Resources for Community Development was to construct 125 units of permanent supportive housing in conjunction with the university's plan for student housing at the park, which is on the National Register of Historic Places.
The developer cited a Feb. 24th appeals court decision, overturning the development's approval, in making its decision.
RCD spokeswoman Lauren Lyon said Friday, "This creates significant delays and new challenges that negatively impact our capacity to move forward."
UC Berkeley officials said they understand RCD's decision and will look for a new developer.
University spokesman Dan Mogulof said in an emailed statement, "The university's commitment to donate a significant portion of the site for the construction of supportive housing is unwavering.”
Berkeleyside reported that UC-B is planning to build a 1,100-bed student housing complex at People’s Park.
The path toward implementing the university's plans has been rocky.
Last year, protesters thwarted the university's efforts to start work, which began with cutting and removing trees. Seven people were arrested in a melee Aug. 3th. Two law enforcement officers were hurt, university officials said.
