Plan dropped for 25,000 South Bay homes

March 19, 2008 6:12:50 AM PDT
The slumping housing market and costly planning delays are being blamed for killing a plan to develop Silicon Valley's largest chunk of undeveloped land.

After spending $17 million during the last five years, a group of developers have given up plans to build 25,000 homes in San Jose's Coyote Valley.

A spokesman for a coalition of developers that had been pushing to build in the valley said they didn't want to keep on pouring money into the proposed development.

Over the years, the Coyote Valley proposal had sparked fierce political battles between developers and environmentalists.