Gaylord Entertainment has canceled its plans to develop a $1 billion resort and convention hotel in the bayfront area of Chula Vista, Calif., just south of San Diego. The company cites “prolonged approval processes, complicated regulatory and legal structure, and excessive costs” as the factors behind the decision.

This is the second time Gaylord has withdrawn from the project, according to The San Diego Union-Tribune. The first was in May 2007 when the company could not reach an agreement with unions after more than a year of negotiations. This time, area officials believe the company’s decision to be final.

Construction plans called for a 2,000-room hotel, a 200,000-square-foot exhibit hall, several restaurants, a spa, and 8,000 square feet of retail space. The project was greenlighted by the Port of San Diego in November 2005, and was expected to open in 2010.

“We are very disappointed to have made this decision since the greater San Diego region is such an important convention market,” said Colin V. Reed, chairman and CEO of Gaylord Entertainment, in a statement. “While many will likely attribute this announcement to the rapidly deteriorating economy, the fact is that the complexity and costs of the project were the main drivers of this decision.”

Gaylord’s verdict on the Chula Vista project comes less than two months after the company announced plans to build a resort and convention hotel in Mesa, Ariz., which is scheduled for completion in 2012. The company says the decision regarding Chula Vista has no bearing on its other announced development initiatives.

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