ON DEVELOPMENT AND CONSTRUCTION

Cocose:" I believe that potential in Croatia is unlimited "

 

American investor James Edward Cocose, founder and owner of Partenon Program Management (PPM), arrived in Croatia in 2008 to develop and build mixed-use projects and destination resorts and started his consultancy business. Having weathered the financial crash and the recession; PPM is now in pre-development activities for landmark projects in Dalmatia and Zagreb. For Fumija Resort on island Čiovo and Calm Bay tourist complex near Šibenik construction commencement is anticipated for late 2012 or early 2013.

 

These Croatian activities came after over 29 years working experience in USA in Development and Construction; with his focus areas being land and project development, pre-construction services, executive/senior level project/program management and business development.

 

Mr. Cocose gained his experience working for a family owned high rise construction business that helped pioneer the industry, and was an integral part of the 1970 and1980's high-rise redevelopment era of Detroit and Chicago; building such iconic structures as Renaissance Center (also known as the GM Renaissance Center and nicknamed theRenCen) and The Sears Tower; which held the rank as the tallest building in the world for nearly 25 years. 

 

He has successfully managed many types of projects, including Office, Retail, Hospitality, Industrial, Manufacturing, Medical, Integrated-Mixed Use Resorts and vertical construction; including condos and office buildings. His most recent major entertainment and hospitality project accomplishments include The Mirage Volcano Enhancement Project (The Mirage Hotel and Casino, Las Vegas) the conversion of the Miracle Mile Shops (inside the Planet Hollywood casino in Las Vegas), Otay Ranch Town Retail Shopping Center; outside of San Diego, California and Stitched (with Jason of Beverly Hills) which is inside the Cosmopolitan Casino of Las Vegas; and is the most amazing new retail clothing and accessories concept in Sin City.

Initially impressed by Croatian architecture, nature and wines; Mr. Cocose, after careful research, realized that Croatia is the country where he would like to reside, invest and expand his business success from Las Vegas, Nevada where his company Partenon Program Management has its major projects,.

 

 

 

 

Partenon Program Management is an international Development and Construction Consultancy that now has offices in both Las Vegas and Croatia. Where had the initial interest in Croatia come from and what triggered it?

 

 

For many years now, Croatia has been considered "the next Riviera" and there is a desire for the creation of destination mixed-use resorts along the Dalmatian coast. Additionally, EU accession will bring some level of a "building boom" to Croatia. To be a part of it, to possibly influence it to some extent; is a challenge and opportunity that was not possible back in the USA.

 

 

You have chosen Zagreb and Split for your business locations in Croatia. Do you have any special reasons for that and what are your experiences so far?

 

 

Zagreb is the capital city and business center of Croatia and where most clients have their offices located. Split is where I have multiple mixed-use projects in the pre-development phase. Both locations are beneficial to me and have unique culture and style. Progress has been slow; but steady. I may be more optimistic than most; but believe that the potential in Croatia in unlimited and will rebound quicker than other areas in the world.

 

 

 

 

 

 

Stitched, with Jason of Beverly Hills, which is inside the Cosmopolitan Casino of Las Vegas.

 

 

 

 

 

 

 

What are the most attractive projects and how do you see their development?

 

I would like to highlight two major projects: Fumija Resort is a planned tourist resort on the Mediterranean south coast of Čiovo, which will include 70 villas concept designed by famed architect Robert Dallas in the style of the ancient Mediterranean, "club style hotel", 5 star restaurant, marina and other related amenities. Future phasing will include two 18 hole and one 9 hole golf courses over the Slatina, on the east side of Čiovo. This is an amazing location at the top of the island with the sea being visible from both side of Čiovo.....further showcasing the unbeatable attraction and appeal of the Adriatic coastline. Construction commencement is anticipated for late 2012 or early 2013.
Calm Bay is a tourist complex around the bay Jasenovo, the area between Žaborić Grebaštica and to the west from Šibenik. Initial concepts for this beautiful site included an exclusive resort with an adapted design of Mediterranean style houses and added amenities; to serve the ever increasing tourism from China. The design is a 5 star autocamp, which is ideal and needed for this area. Construction commencement is anticipated for late 2012.

 

 

 

 

 

 

 

 

 

 

Miracle Mile Shops, inside the Planet Hollywood casino in Las Vegas,

 

 

 

Are there any other major projects planned in the near future?

 

 

I would like to mention the major future plan that is on the horizon; the Split City Harbour - East Coast. This is a recently released design tender calling for flexible and sustainable solutions for a new Urban Quarter in the East part of Split and is to include a new international railway station, new bus-station, Ferry Terminal and Urban Functions; Hotel(s), Conference facilities, retail and commercial units, as well as residential components. This exciting project spans approximately 130,000 m2.
Čubrijan Peninsula (Trogir) is another large scale destination mixed-use project, spanning over 200,000 m2; slated for the former shipyard. I am associated with one of the amazing proposals which would not only be a great benefit for Croatia; but also the entire Mediterranean region. Cost estimates could approach one billion Euros.
Both of the above mentioned projects will also change the landscape of Southeast Europe.

