SAN DIEGO -- A local community is reeling after learning they will likely have to give up millions of dollars set aside for a much-needed park, 10News reported.

In 2001, Jose Lopez and the Fox Canyon Neighborhood Association applied for and received a $2 million state grant to build a park by March 2010.

"It's been a lot of work. We knew it was going to be, but it's turned into a real nightmare," said Lopez.

Affirmed Housing, a low-income housing developer, had offered to buy a piece of land, develop it and set aside some land for the park.

However, a series of problems dragged out the process, including the cost of buying the land and a controversial park access road that would add to traffic.

Additionally, 10News confirmed the lack of state funding and the current economy has put the park project on hold.

Lopez said, "It's a big blow. We are shocked because this was our best hope. The kids will pay the price. They need a place to play, and we don't have it."

City officials and neighbors have scouted out an alternate site about 300 feet away on Wightman Street.

But a lawsuit alleging groundwater contamination has put that site on the sidelines, along with more than $2 million.

While considered a long shot, City Park and Recreation Director Stacey Lomedico said she is holding out hope for the Wightman Street site.

Meanwhile, local leaders are lobbying the state to extend the March 2010 deadline.