Housing Slump Prompts Postponement of Major Nevada Development

A slumping housing market has prompted developers to indefinitely postpone plans to build a major industrial, commercial and residential project in Hawthorne, about 140 miles south of Reno.

Groundbreaking for the $175 million project pursued by Peninsula Floors of Livermore, California, had been scheduled to begin in January. Plans had called for the construction of warehouses,
manufacturing plants, a hotel-casino, a shopping complex and up to
2,000 houses.

Shelley Hartmann of the Mineral County Economic Development Authority says the company is rethinking the project and putting it
on hold until the economy improves.

She says Peninsula Floors' sales volume is down about 50 percent
from a year ago, and company officials plan to eventually move forward with the project on a smaller scale.

Company CEO Bob Conner did not return phone calls.

The decision to postpone the project was a blow to the struggling town of 39-hundred, whose main employer is the Army Ammunition Depot.

(Copyright 2007 by The Associated Press. All Rights Reserved.)


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