Every year, after the shareholders’ meeting, I write a letter to Porta Norte’s shareholders. This is the 2026 letter, in its public version: I took out the financial figures and the internal matters that belong only to them. Everything else is exactly as I told it to them.
Panama City, August 12, 2026
Our vision is to become the most important and successful residential and commercial real estate development in the northern area of Panama City, under the concept of New Urbanism: a place with all the comforts of the city, surrounded by nature, offering an urban experience that is enriching, sustainable and centered on community.
Macroeconomics
Now I want to set this in the context of the market. Housing is coming off several hard years: the changes to the preferential interest rate law hit developers hard, and sales in the preferential segment felt it. Today the mood is turning: at CONVIVIENDA —the developers’ guild we belong to as Grupo Colonias— there is optimism because the 2% preferential rate is being reinstated, and the banks are backing the sector again, helped by the tax incentives.
Banco General finances our infrastructure and remains our great ally.
The thesis we have held since 2014 is confirmed day after day: the capital’s urban expansion is moving north, and it places Porta Norte at the epicenter of that growth. Just look at the pace of our most active neighbors: Paseo del Norte —already developing Nodo Norte, its business district— and Green City; every delivery they make raises the value of the area.
The phases, in order
Now I want to walk you through the master plan, phase by phase and in chronological order. The map, so you can get your bearings:
The Porta Norte master plan and its phases
Phase 1
I will start with Phase 1, the front door of the project. Its great anchor is St. Peter’s Academy: the school’s first phase opened in March 2026 and today welcomes 450 students —and their families— every morning. It keeps growing and is already planning its next phases. Few things give a new city more life and credibility than a school full of children.
St. Peter's Academy — opened in March 2026, Porta Norte's great anchor
The Porta Norte–Portavita Sales Center operates in this same phase, turning visitors into neighbors. We also finished a valuable piece of work: we filled the hole in the central parcel, right behind the Porta Norte sign at the entrance, creating a large street-level lot meant for commercial use, 2.5 hectares, ready to go to market.
The Porta Norte–Portavita sales center, already in operation
Phase 1B and Portavita
In Phase 1B, which includes El Peñón, we finished the earthwork; what comes next are its streets. El Peñón looks completely transformed — a developable, stable place, with its terraces shaped and ready to build on.
El Peñón — earthworks complete: stable, developable ground
The most important thing that can happen to a new city is happening there: houses being built to populate Porta Norte with residents. That is the mission of Portavita, our first residential project, which started building its internal infrastructure in June.
If I had to pick a single leading indicator of Porta Norte’s health, I would pick Portavita’s sales. The reason is simple: we sell land to developers, and developers only buy where houses sell. Portavita is the first live proof, on our own land, that houses sell in Porta Norte. Every house sold gives the developers coming behind us confidence in absorption.
The proof is holding: Portavita is already selling, and the infrastructure for its 79 houses has been under construction since June.
What Portavita's streets will look like — project rendering
Every family that buys in Portavita does three things for us at once: 1) it creates critical mass — each new neighbor makes the next one’s lot more valuable; 2) it populates the city — the Costa del Este script is to populate first with houses and densify later with buildings; and 3) it makes us money directly, because Porta Norte is a partner in Portavita. We win as sellers of land, we win again as partners of the developer.
Phase 2: crossing the river
Phase 2 starts with the river. Last year I told you that the standing challenge to reach Phase 2 was crossing the María Prieta River, and that our goal was to start construction of Puente María during 2026.
Today I write to you with the bridge at 65% physical progress and a contractual completion date of October 19, 2026. We are building two of the four lanes first, exactly as we planned: half the bridge, expandable when traffic calls for it. I want to underline how pleased we are with this job: it has been well executed, with a contractor that has done orderly, quality work — the girders are already launched and the deck is underway.
Puente María — girders launched and deck underway, August 2026; St. Peter's Academy in the background
A bridge is crossed only once. Further along there will still be a creek, but no barrier like this one: the river was the project’s biggest geographic barrier, and we are getting past it. What comes next are the phases beyond the bridge, where we have many parcels for houses, ready to be developed in stages. That is why this bridge is not just another job; it is the key to the rest of Porta Norte.
The Phase 2 that this bridge opens is no longer a plan: it is under construction. SUCASA signed the promise-to-purchase agreement for 2.4 hectares in this phase and is today both buyer and builder of its own development. Work has already started on the systems beneath the streets — the sanitary and storm networks.
Across the whole phase we are executing the rational minimum of infrastructure: what the project needs to show well commercially and to let us deliver the lots and parcels, collect their final payments and bring the debt down. That is why we are building half the boulevard first.
Phases 3 and 4
In Phases 3 and 4 this year’s work was design: we advanced the detailed master plan with the architecture firm RAWA, led by architect Ricardo Arosemena, incorporating everything we have learned in the project so far — parcels that are easier to sell and cheaper to develop, which improve the feasibility of the project.
We also decided to move up the preliminary design of Phase 3 in parallel with Phase 4. We would rather invest in design today than discover tomorrow that a permit is holding up the work.
Master plan notes
I close the tour with one general note: density. Last year I explained our price list with the logic of the cow: the shank —the house parcels— is the cheap cut, and the tenderloin —the building lots— is the expensive one. You have to eat shank to get to the tenderloin. This year I want to tell you how we are going to make the tenderloin bigger.
We continue working on the amendment to the Territorial Planning Study to raise the zoning of the later phases from RM2 to RM3 — from 1,000 to 1,500 inhabitants per hectare. The arithmetic is powerful: the land is the same, the cost of developing it barely changes, and every square meter sold at higher density sells at a higher price — approved density is a windfall that turns into price. When we can raise density, the value of the project rises with it, without buying one more hectare — more city on the same land.
It is a balance, though: the more density, the longer the land takes to be absorbed and the harder it is for the market to accept it — but once the market accepts it, the project becomes very valuable. Just look at Santa María: today the buildings are going up left and right — they are getting to the dessert that was planted several decades ago.
But density is not decreed: it is earned. To raise density we have to build a place people love. That is where our wheel turns: the school brings students and families every morning, the Sales Center turns visitors into neighbors, Portavita sets the standard and brings the pioneers, the sign gives the place a name, the plaza gives it a heart, the trees bring freshness and life, and the bridge opens the door to the next decade.
None of those pieces moves the needle on its own; together they turn the wheel harder every year, and the effect multiplies — each new piece is worth more because the earlier ones are already in place.
Conclusion
In conclusion, the company is doing exactly what we said it would do, in the order we said we would do it: populate El Peñón, cross the river, open Phase 2 and prepare the density that will multiply the value of the phases that follow. We keep a conservative stance on debt and a healthy balance sheet, investing in infrastructure rationally —deliberately and with our eyes open— to recover the investment and leave the next phases ready to open.
If we go back to 2014, there was virgin land here, full of hills and with hardly any access. Today there are streets, public spaces, a sign you can see from the highway, a school with children, houses under construction, a bridge that already touches the other bank and the next phase being built at full speed — more fronts open and more machines working than at any other moment in our history.
I always say Porta Norte is like an iceberg: it moves slowly, but on a colossal scale. Once we cross the river, the best is ahead: more phases open, more families moving into a brand-new city and more value compounding year after year.
Thank you for the trust and the patience with which you have stood by this project. I invite you to visit Porta Norte whenever you like: walking the project and seeing it with your own eyes is better than any report.
Sincerely,
Henry James Faarup Humbert CEO, Grupo Colonias CEO & Co-founder, Porta Norte
On August 11, 2015 we held the final presentation of the Charrette for the Master Plan of Ciudad Porta Norte at the American Trade Hotel.
The evening opened with Henry Faarup Mauad, President of Grupo Colonias – the master developer of Porta Norte. It continued with Henry Faarup Humbert, General Manager of Grupo Colonias, and closed with a presentation of Ciudad Porta Norte by Andrés Duany, leader and co-founder of the Congress for the New Urbanism (CNU).
Henry Faarup Mauad:
Henry Faarup Mauad, President of Grupo Colonias
I founded Grupo Colonias in 1984 and since then we have built more than 1,000 homes in Panama City. I lived in France between 2009 and 2014 as ambassador. I came back thinking I would retire and play golf; instead I found my son, Henry James, full of energy, and we started talking about new ideas. We got excited and decided to join forces to create our most ambitious project.
