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Bobby J

Beach Fanatic
Apr 18, 2005
4,043
600
Blue Mountain beach
www.lifeonshore.com
I think the reason you see dev/builders moving forward is because the process started years ago. When we see something break ground today it did not start last week. The DO process takes forever and many dev/builders were wrapping it all up when the market turned. Money is on the table and spoken for. I think many have no choice but to move forward...
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
I think many have no choice but to move forward...

Their salaries and salaries of the pre-contracted workers are tied up in the construction loans sitting in the bank. The bank will not allow them to draw on the loans unless they move forward on the project.

For example: Clear and plot out development complete...draw cash; lay in utilities...draw cash; layout and install roads and sidewalks...draw cash. During the last RE boom in Florida (and other places) this is as far as some developments got--a fancy sign and empty gate shack at the entrance of an empty subdivision with roads and parcels of land with sewer pipes sticking up.
 

mf

Banned
May 14, 2006
208
0
i'm responding to all these great answers....so forgive if it's hard to tell which one!

in fact, there are state laws that require dri's (developments of regional impact) to contribute to affordable housing and infrastructure. there are 22 such developments in walton county and none of them have been required to comply to state laws by our county government.

of course, you would think that having just built the village, it would still be there in a year. if it is, it will not have the same quality of retail tenants (think t-shirt shops and tattoo parlors). rampant underage drinking and alcohol served to minors (which has caused the sherriff to deny any requests for security on the property) and sandestin's marketing $99 rooms to "budget traveler" and low-end conferences is destroying tenants' revenue potential. sorry, the folks that sandestin markets to do not have much of a discretionary income. they could definitely market their property higher end, but they would have to know how and have to work harder. of course, it sounds like common sense to you and me that they should know enough about marketing to sustain their developments and cross-promote, but they aren't that bright! in fact, they will soon be destroying one of the few amenities left at sandestin, the tennis courts, to make way for another high rise. baytowne golf course is on its way out as well. none of these developments has broken ground yet nor were they approved until AFTER the bust, and they are STILL moving forward.

in fact, as a 20 year marketing veteran, when i ask local developers about their demographics, the truth is, they've paid for expensive marketing analysis and ignore it. they know all about what sells and what will make them the most money. but many times it's about ego and emotion for them. also personal pecadillos. i can't tell you how many times i've heard that developers don't want "ethnic types" as customers. offensive, but they're too dumb and arrogant to even know how to pretend! as any consumer marketing professional knows. old white guys don't make you cash, especially when it comes to housing and family vacations!

my research shows that sandestin homeowners are comprised of 3 of the top high-worth demographics in the nation. most brands would KILL for the opportunity to speak to this audience. instead they're just bullied and abused by shortsighted intrawest and sandestin employees. seriously, you really have to WORK HARD to fail at making sandestin a great resort. and that's what's happening.
 

mf

Banned
May 14, 2006
208
0
Their salaries and salaries of the pre-contracted workers are tied up in the construction loans sitting in the bank. The bank will not allow them to draw on the loans unless they move forward on the project.

For example: Clear and plot out development complete...draw cash; lay in utilities...draw cash; layout and install roads and sidewalks...draw cash. During the last RE boom in Florida (and other places) this is as far as some developments got--a fancy sign and empty gate shack at the entrance of an empty subdivision with roads and parcels of land with sewer pipes sticking up.

i can count at least 10 of those that i know of right now. does not exactly inspire confidence in potential buyers of existing properties does it?
 

mf

Banned
May 14, 2006
208
0
I think the reason you see dev/builders moving forward is because the process started years ago. When we see something break ground today it did not start last week. The DO process takes forever and many dev/builders were wrapping it all up when the market turned. Money is on the table and spoken for. I think many have no choice but to move forward...

i know what you mean, but there's always a choice. and it's not as though moving forward will prevent them from defaulting. so it's merely delaying failure.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
my research shows that sandestin homeowners are comprised of 3 of the top high-worth demographics in the nation. most brands would KILL for the opportunity to speak to this audience. instead they're just bullied and abused by shortsighted intrawest and sandestin employees. seriously, you really have to WORK HARD to fail at making sandestin a great resort. and that's what's happening.

Intrawest was bought out by Fortress (a private equity group) back in October "on the cheap." Fortress couldn't care less about Sandestin...the real prize in that Cracker Jack box they were after was 10 ski resort properties. Fortress will slice and dice this aquistion any way they can in order to wring out maximum profit and discard the remains back on the market. Private equity groups are brutal and only care about one thing...maximum profits for "the club and its members" with minimum input...everything and everyone else be damned.
 

Rambunkscious

Beach Lover
Jan 17, 2007
136
3
No doubt the deep pockets of the developers - builders are just using this downtime to regroup. This area is so attractive, everyone who has been here wants a piece of it, they are just going right ahead with their plans. The surplus of labor now means the builders can build for less money, and since the major cost component, the land, has been paid for, the building on the land is just not that big a deal. This area has always come back strong and will do so again, sooner than later. Now with the proposed airport, it is really a no brainer. If you have the bucks to hold on for a year or maybe even two years, the returns will be there.

Sandestin is primo and I hope what you are saying about the destruction of the Village is not true.
 

beachmouse

Beach Fanatic
Dec 5, 2004
3,504
741
Bluewater Bay, FL
I wonder if it's not the Village (which seems to be a nice enough cash cow) but the Market Shops, which would seem to be pretty redundant once Grand Boulevard is completed. Great location, but not a shopping center that seems to generate much interest, and it seems like they've got a fair amount of tennant turnover.

As far as Sandestin employees go, from the former employees I've talked to, the management problems and labor difficulties go back about three different ownership changes.
 

Franny

Beach Fanatic
Mar 27, 2005
4,046
410
Pt. Washington
I think the reason you see dev/builders moving forward is because the process started years ago. When we see something break ground today it did not start last week. The DO process takes forever and many dev/builders were wrapping it all up when the market turned. Money is on the table and spoken for. I think many have no choice but to move forward...

Good point and doesn't the DO have an expiration? So if they do not continue with the development they may have to go through the process of receiving yet enother DO. Just wondering.
 
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