San Diego

The San Diego City Council on Tuesday abandoned plans to create a precedent-setting assessment district for the Tierrasanta Norte development after Deputy Mayor Judy McCarty reversed her position on the issue.

McCarty, who represents Tierrasanta and last month spearheaded support for the controversial district, switched her position after discussions with home buyers in the 1,693-unit development, bankers, tax attorneys and the developers.

The district would have raised $23 million in homeowners’ taxes to pay for roads, sewers and other infrastructure needs in the development. Traditionally, developers pay for those improvements and build the costs into home prices. The Lusk and William Lyon companies, which are developing the project, had asked for the unique arrangement.

Embittered buyers of the complex’s first 250 homes complained that creation of the assessment district had not resulted in lower home prices, and demanded that the developers pay for the infrastructure work. Others said the assessments, which would have averaged $1,700 to $2,000 per family, were not tax deductible.