In a surprise move, developers who had sought to build 25,000 homes on farmlands in San Jose’s Coyote Valley pulled the plug on their plan today saying economic uncertainty, market forces and expensive planning delays have made the project impossible to pursue.
The Coyote Housing Group had already spent $17.2 million on the plan and just days ago were poised to dump another $2.5 million in hopes of developing the 7,000-acre area. But days before the developers were set to sign papers committing to the deal, they backed off.
“The Housing Group has come to the conclusion that the plan, as it stands, is no longer economically viable,” the group said in a statement this afternoon.
The proposal has pitted a coalition of housing developers against environmentalists in a battle over the best use of the 7,000-acre area.
Councilman Forrest Williams, who represents the area, and who has championed the proposal, said it was “their choice.”
“Of course I am disappointed,” Williams said. “We have done a lot of work.”
Plans to develop Coyote Valley will likely be rolled into the city’s broader general plan talks currently under way.
Contact Joshua Molina at jmolina@mercurynews.com or (408) 275-2002
