully repaid. I'm speculating Credit Suisse et al will end up pursuing loan minus offer from Tim while he sits on the spoils, hence his hurried attempts to liquidate them. The deal is only attractive if the debt has been at least partially eradicated...if Tim has to settle the full debt, good luck affording future investment into the club...
Tim also relies on the fact that the final straw seems to have broken under Edra's 2 week watch. Common sense would suggest Edra didn't turn a sure thing to bankruptcy in 2 weeks...more like it was already a stinker, Tim knew how to grease squeaky creditors/wheels, (just), and needed to offload it on CH or bail it on Edra, should she be stupid enough to fight for it.
I think the base fact is Tim has not operated Yellowstone club into break even, let alone profit. I think the biggest compliment I can pay him is that should greed never have bedevilled him into the YC World spend-a-thon, YC may have broke even into 2009...possibly. He never ran the club such that costs weren't covered by sources other than forward sales of property. As such I disagree that he ever 'ran' the club. He was pyramid selling property with a devil may care attitude to the long term viability and health of the club. No member should be comfortable with a rain-making salesman in control, anyway. Reality and responsibility aren't their strong points.
If he does succeed at least have him change/upgrade his name to mud or something.
That is probably why the current membership will be buying places in Deer Valley and Telluride. Its my understanding that most don't care if they loose on their investment they just feel cheated by Tim and his lies. It has been brought to my attention that down in the valley most people (contractors) have learned their lesson and will never work for Mr Blixseth again. If he winds up owning it and in charge, history will repeat itself and another pile of contractors (most of them not local) will be sitting on a pile of worthless paper and unable to afford the legal fees to get what is owed. Mr Blixseth's reasoning for getting involved is only known to him and his advisers (lapdogs yes Tim what ever you say Tim) but most suspect that he realizes that this is "easy pickings" to do it again and inflate his bank account and ego for that matter. I have been in a advisory capacity for certain members for years and to paraphrase what Dave D states " No one has anything nice to say about him" is putting in lightly.
Sincerely
Richard Farnsworthy
Senior Partner
Pillsbury McMillan Wealth Managment
Listen, I get it it. You claim everyone hates TIM. Everyone thinks TIM is a crook. Ok, save for the fact he set up his ex wife? So what. She was not so smart to accep the deal was she? Maybe he played into to her very need. 'Greed' Sam B did the same thing so this makes CH and TB the same?
Tim did try to sell to CH, but as you will recall CH didnot have the money, they only said they did. TB asked for it and Sam could not prove it. He hid behind the vail of due diligence. Ok, Edra had buyer but Sam had the pre-emptive right over the club for 12 months so her hand was tied. Lets not forget Sam loan Tim 12m to sign the Letter of Intent with TIM and Tim did not pay it back. Edra assumed this 12m and then Sam gave Edra another 23m to pay Tim off and Greg L another 8m.
Edra screwed up as she though she could make money at the club, but all along she was borrowing money knowing she could never pay it back. As the court papers say, she never told the truth to any lender, she only made promises and most saw through these lies on normal due-diligence. She would make statements and then a simple serach showed she under reported close to 25m. Now her debt completely away from the club is well over 85m personally. Thats to Sam, Warren, American Bank, Waccovia, Palm National Desert Bank, First Bank, the Jet leasing company, Western Capital and thn all he people and staff that works for her! What acomplete bunch of FRAUD!
Now, it appears you want CH to take this club on the cheap! Well then do it. Screw over all the bond shareholders, screw over all the home owners in the club and give it to this persn who has been screwing over both Blixseths for over two years. Who cares that CS is doing their fiduciary responsibility to protect honest bond holders? Screw them all. They deserve to loose money because Richard is claiming to be the waelth management guru to members in the club! Well done Mr. Ego!
You and the restof everyone on this blog do ot get it. The Club is OVER! Finished! Its like bailing out the auto workers! Crock of Shit! Billions and for what? Who the hell is going to buy new cars? Its the same at YC, who the hell in their right mind is going to buy a membership, pay a deposit or buy/build a house at this club in the next3 years? How many more idiots are going to do this? The answer is next to none! THe party is over, the gig is up. There will be only 325 members who cant sell out of this shit and Sunrise ridge turning its deal into a luxury for its clients on a fractional ownership is availabe. Get it yet?
So why TB, well to save millions in legal fees from Cs going after him. Let him give back all the silly assets he purchased. Turks is worth 20m, Tamarindo is worth 25 on a quick sale, Plane is worth 18m, Western Pacific is worth 90m,Tims houses are worth another 25m, Edra's Castle is worth 50m. Now Tim owns two houses at the club, he gives them back, Edra / gobuild own tow houses on the ridge plus the rock cabins and then what ever is lefft over from Edra's bankruptcy from the golf estate which will be next to nothing. Do you get it? Tim wants to get the club back so let him get it back and donate all those assets.