After many conversations about real estate development ideas, we met the Rojas Pardini family, who own a large stretch of land on Vía Panamá Norte, near the Golf Club.
I want to take this chance to thank the Rojas Pardini family for all the support they have given us, and for the vision they had 30 years ago to acquire this beautiful land.
Once we got to know them well, we negotiated, and this megaproject called Ciudad Porta Norte was born.
At the start my son kept talking to me about new urbanism. He told me we should do a charrette, and I kept asking myself: what is a charrette? I lived five years in France, I speak French, and I had never heard that French word. I did not really understand the concept. But after thinking it over and debating it with the executive committee, they convinced me.
I have to admit I am impressed with the result. This is about creating a walkable community inspired by Casco Viejo.
A few years ago our great friend Bobby Motta, may he rest in peace, used to describe a relative of his as «the corrected and expanded edition». In this family, «the corrected and expanded edition» is Henry James Faarup Humbert. Please welcome him.
Henry Faarup Humbert:
Henry Faarup Humbert, CEO of Grupo Colonias
Thank you for those words, Dad. Good evening and welcome.
From our very first meeting with the executive committee we talked about the experience we wanted to build. Little by little we concluded that the experience was walking the streets of Casco Viejo, or of Europe. We were not clear on how to proceed, so we started researching online and sharing ideas with architects.
We had one special conversation with Jeff Speck, the speaker of the TED Talk «The Walkable City» and the author of the book «Walkable City». Jeff showed us the best route to implement new urbanism and pointed us to four urban design firms to interview. Among them was Duany Plater-Zyberk (DPZ), and he told me that if Andrés Duany led the charrette, that was the best option.
Following that direction, a few months ago representatives of the executive committee traveled to the Congress for the New Urbanism in Dallas, Texas. There we took courses, interviewed the urbanists, and used the chance to have philosophical conversations with the best urban designers in the world about how to build the ideal city.
At the end of the congress we chose DPZ and its founder, Andrés Duany, to design the Master Plan of Ciudad Porta Norte. Today, after working together, I can confirm we made the right decision.
Now let me tell you a bit about Andrés.
Andrés is an architect and urban planner who has devoted his professional life to designing walkable communities. Andrés Duany and his wife, the architect Elizabeth Plater-Zyberk, founded the firm Duany Plater-Zyberk in 1980.
Their first project was Seaside in Panama City, Florida, which became the epicenter of the new urbanism movement.
Andrés has been recognized with many awards, among them the Richard H. Driehaus Prize, the Thomas Jefferson Medal and the Vincent Scully Prize. He is also the author of several books, notably Suburban Nation, the Smart Growth Manual and Garden Cities.
Now I leave you with Andrés Duany, who will present the Master Plan of Ciudad Porta Norte. Please give him a warm round of applause.
Andrés Duany:
Andres Duany, Father of New Urbanism
Thank you very much to the Henrys. In my presentation I will explain the following concepts:
What is a charrette?
What is new urbanism?
What is Ciudad Porta Norte?
What is a charrette?
A charrette is a working workshop where experts from different fields come together to produce a design.
In the case of Ciudad Porta Norte we have 10 international experts working hand in hand with 10 Panamanian experts. Our firm is expert in new urbanism, but not in Panama. The developers are experts in Panama, but not in new urbanism. Together we are experts in new urbanism development in Panama.
The developers took part in the charrette for all eight working days, making sure the design is efficient and viable. The charrette also included financiers, engineers, lawyers, brokers, government officials, prospective lot buyers and residents, among others.
The result is a project that looks utopian for Panama; however, we have experience turning this kind of urbanism into reality.
What is new urbanism?
New urbanism is urban design focused on the pedestrian.
Let us use Casco Viejo as an example. There you have the chance to walk to supermarkets, banks, restaurants, shops or a friend’s house. This neighborhood, like many cities of its era, is the best place to live in Panama if you want to be a pedestrian. It has the best urbanism if you want public space to socialize, unlike the modern projects being built in Panama.
That said, we have to admit Casco Viejo is not perfect: it has outdated infrastructure, it lacks parking and it has some elements of neglect.
A new urbanist design adapts to local needs. In this case, we have designed a place similar to Casco Viejo, but making sure to fix its problems.
Porta Norte is a place where you can walk or ride a bike to meet your daily needs. But if you want to, you also have the option of getting around by car.
Shops in a tourist neighborhood like Casco Viejo grow organically and end up all offering the same thing. Here in Casco Viejo there are more than 16 identical shops selling identical little hats. There is no variety of stores or options.
Shops in a new neighborhood like Porta Norte are chosen. Different businesses that can benefit residents are invited in, turning it into a place rich in options. In new urbanism we combine the street experience of an old neighborhood with a varied offering of services.
There are closed-minded people who oppose new urbanism. They tell us, “the problem is that you are irresistible because you copy the good ideas”. I say, “Exactly!”. As long as an idea is good and works, we have no problem copying it.
In Panama and Latin America there are many people who like traditional architecture like Casco Viejo’s. There are also people who like modern architecture with more glass. The answer in new urbanism is to use both.
Someone can build a mixed-use building with a ground floor of retail with plenty of glass to improve visibility, and traditional architecture on the floors above. There is room for institutional buildings to be modern and iconic. We do not think one style is superior to the other.
One problem of conventional urbanism is the pedestrian experience. Nobody likes walking along a deserted sidewalk with blank walls at street level. Because little attention is paid to it, this experience ends up with narrow sidewalks, interrupted by posts or full of cars.
In new urbanism we focus on giving the pedestrian an interesting, comfortable and fun experience. That is why ground floors must have shops and homes with windows and doors. They must be paired with wide, tree-lined sidewalks.
To achieve this, we hide the parking behind or underneath the buildings. This improves the pedestrian experience. There are many cars in this project, but you will not see them parked.
New urbanism adapts to the local context. Now let me show you in detail how we do it with Ciudad Porta Norte.
What is Ciudad Porta Norte?
Let us look at the presentation of what we have designed. This design will keep being refined over time as better ideas come up.
Site Visit
Grupo Colonias and DPZ team at Porta Norte
When we landed in Panama the first thing we did was visit the land. It is very important to know the site well. There I found land with a lot of character that lifted my spirit. It is a large property with hills, rivers, creeks and old trees.
Location
Porta Norte sits on the new Vía Panamá Norte. Its proximity to the Corredor Norte gives it good connectivity. The area is full of amenities.
Location of Porta Norte in Panamá Norte
The property is at the center of the city’s growth. I saw a lot of activity in the area, with neighbors building streets. Our project is without a doubt the right one to sit at the center, because it will be the Casco Viejo for our residents and for all the neighbors.
The property has good access from Vía Panamá Norte, where a vibrant Town Center can be built.
Silhouette of the Porta Norte Master Plan overlaid on Panama City.
Casco Viejo
After visiting Porta Norte we went to the American Trade Hotel, where we worked for the following eight days. Every night we walked around and had dinner together to share the day’s ideas. Working in this neighborhood was a fantastic idea, because it has been a great source of inspiration.
The contrast between Casco Viejo and the rest of the City is radical. Casco Viejo is the kind of place that the more you know it, the more you like it. The rest of the City has no street life, and the more people know it, the more bored they get.
The Master Plan of Ciudad Porta Norte has both traditional and modern style. The first area to be developed is the South Parcel, a traditional little town. The North Parcel will be developed last, with tall buildings framing a central park. We do not want to lose the people who like views from up high. It is a viable market in Porta Norte.
The Casco Viejo neighborhood is different, and somewhat mysterious for most urbanists, because this kind of urbanism is no longer taught in universities. We have 35 years of experience designing walkable urbanism and we know how this experience is achieved.
For us it is no mystery, because we have new urbanism for breakfast, lunch and dinner. We can guarantee it will be similar to Casco Viejo, but better. In this design we respect essential aspects of Casco Viejo such as the balconies, the architecture, the plazas and the heights.
Here you do not feel threatened by cars, unlike in the new part of the City. To achieve this we included design elements that slow cars down so the pedestrian feels comfortable walking: cobblestones, narrow lanes, raised pedestrian crossings and trees.
