San Pancho, Nayarit, October 8, 2026 — A federal court on Wednesday upheld the demolition of two Punta Paraíso towers, affirming environmental sanctions for construction on federal coastal land.
The ruling came October 7, when the 12th Collegiate Administrative Court of the First Circuit unanimously rejected an appeal by developer Pacific Lifestyle Properties.
According to Mexico’s federal environmental enforcement agency, Profepa, the company must restore 1,466 square meters of coastal land and pay a fine of 96,220 pesos.
The sanctions specifically identify two structures within the development, known as Tower 1 and Tower 2. The administrative resolution also provides for the forfeiture of those structures to the federal government.
The decision follows six years of legal disputes involving the beachfront development in San Francisco, commonly known as San Pancho, in the municipality of Bahía de Banderas.
Storm damage forced evacuation days before ruling
The court decision comes as Punta Paraíso remains closed after structural damage from heavy surf associated with Hurricane Rachel.
On October 2, municipal Civil Protection officials evacuated 13 American and Canadian tourists after waves washed away sand beneath two towers, exposing their support pilings.
As PVDN reported on October 3, emergency personnel determined the damaged buildings were unsafe to occupy.
José Santos Salas Hernández, director of Civil Protection and Firefighters for Bahía de Banderas, described a washout measuring approximately four meters beneath the structures.
“There is nothing but the pilings,” Salas Hernández said while describing the damage. He explained that waves had removed the soil and rock supporting portions of the buildings.
Officials ordered the property closed and placed Nayarit state police at the site to monitor access and prevent accidents.
For residents, workers and visitors near San Pancho’s central beachfront, the immediate concern remains the condition of the buildings and restrictions around the property.
The federal court ruling addresses a separate issue involving the developer’s occupation of coastal land. It does not replace the municipal safety closure.
Profepa’s announcement did not set a demolition date.
Dispute over public beach access began years earlier
The legal conflict surrounding Punta Paraíso dates back to the project’s early development, when residents raised concerns about construction near San Pancho’s public beach.
The development sits near the beachfront reached by Avenida Tercer Mundo, the town’s main road leading to the ocean.
Our review of Profepa’s December 2017 enforcement records found that inspectors documented a construction fence extending beyond the approved development boundary.
The fence occupied part of the federal maritime-terrestrial zone, known in Mexico as ZOFEMAT, and obstructed public passage along the shoreline.
Profepa initially ordered the barrier removed and temporarily closed part of the project when the developer failed to comply.
In March 2018, the agency confirmed that the fence had been relocated, restoring public access to approximately 210 square meters of coastal dune.
The controversy also brought residents into the streets. In February 2018, nearly 1,000 people participated in demonstrations opposing Punta Paraíso, according to reporting at the time.
Protesters questioned the project’s occupation of beachfront land and raised concerns about development near a sea turtle nesting area.
Those earlier disputes were separate from the environmental sanctions confirmed this week, although they involved the same development and federal coastal regulations.
Federal concession did not authorize residential construction
The demolition order stems from restrictions attached to a federal land concession originally issued by Mexico’s Environment and Natural Resources Ministry, Semarnat.
In August 2009, Semarnat granted a concession covering approximately 1,470 square meters of federal coastal land. Its authorized purpose was to preserve the area in its natural condition.
The concession was modified in March 2014, increasing the authorized area to approximately 2,534 square meters.
However, the revised authorization permitted recreational activities and landscaping, not residential construction, on the federal land.
According to the environmental agency’s account of the case, Pacific Lifestyle Properties subsequently occupied 1,466.008 square meters of land gained from the sea and constructed buildings there.
Federal inspectors documented the construction during an inspection initiated on December 1, 2021.
Profepa issued its administrative resolution on August 15, 2022, imposing financial sanctions and ordering restoration of the affected property.
The developer challenged that decision through Mexico’s administrative court system.
On May 6, 2025, the Federal Administrative Justice Tribunal upheld Profepa’s resolution. Pacific Lifestyle Properties then pursued an amparo, a constitutional legal remedy used to challenge government or judicial actions.
Wednesday’s decision rejected that challenge and maintained the environmental enforcement measures.
Federal environmental chief welcomes ruling
Profepa Director Mariana Boy Tamborrell described the court’s decision as a victory for the San Pancho community.
“This ruling is an important victory for the community of San Pancho and for environmental justice,” Boy said in a statement issued following the October 7 decision.
She said the ruling supports recovery of the affected coastal land, protection of the ecosystem and preservation of federal property.
Profepa said it would continue enforcing environmental regulations governing coastal construction and the use of federally controlled shoreline land.
