Redeeming Galt - Galt's Gulch Chile Investors And Buyers Band Together To Redeem Project

[The following post is by TDV Chief Editor, Jeff Berwick]

It has been nearly a month since Wendy McElroy (The Fate of Galt’s Gulch Chile) and I (The Good, The Bad and The Ugly on GGC) were the first ones to come public about problems at Galt’s Gulch Chile (GGC).  In that time nearly everything that can be said about it has been said.

Numerous media and websites, particularly left-leaning or statist ones, took the opportunity to jump all over it and to point fingers and say, “See, this is what happens when libertarians try to do something!”

In some ways they had a point though.  Some of the problems were caused by too many libertarians involved in the project putting too much faith into the project than it deserved (and going just on a person’s word rather than hard documents and contracts in many cases).  But, the main problem was that the one person who had underhandedly taken control of the project was not a libertarian and had taken control through incredibly nefarious means using the power of the state and the law to hide behind at every turn.

Everyone has taken their shots at us now.  Personally, I am used to it.  In the 1990s, the owner of one of the world’s largest media companies, who had invested into my internet company at the time, Stockhouse.com (still the largest financial website in Canada) once told me something I never forgot when I told him we wanted to be the first to market… “You know what a pioneer is, don’t you?”

I shook my head and he replied, dryly, “A man lying in a pool of his own blood with arrow’s in his back.”

The only media article that tried to give a fairly accurate depiction of what was going on was Vice who came out a few days ago with their article, “Atlas Mugged: How a Libertarian Paradise in Chile Fell Apart“.

In any case, statists and libertarian haters have basked in glee at seeing that we have had problems with this massive project (over 4,500 hectares and hundreds of investors, buyers and past employees).  

But, as I stated, this is not over… not by a long shot.

It took longer than everyone hoped but nearly every investor, buyer and past employee is on board with doing whatever it takes to fix the major mismanagement problems at GGC.

The following is a press release put out by those owners and investors tonight as our first collective (yes, we don’t like that word but it is a private group of people who are working together) warning to new purchasers or investors to stay away from this project until things are settled.  It is the first shot of many… this is an ongoing battle and one that I am confident will be won to make GGC into what it was meant to be before it was hijacked.

More to come…

Early Investors Warn about Galt’s Gulch Chile 

Curacaví, Chile (PRWEB) September 24, 2014

A group of early investors of Galt’s Gulch Chile (GGC), who have contributed approximately 70% of the estimated US$11 million invested in the project, finds it necessary to warn others to postpone any further commitment of funds until there is new management. They also provide this warning: “Potential buyers of land, water rights or mineral rights from GGC that all such sales will be vigorously contested.”

GGC is a planned residential community development located outside of Curacaví, Chile. The property consists of thousands of acres encompassing existing agricultural operations as well as important ecological areas. Plans for GGC include the development of a residential community, the maintenance and expansion of agricultural operations, and the preservation of ecologically sensitive areas.

GGC began operations in 2012 with the acceptance of equity investment followed by the purchase of several large tracts and water rights. In 2013, GGC also began selling lots and organic farm interests. The investors seek the suspension of these activities. Their goals include installing new management and recapitalizing the project with the intention of meeting all the project’s legal and financial commitments.

The current management is in conflict with dozens of investors and purchasers on key matters. For example, the zoning of lots is required for building but has not occurred despite commitments made approximately one year ago. It is currently not clear how many lots can be legally zoned.

A spokesman for the investor groups said that “the conflicts over the direction of GGC surfaced in May of this year and remain unresolved. The investor group has repeatedly and persistently attempted to obtain basic information, such as financial statements and the status of water rights, with no success.”

Due to these conflicts, the investors believe it is their moral responsibility to warn potential investors, advising them to wait for new management to take over the operations of GGC before committing funds. Further, they feel obligated to warn potential buyers of assets owned, optioned or otherwise controlled by GGC that any and all sales by the current management will be challenged in the Chilean courts.

To media: for more information contact Cathy Cuthbert at [email protected].