Another important consideration for (all) future projects in Croatia and the ever increasing Dalmatia tourism impact; is airport capacities. One possible solution is an airport Šestanovac, situated in the middle of Dalmatia with the highway connection closer than Split Resnik; which would be ideal for tourist arrivals in Split and ending in Dubrovnik. This project is included in the Regional Plan of Split-Dalmatia County and low cost airlines will be a crucial component. Initial cost estimates for this project is over 200 million Euros.
Prospective projects in Zagreb include hospitality and retail. There is definitely an uptick in requests for pre-construction services.

 

 

 

 

 

 

 

 

 

 

 

The Mirage Volcano Enhancement Project - The Mirage Hotel and Casino, Las Vegas

 

 

 

 

 

What are the major obstacles you have faced as an investor in Croatia? Many foreign investors in Croatia lost not only time and money but patience and goodwill in their struggle with local regulations while others have positive experiences. Does this depend on local officials or something else?

 

 

Everywhere in the world; there is bureaucracy and politics at the local, regional and state levels. Transparency has improved. Diligence, adaptability and focusing on the original vision of the project are key to the success and realization of future developments. Generally, I am optimistic and strongly believe that things are going in a positive direction and that trend will continue with adopting European legislation and regulations; which is an unavoidable part of becoming a member of the European Union.

 

On many occasions, US Ambassador James B. Foley has stated that the primary goal of his tenure as Ambassador is to improve the business climate and create economic opportunity for Croatia. Do you think the climate for investments has improved?

 

Yes, but there is always room for improvement. EU accession in 2013 will help as well. Mr. Foley is determined to help the investors and businessman in the whole process and I believe that where is determination, there is a success.

 

 

 

 

 

 

 

 

 

 

 

 

Jason of Beverly Hills interior.

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Many economic experts agree that slow, inefficient and unreliable judiciary system dramatically increase execution risk of any investments. What are your experiences?

 

 

The judicial system must follow the rule of law and provide clear boundaries and regulations for all parties (government, business, and the public); that don't conflict with each other. The bureaucracy must be made more efficient and less time consuming to keep the interest of investors seeking opportunities in Croatia.

 

Lots of economists agree that with EU entrance, we can expect bigger demand for quality commercial real estate projects that are currently undersupplied in the majority of Croatian cities. So, the following year can be described as time of opportunity, with the greatest benefits for those who will decide to act now and buy or invest in properties that will soon be located in the European Union but bought or developed in transition conditions. They predict that the last phase of the process of EU accession which is now occurring will result in significant one-off shifts in the country's risk profile, as well as, in the liquidity of the market and demand for RE assets. Do you agree with them?

 

Yes, as the requirements for equalization of the various laws and banking regulations are put into place, international investors will see their risk profiles for Croatia drop. This will spur development throughout Croatia and the region.

 

 

 

 

 

 

 

 

 

Aerial view of Launch complex.

 

 

 

 

In January 2011 the number of tourists from the USA increased for 23 percent and they are mainly coming to the coastal part of Croatia. Croatia's biggest natural asset is its coastline, and it is being rediscovered- resulting in the return of tourists making investors sweep into "The Pearl of the Adriatic". How do you see a potential for projects related to tourism?

 

 

The Adriatic coast is primed for landmark destination mixed-use resorts that will not only be great for Croatia, but also the region and the Mediterranean. The Adriatic coast, and in particular, the many incredible islands are so unique and not found in many other parts of the world. The beauty of Croatia is still undiscovered for many and therefore travelers from many parts of the world, including China; provide the opportunities we need here in Croatia. Increased cooperation within the Tourism and Transportation industries, with support from the government and local municipalities; will ensure the long term success. That; is a true definition of a public-private partnership. Following the ever expanding path of Chinese tourism to Croatia, are the International Real Estate and Development consultants that have found such recent success and opportunities all over the Asian market. One example is Jack Maher of IRD (a respected advisor to PPM) who can bring those successful experiences and industry innovations to enhance future developments in Croatia.

 

 

In an effort to overcome the financial crisis and spur the economy- attracting investments should be the main economic priority of the Government of the Republic of Croatia. Do you have any advice or suggestions for the Government on how to develop the investment climate?

 

 

Encourage small business to open or relocate here by providing a minimum of interference. Provide a transparent and rational system for starting a business. Tax Increment Financing, or TIF, is a public financing method which has been used as a subsidy for redevelopment and community improvement projects, Urban Enterprise Zones (UEZs), also known as Enterprise Zones, are intended to encourage development through tax and regulatory relief to entrepreneurs and investors who launch businesses in the area. UEZs are areas where companies can locate free of certain local, state, and federal taxes and restrictions. In other countries, a region that offers this type of special economic incentive is often referred to as a Special Economic Zone. All of these models can work in the right situations as well. A person/company should also be able to have all documents completed, approved and issued within 4-weeks.

 

 

The Sears Tower held the rank as the tallest building in the world for nearly 25 years.