Well, in a letter (pdf) from Brian Bonfiglio, a Blackwater vice president, to the City of San Diego, the company stated that after additional analysis they were withdrawing their request for permits to build and operate a massive training facility there, that would have given them a huge presence on the west coast and along the southern border with Mexico. According to the Union Tribune, "the decision came down to noise – gunfire tests at the 824-acre site in Potrero exceeded county standards – and not fiery opposition from residents, environmentalists and those politically opposed to Blackwater's role as a contractor guarding officials in Iraq."
You may recall from our earlier coverage the loud community uproar Blackwater created with their plan to expand their base of operations to the sleepy hill town of Potrero. For a small population the volume of opposition was pretty impressive. And while this news is not exactly a direct community victory, it is surely just as satisfying for them I am sure. More background here, with some additional stories found at the bottom of this news link here as well.