The economic downturn has caused most sub-contractors to lower their labor costs in presenting bid proposals. Material costs are down, for the most part, due to the decline in construction activity. Bottom line is a reduction in total construction costs for those contractors seeking projects on which to work.
Sounds Good, right?
The other side of the sword. Lenders are requiring more equity by the developer to qualify for funding. Insurors have tighter underwriting criteria, including strong financials, in considering performance bonds which are a key to any successful project.
And there you have the challenges facing any developer.
This may never get out of the starting gate. Unless, the city finances the construction costs and allows the developer perhaps as many as 5 years before they have to re-finance.
It's the taxpayers' money. Not to worry; the City will likely proceed in a manner least desired by the voting, tax paying populace.
More information about formatting options