PORTLAND, Maine -- A host of development projects in Portland appear to have taken on a holding pattern until the economy turns around.
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Video: Local Development Projects Still On Hold
Stop and Shop executives announced earlier this week the closure of the Kennebunk store at the end of the month, putting 140 people out of work. Also, News 8 first reported that the grocery store chain is scrapping plans to build a store at Morrils Corner in Portland.
When the economy tanked, banks tightened up, leaving developers in limbo. A condo project on the East End was supposed to get under way last fall, but they're still waiting.
For local developer Peter Bass, that means he's unsure when he'll be able to turn his parking lot at the corner of High and Danforth streets into the condominium complex he has planned for years.
"Right now, we are in the financing twilight zone. Everything that you've heard about the banks being tight with their money is true," Bass said. "Now, I'm really in a no-man's land and I'm not quite sure when I can begin. I had really high hopes that this spring would be a good starting time."
Spring had come and gone, and so have other developers who scrapped their grandiose plans to turn the old Jordan's Meat Factory into a $110 million Westin Hotel replete with 97 high-end condos. The property has since returned to the market.
Despite several projects pulling out, plenty of development continues in the city. Officials said they have $500 million worth of projects in the pipeline.
"That's a significant amount of investment that is positioning the city very well for the future in terms of future economic growth," said Greg Mitchell, Portland's economic development director.
One example at Town and Shore Real Estate includes another proposed condo project. An off-site model unit for the Bay House project has granite counters and stainless steel appliances.
"We know the interest is there, and we feel confident the developer will take the plunge as soon as it is viable," said Sandy Johnson, a real estate broker.
Johnson said a quarter of the 82 units were already under contract, saying the market is there for buyers -- mostly people who want to downsize.
"Many of them have cash. They're selling a home that they've lived in for many years. Quite a few of the folks don't need financing at all," Johnson said.
Even though the developer of the Bay House project hasn't broken ground yet off India Street, the back hoe is ready to go soon.
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