A major developer has just made an offer to buy my entire
neighborhood, some 62 house. They plan to tear down all the houses and
build some large mixed-use development. Obviously the neighborhood has
very mixed feelings about this. Some say they will never sell, others
are ready to cash in.

I know this sort of thing happens all the time and I want to know what
to expect in the coming months. If one person out of 62 refuse to sell
will the whole deal fall through? How do developers typically try to
coax people into selling? Should I hire a lawyer?

What references are available to me? Have there been books written on
past large scale neighborhood developments?

You might be suprised to find that these developers are in bed with
the local community leaders.  They most likely will get 80 -90% but
that 10-20 will hold out.  It will come down to immenent (sp?) domain.
And the state/local jurisdiction can/will declare those houses torn
down anyway, and then those hold outs will settle for (less money
likely).  Just my .02 and worth every penny you paid for it.

Taxes on these mixed use facility will far outweigh any taxes your
development is paying now.  When it comes down to it revenue for the
local jurisdiction will weigh out.