Really sad. Wouldn't be surprised if Dave just throws in the towel and says FU Penasco, FU Mexico. It's hard enough to build a decent business then having to contend with something like this. I do believe you are correct Roberto, it was city land. As said, he and I had a long discussion about this a few years ago while we were fishing in Mazatlan. It's been going on for awhile.
The place itself has been there as long as I can remember from my days of staying at the Best Western. I don't know the players that currently own the hotel, but I used to know the owner (an American) quite well. I had "heard" that the current owner is cartel, but that could just be BS. I do know the current owner ain't in the hotel business, that's for sure. Last time I stayed there, the place was disintegrating from the inside out. In very bad shape. I suspect they'll level it all and some new project or condos or such will appear there.