Narrow streets with plenty of shade are the best. This type of street is sometimes illegal in other parts of the world. We have talked with public officials, who are here with us tonight, and we have found ways to do it within the rules.
The Process
It was a charrette with a lot of energy. Everyone wanted to weigh in and would grab paper and pencil to draw their concepts. Everyone was an expert on Panama. It was a bit exhausting; still, the active role of locals is necessary to give the design its context.
This afternoon I talked with César, who is an expert on the nature of Porta Norte because he has cared for the farm for a large part of his life. I was explaining to him the characteristics of the tree we want: a vase-shaped tree whose branches grow upward, so they do not hit the buildings, and whose roots grow symmetrically downward, so they do not break the sidewalks or the pavement. César knew exactly which tree we wanted and that it grows in Porta Norte. It was fantastic. That kind of conversation is necessary to give the design its context.
To arrive at the Master Plan we started by forming three isolated working teams. One team’s result was a master plan made of superblocks, which we called Concept #1. The other two teams produced very similar master plans made of regular blocks, which we merged and called Concept #2. Participants liked both concepts, so we designed both in depth.
Concept #1 is made up of main streets, similar to those of Casco Viejo, that run along the perimeter of four or five blocks forming a superblock. Next to the plaza with the fountain there are three- to five-story buildings that together frame the superblocks. After the plaza, at the first intersection, you turn left and enter the superblock. Inside you find a residential area full of single-family homes, trees, parks and a lake you can cross on pedestrian bridges. In one same place you can live in an urban area on the outside and a suburban one on the inside.
Superblock Master Plan Draft #1Superblock Master Plan Draft #2Superblock Master Plan Draft #3Superblock Master Plan Draft #4Superblocks in 3D
The Vision
After debating the merits of each master plan we chose to continue the process with Concept #2, the one with blocks, because it was more walkable and more flexible. Small blocks generate a grid of streets that gives the pedestrian more options for walking.
Concept #2 is much closer to Casco Viejo. It is made up of small blocks of about one hectare. Each block has interchangeable uses. The same block can hold houses, or residential or commercial buildings of 4, 6 or even 10 stories. That flexibility lets us respond to the market faster.
Block Master Plan Draft #1Block Master Plan Draft #2Block Master Plan Draft #3Block Master Plan Draft #5Block Master Plan Draft #6Block Master Plan Draft #7
In the next image you can see the entrance to Ciudad Porta Norte. Right as you come in there is a walkable Town Center. The parking is hidden behind. It is not like a shopping mall where the parking sits out front, because that would be uncomfortable for the pedestrian.
In this drawing of the entrance you can see three-story buildings with retail on the ground floor and offices or homes on the two floors above. At the top, on the other side of the river, you can see a civic building – it could be a church or the town hall – that includes the project’s administration.
Entrance in 2DEntrance in 3D
After entering, you turn right and find a bridge that crosses the María Prieta River to reach the first plaza.
Bird’s-eye view of the María Prieta River in 2D
On the left of the drawing you can see blocks like those of Casco Viejo, but with parking in the middle. In the center of the drawing you can appreciate the María Prieta River and how the plaza opens up and invites people toward the river. This is a perfect example of how the urbanism of Porta Norte integrates with nature.
María Prieta River in 3D
Coming down the hill you can see the buildings with Canal Zone architecture. Then you come to the iconic bridge, which can be appreciated in profile. At the upper right there are residential blocks that vary between single-family houses and four-story buildings.
Bridge in 3D
In this image you can see the plaza after the bridge, which is focused on residents. It has direct access to the river and includes an open-air market, leafy trees, a simple fountain and a kiosk.
Plaza in 3D
We are urbanists, but not local architects. That is why we invited several local architects to participate. The following design is by Ricardo Arosemena. It was based on the plaza near the river. You can see the parking behind, the open-air market next to the plaza, the shops, and the town hall on the left. This gives us a good idea of how it could be.
Town Center sectionTown Center designed by Ricardo Arosemena
It is normal to reach this level of detail a year later. With this exercise we were able to verify that what we designed works, and Ricardo confirmed it. This is a building that works, with its elevators, stairs, circulation, parking, retail area and so on.
Something curious I learned in Panama is the obsession some participants have with minimizing the effects of the rain and maximizing the breeze because of the heat. They pushed for narrow streets to get shade, to protect from the rain and to give the breeze more force.
In this diagram you can see the narrow streets and the tall buildings with private interior courtyards full of trees for the children to play in. You can also see the parking underneath the buildings. This is a new invention with no precedent in Panama. This design allows for incredible views and cross ventilation, responding to the local context.
Cross section of a typical block
This week we also talked about schools. There will be one or two private schools in Porta Norte. Instead of the schools you build here which, and I say this with great respect, look like factories or prisons, these are schools with a campus full of nature, where the buildings are separated by interior courtyards for the children to play. To reach this design we invited potential clients who own schools, and they approved it with a lot of enthusiasm.
School in 3D
Porta Norte is not just a project; it will be a town that in 20 years governs itself. We are building a community that will need its own administration and town hall. This is a concept for the town hall, which will house the administration and the Visitors Center. It has a tower you can climb to appreciate the views of the town under construction.
Those interested in living in Ciudad Porta Norte can study the model and the information on homes for sale or rent.
Visitors Center sections
North Parcel
The North Parcel sits 150 meters above sea level. So we have to take advantage of the panoramic views of the sea and the city. That elevation also comes with a cooler climate.
In this concept we have tall, slender buildings surrounding a lake and a large park, like Central Park in New York. This park can hold a school, shops, clubs and so on. This area is sunken in the center, forming a valley shaped like an amphitheater that opens toward the city center.
These buildings will not be like the ones you find in Panama, which are poorly coordinated and block each other’s views. These will be like Vancouver’s, where the buildings are far apart. They have two to four apartments per floor so they get plenty of light and panoramic views.
First ideas for the urban layout of the North ParcelDrafting the North ParcelNorth Parcel draft with 10- to 20-story buildingsNorth Parcel Master PlanNorth Parcel sectionNorth Parcel in 3DNorth Parcel in 3D
Diagrams
One way to verify the plans is by making diagrams. They help you analyze the most important features of the Master Plan from another perspective.
Neighborhood Diagram. The small circles represent the center of each neighborhood. From these points a pedestrian can reach anywhere inside the circle on foot in less than five minutes.Public Space Diagram. In dark green are the rivers and creeks, bordered by wide, wooded green strips fitted with trails, benches, tables and barbecues. Everything built with natural materials. In light green are gardens, sports areas, plazas, parks and interior courtyards. Green areas add up to roughly 40%. That is extremely high.Developable Area Diagram (yellow).Boulevards and Avenues DiagramSecondary Streets DiagramDiagram of pedestrian streets (light green) and nature trails (dark green). The project has many pedestrian streets that lead to the natural waterways, inviting people to connect with nature.Bus Diagram. In red you can see the bus route along the Boulevard. The red dots are the bus stops. Each stop serves a different neighborhood center so residents can get around easily. This helps people who do not want to or cannot walk, such as adults with children, the elderly and people with reduced mobility. In Porta Norte you can have a car, but you will not need it every day.Civic Space Diagram. Ciudad Porta Norte is a large place where between 25,000 and 30,000 people will live. These people need their places of worship, their clubs and all the civic components we know and that do not exist in conventional developments. In Porta Norte we set aside civic lots so future residents can build them.
Street Design
Street design is very important because the street is a public space. The City’s streets are very hostile to pedestrians. The streets of Casco Viejo, by contrast, are pleasant, and that is why we are recreating them.
We have created a complete catalog with all the street sections. The wider the streets, the taller the buildings have to be in order to give the pedestrian shade and to put distance between neighbors.
Porta Norte BoulevardSecondary StreetsSecondary Street in 3DPedestrian / Vehicular StreetsPedestrian Street in 3D
Architecture
The architecture of Porta Norte is traditional, inspired by Seville, Cartagena de Indias and Panama’s Casco Viejo. We created a catalog of architectural typologies for houses and buildings. The typologies assume a minimum of two cars per home and four cars per 100 meters of commercial space.
