Is the city's proposed affordable housing development across from Palermo going bye-bye?

What's going on with the proposed townhome development at Indian Canyon Drive and San Rafael Road, across from Palermo Palm Springs? You may have noticed that the "Project Under Consideration" sign on Indian Canyon Drive has been taken down. The background: The city bought the property 10 years ago and wanted to build affordable housing there. It would for-sale units for moderate-income families, not rentals or Section 8 housing. The owners of the adjacent historic Wexler steel homes and others have been concerned about the development because of potential noise, overcrowding and blocked views. They've been fighting the city. The City Council last year instructed a committee to come up with some changes. This is how the city's Web site described the proposed development: "3.63-acre parcel at the SE corner of Indian Canyon Drive and San Rafael Road. Developer: Community Dynamics Inc. The (city) Agency purchased a 3.63 acre site from an affordable apartment developer in 2001 in order to build affordable multifamily housing. A Disposition and Development Agreement with the developer expired in 2003 when the developer was unable to reconstruct lost financing on the project. In May, 2008 the Agency approved an agreement with Community Dynamics of Santa Monica to develop and build a new residential community on the parcel. The new community will include 52 townhomes which will be sold to moderate income families that comprise a significant portion of the City’s workforce. The proposed community responds to the existing neighborhood’s architectural context and incorporates an aggressive green building program which addresses the Agency’s desired energy savings, water conservation, indoor air quality and recycling objectives." Now, Positively Palermo has learned from an insider that the fight may be over, with the city possibly abandoning the plans and putting the land up for sale. We'll keep you posed if the local media picks up on this and determines it's true. Miss Penny Lane says: She'd like to see a branch of Koffi coffee shop chain at that corner so she can charge up every morning before heading off to the day job.