State senator Dina Titus introduced a bill to freeze the rural residential zoning that had already been in place at allowed one house for every two acres.
[3] In July 2001, James Hardie Gypsum announced that it would sell 2,200 acres of mined mountain land to John Laing Homes for approximately $50 million.
[1][2][4] Environmentalists, as well as residents of Blue Diamond, had previously opposed development of the mountainous region, and they had concerns about John Laing's future plans for the site.
The council advises the Clark County Commission on land issues regarding Blue Diamond, Red Rock Canyon, and other nearby areas.
[7] John Laing needed the land to form a contiguous property for the new community,[8] but said that it would proceed with the project regardless, simply reducing the size in the event of rejection from the BLM.
[6] However, county planning staff members and the Red Rock Citizens Advisory Council were skeptical that the impact of the new community could be mitigated entirely.
[13] In mid-August 2002, executives of John Laing and Quadrant Planning hosted a meeting with approximately 130 people, mostly Blue Diamond residents, to discuss the proposed community.
[6] The Clark County planning staff recommended rejection of the project on August 20, 2002, expressing skepticism that John Laing could keep the nearby Red Rock Canyon in pristine condition.
[17] During a zoning meeting in early September 2002, John Laing requested that the county Planning Commission delay consideration of the project for two to four weeks.
[24] On September 30, 2002, as a result of the opposition, John Laing withdrew the project from further county consideration, with the possibility of presenting the same or similar proposal in the future.
[26] The county considered adding the mine to the Red Rock Overlay District, which would restrict the size and design of any development on Blue Diamond Hill.
[26] The county also proposed that the property be purchased by the federal government and be declared part of Red Rock Canyon, preventing development of the land.
The organization had proposed buying a conservation easement for the area, which would allow James Hardie to retain ownership and continue mining, while also permanently blocking any development of the land.
In the event that her bill were defeated, Titus planned to introduce it as a popular referendum in Clark County, letting voters there determine whether large-scale development should take place.
"[41] Most members of the Clark County Commission eventually offered support for Titus' bill, with the exception of James: "Anytime the Legislature decides they have a particular concern about any area in any one of our districts, they just pass a law.
[33] County planners and BLM officials believed that Rhodes would seek zoning for a higher density of homes to cover the $50 million cost of the land.
[36][51] James and Kenny's involvement in the Blue Diamond Hill project, and their connections to Rhodes, led to the revival of the county's ethics task force.
[48][57] On April 28, 2003, U.S. senators John Ensign and Harry Reid proposed a plan for the state to buy Rhodes' property and allow the county to perform environmental reclamation.
[61][40] A few days after Rhodes filed for zoning, county planners determined that Hidden Hills would have to undergo the major-projects process because of the amount of acreage, and its location far away from infrastructure such as major roads, as well as water and sewer lines.
[63] Rhodes filed an appeal asking that his zoning applications be reviewed at the next commissioner meeting in two weeks, where the members would also be voting on James' overlay proposal.
[69] Nevada State Assembly member Chad Christensen later said that most of the comments from Rhodes' supporters were form letters, saying, "They were an obvious orchestrated effort to kill the bill.
[77] Later that month, Rhodes sought approval for 96 acres on Blue Diamond Hill to be rezoned for an industrial park, in accordance with the county's master plan for the acreage.
[80] In May 2005, Rhodes' company Gypsum Resources filed a state lawsuit challenging the constitutionality of Titus' bill and the Clark County ordinance.
[84][85] Development would not take place on the land located closest to Blue Diamond and Red Rock Canyon, and Rhodes would be prohibited from using State Route 159 for access to the community.
[96] In July 2011, after much input from the public, Rhodes unveiled plans for an unnamed community with 7,000 homes, as well as schools, shops, restaurants, offices, and parks.
[119] After the decision, Save Red Rock asked a court to issue an injunction that would block the project from undergoing the county's planning process.
[137] In March 2017, the Nevada Legislature proposed a bill that would freeze zoning changes on property located within five miles of national conservation areas.
It also alleged a breach of contract relating to the 2010 settlement, stating that the county failed to act in good faith while reviewing documents for the proposed community.
[102] As part of its legal fight, Gypsum Resources sought text messages made by Jones prior to the April 2019 vote, although these were later found to have been deleted.
[154] A United States magistrate judge ruled in April 2023 that Jones intentionally deleted the text messages against county policy, out of concern that the disclosure of their contents "would yield a negative or unfavorable outcome for him".