What is interesting about the typology catalog is that each block can be offices, or low-, mid- or high-density residential. It all depends on the market. Block uses can be swapped. What they all have in common is that they help create pedestrian urbanism.
Porta Norte will be built by developers who will build vertically. Below you can see a draft of the Porta Norte Code that developers will have to follow.
Draft of the Architectural Code
There will be an enormous variety of architects, which will result in the architectural variety of the town. They will use the code, which has simple but precise rules, and the result will be a set of buildings in harmony.
If you look up our website, www.dpz.com, you will see at least three or four dozen towns we have designed that have grown in harmony. Some have been designed by as many as 70 architects, but the designs come together coherently because of the codes.
In Porta Norte we are bringing back the Hispanic interior courtyard, a lost art in Panama City. When you walk into an interior courtyard with plants, stone, running water and the sky as the roof, it is a magical experience. On top of that, this architecture is private and secure.
We have created a catalog of courtyard houses in many sizes to encourage their construction.
Porta Norte Courtyard HousingMid-rise Typology #1Mid-rise Typology #2
We also created a catalog of architectural elements inspired by Casco Viejo to include in the code. You can build an efficient, economical box-shaped building and still have the option of 15 or 20 different façades.
We know these elements work and that people love them, because residents enjoy the balconies and pedestrians like them too, since they offer protection from the rain and create shade, encouraging street life.
Architectural elements for façades
A New Vision
To execute this vision we need the developers and the users. The developers build the hardware, which is the infrastructure, the streets, the plazas and so on. The pioneering residents and businesses develop the software, which takes shape in the culture of the neighborhood.
One good thing about Porta Norte’s leadership is that they are young. It is a new generation of developers executing a new lifestyle with passion. They are the ones responsible for delivering Porta Norte. This may take between 15 and 20 years.
Porta Norte Executive Committee in 2015
I want to stress that we are not proposing anything radical, nor are we reinventing the wheel. This is not an experiment; it is something we know works, because we have lived through the evolution of the projects we have designed. We are confident that in the future Ciudad Porta Norte will be the new model for development in Panama.
What we are proposing today is a new way of living with new ideas, and that requires the mindset of a new generation. From here on out this is your project, it is no longer mine, so get ready for what the new generation brings you.
I invite you all to join in and build this new way of living in Panama City.
Henry Faarup Humbert:
To close, I would like to thank the Duany Plater-Zyberk team, especially Andrés and Judith, DPZ’s project manager; our partners; the Rojas Pardini family; and our executive committee, made up of my father Henry Faarup Mauad, José Alejandro Rojas Pardini, Juan Antonio Rojas Pardini, Manuel Arias, Mario Pérez and Rafael Sabonge. The architects Ricardo Arosemena, Tony Way, Marcus Sabonge, Edward McGrath and David Rodríguez. The engineers of the Langan firm, engineer Carlos Arango and engineer Luis Campana. Please come up on stage.
In this article, I’ll explore the role of «anchors» within a Master Planned Community (MPC).
What is a Master Planned Community?
Master planned communities are large-scale real estate developments where residents can live, work, and play. They are usually found on the urban periphery, where strong growth is expected. You can think of them as the game «Sim City,» but in real life. For a deeper look at what they are, you can read this article I wrote here.
What is an Anchor?
Let’s start with the dictionary definition:
«A device usually of metal attached to a ship or boat by a cable and cast overboard to hold it in a particular place by means of a fluke that digs into the bottom.» (Merriam-Webster)
In everyday language, the word «anchor» refers to the device on a ship that is dropped to the bottom of the sea so the vessel can hold a fixed spot where the crew wants to stay, without drifting away. You normally anchor in a place because it has good attributes: plentiful fishing, safe swimming, calm waters, good weather. And then you get the benefit of the place.
In real estate, the term «anchor» is used as an analogy for something that attracts other things. That «something» is usually a desirable institution or a natural attraction that captures the interest of people, businesses, or investment. Anchors help drive the real estate development of a site.
Shopping malls use the term extensively. To a large degree, a mall’s success depends on the success of its anchor. Mall developers look for land with favorable characteristics: high traffic, a large nearby population, strong purchasing power, among others. Then they look for an anchor for the project, usually a retailer that draws a large number of visitors, like a supermarket. The anchor is essential to getting the development done, because it brings the foot traffic that makes the other businesses inside the mall work. Without an anchor, there is no project.
At the scale of a Master Planned Community or a city, there have to be many anchors to meet residents’ needs. So what kinds of anchors should exist?
A few important questions: What culture and values do we want to foster in the community, and what kind of anchor best serves them? Given the context of the site, which anchors are easiest to develop and will have high demand? Where is the gap in the market?
I have thought about these questions for Porta Norte, and I always land on the same conclusion: the answers apply equally well to Panama City. The order in which the anchors get developed matters. First comes nature, then urbanism, and finally buildings.
1. Nature
Anchors can be natural elements, like beaches and mountains. Nature acts as a magnet that draws residents and visitors who want to enjoy natural beauty. On beaches, you can build marinas, enable water sports, and develop resorts, among other options. In the mountains, you can create trails, ski runs, and mountain biking routes, among other activities.
Natural elements should be promoted first, because every human being has a need to connect with nature. On top of that, nature is already there, so depending on what you want to do, you can take advantage of it with relatively low investment.
Panama is known for its biodiversity and its fertile land. We should make the most of these resources. At Porta Norte, the first thing is to highlight the river, the trees, the views, and the high points.
2. Urbanism
In a home, the members of a family have their own bedrooms and come together in common spaces like the living room and the kitchen. In a city, citizens have their own homes and come together in common spaces like plazas and parks. At the urban level, it is essential to have public spaces designed so that citizens can gather to celebrate, to have fun, and to exercise.
In Panama City, Casco Viejo, with its plazas and its pedestrian-oriented design, is the most beloved neighborhood in the city. It is no coincidence that it is the most walkable urban fabric and the one with the most music, art, and community events. So it makes sense to use this urban approach to build a new kind of neighborhood that people will love. One possible improvement would be to include more trees and greenery in the streets.
3. Buildings
Usually the most common building type is residential. But the more diverse the buildings are, and the more they attract culture and life, the better. That can include universities, schools, temples, public spaces, shopping centers, gyms, sports centers, and much more. My theory is that one of the best anchors, both for Panama and for Porta Norte, would be a great university. A vibrant community is built with families and with young people who want to better themselves, and these educational institutions are the raw material of universities.
In Panama, there is a big opportunity because of the shortage of quality universities. At Porta Norte specifically, a great university would be ideal, since it sits in the largest school hub in Panama, with more than 15 schools within a few kilometers and thousands of students graduating every year, but no university nearby to serve them.
Universities as Anchors
There are many cities that have thrived thanks to the best universities in the world, like Harvard, Stanford, Notre Dame, and the University of Texas at Austin. All of these cities were much smaller decades ago, and the universities have been key engines of their growth.
In short, a university focused on technology, especially on computer science, could be an excellent option. In Panama City there is no university offering world-class technology education, despite growing global demand and the advance of technologies like artificial intelligence.
This conclusion is inspired by a Paul Graham essay titled «How to Make Pittsburgh a Startup Hub.» In it, Graham reflects on the characteristics that made Silicon Valley what it is today and how they might be replicated elsewhere. Here is a representative excerpt:
So suppose cool old neighborhoods and cool little restaurants make this the next Portland. Will that be enough? It will put you in a way better position than Portland itself, because Pittsburgh has something Portland lacks: a first-rate research university. CMU plus little cafes means you have more than hipsters drinking lattes. It means you have hipsters drinking lattes while talking about distributed systems. Now you’re getting really close to San Francisco.
— Paul Graham, co-founder of Y Combinator
A technology-focused university would have the potential to produce talent that can earn significant income in the tech industry, or even start new companies, which would create a virtuous cycle. Other top-tier universities can also be good for urban growth, because universities and urban development have a symbiotic relationship in which both sides benefit.
When you design a new community, you need a clear vision. In the case of Porta Norte, we want a community that is vibrant, healthy, and close-knit. A place where kids can run through the streets, where people can exercise, where there is a thriving economy, and much more. All of these elements together create a place that people love, that they protect, and that lasts over time. Incorporating anchors is one of the key strategies for making that vision real.
