Housing Bust Helps Conversationists: NY Times

[amborin]

"From the Florida Everglades to the bluffs overlooking the Deschutes River in Oregon, conservationists are snapping up prime property for preservation, often at a fraction of what the asking price was at the real estate market’s height.

On Wednesday, the threatened bog turtle got a reprieve when conservationists scooped up 166 acres of marshland in Frankford Township in northern New Jersey, where developers had planned to build luxury homes. Hours later, city officials and environmentalists in Boise, Idaho, were rejoicing as they closed a deal to protect 1,300 acres of wooded foothills beloved by local hikers.

The victories reveal a green lining of sorts in a credit crisis that has depressed real estate prices, prompted foreclosures and derailed development projects across the nation.

The purchases by conservationists and state and local governments assure that thousands of acres will be put aside in perpetuity for parks, watershed protection or simply preservation of open space."

Although the real estate bubble burst in 2008, it was only in the last 6 to 12 months that many developers and banks became desperate enough to slash prices deeply enough for the trusts, Mr. Rogers and several other conservationists said.

Suki Molina, vice president of the Foothills Conservation Advisory Committee, which joined with the City of Boise in spending $10 million to preserve open space, said her group noticed a change in the way local landowners were approaching the committee early this year.

“The prices were lower,” Ms. Molina said, “but what has really changed is the attitude of the developers — they want to get out. Before this year, they would call, say they had a great piece of land and wanted top dollar. Now, they just want to sell.”

So what seemed like dream property forever out of their reach — including waterfront sites near cities or land bordering untouchable parks — is suddenly attainable.


snip

http://www.nytimes.com/2010/01/01/us/01preserve.html?ref=todayspaper

[zeos3]

1. It beats talking about the weather, I guess...

:+

How about them Bears???

[ashling]

2. Oh, damn - you caught it before me!

:rofl:

How 'bout them Dolphins, hmmm?

[Bobbieo]

3. Now, Native Amerians can buy back their ancestral lands and are doing it!!!!

[happyslug]

4. One way for Banks to get some cash and NOT have to downgrade the rest of their properties

Sorry, in a transaction like these, the bank who holds the loan can reduce the value of that loan (and get what the property is worth in cash) while NOT having to reduce the value of their other holdings under the Accounting rule that requires "Lower or cost or market". The banks (or developers, often the same people) can take the cash these properties are worth (much below cost, given how bad the prices have fallen) WITHOUT having to devalue similar properties down to the same approximate cost. Thus these bankrupt bank can retain higher values on their remaining assets (and thus appear on their books as having more assets then debts) while selling land to willing buyers (i.e. the conservationists) at the value those properties are worth in today's market.

While this is a result of playing with their accounting system to preserve the values of their remaining assets, it permits protection of such properties at a substantial discount (The banks are in need of Cash, but are unwilling to sell assets at substantial losses IF such losses will force the banks to reduce the value of their other assets (i.e. Selling to the Conservationists can be written off as a one time "gift" to such groups and thus the price such properties are sold for do NOT really "affect" the values of the banks other assets). Accounting games, and I expect more in the future.

[TxRider]

5. Yup

5000 acres that I know of have also been snapped up for offroad parks for 4x4's and such to tear up here as well.

I'm sure real estate development speculators are having field day snapping up land as well.