Developer sues commissioner over Red Rock

Monday, April 14, 2003 | 11:11 a.m.

Developer Jim Rhodes is suing a Clark County commissioner to block the introduction of a county ordinance that could thwart high-density construction outside the Red Rock Canyon National Conservation Area.

Alleging a conflict of interest, Rhodes' lawsuit seeks to bar Commissioner Mark James -- until recently considered an ally of the developer -- from introducing, discussing or voting for the Red Rock Overlay District ordinance. The ordinance would set development standards for private property in the conservation area and Blue Diamond Hill.

The suit is the latest twist in the saga of the hotly debated prospect of development on more than 2,000 acres on top of the hill. The village of Blue Diamond, at the bottom of the hill, has been the epicenter of resistance to the development, but thousands of Las Vegas residents have signed on to an effort billed as protecting Red Rock from encroachment from residential construction.

Red Rock, which attracts more than 1 million visitors annually, is considered an environmental jewel just a few miles outside of Las Vegas.

Attorney Steve Morris said last week that James, a lawyer, provided advice to Rhodes on how to get zoning approval to build a residential development on the property.

"Mr. James had given advice for a zoning change incompatible with the proposed ordinance," the suit argued.

"This is a special purpose ordinance, directed towards a single individual and a single piece of land," Morris said after filing the suit. "What (Rhodes) is asking for is the same opportunity as other landowners and developers in the county -- that he has the same opportunity to make his case before the county commission, just as every other property owner has in the county."

The suit argues that James worked for Rhodes and provided advice on how to secure zoning needed for the development of more than 2,000 acres on Blue Diamond Hill, which Rhodes bought last month for $54 million.

The site is an active gypsum mine, which until the purchase belonged to James Hardie Gypsum, a multinational wallboard manufacturer. An effort to get county approval for an 8,400-home development last year failed in the face of stiff public protest.

Rhodes' suit seeks to at least delay introduction of the proposed Red Rock overlay. The ordinance is scheduled for introduction Wednesday, but Morris said a hearing on the lawsuit is set for Tuesday morning.

The suit seeks "a preliminary and permanent injunction prohibiting Mark A. James from introducing, voting on or advocating" the overlay ordinance.

James did not return numerous phone calls, but Clark County counsel Mary Miller said the commissioner did not provide legal advice to Rhodes, but only discussed the development as a candidate for public office last year.

The conflict-of-interest charge might not stop with James. At least three other county commissioners -- Chip Maxfield, Bruce Woodbury and Rory Reid -- work with firms that have done work for Rhodes in the past. The three other commissioners said Friday that they do not know if they can participate in discussion on any issues affecting Rhodes.

But Reid and Woodbury, both attorneys who have not worked directly for James but whose firms have done some work for the developer's companies, said they believe they can participate in discussion and votes on the Red Rock ordinance.

"I would like to participate," Woodbury said. "That is what I was elected to do and I certainly have a strong interest, a concern (for) the Red Rock area."

Both Reid and Woodbury have indicated that they support the proposal. Maxfield said he has concerns about the property rights of landowners in the area and about residential construction near the conservation area.

"I said when I was running as a candidate that I think we need to protect Red Rock and I'm going to do what I can to do that," said Reid, who with James took office in January.

Morris said all four commissioners should abstain from introducing, discussing or voting on a county ordinance that affects his client.

If Morris' position prevails, it would leave Commissioners Yvonne Atkinson Gates and Myrna Williams and Commission Chairwoman Mary Kincaid Chauncey to make the arguments for or against the proposal and introduce the ordinance.

At least two, Williams and Atkinson Gates, opposed a development proposal last year and have indicated support for the overlay ordinance.

Miller, Clark County counsel, said the county would defend James and, if necessary, the other commissioners on the conflict-of-interest charge.

"The clear intent (of the suit) is to interrupt the workings of the commission," she said.

She said the suggestion of multiple conflicts appears to be an effort to block commissioners from considering issues which would affect the developer.

"To have somebody set out methodically to create a conflict of interest -- that doesn't seem to be in the spirit of the ethics law."

One possible result of the suit could negatively affect Rhodes' development proposal: The attack on the county front is likely to fire up support for a bill in Carson City that would seek to limit development options on the hill.

Sen. Dina Titus, D-Las Vegas, said the suit demonstrates why it is important to have a state law limiting development on the hill.

"It just punctuates the need for doing it at the state level," she said. "It also shows me that Rhodes will stop at nothing to get his way at the county level."

Red Rock activist Pauline van Betten, a member of the committee that drafted the Red Rock overlay, agreed.

"The state is a large body. It can't be tampered with," she said. "This shows a basic flaw. The county commissioners can be elected but can't vote."

Titus said that Erin Kenny, a former commissioner who until January represented the Blue Diamond area from the seat now held by James, is lobbying hard against Titus' bill.

But Kenny, who recently narrated a film arguing for Rhodes' position on the bill and was a strong advocate for the developer while on the county commission, does not have the votes to kill the legislation, Titus said.

"They are still working us," Titus said, "but so far, so good. It has so much momentum that it seems like it will be impossible to kill it."