Tuesday, June 10, 2008

Protecting developers from falling land prices

The Nature Conservancy provides a financial parachute for commercial developers who purchased land but then found that declining real estate markets made commercial development impossible. While American homeowners have to suffer the full effects of recent real estate price corrections, developers find that land trusts are eager buyers to bail them out of financial blunders. See the Wall Street Journal article May 9, 2008 at http://online.wsj.com/article/SB121028811193679127.html?mod=hps_us_inside_today.

Cristina Mestre of The Nature Conservancy is quoted as saying that as a result of the market drop TNC is being approached en masse to buy development rights from owners of large tracts of land. These conservation easements are a relatively new tool in the real estate industry and there are both positives and negatives to consider from the perspective of public policy.

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