Market conditions don't slow pace of big BWI resort | Maryland Gazette (HometownGlenBurnie.com)

Kirk Halpin, general counsel to Asha Cos., said final details of financing for the resort, which will include several hotels, a conference center, indoor aquatic park and upscale restaurants, should be completed within the next few weeks.

Mr. Halpin said discussions with financiers have been ongoing, and have not been affected by the national credit crisis tied to the residential real estate market. Groundbreaking was pushed back from the original date set for last fall because of the complexity of the project and not market conditions, he said.

Jay Patel, CEO of the Howard County-based developer, characterized the project as "going full steam ahead."

"We don't anticipate any delay or problems at all," he said last week.

Progress on the project, considered a lynchpin of the aerotropolis concept that would concentrate mixed-use development in 700 acres around BWI Thurgood Marshall Aiport, comes as commercial construction in the county continues to be strong.

Applications for commercial construction permits more than doubled in the first two months of the year compared to 2007, rising from 71 to 156, said Tracie Reynolds, a spokesman for the Office of Planning and Zoning.

Robert Hannon, president and CEO of the county Economic Development Corp., said there is 15 million square feet of commercial space being planned in the county portion of the Baltimore-Washington Parkway corridor. These projects are being developed because of the growth and lively activity of the BWI area and Fort George G. Meade.

"These projects have been conceived because of the strength of the BWI sector," he said.

Mr. Hannon said residential development is of greater concern now than commercial development. The national credit crisis was in large part brought on by a falling housing market and overinvestment in mortgage-backed securities by major financial institutions.

A project similar in scale, the $400 million Annapolis Towne Centre at Parole, recently encountered a setback with a national homebuilder. Hovnanian Land Investment Group LLC, backed out of plans to build a $23 million condo project at the 33-acre mix of office, retail and residential space.

Mitch Weber, president of Heffner and Weber Cos., which owns the land that Asha Cos. is developing at BWI, said "fast track" discussions with county and planners and economic development officials will resume once the financing is completed.

Plans for extensive grading needed on the site should be submitted for county approval six to eight weeks after that, he said.

Mr. Weber, whose firm is the design, development and construction manager for the project, said he expects to release a more detailed timetable this spring.

Other developers have seen a softening of demand for commercial space.

Jerry Wit, senior vice president of St. Johns Properties, said his company has seen a decrease of about 3 percent in occupancy of its properties, which amount to 13 million square feet. They have also slowed down the pace of new buildings.

"We are judiciously and purposefully selecting our new locations and reviewing how much inventory we have out there," Mr. Wit said. The company meets every week on that topic.

Mr. Wit said five years ago tenants would ask how much space they could have and how soon they could move in. Now a lot of tenants say they are downsizing and ask how cheap rent is. Even the retail market has changed substantially.

"The Mom and Pops who used to use their houses as ATMs have absolutely disappeared," he said, "and the national chains are only considering A-plus locations."