News Stories from Last Week, August 13 to 19
Costs May Slow County Roadwork
Six major roadway projects which are proposed to provide
relief to commuters in the outlying areas of the valley will either take longer
than expected or will need to be scaled back as a result of rising construction
costs. Material shortages caused by
booming growth in Phoenix as well as across the pond in China are raising
prices faster than revenue is being generated.
Additional roadway projects around the valley will also be affected.
http://www.azcentral.com/arizonarepublic/news/articles/0815transportation0815.html#
Credit Woes Push Lender to Borrow
Countrywide, the nation’s largest mortgage lender, borrowed
$11.5 billion last Thursday, accumulated through 40 different banks, in order
to continue to make new loans.
Increasing mortgage default rates, tougher lending standards, and
over-valued homes are sending shockwaves through the lending industry.
http://www.azcentral.com/arizonarepublic/business/articles/0817biz-markets0817.html#
Rules Get Tighter For Mortgage Lending
Sub-prime loans have all but disappeared, and now getting a
mortgage has become difficult even for borrowers with good credit. Many potential homebuyers are experiencing
the frustration of qualifying for a loan, then being unqualified the next
day. Banks are requiring 750+ credit
scores and large down payments. People
wanting to refinance are also having trouble obtaining a new loan because of
low credit scores or because they are upside-down on their existing loan. Borrowers of “Jumbo” loans, which are loans
for properties over $417,000, are facing higher interest rates because Fannie
Mae and Freddie Mac do not guarantee loans above that amount.
http://www.azcentral.com/arizonarepublic/news/articles/0817homeloan0818.html#
Fed Steps Up, Trims a Key Rate
The Federal Banked propped up financial markets this week by providing liquidity, or short term loans, to banks for continued access to access to funding. This was a critical move in ensuring that markets still functioned, and exhibited confience in the market on behalf of the Fed.
http://www.azcentral.com/arizonarepublic/business/articles/0818biz-fed0818.html#
Construction Tops Out At New Downtown Hotel
The new Sheraton Hotel in Downtown Phoenix reached a
milestone last week when its final support beam was put in place. If I hired the developer on this project, I
would want my money back. In fact, if
any tax incentives were given to the developer of this project, I want my tax
dollars back (I want them back anyway).
Architects are often accused of being unrealistic, designing without
regard to the bottom line. Developers
certainly know how to worship the bottom line, but they are about as creative
as my big toe. From the looks of this
hotel, it appears the failed designs of urban housing projects from the 1960’s
are once again in vogue; only this time, they are used as luxury hotels.
http://www.azcentral.com/arizonarepublic/business/articles/0814phx-sheraton0815.html#
Bold Predictions Made for Gateway
The City of Mesa and development company DMB Associates
share a grand vision for the area surrounding the Williams Gateway Airport in
East Mesa. The City of Mesa envisions a
brand new, 21st century city within a city, complete with high-rise
corporate headquarters, million-dollar executive homes, and a world-class
research university. Sounds Great! I’m all in!
DMB Associates owns the former General Motors Proving Ground near the
Williams Airport which consists of approximately five square-miles.
When Mesa officials tout “high-rise” corporate headquarters,
how high are they talking? I like the
idea of several, high-density, urban cores throughout the valley. I think urban sprawl must subside given the near impossibility of providing adequate infrastructure to accommodate further outward growth at the rate at which growth has occurred.
http://www.azcentral.com/arizonarepublic/business/articles/0818biz-mr-dmb0818.html#
Date Set for Auction of Trust Land
A 112-acre site northwest of Scottsdale Road and Loop 101
has an auction date of November 8.
Westcor has plans to develop its Palisene Shopping Center there. The auction is for a 99-year lease.
How much retail can you pack in northeast Phoenix/North
Scottsdale? Desert
Ridge, CityNorth, One Scottsdale, Palisene? Another question is how much retail can Loop
101 accommodate? We shall see.
http://www.azcentral.com/arizonarepublic/local/articles/0820landauction0820.html#