To close, here are a few thoughts worth considering: What kinds of anchors do you think Panama City is missing? Where do you see opportunities in the market? Which anchors could improve everyone’s quality of life? Which ones do you think would work well in places like Porta Norte? And how do you imagine the universities of the future?
Master Developers are real estate developers who build Master Planned Communities. This post expands on the ingredients needed to become a great Master Developer, outlined by Urban & Civic, a Master Developer, in their infographic.
Projects
Target big, complex sites in key growth locations
Study urban growth patterns and predict where new developments will happen. Acquire the most land you can afford to benefit from land appreciation created in the first phases.
Invest in the land for long-dated returns
Master-planned communities are like icebergs — they are massive and move slowly. MPCs require a lot of investments to transform undeveloped land into developed, functional, and aspirational for the first residents to move in. Recruit partners who have long-term investment horizons.
Work with like-minded partners
Attract high-quality shareholders, talent, and clients who share your values and add value to the project. Work hard to maintain and raise the quality bar in every aspect.
Recognize every site demands a customized approach
Every site has unique topography and engineering challenges. The market is always different. Learn to adapt to the context and attempt to understand the market. Highlight and incorporate natural environments into the master plan.
Planning
Ensure senior team engagement with stakeholders and communities
Master-planned communities significantly impact the city. It is human nature to resist change. That is why the NIMBYism movement against development exists. Therefore, excellent relationships with public entities and surrounding stakeholders are paramount to minimize unforeseen setbacks.
Trust is earned by making and delivering on promises
Build what you say you will build and work to exceed stakeholders’ expectations. The job of a Master Developer is selling a vision, securing funding, and making it happen. Rinse and repeat.
Cut through jargon and complexity – explain, illustrate and guide
It is hard to transmit the idea of an unbuilt vision. Make sure to develop clear communication skills and invest in graphic materials, like renders, of what you will achieve. Make sure to align the design and construction with the marketing material.
With a 20-year consent – build in flexibility from the outset as things will change
The needs of the market change with time, and master plans must evolve to capitalize on those changes. That is to say you don’t need to have the last phase designed in detail from the beginning. Create space to incorporate lessons learned into future phases.
Delivery
De-risk issues at the earliest opportunity
Recognize all possible risks and have a strategy to mitigate them. For example:
Lower market risk by attracting anchor tenants like universities, schools, and town centers.
Lower finance risk by conducting feasibility studies, buying land at the right price, having wealthy shareholders, excellent relationships with banks, and having long-term financing.
Lower construction risk by hiring outstanding engineering designers, general contractors, and third-party inspectors.
Lower product risk by conducting market studies and understanding your customer.
Assume responsibility for the delivery of infrastructure to maintain momentum
The project should always be moving forward. Master-planned communities behave like a snowball rolling downhill; they start slow and small, but as you move forward, it moves faster and bigger. To clarify, more infrastructure and residents increase the market size for potential new businesses, thus increasing the value of the project and creating a virtuous cycle.
Work at scale to create efficiency
The headache and management costs of building a 1-kilometer road are almost the same as building 5 kilometers. As a result, you should build the most you can while maintaining a healthy percentage of sales (>40%) and keeping your debt in check.
Establish multiple points of sale to enhance absorption
Experiment with various markets to understand what works and double down on those who do. Make sure to understand which price points can have high absorption and differentiate your product. Experiment with age groups, price points, and interests.
Homes
Keep control by not selling off large parcels
Selling large parcels might make you lose control and put the vision at risk. All pieces of land must follow the code and add value to the project. The job of the Master Developer is to build out the vision from start to finish.
Package land consistently across phases and sites
Master-planned communities must be thought of as an assembly line. When building one phase, you must plan and sell the next one. Designing, financing, and building is a continuous endeavor. Build a constant supply of residences to keep the ball moving forward.
Create a level playing field for all sizes of housebuilders to compete
Help everyone involved in the project make money. This creates a virtuous cycle of repeat customers because they reinvest in the project. Especially help homebuilders. Their success is your success, and their failure is your failure. The Master Developer must orchestrate homebuilders, so they must enact equal rules and allow fair competition.
Be prepared to self-deliver the more difficult plots to maintain quality and values
There are always hard lots or residences to sell in every project. Not all properties can have the best views and locations. Acquire the skills to develop those lots.
Quality
Establish a quality benchmark from the start
The first project in the master-planned community sets the standard for the rest of the project. Make sure to control it and do the best job possible. This is a high leverage move.
Use planning, contracts, and the example of self-delivery to maintain standards
Develop a code to maintain the vision and build the first project according to it. Make sure to include the code in the purchase agreement contract.
Ensure your team cares about the details
The heart of the customer is in the details. Become customer-centric and ensure everything you build is functional, feasible, and beautiful. Architecture must get inspiration from local, vernacular architecture and respond to the climate. Public spaces and street trees must be exceptionally well thought out.
You don’t need to spend more; you need to spend it smarter
Some solutions might cost the same, but one is much more beautiful and aspiring. One example is brick roads vs. concrete roads. A misconception is that brick road are more expensive, but they might be cheaper depending on the market, materials chosen, and labor costs. Another example is to provide spaces early on for basic needs like convenience stores, access to urgent care, and education. These services offer outsized values to residents with marginal investment.
Funding
Patient, experienced capital, is required
Master-planned communities are often intergenerational endeavors. Investment returns might take more time to materialize than usual real estate development projects. Raise funds from investors with know-how who can provide advice and resources.
Investment needs to be aligned with a commitment to quality
Invest in great architects to generate great designs, especially the master plan. Invest in materials that stand the test of time, and that can be easily maintained. One example is investing in street trees; time makes those streets look better.
Actively use public funds to accelerate delivery
Use the financial markets to increase your leverage and build faster the master-planned community. Raising public funds creates more ambassadors and alignment with the community.
Maintain delivery throughout economic cycles
Master-planned communities are multi-decade ventures; therefore, they are bound to experience bearish economic cycles. Plan for them and make sure to keep the momentum strong.
Download the infographic of the DNA of a Master Developer:
Master Planned Communities (MPCs) are urban-scale, mixed-use real estate developments where residents live, work, and play. They are built on undeveloped land, called greenfield development. MPCs are frequently located strategically on the edge of a city with strong projected urban growth. They are self-contained towns with clear boundaries, built for convenience, aiming to satisfy all needs within the community. You can think of them as the real-life version of Sim City.
MPCs usually have more than 1,000 residences and 247 acres (100 hectares); these numbers can be much more significant. Common amenities include cultural centers, golf courses, medical centers, parks, playgrounds, public spaces, restaurants, schools, sports facilities, temples, tennis courts, town centers, universities, walking trails, and more.
Private real estate developers typically develop master planned communities, in this case, called Master Developers. Master Developers must have the skills to craft a vision and coordinate a wide variety of real estate-related professionals that can help the project come to fruition.
Master Developers develop the infrastructure and public spaces. Using industry terms, they build everything “horizontally”; which includes basic infrastructure systems like sewage, stormwater, water, electricity, telecommunications, and roads. Master Developers sometimes decide to construct buildings or develop “vertically.”
The MPC standard business model is that the Master Developer buys a big plot of land, subdivides it; builds infrastructure and amenities; and sells land to anchor tenants like schools or universities. Some Master Developers choose a decentralized model where they sell to homebuilders to develop neighborhoods and commercial developers to build restaurants, shopping centers, etc. Others prefer a centralized model and align vertically to build residential and commercial buildings.
MPCs start by designing a Master Plan. Then it is built in phases throughout a multi-decade time horizon. They usually have a unified architectural vision encoded in the Architecture Code. All lots and buildings must be built according to it.
MPCs include a wide diversity of land uses, lot sizes, housing, and prices designed to attract multiple market segments. MPCs typically have private governance, such as a Homeowners Association, to regulate the relationship between owners, maintain public spaces, and enforce the vision.
Common marketing characteristics include great infrastructure, planned urbanism, housing for all age groups, a sense of community, a connection to nature, an active lifestyle, a healthy way of living, and convenience.
