Westcor says it’s not withdrawing from its role developing a master-plan on 12,000 acres of state-owned land on Tucson’s southeast side but is suspending work until the real estate economy improves.

Both Jamie Hogue, deputy commissioner for the state Land Department, and Mitch Stallard, vice president of development for Westcor, said the two sides agreed to the suspension “within the last seven days” because they were at a natural stopping point.

Hogue said the state Land Department and Westcor still have a contract and “there has been no expression on Westcor’s part to change that.”

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The agreement to develop a master-plan for the area bordering Davis-Monthan Air Force Base, Rita Ranch and the University of Arizona Science and Technology Park was announced 10 months ago. The hope was to identify about 3,000 acres for development that could be put up for auction to the highest bidder by January 2009.