What would be considered developing the site? Parking it? Creating a simple but nice homepage stating the domain is for sale + possible uses? Building an entire website?
I think you paid to much, I am seeing really good domains going for considerably less than they were a few months ago, and demand from buyers has really dried up.. domain seems to be worth around $250 or so for a reseller.
I like the domain, if you won it at an auction for that price it means there is demand for it.
Maybe you did pay a bit much for it, but remember America is only getting fatter .
I would try to develop it if you can, put a Wordpress blog on it and have blog posters post about healthy foods, vegetarian recepies etc... If you can't thats okay too, with age the value of it will only go higher!