ST. LUCIE COUNTY — Cloud Grove, a controversial town of about 12,000 homes proposed for a citrus grove near the St. Lucie-Indian River County line, is now "on hold," the developer announced Monday.

The Florida Conservancy and Development Group, a partnership between Lennar Homes and Centex Homes, asked the county to place the project "on hold" in its current form. Steve Kaufman, executive committee member of FCDG, said the group would try to find someone willing to take over the project, buy the land for development or agricultural use or move forward themselves with a different project.

"There was kind of a lot of factors that came together," Kaufman said. "I don't think there was one thing in particular. The timing just wasn't right now to keep pursuing this."

The plan was to build about 12,000 homes on about a 6,000-acre site in northern St. Lucie County, as part of the Rural Land Stewardship Program. The rural lands program transfers development rights from Adams Ranch to Cloud Grove, preserving much of the 16,466-acre ranch from future development in exchange for giving developers higher density in the new town.

Kaufman said the current real estate market played only a small part in the decision, as Cloud Grove wouldn't fully have been in place for decades.

He said the "political environment" and contractual arrangements between the parties were part of the reason, though he declined to elaborate.

It came as welcome news to some who had opposed the way the plan was being carried out.

"I'm pleased we're taking a second look at this program. I've always supported the concept, but felt it was hijacked by developers," said County Commissioner Doug Coward. "I was the only commissioner to vote against it.

"I hope we can remove all trace of the Rural Land Stewardship program here. I think it's one of the biggest growth-management mistakes we've made. Either scrap it completely or significantly alter it. I absolutely do not support it in its current form."

Cloud Grove still was in the process of gaining approvals — including as a development of regional impact, and permits from the South Florida Water Management District and the Army Corps of Engineers. If everything went smoothly, construction still wouldn't have begun until about 2010, Kaufman said.

Commissioner Paula Lewis, who has been supportive of the plan, said she recently became aware of accessibility issues, making sure the development had enough roads for future demand. Still, she had hoped these were issues that could be worked through.

"We'll just have to wait and see how it goes," she said. "I was supportive, thought it was a great concept, but once again, the devil's in the details," she said.

Commissioner Charles Grande, who was against the project while he was on the Planning and Zoning Commission prior to becoming a commissioner, said he's happy the project is on hold. He was concerned with how many units the developers wanted on the land.

"The way this plan was finally constructed for this specific application, there's no benefit to the county. There's no benefit to taxpayers," he said. "There are lots of other alternatives in the long run that will preserve the ranch as it is and keep the family on the ranch and keep it viable. They don't need a rescue program."

Although the plan met Florida Department of Community Affairs land management requirements, the agency noted in a report last year that a "thorough review" of the project to see if it fits the goals of the stewardship program was not done.

"Also, the review did not thoroughly evaluate the issue of urban sprawl including whether there was a demonstrated need for additional urban uses in St. Lucie County," the report noted.

The developers plan to meet with county officials to talk about the status of all applications and review their options.

The decision does not mean Adams Ranch is in any danger of disappearing, though there are currently no other similar conservation plans on the table, said Peter Harrison, vice president of Adams Ranch, Inc.

"We feel this is a wonderful concept. We are disappointed that it's not moving forward," he said.

The developers also owned land on the Indian River County side, but had no plans to develop there. However, the project would have still had a major impact on the county and some were pleased to hear it was stalled.

Indian River County Commissioner Gary Wheeler, whose district lies across the county line from the bulk of Cloud Grove, said he was "not disappointed" to learn of the project being on hold. Wheeler was commission chairman when Cloud Grove was first proposed and has objected to the idea that people would drive north through land now zoned for agriculture at one home on 10 acres.

"They were going to dump all the traffic from Cloud Grove into our county," he said. "And they were going to build all those homes before there was any commercial (to serve them.)"

Ernie Cox, president of Family Lands Remembered which helped facilitate the creation of the rural lands plan in St. Lucie County, said he didn't think the decision to halt Cloud Grove would signify the end of the rural lands program in the county.

"I'm the eternal optimist," he said. "I think we'll find a way to work through this. I think it's a great program to protect resources like the Adams Ranch and be able to sustain mixed-use development."

Staff writers Anthony Westbury and Henry Stephens contributed to this report.

• It preserves environmentally sensitive land in exchange for allowing more homes to be built on another site.

• The program originated in Collier County, where Florida panther habitat was preserved in exchange for more homes being built in the new town of Ave Maria near Naples.

• In the case of Cloud Grove, it would give Adams Ranch cash for protecting part of its 16,466-acre ranch in perpetuity. The money comes from selling "stewardship credits" to the developers, who are able to add more homes to the town of Cloud Grove. The amount is based on the amount of land and its environmental value.

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