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Financial crisis may slow Houston's booming development scene

09:40 AM CDT on Friday, October 3, 2008

By Courtney Zubowski / 11 News

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Financial crisis may slow Houston's booming development scene
Oct. 2, 2008

HOUSTON -- For years, the Houston area's development growth has changed the landscape. However, for some, it may not just be the landscape that is changing, but rather the project itself.

“It's a dramatic change,” said developer Ed Wulfe. “Everything is having to be revisited, and re-looked at to see if there is a way to make it work. Make it make sense.”

Wulfe is the man behind the 21-acre Boulevard Place development near the Galleria. It has retail space and a flagship store for Whole Foods.

Wulfe also plans to build a condominium complex and a five-star hotel. Those plans, right now however, are ever-changing.

“The condo market has gotten very soft and the banks are taking a second look at all kinds of financing, whether it's condos, whether it's hotels, whether it's retail projects (or) residential projects,” said Wulfe.

Houston, said Wulfe, is a growth-oriented city and if development slows down, the city feels it across the board.

“If the bailout can pass, I think this can unclog the system pretty quickly,” said Julie Cripe, the CEO of Omni Bank. “I think we'll see some immediate effect pretty quickly the market is all about confidence and perception right now.

“Investors are scared of the market because there is this clump of bad things in the pipeline, so we have got to put some Drano in there and get the confidence back.”

So, as the sun sets on the eve of the House financial market rescue vote, Cripe said in time, if that confidence returns, so could the lending.

 

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