is that place being redeveloped?

Jeffc,

The name Zihuatanejo may come from the Nahuatl word Cihuacan, which means "place of women". It may also come from the Purépecha language and mean "water of the yellow mountain
Much of the history is described here:
https://www.ixtapa-zihuatanejo.com/info/english.htm?https://www.ixtapa-zihuatanejo.com/info/historia2.htm
According to legend, between the years of 1890 and 1910, Zihuatanejo begins to get known as a fishermen village with all its inhabitants living near or very close to the shore. By 1923, Zihuatanejo gets famous as an exporter of fine woods. La Madera (the wood) beach, gets its name from the loading of wood to the ships at that particular point. La Ropa (the clothes) beach got its name because of a Chinese shipwreck that brought all the clothing material to its shore.
LSD guru Timothy Leary set up camp at Catalina Hotel in the 1960s, but it didn't last long.

Ixtapa, on the other hand, was just a coconut plantation until the 1970s.