More often than not, urban development patterns are suburban and exclusively car-oriented. However, the New Urbanism movement has influenced MPCs making them more urban and walkable.
MPCs can grow very big and complex. Their evolution usually starts with a few residences, then to neighborhoods, then to a town, and then to a city. Company towns are prime examples of master planned communities.
Entrepreneurs who want to build ambitious Startup Cities can learn a lot from studying patterns of master planned communities and their Master Developers.
At Ciudad Porta Norte, we strive to facilitate physical activity, connection with nature, and belonging. We do this by preserving natural waterways, building tree-lined trees, parks, and squares with lots of greenery, promoting sports, and more to promote culture.
In this story, I imagine what a father’s day will be like enjoying Porta Norte’s European town lifestyle.
I wake up at 5:30 am on a Tuesday. I open my eyes and see my roof supported by wooden beams from the trees of Porta Norte. My feet are on the bamboo floor and stretch my arms.
I go out onto my terrace, take a deep breath of fresh air and watch the tops of the trees dance in synchrony. It is one of the last summer breezes. But, then, I remember that I have a tennis match at 6:00 am.
I cross an inner courtyard on my way to the kitchen. I make myself a cup of freshly ground coffee beans, grab a plate, a knife, and salt. The mornings in the yard are spectacular. On a typical morning, the sun hits the mango tree, the birds sing, and the weather is chilly while I sip my fresh brew.
I go out into the inner courtyard and am greeted by my dog, Max, wagging his tail as usual. I walk through the grass barefoot until I reach my morning chair under the mango tree. Before I sit down, I stretch out my arm and pluck a ripe mango. I sit listening to the voices in the garden as I scratch Max’s furry neck. The birds sing as they drink water from the little waterfall in the pool.
A lot of little animals come here in the summer when they need water. That’s the beauty of having a courtyard connected to Mariposa Creek —it attracts biodiversity. I breathe in the fresh air before I begin to meditate. I close my eyes and focus on my breath.
In the end, I give thanks for another day and plan my day while I peel the mango and eat it with a bit of salt. Then I ponder, do I go to the Bike Park at midday? Do I bike? To the office? the orchard? the park? the river? a square? For a stroll?
I get ready for tennis and go to the Sports Club to play with a friend from 6:00 am to 7:00 am. Then, I go back to the house, grab the hose, freshen up the floor and my head. When I’m done, I start watering the plants. I love watching the plants grow, especially my tomatoes and cucumbers; it’s eatable art. My garden is pesticide-free because I want the birds, bees, and butterflies to grow as nature commands.
I continue my virtuous morning and go to the sauna for a few minutes. Inside I’m thinking about my new project, a small house overlooking the creek. I’m going to put a small office there.
When I finish, I take a dip in the pool, play with Max for a while and go to change. Then I meet up with the rest of the family. They say they want to go to our usual café in Plaza Fundadores for breakfast. So we grab Max and head out the front door to a pedestrian street.
Pedestrian street
This is my favorite street. It is full of pots with plants and ends with access to Mariposa Creek. We walk a little and see some children running in the community garden and the amphitheater in the park. The laughter of the children running is the music of the neighborhood. My son wants to go and play with them, but I tell him we will join them later.
Secondary street
We walk along a tree-lined street where the trees form a green roof. The squirrels keep moving from tree to tree. It is nice to see how some rays of light pass through the canopy of the trees. The brightly colored veraneras are overflowing from the balconies.
We walked to the plaza in 3 minutes. On arrival, we greet neighbors and friends. A couple of people are enjoying their hot coffee while reading the news under the tree shade. The elders are in their usual corner chatting.
Plaza Fundadores
There is a fountain in the middle of the plaza, and you can hear the water drops falling. Brightly colored mosaics dress up the fountain.
My favorite places in the square are the bookshop and the market where they sell fresh food. In addition, there is a park for children to play in and a dog park—the smell of freshly baked bread permeates the plaza.
Marco, the waiter, smiles at us and asks, «The same as always?» We nod. We enjoy our toast while we do some people and dog watching in the plaza until we finish.
My office is on the second floor of the plaza. I say goodbye with a hug, a kiss and go to work. My office has an antique wooden desk facing my balcony, which overlooks the María Prieta River, is full of plants, and has a hammock with a mola design.
I like to keep the doors open to take advantage of the cross ventilation and to see nature. It’s a great inspiration for writing. Also, the eaves over my balcony keep the rain out.
At lunchtime, I decide to exercise. I am thankful that I have direct access to rivers from my house and office. I walk down to the plaza and cross the pergolas that lead down to the river. Next to the volleyball court, I join the yoga group and then go for a hike.
There is a microclimate; the air is cooler and humid due to the river. The smell of the tropical forest is identical to that of El Valle or Cerro Azul. I walk for several kilometers, seeing howler monkeys, blue butterflies, iguanas, ñeques, small fish, bees, and hummingbirds.
The riverbank has countless species of trees. Some of them are huge centenarians. I enjoy the fruit trees the most because I love to take them home with me. The canopies form a green roof that cuddles me.
Tree Canopy in the Maria Prieta River
Occasionally there are cave-like passages formed by bamboo. I feel like I’m in a movie when I walk through them. The track is made of gravel, and every 2 minutes, there are spaces with benches, picnic tables, and barbecues made of wood, stone, and brick.
Many people love to come down and play. How nice to have that dose of tropical nature just a few steps away on any given Tuesday. It’s food for the spirit. When I finish exercising, I approach the edge of the river where some children bathe and play with frogs. I watch the water flow between the rocks, kneel, dip my hands in the cold water and soak my face.
María Prieta River
I go home, bathe, cook and have a home-cooked lunch with my partner. Lunch includes vegetables from the community garden and free-range chicken eggs that we buy at the market.
Before returning to the office, I have to pick up my son from school. So I go out the front door and grab my bike parked next to the door. On the way, I greet many parents who are walking back with their children. Next, I ride by the Plaza del Amor. When I arrive, I wait a few minutes for the soccer match to finish.
On the way back along the cycle path, my son decides to go and play in the park. So we go for a while. The space we like the most is the vegetable garden. He enjoys pulling up vegetables and seeing the roots.
There we both learn about permaculture. There is a wide variety of flowers, vegetables, fruits, and medicinal plants. Medicinal plants used to be a mystery to me, but I am learning more and more about them. Now I drink anti-inflammatory teas.
I enjoy feeding the fish in the irrigation ponds. When I leave, I take a couple of vegetables with us for dinner. I leave him at home and walk back to the office to work some more.
The bells are ringing in the distance, so it’s 6:00 pm; as usual, I watch the sunset in the hammock on the balcony. A few minutes pass, and I see a couple of friends downstairs having a few beers in the plaza under the trees. I give in to temptation and join them at their table. As I arrive I am grinning from ear to ear, and we all greet each other with a hug. I order myself a glass of wine, an appetizer, and we start telling stories.
I have plans for the evening. First, I’m going to cook on the wood-fired barbecue on my terrace with my family. As dinner time arrives, I say goodbye to the table. Some of them have already started to dance to the guitarist’s songs, so I wave them goodbye from afar.
As I walk back to my house, I get a silly smile on my face when I see so much life on the street. The lighting at night gives me a warm feeling. Finally, I cross my pedestrian street and enter my home, where I am greeted by nephews and nieces who arrived early to play.
I begin preparing the wood-fired barbecue and rinsing the vegetables from the garden. Finally, we end the evening sharing the barbecue, a few dishes that each of us brought, including the fruit from the river, wine, and good conversation at a long, narrow wooden table under the full moon.
Some nephews and nieces decide to dip in the jacuzzi while others water the plants. Finally, at the end of the night, we all say goodbye and go to sleep. I look at my phone and get excited because I surpassed my 10,000 steps a day. Then, I thank this joyous day and go to sleep.
In my early twenties, I played with drones. Then, some years ago, after founding Porta Norte, I bought a new drone to examine if it was worthwhile for the project — also to play. After tinkering with it, I realized it was beneficial for many purposes.
I thought a lot about the onboarding process and how to delegate drone usage. My strategy was to learn first, then teach.
The team resisted using it at first because they feared they would break it. So I always reassured the pilot that the company would pay for another drone if something happened.
I decided to start using the drone with the engineering department to improve our engineering analysis capabilities.
