LAS VEGAS (KLAS) — Clark County has reached a proposed $80 million settlement with Gypsum Resources, the company involved in developing land next to Red Rock Canyon National Conservation Area, according to a news release early Monday evening.
The settlement follows developer Jim Rhodes’ victory in court involving County Commissioner Justin Jones, who was accused of deleting text messages in 2019 related to the development. A May 24 ruling in Clark County District Court found that Jones “willfully destroyed evidence and did so because he viewed that evidence as being favorable to Gypsum.”
County commissioners will consider the settlement at a June 18 meeting.
The land in question is on Blue Diamond Hill, about three and a half miles from the Red Rock Visitors Center. Clark County approved the development in October 2023 after a decade-long fight.
“In light of the recent court decision finding the willful destruction of evidence against the County and a recent Supreme Court ruling on government land use decisions, this settlement avoids the risk of a potential judgement in excess of $2 billion in damages to taxpayers and the risk of future liability while addressing concerns about population growth in that area and preserving the scenic and natural landscape,” the county’s statement said.
“By allowing lower-impact development and redirecting traffic, the agreement aims to maintain public access to the Red Rock Canyon National Conservation Area, benefiting both current and future generations,” according to the statement
The settlement agreement would reduce the number of houses from 5,026 down to 3,500, and also divert traffic so the entrance to the development would be on State Route 160 (Blue Diamond Road) instead of SR159 — the extension of Charleston Boulevard that runs through Red Rock Conservation Area.
There is also a provision that would allow the county to buy 192 acres — described as “the most environmentally sensitive land” owned by developers — for $1.
“While an $80 million payment is significant for the County, by reprioritizing and reallocating funds for planned capital projects and other economic development projects not yet underway, the settlement will not have a detrimental impact on services nor will it require a reduction in staff,” the county’s statement said.
It was Jones who led the effort to stop the Gypsum Resources plan to develop near Red Rock. Rhodes, owner of Rhodes Homes and the developer of Spanish Hills, Rhodes Ranch, Tuscany Village and other projects, secured county approval for the project in 2011, but the battle continued for years. At one point, a state law was approved to stop the development, but the Nevada Supreme Court ruled that law was unconstitutional.
When Jones was elected to the commission, he moved to deny the project. The commission vote was unanimous.
The lawsuits filed since point to Jones’ conflicts in the matter. He did pro bono work for Save Red Rock, a conservation group formed to stop the development. Save Red Rock sued the county to stop the development
A year ago, Rhodes filed a lawsuit in federal court over Jones’ actions. But that lawsuit was rejected and then refiled in District Court.
Rhodes sought $2 billion in damages, with an additional $400,000 per day in interest.
