Hat tip to L for the latest from Tucson. It has me scratching my head and thinking, "ARE THEY OUT OF THEIR MIND?"
A huge swath of state trust land in southeast Tucson would become a master-planned community over the next 40 years under a development deal expected to be finalized between the state and a Phoenix developer next week.
The developer, Westcor, is expected to receive a permit from the state Land Department that will allow it to begin the planning process for 12,000 acres east and south of Davis-Monthan Air Force Base, Deputy State Land Commissioner Jamie Hogue said.
Tucson officials called the project one of the biggest in the city’s history that will create a "second city" with residential and commercial development and open space.
I believe the part about the open space anyway. Tucson already has new developments filled with specs and unwanted open spaces in the lots between them. The article continues:
The development could take decades to build out.
"This is probably 40 years of land," Hogue said. "This isn’t something where we go out and sell it all tomorrow."
No they won’t sell out tomorrow- or the next day, or the next year, or….
Who is providing the financing for this project?
I believe it. I know. Who in their right minds would do such a stupid thing?
Well, look at what’s happened to Phoenix and Tucson over the past 20 years… the cities allowed ‘anything goes’ development, believing more empty ‘taco - moderne’ homes would make them rich.
Yes, I have 100 ’stupid developer’ stories myself.
This is why the Free Market needs to put these guys out of business, pronto.
That’s what a recession is for.
Yossarian-
That’s what a recession is for.
I agree. I cringe every time I read about government efforts to try and thwart it. I doubt they will be successful in delaying the inevitable, and likely will make things worse with their efforts.
Surak-
I’m not sure, but it looks like a good opportunity to short, doesn’t it?
Twist,
That is for sure. The problem with this project is not just the potential finacial debacle, but a large area-wide unnecessary environmental destruction.
I really hate to quote Kunstler .. he’s more anti-suburb than anyone I’ve ever read.. and quite the doomer. But he understands history, and here’s a ‘money quote’ from his most recent post On December 31st.
“” One thing the public doesn’t get about the housing debacle is that it is not just the low point in a regular cycle — it is the end of the suburban phase of US history. We won’t be building anymore of it, and those employed in its development will have to find something else to do. Now, unfortunately the whole point of the housing bubble was not really to put X-million people in so many vinyl and chipboard boxes, but rather to ramp up a suburban sprawl-building industry as a replacement for America’s dwindling manufacturing economy.”‘
Kunstler has a point. The link…
http://www.kunstler.com/
I can’t believe anyone will fund this Tucson development. I’m seeing many infill developments in expensive communities in Portland Oregon being abandoned. Oregon is ’supposed to be different’. I’m also seeing strip mall projects starting to be abandoned and up for sale. The credit crunch is going to absolutely slay developers. Even in Tucson.