The civil engineer that is physically in the project learned to fly drones. We use drones to investigate areas of the project we cannot reach, analyze water runoff damages, audit our subcontractors, and much more. We take aerial views about every two weeks.
We have expanded our drone usage to our marketing and sales department. The Community Builder in the marketing team also learned to pilot the drone to make good videos and photos for regularly updated marketing material.
I fly drones often to appreciate changes in the project from a bird’s eye point of view, supervise the operation, explain concepts to clients, spy neighbors, study engineering challenges, construction updates, understand topography better, and more.
Quick story: The first time I used my newest drone was on a friend’s birthday. The celebration was in the outskirts of Panama City, on a mountain’s cliff edge in Vacamonte. There was a lot of wind, and I dismissed the notifications. Unfortunately, the battery drained, and the drone fell in the port.
My friend’s parents gave me advice on entering the port without permission: act like the owner — say hi, wave, and don’t stop at the entrance where the guards are. So I did. The guards shouted at me, but I kept on driving.
Finally, I arrived at the area where I lost it and found it after searching for 15 minutes. On the way out, the guards stopped me, told me I violated the rules, but they let me go. Often it is better to ask forgiveness rather than permission.
Drones can also improve parties and rekindle memories. This is a video of the occasion:
We have lost two drones already in the jungle. These are a few best practices:
Pay attention to battery levels; don’t have the drone far away with less than 50% battery.
Avoid flying with strong winds; return the drone and land it with the first notification of strong winds the drone will give you.
Set your height limits; if it loses GPS connection, and the automatic return sets in, and your height limit is too high, then it might lose the battery just going up.
Now the company has acquired drone skills, and we have more data points to make better-informed decisions. Having an in-house drone and learning to use it is an excellent investment. Drone technology is improving fast, and we are excited to keep tinkering with them.
These are the introductory words of Porta Norte’s architecture charrette report by the Master Planners — Duany Plater-Zyberk (DPZ) in 2015.
By DPZ
Introduction
Panama City has experienced unprecedented economic and urban growth in recent years. The urban edges, in particular, have been seeing new development, including shopping centers, malls, office parks, apartment complexes, and single-family developments. Many of these, including those infill sites closer to the historic center, are auto-dependent interventions. By design, they isolate themselves from their surroundings and minimally contribute to the public realm.
The northern region of Panama City is not yet overbuilt. It affords Porte Norte the opportunity and the challenge to create a model of sustainable growth. The following few principles outline how the region should relate to its natural resources, pedestrian-oriented development, and sustainability in the long run.
The Metropolis
The region should consist of multiple urban nodes with identifiable centers and edges. They should be compact, connected, mixed-use, walkable, and diverse.
Development patterns should not blur the edges of the metropolis. Infill development should be encouraged. New, non-contiguous development should be organized as towns and villages with their urban edges and planned to balance jobs and housing, not as dormitory suburbs.
New development should respect historical patterns, precedents, and boundaries. They should incorporate a broad spectrum of public and private uses to support a regional economy that benefits people of all incomes. Affordable housing should be distributed throughout the region to match job opportunities.
A framework of transportation alternatives should support the physical organization of the region. Transit, pedestrian, bicycle, and other viable systems should maximize access and mobility throughout the region, promoting choice while reducing dependence upon the automobile.
Neighborhoods
Human habitats should be compact, pedestrian-friendly, and mixed-use. They are the main structural elements of cities and towns.
Many daily living activities should occur within walking distance, allowing independence to those who do not drive, mostly the young and elderly. We should design interconnected networks of streets to encourage walking, reduce the number and length of automobile trips, and conserve energy.
We should embed a range of civic spaces, buildings in neighborhoods, and green areas (parks, playgrounds, village greens, sports fields, and community gardens). We should define conservation areas to connect to different neighborhoods, districts, and nature.
Blocks, Streets, and Buildings
A primary task of all architecture and landscape design is the physical definition of streets and public spaces as places of shared use, with buildings seamlessly linked to their surroundings. Streets and squares should be safe, comfortable, and enjoyable to the pedestrian.
Architecture and landscape design should grow from local climate, topography, natural traces of the land, history, and building practice.
Civic buildings can be distinctive because their role is different from that of other buildings forming the city’s fabric.
All buildings should provide their inhabitants with a clear sense of location, weather, and time using natural heating and cooling methods.
Porta Norte
Porta Norte will offer a departure from Panama’s current development trends as a sustainable new settlement based on traditional planning principles. Well-connected to the region and respecting the natural and human-made local context, the new town will create new choices for compact, walkable, human-scale environments.
We envision Porta Norte neighborhoods integrating high-quality housing, associated retail and civic facilities, and employment development. Based on the Transect’s urban-to-rural methodology, the final master plan incorporates a range of human habitats, from the most urban and compact choices to larger homes and rural greenways along the rivers’ edges. Each neighborhood will undergo further detailing in such a large site during the next design and construction phases.
Panama was born like a startup out of the Panama Canal. Since its inception, Panama has experimented widely with Startup Cities. In this post, I will expand on trends like the increase in remote workers, how cities must adapt to them, the definition of startup cities, Panama’s success with Startup Cities, and Porta Norte — the Startup City I am building.
Geographic Independence Enabled by Remote Work
The Covid-19 pandemic dramatically accelerated the adoption of digital infrastructure worldwide. Lockdowns forced remote work on most companies. Now, as we reach herd immunity, companies have a choice whether they go entirely physical, remote, or something in between. As we all know, many more companies are now remote than before the pandemic.
CEOs who choose to go remote are unlocking new features like attracting more talent from a bigger talent pool and reducing costs by avoiding paying for office space. Remote employees can avoid commute and choose to work from ideal places.
The number of remote workers has spiked worldwide, and it is not going back to how it was before. It will be something in between, but as the digital infrastructure continues to improve, the market of remote workers will continue to expand.
Remote workers can stop thinking about their company’s location and relocate to places that offer them the highest quality of life. They can do arbitrage by earning in the US and spending in Latin America. Newly minted remote workers are weighing options with some of the following questions:
Is it safe?
Is there good food?
Can I satisfy my hobbies?
Can I adapt to the culture?
Can I connect with nature?
Do they embrace foreigners?
Can I find like-minded people?
Can I get a resident visa quickly?
Should I move closer to my family?
Are there good schools and universities?
Can I get a direct flight to my hometown?
What city gives me the best bang for my buck?
Nowadays, remote workers go online to compare and contrast what cities are best for them to visit and hopefully relocate. They use websites that rank countries like nomadlist and teleport to inform themselves. It is a similar process to how people choose vacations or universities.
Remote workers are essential for cities because they are educated, bring know-how, are tech-savvy by default, and many more reasons. Immigration of talent leads to a higher productivity per capita, increased tax base, and results in a virtuous cycle — great citizens attract great citizens.
City as a Product
Talent is the leading indicator of a great organization. A great company is a group of talented individuals led by a talented CEO; a great city is a group of talented citizens led by talented leaders. To improve any organization, you must improve the individual contributor and recruit more talent.
Lee Kuan Yew, the founding father of Singapore, focused on improving talent as he led Singapore from rags to riches. He often spoke about the importance of education, interbreeding amongst intelligent people, and attracting foreign talent.
Singaporeans, if I can choose an analogy, we are the hard disk of a computer; the foreign talent is the megabytes you add to your storage capacity. So your computer never slows down because you got enormous storage capacity.
— Lee Kuan Yew
Recruiting is more relevant than ever before. It is an effective strategy for elevating the talent pool. Cities must align incentives with remote workers. They must be pro-technology, pro-immigration, pro-capitalism, pro-diversity, and proactive.
If successful, the concentration of remote workers leads to increased production of startups, which begets a startup ecosystem that leads to a Startup City.
A city where startups happen along with a thriving startup ecosystem like San Francisco and New York. In the pandemic, Austin and Miami have positioned themselves as THE next place.
A city that acts as a startup with a clear vision and competent governance. A great example is Miami, where Mayor Francis Suarez is serving as the CEO of the City. For him, Miami is the product he iterates. He listens to feedback from startup founders, signals the acceptance of bitcoin, recruits through Twitter, etc. A CEO of the City delivers results and positions their city as a great place to move.
