ASSETS HELD FOR DEVELOPMENT

Assets held for development, which is comprised of assets associated with the site of our Echelon project, consists of the following:



	December 31,
	2012		2011
	(In thousands)
Echelon Project Infrastructure
Land	$	453,013	$	215,969
Construction and development costs	499,842		500,787
Project management and other costs	115,712		115,712
Professional and design fees	93,545		93,545

Central Energy Facility
Construction and development costs	163,519		163,806
Total assets held for development	1,325,631		1,089,819

Impairment	993,861		—
Total assets held for development, net of impairment	$	331,770	$	1,089,819

Echelon Project Infrastructure and Central Energy Facility

At December 31, 2012, and 2011, the capitalized costs related to the Echelon project included land and related costs. The construction and development costs consist primarily of site preparation work, underground utility installation and infrastructure and common area development. Professional and design fees include architectural design, development and permitting fees, inspections, consulting and legal fees. The capitalized construction costs of the central energy facility include labor, materials, construction overhead and capitalized interest, all of which has been directly incurred by LVE. The assets of the central energy facility are pledged as collateral to the outstanding debt obligations of LVE, as further discussed in Note 9, Non-recourse Obligations of Variable Interest Entity.

In December 2012, we reconsidered our commitment to complete the Echelon project and concluded that we would not resume development. As a result of this decision, we now expect to dispose of the assets. The value of certain additional parcels of land adjacent to the Echelon site that are also expected to be sold have been reclassified to assets held for development at December 31, 2012 presentation purposes.

Due to the termination of the project, no additional project costs will be capitalized. Additionally, we have recognized an impairment of $993.9 million based on the difference between the book value of the assets and the estimated realizable value of the assets.