Sonoma Housing Bubble

Pulling the cork out of Sonoma's bubbly housing foolishness

Thursday, September 21, 2006

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."


At 9/21/2006 08:00:00 PM , Anonymous tom stone said...

i was in petaluma last week,and there was work being done on the huge condo/retail building on petaluma blvd had virtually stopped for several months.this is the "theatre district" development,4 or 5 stories and a full city block.there were about 20 workers on the is already mid september and there is no way on gods green earth they can get this thing done before the rains start,no roof and no walls,aluminum framing is up,and it looked like they were doing the electrical...i have seen zilch about problems with this project in the paper,but work was at a standstill during the summer,and this is a big big part of petaluma's downtown plan.

At 9/21/2006 10:07:00 PM , Blogger Athena said...

Get Pics Tom!!!

Let's scoop them!


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