I am sure someone else will chime in with additional information. I believe that development is still on hold.
Here's a picture of the development http://www.flickr.com/photos/afagen/2742081913/
I believe the name is the "Delta Coves" ( I believe by SunCal?) and the last time I was out there the entire 300+/- acre site was locked and they had a chain-link fence around it.
I hope this helps...
Yeah, that is a sad story. Those were beautiful waterfront homes with docks. Saw them when they were available. Must have proforma'ed out in to 500's because I dont think they could get 400k for them now. If the developer is still solvent they must have decided to wait than to sell at deep discount.