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Have you not heard of mixed density? There should be houses, semi, townhomes, 3 story walk-ups and apartment buildings. You could probably do all that and still keep 50% of the island nature.
Not only this, but in the second picture, that other 96% is ripe for rezoning - money men will not stop until they buy off enough politicians to develop it into something resembling the first picture.
Edit: I'm not saying I like it, I'm just stating facts.
We must save the natural beauty of this island from being destroyed by developers!
How??
By destroying it ourselves first!!
The premise of the OP is that it's going to be developed and the question was which type of development is preferable. No development is obviously preferable, but we were having a discussion about the actual topic at hand. There's no need to indict me as a capitalist thugs for it.
The shores become resort property. The rest becomes a mini-mall. The resort buys the apartment complex a year later. With any houses, all houses get bought by cooperations and rented out as overpriced Airbnb houses. Fuck we can't have anything nice with unfettered capitalism.
Edit: Sorry, off-topic rant.