In September 2001, Armando Codina, CEO and chairman of Codina Group, faces a decision on whether to go ahead as planned with its $ 220-million project Beacon Lakes, 6.6 million square feet of warehouse and office park in the Miami Airport West submarket . Although his company has spent more than two years and nearly $ 2 million to get the project underway, various obstacles ahead to make him think about whether to continue. Codina believes that the unsuccessful project could damage his career otherwise unblemished. Among the issues facing them: the uncertainty regarding the expansion of the city limits to the west to include the site of the project, which is currently zoned to prohibit any type of development, as well as a heated environmental debate of the proximity of the site to the Northwest Wellfield protection and Everglades National Park. Codina must fully analyze economic transactions, subject to market conditions, and the ultimate profitability of the project in view of the concessions he is willing to do.
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by Arthur I Segel Source: Harvard Business School 21 pages. Publication Date: July 28, 2004. Prod. #: 805023-PDF-ENG
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