Under the deal, Kahli gets an OK to build 1,000 more homes, or 209 fewer than he requested. The shelter component includes 631 multifamily units and 369 single-family residences. Kahli's office tells GlobeSt.com home sales have been averaging 500 per year for the past several years.

In return, Kahli agrees to create 185,000 sf of light industrial space, a reduction from his original plan for 250,000 sf. The developer wanted to shave the industrial component to 5,000 sf.

Kahli tells GlobeSt.com he is pleased with the compromise. "What we worked out is just about the right mix" for the current development phase at Avalon Park. He says the town center buildout will take about six to seven years; the 4,800 shelter units, about four years. He adds the compromise still guarantees the venture will succeed.

"Only time will tell, based on the economy," Kahli says.

Kahli has also agreed to build a new middle school and a vocational-technical center to be operated by Orange County Public Schools. The deal was reached at a public meeting Tuesday.

The 2,000-acre Avalon Park, initially conceived as a 9,000-acre mixed-use development, has been monitored by local developers as a model of new-urban development where residents are supposed to be able to work, live, shop and relax in a self-contained community.