The UFO houses were constructed beginning in 1978. They were intended as a vacation resort in a part of the northern coast adjacent to Danshui, and were marketed towards U.S. military officers coming from their East Asian postings. However, the project was abandoned in 1980 due to investment losses and several car accidents death during construction, which is said to have been caused by the unfortuitous act of bisecting the Chinese dragon sculpture located near the resort gates for widening the road to the buildings. Other stories indicated that the site was the former burial ground for Dutch soldiers.
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