[minesweeper]

Lennar may turn to China to jump-start the Treasure Island project:

Chinese in Talks to Fund U.S. Homes
State Bank in Talks to Provide Lennar $1.7 Billion for Two Long-Stalled Projects
By DINNY MCMAHON and ROBBIE WHELAN, June 25, 2012

Lennar Corp., one of the U.S.'s largest home builders, is in talks with the China Development Bank for approximately $1.7 billion in capital to jump-start two long-delayed San Francisco projects that would transform two former naval bases into large-scale housing developments, according to people familiar with the discussions.

The negotiations aren't final and the financing arrangement could still fall through. But if completed, the deal would reflect a changing dynamic between the U.S. and Chinese economies, as an American company turns to China for help funding a long-delayed and partially publicly funded project that otherwise wouldn't get done.

The developments, Treasure Island and Hunters Point Shipyard, also have the potential to alter San Francisco's housing market by providing nearly 20,000 new homes, a sports arena and millions of square feet of office and retail space in a market that is land-constrained and has had limited new construction. The city has committed hundreds of millions of dollars, in the form of tax-increment bonds, to the projects, which in total are expected to cost $10.5 billion over the next few decades.