If you think CH is going to put money into the club guess again. Members will be asked to tripple the fees or face no skiing. most will say the hell with Skiing. The golf become a grazing ground for horses and the lodge becomes a ghost town. Wake up people. YC is no more, its about getting the money back and people paid off. All else is rubbish. Let Tim buy the Club, at least there will be more money!
We could care less who winds up with the club. My original intentions was to simply restate that Tim Blixseth would not be favored by many who own residences there. I should clarify that CS did offer us bonds backed by this loan and the Tamarack and Promontory loans. After careful review we did not believe that the bonds were backed by anything but "blue sky". We do use CS in clearing institutional trades occasionally but that is it. I have met Tim once and it was nothing more than a "nice to meet you" situation. He would not be someone who we would offer our services to. All of our clients we have advised for decades and four of them since before WWI. We have no vested interest in the club other than some of our clients have let us know what has been going on, it is interesting to say the least and with all the information available here and the internet it should be a lesson for all.
With much respect
Richard
As for Tim voluntarily surrendering all assets to regain the club...I think you assume 1) he has a conscience and 2) that he will obey it. Even by your calculations it leaves TB as new owner of YC with nothing left to invest in the club, leaving Tim to hike fees times 3 also...either that or sell a yc property membership (joke). I don't actually believe Tim has any intention to pay back debtors in full...he wants YC on the cheap also.
Either way, we are in heated agreement over YCs pathetic fate.
Maybe your 'worldly' friends in Zurich and Dubai can correct your English...do you mean 'responsible'...?
How can a 'Senior Partner' like yourself, capable of long distance teleconferences (wow!) and managing high net worth individuals, have such a poor comprehension of English? Those words have very different meanings.
"Maryland's highest highest court said Web sites involved in defamation suits don't have to reveal the identity of readers who post comments on their site."
http://online.wsj.com/article/SB123585006166301881.html?mod=djemTECH
http://www.daniweb.com/blogs/entry4070.html
I'm not sure if they accept new loan applications though...
So Blockhead, do you dare to lambast Jonathan as well for saying effectively what GC had...
DLC is not worth the money that the club is paying. They are only out to benefit themselves and have another so called resort to add to their list of properties. Consumer confidence what a joke, you need the confidence in the people at the club to help maintain this place. If DLC was here to help the Yellowstone Club better it self they are doing a real S#$%% job. There are alot of members and employees that do not trust DLC and what they are doing. You should seriously open up your eyes and take a hard look at what changes they have made and how it is helping the club. Oh wow, they put a candy bar in the lodge or coffee and cookies in members access now that is impressive(wonder how much that cost). Oh yeah, they have laid off numerous MONTANA YC employees to bring in their own team for higher pay(out of state people you might note). That makes a lot of sense. I do agree that if TB gets the club a lot of people will leave including members and employees all that have supported the YC for years. Also DLC will cause the same action. A honest owner with a good accountant and managing team could manage the club for a lot less than 150,000 a month(and start to mend all of pissed off people in the entire state of Montana) for a concierge service. I didn't realize it took a group of people to think up candy, cookies and coffee no wonder the club is going under, these are the types of people the YC keeps bringing here, money hungry people who really don't care as long as they get a pay check. I guess no matter what happens the place is screwed for awhile, so who cares right! The only way this place will continue is keeping montana happy and the members that are already here.
You despise the common man. But how much happier could your life be if you had gone back and taken a regular job in Roseburg like the other community college dropouts. Would Edra and your kids still love you? Wouldn't Christmas 2009 be a merrier prospect? What are your plans for Christmas Tim? Banging a cocktail waitress I'm sure.
I'm just a regular guy. I struggle to pay the note on my house. I do not relish in other peoples misfortune. This is a special case. The arrogance and lavish excess that the Blixseths enjoyed is what makes this sad story give me a grin. "Hey I'll trade you lives Tim" Haha just kidding. I wouldn't be you for anything.
Excuse me I have to take an important call from Dubai. Yah right.
Few people outside of politics are hated like you two. I know this hurts because you really beleive there is a place for you in Heaven. Remeber the camel Tim? Eye of the needle? It's not up to me, but I think you may have already had your Heaven.
I can see the crappy unfinished condos across the bay,a true eye sore.
I moved down here to get away from that shit. I think the Mexican government should have them demolished.