Dear Builders, Tell Us Where it Hurts...
"A home building company considering two big projects in Petaluma has backed out of one land purchase and negotiated a $2.35 million discount on the other."
"The discount stems from a slowing housing market and an estimated $1.85 million in fees for a water conservation and reuse program the city plans to adopt.The price change also includes $350,000 the company may have to pay to relocate Old Adobe Developmental Center from the facility's home on school property."
"Unable to secure approval for a 4-acre project at the edge of the downtown Turning Basin, Centex Homes backed out of the deal two weeks ago and forfeited its option payments and city planning fees.But the company appears to be moving ahead on a 180-home housing project on land next to Casa Grande High School after the Petaluma school board on Tuesday voted unanimously to reduce the sale price from $25.3 million to $22.95 million."
"Centex backed out of buying the property, between Copeland and Weller streets, after holding an option for 18 months."
'"It wasn't a total surprise, but it was a shock," said Gina Pittler, one of the property's owners. She said the property's partners are accepting new offers, and two possible developers have shown an interest in the property."
"Centex originally was asked by the city to enter into a master plan with Basin Street Properties's Golden Eagle Shopping Center and the Sonoma-Marin Area Rapid Transit organization's railroad yard for redevelopment of that area.The master plan collapsed after Basin Street pulled out and abandoned its plans to redevelop Golden Eagle."
"Centex said its research showed there wasn't enough demand to support the amount of commercial space the city envisioned in its planning for the area. Centex was willing to revise its plans in July but canceled those plans this month in the face of a slowing housing market and the risk involved in starting over in the approval process."