January 20, 2009 - John Laing Homes, Colorado Springs CO

John Laing Homes halts Colorado Springs projects

Laing was purchased in 2006 by Emaar Properties, a real estate company based in Dubai in the United Arab Emirates

John Laing Homes halts Colorado Springs projects

Consumer demand wanes for Harbor East high-end residences

California-based John Laing Homes, which became one of Colorado Springs' biggest builders in recent years, has suspended home construction locally while it reviews its finances.

Last week, Laing issued a statement saying it's "currently reviewing all potential options to meet its capital requirements" and would release details "in a timely and appropriate manner," according to national news stories.

Laing also has slashed staff, the stories said; Laing's biggest homebuilding markets are Colorado and California.

Contacted by The Gazette, Laing spokeswoman Linda Mamet added only that "we're reviewing our operations in light of market conditions."

Laing was purchased in 2006 by Emaar Properties, a real estate company based in Dubai in the United Arab Emirates.

Laing currently builds in four Springs-area developments: the 21,400-acre Banning Lewis Ranch that makes up most of the city's east side; the 210-acre Gold Hill Mesa on the west side; the 1,600-acre Wolf Ranch in far northeastern Colorado Springs; and the 2,650-acre Meridian Ranch in unincorporated Falcon, northeast of town.

Laing's decision is another potential blow to the Springs' single-family-home market and local economy.

In 2008, single-family-home construction tumbled to its lowest level in 17 years, and several regional and national home builders cut operations or closed up shop in the Springs.

Another builder leaving town could have a ripple effect: fewer construction jobs; reduced sales of home sites by cash-strapped developers; and decreased purchases of building materials, which means local governments collect less sales tax revenue and have less money to spend on services.

One plus for the home- building industry: reduced competition from national and regional builders gives hometown companies a bigger share of the market.

John Cassiani, a Banning Lewis Ranch Management Co. vice president, said he's been told by a Laing official that the company has closed its Denver office, laid off 60 percent of its Colorado work force and is shutting down operations in the state until it restructures its financing over the next few weeks.

That means the company will stop building homes for now and won't sign any new contracts with buyers, he said.

John Laing owns about 60 home sites in Banning Lewis Ranch, has built four models and sold five to nine homes, Cassiani said.

Four other builders - Capital Pacific Homes, Classic Homes, Todays Homes and Oakwood Homes - remain active in Banning Lewis Ranch, and Cassiani said a fifth builder is poised to purchase lots in the development.

"We will continue to get homes built in Banning Lewis," Cassiani said.

Developer Bob Willard of Gold Hill Mesa said he's learned that John Laing Homes needs four to six weeks to restructure its finances.

John Laing has given every indication it wants to continue to build in Gold Hill Mesa, where it owns about 38 single-family and townhome sites and has built several units, Willard said.

In the meantime, Challenger Homes of Colorado Springs will begin construction in Gold Hill Mesa as soon as next week, and a third builder is considering coming to the development, Willard said.

"Everything else is going pretty darn well," Willard said of Gold Hill Mesa. "We just need some product."

Original Story - Colorado Springs Gazette