It isn't just the centre of Liverpool which will be hit by the credit crunch. Plans to redevelop Otterspool Prom &, in particular, the site of the 1984 International Garden Festival, have been affected (http://www.liverpoolecho.co.uk/liverpool-news/local-news/2008/07/11/we-ll-defy-crunch-at-city-festival-site-100252-21324597/ ).
Langtree McLean, the developers of the derelict 67 acre site, had planned to construct 140 houses & flats. Its managing director, John Downes, showed confused thinking & jaw-dropping naivety:
"No one is immune to the current market conditions, but there will always be a market for high-quality residential schemes in prime locations.
"We believe in the quality of our product and are confident in its success."
The Otterspool Prom area has long been one of the large middle class enclaves in the south end of the city, so the description of it as a prime location isn't, for once, mere hyperbole; the average price of a property in the Aigburth Vale area is about £250,000.
However, what is ignored, frighteningly ignored, is the impact the crunch will have on new developments as well as house prices. All the bullish noises about regeneration & growth will come to an abrupt halt when market forces hit home.
The site of the Garden Festival is likely to remain as it is for the forseeable future, & no amount of local spin will alter that reality.