After spending more than $1 million and four years trying to sell Colusa County on the idea of a new gateway community six miles south of Arbuckle, an Orange County developer has pulled the plug on the entire project.

The collapse of the South Colusa Gateway Community project came directly on the heels of the abrupt departure of Jim Resney, Colusa Heritage Partners Senior Vice-president, three weeks ago. It also came after the sudden resignation of its local principals, Ben Felt and Cheri White, on Sept. 19, and the county's refusal to postpone the application process another 60 days at the request of the company.

Bruce Bonfield, who replaced Resney as project director, declined to comment on the company's abrupt withdrawal of the project, but stated in a letter to the board of supervisors dated Sept. 24, that the company needed more time to respond to the dramatic changes in the state's housing market and economic conditions.

Bonfield had asked for the public hearing to amend the General Plan, which was scheduled for Tuesday, be postponed so the company could modify its purchase agreements with landowners, and allow him, as the new project director, to get a better handle on the project.

The county denied his request Friday, resulting in the immediate withdrawal of the project.

Pacific Cascade Group, in conjunction with Colusa Heritage Partners, first announced the South County Gateway Community project in 2004. It called for as many as 6,500 new homes on more than 3,500 acres of industrial property and farmland.

The project called for stores, restaurants and gas stations be constructed in a new downtown district east of Interstate 5, with an outer ring comprised of new homes, condominiums and schools.

The new community would have attracted about 27,000 people to the county over a 30-year period.

Project supporters said the development would have brought about $5 billion in economic growth to the cash-starved county.

Opponents said the new city would have cost the county valuable farmland and destroyed the community's agricultural heritage.

In his letter to the board, Bonfield said the company committed extensive human resources and invested substantial capital in efforts to benefit the citizens of the county. Earlier this month, the company announced a scaled-down version of the plan, with 3,160 homes to be built on 1,000 acres, reducing the influx of newcomers to about 9,000.

Pacific Cascade's sudden request for a continuance ultimately cost the company the support of Felt and White, local principals of Colusa Heritage Partners, both of whom were prepared to support the project at Tuesday's hearing.

According to a letter obtained by a Public Records Act request, Felt and White wrote the Board of Supervisors on Sept. 19, stating the company made the decision to request a continuance against their advice and wishes.

"It has been our desire and we have given our word to (the county) that this application process would run according to Colusa County standards and with little wrangling, maneuvering and manipulation on our part," wrote White. "It seems that we may not be able to prevent (the company's) attempt, but we will keep our word and not encourage, nor support it. We did not expect this request (for a continuance) and do not see that it will serve any purpose. We do not believe that this project is bad for the county, and we will support any reasonable proposal that might bring improvement to the county's finances. However, (Colusa Heritage Partners') upper management does not see eye to eye with our views, and if they can't be made to understand the workings of this county, then they need to leave until they can."

On Monday, Felt and White both declined to comment, stating they were told by Pacific Cascade they were not authorized to speak for the company.

Supervisor Tom Indrieri, Chairman, said Monday, that he, too, did not see a point in continuing the application process another 60 days.

"They've had months to prepare," Indrieri said. "We've set the agenda and published the public hearing notice in the paper. It needed to move forward."

Contact Susan Meeker at 458-2121 or smeeker@tcnpress.com. Reporter Rob Parsons contributed to this article.