The Herald Tribune reports from Florida. "Conceived in the halcyon real estate days of 2003, The Azure was aimed at capitalizing on Sarasota's rising status as the new Gulf Coast haven for the cultured and wealthy. Only now, the one acre of Lido Key that was to become The Azure sits empty, and for sale for $11.5 million."

"'It came down to there were too many units on the market, and nothing was moving very quickly,' said Kevin Daves, the founder behind the Azure."

"As the rush that was Southwest Florida's real estate market slows to a crawl, The Azure isn't the only condominium project either in jeopardy, for sale or just plain shelved. At least a dozen other high-profile local residential projects are either being revamped, delayed or scrapped."

"The problem is one of 'threshold,' the number of units a developer must sell before accessing bank loans and beginning construction. 'You'd better have a pretty strong market if you're planning to start a large building,' said (developer) Tom Brown."

"The typical threshold for new condo projects is 50 percent. For a building with 100 condo units, that means 50 contracts."

"'With most lenders today, you not only have to have pre-sales, you have to prove your pre-sales,' said N.J. Olivieri, president of Sarasota-based Horizon Mortgage Corp. 'They're now looking at who the buyer is, do they have the financial wherewithal, are they going to be an investor only. In that respect, the market has dramatically changed.'"

"Murray Klauber pulled the plug. He opted out of a ground lease at the Tampa port on Thursday, the same day he was expected to sign the deal. He had entered an operating agreement with a five-star hotel."

"Yet after working with his lender and others, he realized the project was going to cost too much, and that the condo market is too soft."

The News Journal. "Flagler County has gone from the fastest-growing county in the nation to the county with the state's third-highest unemployment rate."

"Layoffs in the construction industry continue to plague Volusia and Flagler. The slump in the housing market has hit not only Realtors and home builders, but has had a trickle-down effect to other businesses."

"Colleen Kuhn with the staffing service Robert Half International Inc. blamed Flagler's high unemployment on the drop in new home sales. 'They were really hit,' said Kuhn. 'Home builders were stuck with a lot of inventory.'"

"'The effect rolls down. We've gotten calls from employees in everything from air conditioning to the financial and clerical sectors,' she said."

The Tampa Tribune. "The meltdown in the nation's subprime mortgage industry hit the Tampa Bay area hard Friday, as two subprime lenders announced nearly 400 layoffs in Tampa."

"A third mortgage lender, H&R Block Mortgage Corp., also announced 141 job cuts, but a spokesman said they were not tied to the subprime industry troubles. All told, the three companies announced 534 layoffs Friday."

"First NLC Financial Services, a Deerfield Beach-based company, offered no explanation for its layoffs Friday. According to a recent regulatory filing, First NLC suffered an operating loss of $18 million last year. It attributed the loss to the increased frequency of early loan defaults and an increase in the severity of the defaults, regulatory documents show."

The St Petersburg Times. "Option One Mortgage said it will close its Tampa facility and lay off all 141 workers there by June 2, including 76 loan officers. Parent company H&R Block of Kansas City, Mo., said Friday that plans to sell the money-losing unit by today had been buffeted by 'recent events in the subprime mortgage industry.'"

"News of the impending closures came just two weeks after Fremont Investment & Loan announced it would shutter its two Tampa offices, lay off 301 workers there by May 18 and seek a buyer."

"In letters to Fremont customers, Advantage One Mortgage Corp. warns that Fremont's problems 'could affect how or to whom you make your payments.' 'As (Fremont's) value is tumbling,' Advantage writes, 'the future seems quite uncertain.'"

The News Press. "Homebuilder Centex filed notice with the state Friday that it has eliminated 141 jobs, effective immediately, from Naples to Sarasota."

"That amounts to half of the company’s work force in the region; the cuts are across the board, from construction crews to office staff, said Ken Smalling, a corporate spokesman."

"'We had to decrease volume to match the declining demand,' Smalling said. 'We had to adjust to the market.'"

"Projects where Centex is building include TwinEagles, a 1,115-acre community in North Naples; The Quarry, a 1,700-acre development in North Naples; Hawthorne, a community in Bonita Springs; and Lely Resort & Country Club in south Naples."

"Centex isn’t alone in laying off workers. Last year, Bonita Springs-based WCI Communities Inc. eliminated almost 600 workers and First Home Builders, Lee County’s largest builder of single-family homes, laid off about 75 workers."

"Michael Reitmann, executive vice president of the Lee Building Industry Association, said the recent wave of layoffs by homebuilders is a result of a slowdown in the construction industry. 'It’s a delayed reaction to what the market actually is.'"

The Naples News. "'It’s a reduction in force due to the significant market slow down,' said Tim Ruemler, Centex division president for Southwest Florida."

"'I just know a lot of people have been laid off in our business,' Ruemler said."

"It’s happening statewide. In December, Divosta Building Corp. announced it was letting go 218 employees at its Palm Beach Gardens headquarters. That was after it laid off 135 employees in its Sarasota office."

"Ross McIntosh, a Naples real estate broker, said the layoffs are much greater than what people realize because they’ve been done quietly. 'It is very widespread and it’s very deep,' he said."

"Some companies have halted projects indefinitely, McIntosh said. 'This is a very, very bad time to be starting projects,' he said. 'We have so many existing projects that are already having a tough time.'"

"Builders pulled nearly 30 percent fewer permits for single-family and multifamily residences in Collier County in 2006, compared to 2005. Lee County saw a more than 36 percent decline last year, according to the U.S. Census Bureau."

"'There have been no significant signs of improvement,' Ruemler said. 'It’s still a depressed market.'"

"The layoffs didn’t surprise Brenda Talbert, executive vice president of the Collier Building Industry Association. 'Startling, no,' she said. 'Unfortunate, yes. Every builder company I’ve been talking to has been saying they are tightening their belts,' Talbert said."

"The cutbacks will have a long-term ripple effect, she said. 'Housing and construction is one of the largest industries in Florida and this is harsh,' Talbert said. 'It’s going to have a roll-down effect on everything else in the economy. It’s going to affect the guy who sells furniture, carpet and window treatments.'"

"In other words, she said, the other shoe hasn’t dropped yet."

"The good news is that now is a good time to buy a home, Talbert said. With the busy season nearing an end, builders are eager to make a deal. They’re offering a variety of incentives and discounts. Come Easter, most of the winter residents are heading home. 'We don’t have a lot of time,' McIntosh said. 'The push is on.'"