Credit Squeeze May Hamper EP Housing Market, Bliss Boom

By ABC-7 Reporter/Anchor Ken Molestina

EL PASO — City officials and land developers are beginning to wonder if a looming economic crisis may end up casting a shadow over Fort Bliss’ military boom.

Some experts believe the concern over real estate development is not immediate in the Sun City. Still, a report filed by the Military Workforce Task Force suggests there is no room for construction projects to slow down.

“This was just kind of a rallying point,” said Dan Olivas in regards to the report. He heads the Military Workforce Task Force.

The report suggests the “choke point” will begin in 2010 and all new rental and housing development needed to accommodate the boom at Fort Bliss needs to begin now.

However, the recent economic downturn and credit squeeze has resulted in a scarcity of financing for large-scale construction projects.

“The greater climate of the economy did not come at a good time when you have a rapidly expanding military base,” said Matthew McElroy, whoisthe city’sDeputy Director of Development Services.

McElroy said some builders might be hesitant to continue building for the troops, as they are being more conservative about their construction spending.

“The problem is with the financial markets, and trying to get apartment builders the money they need,” added McElroy.

Troops coming in are expected to receive housing allowances in the $800 range. That might get them a lease in today’s current real estate market, but not in the futureas market prices are expected to go up.

That presents a gamble some investors are not willing to take on.

“We’re asking the risk takers to step up and meet the challenge,” said Olivas, “we made a promise and we will fulfill that promise.”

In the meantime, finding creative incentivesto get investors and builders to build new housing is the key to meeting the goal of housing themore than 20,000troops expected to arrive at Fort Bliss by 2010.