BLM: No conflict of interest in Blue Diamond proposal

Friday, Aug. 16, 2002 | 10:03 a.m.

The Bureau of Land Management does not have a conflict of interest with an engineering firm studying a controversial development proposal because the federal agency has no contract with the firm, a BLM spokesman said Thursday.

Phil Guerrero said G.C. Wallace Inc., a company doing engineering analysis for John Laing Homes' proposal to build up to 8,400 homes near Blue Diamond, is doing feasibility studies for an associated land swap. But those studies are being paid for by James Hardie Gypsum, the company that now owns the land that would be home for the proposed development.

John Laing Homes has an option to buy the James Hardie property for $50 million, if the developer can get Clark County approval to build the community. The land swap with the BLM is also critical to the developer to establish a continuous property to build homes, schools and commercial properties on about 3,000 acres.

Residents of the village of Blue Diamond, along with environmentalists, bicyclists and others, oppose the development because of potential impacts to the Red Rock Canyon National Conservation Area, which would be adjacent to the development on three sides. Many of those people said at a Wednesday evening community meeting that they believed there was a conflict of interest with the engineering firm.

Don Haselhoff, G.C. Wallace senior vice president, said at the meeting that his firm has not done anything wrong and has acted with "honesty and integrity."

BLM officials said the engineering firm was working for the federal agency on the land swap as well as on the development proposal.

But Guerrero said there is no direct contract between his agency and the firm.

"BLM has no contractual agreement with G.C. Wallace, also no agreement with James Hardie," Guerrero said Thursday evening.

He said the agency has made no judgment on the proposed development. The land swap, however, has been a matter of discussion between James Hardie and the BLM for several years.

The agency is putting together a feasibility report on the swap, which would ultimately have to be approved by BLM officials in Washington. G.C. Wallace's studies for James Hardie could show up in that final report.

Evan Blythin, chairman of the Red Rock Citizens Advisory Council and an opponent of the proposed development, said he believes the BLM should do its own engineering study or contract with an independent firm before the land swap moves forward.

He said the BLM should also study a proposal that came from the council to expand the Red Rock conservation area to include the land that John Laing Homes wants to build on.

The council, before meeting with the developers Wednesday evening, moved to forward the proposed expansion to the BLM. The BLM officials at the meeting, who included Red Rock Canyon manager Tim O'Brian, did not comment on the expansion proposal.

Guerrero said Thursday that the agency came to the meeting to get public input. The agency continues to seek that input, he said.