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B.	BACKGROUND
The Diamondhead property was purchased by Purcell Co., Inc. in 1969. The project was envisioned primarily as a resort-oriented second home community. Coastal Mississippi has been a popular vacation destination for years, particularly with midwesterners. Its location is ideal as a second home for this group given the convenient access via Interstate 55, a direct route to both Chicago and St. Louis. Diamondhead has capitalized on a strong regional identity with this market by operating successful marketing campaigns in targeted areas. Its appeal has expanded to the local market where it has become a primary home community.
Purcell's lot sales program has proved highly successful with over 5,600 total lots sold. The sales program has veen enhanced by Purcell's building program of both single and multifamily residential units, mostly multifamily townhomes. Purcell has constructed roughly 690 housing units, including all 523 of the attached units. Diamondhead's inherent appeal is apparent as success has been achieved using several different development strategies.
C.	Location
Diamondhead's location makes it unique among upper-tier second home residential communities. Residents enjoy living in what is widely considered the most prestigious development in the entire state of Mississippi (see Figure 1-1).
It offers the best in country living while providing recreational amenities unequaled in the area. The entertainment and cultural activities of New Orleans are easily accessible by Interstate 10, which splits Diamondhead and passes through downtown New Orleans 58 miles to the west. Many of Diamondhead's residents work in metropolitan New Orleans. The commute to downtown New Orleans is a 60 minute trip, and the growing northeast fringe of the metropolitan area in St. Tammany Parish is only a 30 minute drive.
Diamondhead is also near the employment centers of Gulfport, Long Beach and Biloxi, Mississippi, 20 to 30 miles to the east. The Gulfport/Biloxi area is well known for its military bases and port facilities which attract some of the highest caliber military personnel in the country. As a result, the area has developed a national reputation as a location of choice among retired military personnel. Biloxi/Gulfport is also well known as a golf-oriented vacation destination due to its easy access via Interstate 55.
Mobile, Alabama is 75 miles east of Diamondhead and easily accessible by Interstate 10. The communities of Bay St. Louis and Waveland are within 10 miles of Diamondhead offering expanded sources of employment. Nationally recognized firms, including G.E. Plastics, Scott Paper, Eaglebrook and Calgon Carbon in conjunction with NASA, operate major facilities 15 miles west of Diamondhead adjacent to John Stennis International Airport. These facilities serve as a magnet for highly qualified professionals. The expansion of professional staff brings with it demand for the quality of life and convenience available only at Diamondhead.
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