http://www.luxist.com/2008/10/22/work-stops-at-vancouvers-ritz-carlton-tower/ Luxist Comments for Work Stops At Vancouver's Ritz-Carlton Tower http://www.luxist.com/media/feedlogo.gif http://www.luxist.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/http://www.luxist.com/2008/10/22/work-stops-at-vancouvers-ritz-carlton-tower/http://www.luxist.com/2008/10/22/work-stops-at-vancouvers-ritz-carlton-tower/
Living in Vancouver this is all over the news. The developer's marketing agent is quoted as saying that the project was halted because when all of the construction costs were tendered, the price of raw materials such as concrete, rebar, etc...were through the roof.

They "supposedly" are renegotiating those contracts to get better prices before continuing construction. With it being just a hole in the ground currently, it is the best time to halt a project of this magnitude.

I guess we'll hear over the coming weeks or months, if this really is the case, or if it is more. If I were the developer, I can tell you that I would be doing the same thing.

Selling out the other half of the project in a downward real estate market, at costs fixed for an increasing market would be a sure ticket to bankruptcy for most.]]>Oct 22nd 2008 5:26PMhttp://www.luxist.com/2008/10/22/work-stops-at-vancouvers-ritz-carlton-tower/http://www.luxist.com/2008/10/22/work-stops-at-vancouvers-ritz-carlton-tower/Oct 22nd 2008 5:29PMhttp://www.luxist.com/2008/10/22/work-stops-at-vancouvers-ritz-carlton-tower/http://www.luxist.com/2008/10/22/work-stops-at-vancouvers-ritz-carlton-tower/Unfortunately, with this crisis I don't believe in the continuous development of new building.]]>Oct 23rd 2008 12:39AMhttp://www.luxist.com/2008/10/22/work-stops-at-vancouvers-ritz-carlton-tower/http://www.luxist.com/2008/10/22/work-stops-at-vancouvers-ritz-carlton-tower/
Blatant misrepresentations by people whose businesses are built upon trust are the height of folly, and the very reason why investment banks no longer grace Wall Street.

People have memories, and a large crater in the centre of downtown Vancouver will be a visceral reminder of this folly, as the earlier unfinished facade in this location long has been.

Shame on the development community of Vancouver for paralleling the mistakes of Wall Street. At least they haven't sold swaptions to insure buyers against a real estate market collapse.]]>Oct 23rd 2008 12:20PM