Eastwood Of Evanston Pushed Back
A probable result of the slowing condo market is the delay of a new condo complex that was slated to begin work by March 5th. The Daily Northwestern reported that the Evanston City Council approved a request to push back the start of the Central Street project, Eastwood of Evanston, for as long as 13 months.
Normally a developer must begin construction work on a project within a year of getting a building permit. But developer Robert Horne wasn’t certain that he could garner enough sales for his project by the original deadline. Located at 1700-1722 Central Street, the complex will contain 47 units plus retail space.
A few stipulations were attached to the extension that was granted. Horne must put up a construction fence and keep the site maintained effective from 15 days after the new construction date of May 1st in 2009. Mr. Horne countered that he might need another 30 days past May 15th to secure enough sales to warrant actually starting construction on the project. The committee agreed to revisit the issue in May of 2009 and act accordingly with their findings.
This situation is a typical example of the problems facing developers today, especially developers in smaller communities, but also those who build larger Chicago Homes. The weaker market conditions make it more difficult for developers to sell the magic 50 percent of units to gain financing, and lenders are sometimes even requiring that more than half the units be contracted before they will sign on to fund the project.
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