Economy delays Carmel Creek

Development delayed by economic woes

Progress on the Crossings at Carmel Creek development project is being hindered by the national economic downturn, though the project will continue to move forward.

Bill Sulzbacher, president of Atlantic Coast Developers — the company planning the development — said the project will be slowed by the slackening economy.

“We are positioned to move forward, just on a slower timeframe,” he said. “… We are, like everyone else, dealing with the ramifications of the economic downturn on a national basis.”

Matthew Lewis, Community Development Director for the City of Hutto, said his department is still moving forward with the project as planned.

The Crossings at Carmel Creek, a 466-acre mixed-use project located between SH 130 and FM 685, south of U.S. 79 in Hutto, will incorporate retail and residential components, as well as green space, but Sulzbacher said it is not possible to theorize about when ground will be broken.

“Everybody is clearly assessing their situation … and the prospects for the timing on the recovery,” he said. “We’re taking into consideration the appropriate date for everyone.”

Residential construction, an element of the Carmel Creek development, has slowed everywhere, even in the high-growth region of central Texas.

Retail development has also slowed as a result of the poor economic outlook. With retail sales down, Sulzbacher said, retailers are less likely to expand and open new stores.

“Retailers have more constrained expansion plans,” he said. “The lending requirements require everyone to put in more equity than a year ago. If you have to put in more equity, then there are fewer projects you can do.”

The recent bankruptcy of the project’s lender, Lehman Brother Financial, is not expected to be a factor in the developments moving forward.

“Lehman is [the parent company of] our lender, but we’re not part of the bankruptcy proceedings,” Sulzbacher said. “This loan was in a separate fund. The bankruptcy of … Lehman Brothers has not had an impact on the Crossings at Carmel Creek project.”

In spite of the economic downturn and subsequent slowdown of the Carmel Creek project, Sulzbacher said the development will ultimately be a success and a great boom to the Hutto community.

“We know we have a great location and we know the future is going to enable us to be successful with the overall development, but we need to bide our time,” he said. “The growth prospects for Hutto continue to be very strong. We’re positioning ourselves to move forward on a slower timeframe.”

Eastern Williamson County Local Business Search