New Suburb Plans Dropped Amid Market Downturn

"Located on a panoramic expanse of meadows and ranchlands between Gilroy and Hollister just east of Highway 101, El Rancho San Benito was believed to be larger than any pending development proposal in the Bay Area.

Planned for up to 20,000 residents, it had become a flash point among environmental groups who have worked over the past decade to limit sprawl in San Benito County as Silicon Valley commuters crept increasingly south in search of cheaper homes.

Now, what environmentalists could not accomplish, the housing crisis has.

Late last week, after working to build community support since 2005, developer DMB Associates of Scottsdale, Ariz., announced it was pulling its development proposal."