Urban development with startup DNA are projects with a defined territory focused on delivering economic growth or a better way of living through an innovative vision. They are public or private enterprises, public-private partnerships, for-profit or non-profit, or a combination. Some examples:
Neighborhood Upgrade some examples of upgrades are Panama’s Historic District, through better infrastructure and fiscal incentives, Wynwood through art, and Times Square, through removing cars. Usually, there is a combination of public investment towards infrastructure and private investment towards buildings.
Master-Planned communities are mixed-use neighborhoods with a large number of recreational amenities. They tend to have sports centers, lakes, parks, public spaces, playgrounds, swimming pools, stores, restaurants, businesses, schools, universities, cultural centers, medical centers, etc. They are greenfield development — building in undeveloped land. They must push the envelope of what is possible with urbanism and have a strong vision like being car-free, an eco-village, off the grid, etc. Examples: Cayalá, Celebration, Culdesac, Kalu Yala, Las Catalinas, Porta Norte, and Punta Mona. The typical pattern amongst these places is active public spaces and walkability, which, unfortunately, is uncommon.
Special Economic Zones are geographically limited places with regulatory, fiscal incentives, and trade laws that differ from the rest of the country to foster economic and/or cultural prosperity. Examples: Prospera and Shenzhen.
Seasteading means living on environmentally restorative floating islands with some degree of political autonomy. The term derives from homesteading, which means making a home for oneself in uninhabited places. It generally has associations with self-sufficiency and a frontier lifestyle.
Micronations or Microstates are small sovereign countries or colonies. Examples: Liechtenstein, Monaco, and Vatican City.
Panama
Panama is a country of immigrants with a long history of experimenting with Startup Cities. Many businesses choose to settle here because:
It has a great relationship with the United States.
It has a strong logistics sector with the Panama Canal and a big airport.
The following are some examples of Startup Cities in chronological order.
Panama Canal Zone was an unincorporated territory of the United States surrounding the Panama Canal. The United States enabled Panama’s independence from Colombia to build the Panama Canal in 1903. They kept some land and set up a Microstate that infused Panama with American culture.
Colón Free Trade Zone is the largest free port in the Americas and the second-largest in the world. It started operations in 1948 and occupies 600 acres (242 hectares). It is a Special Economic Zone with fiscal benefits for importing and exporting.
In 2017, the government expanded some of the benefits of the Colon Free Trade Zone to Colon City. It is a Special Economic Zone and a Neighborhood Upgrade called Colón Puerto Libre.
City of Knowledge (Ciudad del Saber) was born from the idea of converting some former American military area located in the former Panama Canal Zone into a center for knowledge exchange. It is a Special Economic Zone and Master-Planned Community of 296 acres (120 has.) full of academic organizations, technology companies, and non-governmental organizations run by a non-profit foundation.
Panamá Pacífico is a former United States Air Force Base in the Panama Canal Zone. The government created a Special Economic Zone and a Master-Planned Community as a public-private partnership covering 3,450 acres (1,400 has.) of land. Many multinational corporations have already located in Panama Pacifico, including Samsung, DELL, FedEx, Pepsico, 3M, and Caterpillar, taking advantage of special tax, labor, and legal incentives.
Panama’s Historic District (Casco Viejo) is a Hispanic colonial town where the elite lived. By the 2000’s it was a run-down and insecure neighborhood full of abandoned buildings. The government decided to do a Neighborhood Upgrade by improving the infrastructure and giving tax breaks for development within Casco Viejo. It is one of the most visited places in Panama, and it has the highest price per square meter in the country. I lived there for six years.
Kalu Yala is an eco-village that targets digital nomads and students who take undergraduate courses for accreditation. They are building a new urbanist Master-Planned Community with their strong community.
Selina is a company that has built a network of hostels/hotels that cater to digital nomads. It was founded in Panama and quickly grew around the world with over 60 destinations. Recently they joined Kalu Yala, and you can now book your stay at Selina Kalu Yala.
Ocean Builders is a company experimenting with Seasteading based in Linton Bay Marina, a Master-Planned Community in Colón. They are pushing forward the Seapod, residential pods in the sea, in collaboration with the Seasteading Institute.
The following are essential laws that improve our position as a Startup City:
Law for Multinational Companies (Ley SEM) gives them regulatory benefits, including residence visas to their employees and dependents. Since 2007, it helped attract 175 multinational companies paired with highly educated employees. In 2020 the government added more fiscal incentives to multinationals that did manufacturing.
Law for Free Trade Zones (Ley de Zona Franca) paves the way to create more Special Economic Zones and experimentation with Startup Cities within Panama’s territory. There are 10 active free trade zones and another 10 in development.
Remote Worker Visa: You have to be a remote worker who earns a minimum monthly salary of $3,000 outside of Panama to receive a Visa for 18 months. The government passed this law in May 2021.
Friendly Nations Visa: Fast-track a permanent residency from over 50 friendly nations. You need to own a Panamanian legal entity, «a business,» and temporarily deposit $5,000 into a local bank account. You opt to have Panamanian nationality after 5 years.
Economic Solvency Visa: Invest $300,000 in real estate and/or a Certificate of Deposit in a Panama Bank.
Business Investor Visa: Invest $160,000 in Panama’s stock market.
Reforestation Investor Visa: Invest $80,000 to purchase at least 12 acres (5 has.) of land in a government-certified reforestation project.
Retired or Pensioned Program Visa: Permanent visa for those with over $1,000 in pensions.
Marry a Panama Citizen.
I was born and raised in Panama. Since 2014, I have been pushing the envelope of Panama’s tradition of experimenting with Startup Cities by leading Porta Norte.
I am CEO and Town Founder of Porta Norte, a new-urbanist solarpunk master-planned community of 650 acres (262 has.) located in the city’s northern periphery, just 15 minutes away from the airport. Andrés Duany, the founding father of the new urbanist movement, designed the Master Plan.
Porta Norte has human-scaled urbanism integrated with dense nature and adapted for micro-mobility. It has a network of open, public spaces. We believe social interactions in public spaces are essential to fight the loneliness that remote workers often feel. You can get a clearer vision by reading A day in Porta Norte.
Render of Porta Norta from bird’s eye view
Porta Norte has a unique vision, different from what has been built before in Panama. We are incorporating the best practices from Silicon Valley. My hobby for over a decade is watching interviews and reading blogs from Paul Graham, Elon Musk, Naval Ravikant, Balaji, Sam Altman, and Y-combinator founders.
One example of applying what I have learned is the importance of iterating the product. To increase fidelity and feedback loops, we have a developer in-house whose job to put our construction documents in Virtual Reality. Then we gather feedback from our engineers, architects, clients, etc., to do another iteration. The following is a video of our latest iteration:
Porta Norte in 3D
We build first-world infrastructure with underground utilities, fiber optics, internet in the public areas, cycling lanes, ample sidewalks, tree-lined streets, parks, pedestrian plazas, and much more. It is handicap and pet-friendly. Right now, we are finishing the roads of the first phase.
My most important job is to create a virtuous ecosystem of prosperity by attracting residents, companies, and institutions. We incentivize them with an excellent urban product and private subsidies for anchor tenants like universities, schools, sports centers, hospitals, etc.
After writing this post, I am committed to studying what laws we can use for our advantage as a Startup City and push the idea of making Porta Norte a Free Trade Zone. This is another step towards organizing the economy around remote work.
In Panama, we need to embrace our history of Startup City and continue experimenting towards an optimist and definite future. We must react to worldwide trends like remote work and crypto to position Panama as THE next place.
Please let me know how to do a better job attracting remote workers, companies, and great institutions to Panama and Porta Norte. How can I help?
Read more from the other 9 winners of the contest detailed on1729.com/miami:
You have a new body and mind. Identityless. You possess the skill to learn and experiment rapidly. Your basic needs are covered. How should you act? After some confusion, you ask the fundamentally important question.
What is the purpose of life?
Expand consciousness and increase energy.
To pursue this journey, you must learn about:
Skills
habits
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technology
the environment
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the micro & macro
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the past, present & future.
Next steps:
Learn how to learn.
Study the 3 best fundamental books on what you wish to learn about.
