So, since the financing was not fully in place on 12/31/06, the developer now has the option to cancel all of the sales contracts. I think you are going to see CalPers force this issue, then start over. Different design, different developer, and a phased approach (which is what Saca should have planned for to begin with). I think one of his bigger mistakes was to try to go whole hog at once. If he had proposed a phased approach, his lender probably would have only required sales of 50% of one tower before allowing him to go forward. Then once it was actually under construction, sales would become a little easier since potential buyers could see something was actually happening.
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