KB Home has dropped plans for now to build a subdivision upriver from New Orleans, a proposed project that was to be one of the largest housing developments in the hurricane-ravaged Gulf Coast region.
The Los Angeles company said Thursday that it let expire a contract to jointly purchase 3,000 acres of farmland west of New Orleans. Instead, the builder and its partner, Shaw Group Inc. of Baton Rouge, La., said talks were continuing with the owner to acquire a smaller parcel.
"We're really committed to the area, but things didn't work out," KB Home spokeswoman Caroline Shaw said.
With the expiration of the contract, she said, the landowner has the right to sell to others. Calls to representatives of the owner, Joseph Marcello of New Orleans, were not immediately returned.
Plans for the initial phase of the project -- in an area locals call the West Bank -- had been approved by the county planning board. Developers had hoped to build as many as 12,000 homes.