development.log not being recorded with mongrel

I change into my app directory and run script/server and mongrel boots
up fine. In the browser, when I interact with the app, none of the
queries are recorded in the development.log

I am using custom subdomains and edited my httpd.conf by adding this
block of code:

<Virtualhost 127.0.0.1:80>
SetEnv RAILS_ENV development
DocumentRoot /Users/Justin/work/kicksite/public/
<Directory /Users/Justin/work/kicksite/public/>
Options ExecCGI FollowSymLinks
AddHandler cgi-script .cgi
AllowOverride all
Order allow,deny
Allow from all
</Directory>
</Virtualhost>

I then added my_subdomain.domain.dev in netinfo manager. I also
restarted apache with sudo apachectl restart but with no luck. Any
ideas what is going on?