Category: News Author : Duncan Riley Posted: December 22, 2008
Tags : economic crisis, real estate bailout
Once the door is open, everyone wants a cut. Add Real Estate developers to the list of groups asking the US Government for a bailout, with loans due this year unable to be refinanced due to the credit crunch.
Developers are warning that thousands of office complexes, hotels, shopping centers and other commercial buildings are headed into defaults, foreclosures and bankruptcies due to $530 billion of commercial mortgages will be coming due for refinancing in the next three years with $160 billion maturing in the next year.
According to reports, commercial mortgages are usually underwritten for five, seven or 10 years with big payments due at the end. At that point, they typically need to be refinanced. A borrower’s inability to refinance could force it to give up the property to the lender.
A letter sent to Treasury Secretary Henry Paulson, and signed by a dozen real-estate trade groups, paints a bleak scenario: “Right now, we believe there is insufficient systemic capacity to refinance expiring, performing commercial real-estate loans,” said the letter. “For many borrowers, [credit] simply is not available.”
I could ask when will this madness stop, but we know the answer: when the US Government runs out of money.
Dec 23, 2008
Sustainable Hope and Help amid a Sea of Despair and Demands
Dubuque, IA – December 23, 2008 – Amid all the bad news and demands being placed on the President-elect Obama transition team this holiday season, Sustainable Land Development International (SLDI) offers a reason to hope for the future by formally submitting its offer of assistance to help boost the team's economic recovery plan and policy agenda – and save the country billions in the process.
SLDI is a cooperatively-owned organization of entrepreneurial developers, engineers, builders, planners, architects, financiers, attorneys, and others in private and public service, who deliver practical land development solutions to some of the most important social, environmental and economic issues the country faces. In answer to the President-elect’s call to “join in the work of remaking the nation.”, in a formal proposal to the Obama team, the organization has offered a public-private partnership, its Sustainable Land Development Best Practices System and the breadth of its research and collective knowledge to combat the country’s economic woes, enhance environmental stewardship and increase social responsibility – all at the same time.
Obama’s plan calls for a massive public investment in infrastructure as a way to create more than a million new jobs and reposition the country more competitively for the future. The plan has received broad acceptance, but is now beginning to come under increased scrutiny.
“President-elect Obama is beginning to receive criticism for his plan to invest up to $1 trillion dollars to stimulate the economy and implement the kind of change the American people mandated when they voted him into office in November,” said Greg Yoko, SLDI president of industry relations. “He’s being criticized from the left, who say the recovery plan isn’t socially or environmentally friendly enough, and from the right for the unprecedented level of government intervention and deficit spending his plan currently advocates. SLDI can offer the incoming U.S. administration the comprehensive systems and technologies to enable the public sector to enhance its effectiveness and quality – and spur the kinds of public-private partnerships and holistic development processes that will reduce government intervention, save taxpayers billions, and deliver greater environmental and social stewardship at the same time.”
According to SLDI, sustainable land development best practices optimize the decisions and implementation of the plans Obama has outlined at http://www.change.gov. The new SLDI best practices system offers the metrics to help development projects, such as those included in Obama’s massive infrastructure initiative, achieve greater ecological stewardship and social equity, but do so through the simultaneous achievement of greater economic results. These holistic “triple-bottom-line” results have long been sought but rarely achieved due to the narrow focus of each of the specialized participants in the land development process. However, through an industry-developed decision model and best practices system, SLDI believes it has, for the first time in history, developed the “holy grail” blueprint for the future U.S. economy, as well as the rest of the world. This holistic triple-bottom-line approach lays a solid foundation for the long-term sustainable development of the very infrastructure of our civilization. Sustainable development starts with our national and global infrastructure. If it is unsustainable, ultimately nothing else can be.
About Sustainable Land Development International (SLDI) – Sustainable Land Development International is a developer-led and cooperatively owned organization of industry stakeholders dedicated to promoting and enabling land development worldwide that balances the needs of people, planet and profit – for today and future generations. SLDI publishes Sustainable Land Development Today and Sustainable Urban Redevelopment magazines, produces the Land Development Breakthroughs educational events, and delivers a number of sustainable development technologies and services such as green building, ecosystem restoration, clean and renewable energy systems, carbon sequestration, soil enhancement, water purification and retention, and others.
FOR IMMEDIATE RELEASE
Contact: Greg Yoko
President, Industry Relations
Sustainable Land Development International
http://www.SLDI.org
888-388-8787
gyoko@sldi.org
Feb 10, 2009
Bailout are being aired because of the downturn of the economy..