When the Going Gets Tough…Be a Leader
May 2008

Despite headlines that indicated a stagnant +0.6% U.S. growth in GDP during the first quarter, many experts consider the reality to be still uglier. Whether the entire U.S. economy is in a recession or not, there is little doubt that our industry is…and it appears to be getting worse in Q2. Most land developers I’ve talked with agree that lenders are underestimating what lies ahead because their loan-loss reserves are nowhere near sufficient.

The Federal Reserve released its quarterly Senior Loan Officer Opinion Survey on Bank Lending Practices on May 5 and, as expected, historically soft demand and further tightening of lending standards were reported near or above historical highs for nearly all loan categories. Further pricing pressure on real estate through the year, with a trough in 2009, is expected by many.

It is against this backdrop of fear and uncertainty that leaders emerge. On May 2, Envision Central Texas Presented Community Stewardship Awards to people, projects and initiatives advancing the region's vision to preserve and enhance natural resources, economic vitality, social equity, and overall quality of living for generations to come. On the same day, at the Sustainable Land Development Leadership Conference under the auspices of the newly formed Sustainable Land Development International (SLDI), it was announced that, from a field of five outstanding finalists, Carma Colorado's Tallyn's Reach had won the 2008 Visionary Project Award for creativity, vision, and the implementation of best practices in land development.

It is this ability to advance in the face of adversity that separates the winners from the losers during times such as these. Past business cycles have shown that fortunes are to be made by those who can stick it out. While every situation is unique, the best advice remains "Hope for the best, but plan for the worst". As described by SLDI Board Director Skip Preble in The Last Word article entitled "Hang In 'Til 2010", history indicates that builders and developers who react quickly and effectively to changes in market conditions will survive, while those who postpone dealing with the crisis do not. Be proactive. Differentiate yourself. Be a leader!

Your participation and comments are welcome.

Terry Mock
Executive Director
Sustainable Land Development International

Promoting land development worldwide that balances the needs of people, planet & profit - for today and future generations.

People, Planet and Profit

Beyond Buildings

Welcome to SLDI

• Home Sustainable Home: Woodson Place
  (April 1, 2008) From buildings to landscape, Texas family creates a Conservation Subdivision to preserve the legacy of their ancestral homestead. Source: Sustainable Land Development International

• Big Home Builders not so Green, Study Finds
  (May 6, 2008) Americans may be trying to live greener these days, but none of the nation's biggest home builders has fully embraced sustainable design or construction, according to a study released Tuesday.
  Source: Palm Beach Post-Cox News Service

• Business is Unprepared for Financial Risks of Climate
  (May 1, 2008) The majority of North American finance executives expect to modify their business models in response to climate change, but more than half say they are unprepared to cope with the financial risks from current weather conditions, a survey has revealed.
  Source: World Business Council for Sustainable Development

• U.S. Renewable Energy could Quadruple in 10 Years
  (April 30, 2008) Solar, wind and other sources of renewable energy could double or even quadruple their presence in the United States in the next 10 years, an executive in General Electric's energy finance unit said Tuesday.
  Source: World Business Council for Sustainable Development

• Kenya's first 'eco-city' being built in Mombasa
  (April 30, 2008) Construction of Kenya’s first eco-city— a residential settlement that is environmentally, socially, economically and culturally self-sustaining— has commenced on the outskirts of Mombasa.
  Source: Nairobi East African, Kenya

• China tells Firms to Brace for Tough Times: Report
  (May 5, 2008) A Chinese government watchdog has warned major state-owned enterprises to brace for tough times given the likelihood of a worsening global economic slowdown.
  Source: Sino Daily

• United We Stand: When Cooperation Butts Heads with Competition
  (May 5, 2008) Phrases such as "survival of the fittest" and "every man for himself" may seem to accentuate the presence of political and social competition in American culture.
  Source: Jerusalem (SPX)

• Advertising Watchdog Sees Big Jump In Green Ad Complaints
  (May 5, 2008) The UK’s Advertising Standards Authority has released its Annual Report 2007. The ASA says it dealt with record numbers of complaints about environmental claims as advertisers increasingly sought to promote their ‘green’ credentials.
  Source: Environmental Leader

• Shell Pulls Out Of World’s Biggest Wind Farm, Draws Criticism
  (May 5, 2008) Two days after Royal Dutch Shell posted a 25 percent increase in first quarter profit to a record $9.1 billion, the company announced plans to sell its stake in the world’s largest planned offshore wind-power station, the Guardian reports.
  Source: Environmental Leader

• The Lost Supermarket
  (May 5, 2008) The declining number of neighborhood supermarkets has made it harder for millions of New Yorkers to find fresh and affordable food within walking distance of their homes, especially in minority and poor neighborhoods already beset by obesity.
  Source: New York Times [Registration Required]

• New Natomas School Roof is Green - and Growing
  (May 6, 2008) The H. Allen Hight Learning Center, part of a new school campus in Natomas, has a "green roof" covered in soil and plants that is designed to save energy and look soothing.
  Source: Sacramento Bee, California.

• Bush visits Greensburg, a Town torn and then reborn after 2007 Tornado
  (May 5, 2008) Greenburg, Kansas, is rising again, built this time with a raft of energy-saving measures incorporated in the designs.
  Source: Los Angeles Times, California

• U.S. Small Car Sales make Colossal Gains
  (May 4, 2008) Soaring gasoline prices and flagging consumer confidence drove the industry to new depths last month, with shoppers going for fuel-efficient, smaller cars.
  Source: Los Angeles Times, California

• Prince Charles 'Eco-Town' given Green Light
  (May 3, 2008) The Prince of Wales has been granted permission to create an 'eco-town' in Devon where every home comes free with a bicycle and wind-generated electricity.
  Source: London Daily Telegraph, England

• The Green House Effect
  (May 3, 2008) Move over swimming pools and health clubs - eco-friendly is the new must-have in the high-end residential sector.
  Source: New Delhi Business Standard, India

• Twister Impetus for turning Kansas Town Green
  (May 3, 2008) Since a tornado all but destroyed Greensburg, Kan. one year ago, killing 11 people and wiping out nearly everything in its path, a remarkable green transformation has taken hold.
  Source: All Things Considered, NPR

• Georgia Wetlands offer Cure for Drought
  (May 1, 2008) The SE U.S. has faced one of the most severe droughts on record. But one community has not had to worry. Nearly two decades ago, Clayton County began building a unique water treatment system that includes wetlands and reservoirs.
  Source: Morning Edition, NPR

• 'Green' turns into Gold
  (April 27, 2008) Local and national builders, who in a not-too-distant past were cranking out new homes with assembly-line like speed, are now spending time and money investing in green construction.
  Source: Cincinnati Enquirer, Ohio

• Builder Incorporates Green Principles into Homes
  (April 27, 2008) Truly going green is easier said than done, say Nils Richter and other contractors making an effort to make their structures more environmentally friendly.
  Source: Fort Myers News-Press, Florida