The surrounding area initially sparked concern about the location's suitability, due to various environmental issues at the time.
The property and surrounding acreage were designated by Henderson as a redevelopment area, making the project eligible for city funding.
[1][3] Palm City was meant as an affordable version of Rhodes Ranch, another community in the Las Vegas Valley.
[1] However, the site for Palm City was located near sewage ponds and a longtime manufacturer of chemicals which had contaminated the land.
Ground water was also found to have high radioactive levels, although Rhodes Design and Development Corporation planned to proceed with the project, as local officials had yet to declare a health concern.
Residents became worried about the presence of chemicals, and also become concerned about the size of the Palm City project and the increased traffic that it would bring to the area.
[4][8][9] In addition, state and local environmental officials said there was the possibility that the Las Vegas Valley's water supply would become contaminated if Rhodes was not careful.
Palm City would be developed adjacent to the Las Vegas Wash, and officials stated that Rhodes would need a plan to prevent contaminated water from entering the wash.[10] Meanwhile, the city had concerns about a 26-building condominium complex that Rhodes wanted to include in the community, stating that his 13-acre (5.3-hectare) site was not large enough to support the project.
[12] In 2000, Rhodes Homes sold the undeveloped Palm City land in a $30 million deal, after its lender became insolvent.
[17][18][19] A month later, Henderson mortgage executive Tom Hantges filed a civil lawsuit alleging that the redevelopment agency broke state laws.
"[23] Managing partners at Commerce Associates stated that Hantges' lawsuit was part of an effort to force a settlement in an unrelated racketeering suit that the company had filed against him.
[23] The city requested that the suit be dismissed,[24] and a district judge later ruled against Hantges, stating that his lawsuit was filed nearly a year after a 90-day deadline for such action.
[23][25] Hantges had also been concerned about a conflict of interest regarding the redevelopment agency, although the Supreme Court of Nevada ruled against him as well, stating that there was no such issue as the board members recused themselves from discussions and voting.
[25] The United States Environmental Protection Agency evaluated nearly 400 acres (160 hectares) of evaporation ponds, located west of Tuscany.
Because the site used to be a gravel pit, much of Tuscany was built at least 40 feet (12 m) below street level, a fact that would work in favor of the community in the event of an ammonia leak, as the chemical would rise into the air.
Residents of Tuscany welcomed the news of Rhodes' departure, as they felt that he had mismanaged the community's homeowner association (HOA).
Dunhill Homes, a newly formed company in Dallas, was named later that year to manage and further develop Tuscany.
[48][49][50] At the time, Century Communities had approximately 450 vacant home lots left to develop at Tuscany Village, with residential construction expected to continue into 2019.