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And where are those people going to live during the year or two it'll take to build that?

Good point. They could do the first building for the community, only displacing a few families. Then once they move in, go full blast on the rest.

That would delay the project.

They could hire this company:

http://www.theguardian.com/world/2015/apr/30/chinese-constru...

It was here in HN a while ago.

This seems risky from a safety perspective. According to Wikipedia, the status is "On Hold, Suspended until the Project passes relevant safety examinations and gains building permits."[1]

[1] https://en.wikipedia.org/wiki/Sky_City_(Changsha)

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