Since 2002, there have been various housing proposals for Blue Diamond Hill, located in rural Clark County, Nevada. The proposed site is located west of Las Vegas, near the Red Rock Canyon National Conservation Area. The Blue Diamond Mine has operated on the land since the 1920s, but the property otherwise remains vacant. Each of the proposed housing projects have received some opposition from environmentalists, citing concerns about the impact that such a project would have on the surrounding area.
In 2002, John Laing Homes proposed a community known as Cielo Encantado, with more than 8,400 homes on nearly 3,000 acres. Some residents of nearby Blue Diamond, Nevada were opposed to the project, which would bring 21,000 new residents to the area. By comparison, the town of Blue Diamond had 300 residents. Opponents also argued that a residential development would have a negative impact on the nearby Red Rock Canyon. After much opposition, John Laing withdrew its proposal in 2002.
Within a few months, developer Jim Rhodes purchased 2,400 acres on Blue Diamond Hill and announced plans for Hidden Hills, a proposed community with up to 5,500 homes. This property is located near Red Rock Canyon, but not inside it. 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. Titus' bill was signed into law in May 2003, and the Clark County Commission passed a similar ordinance two days later. Rhodes filed a lawsuit in 2005, to overturn the law and ordinance. In 2009, a federal judge ruled in Rhodes' favor. The Clark County Commission subsequently approved a settlement deal with Rhodes that would allow development on the land, under certain conditions.
In 2011, Rhodes proposed an unnamed community that would have 7,000 homes. The proposal received some opposition, and Rhodes later agreed to swap his land for other acreage, allowing for the preservation of Blue Diamond Hill. However, discussions with the Bureau of Land Management (BLM) ended in 2014, without a swap deal. The BLM did not swap for Rhodes' property because it felt it had been disrupted by the mining operation. In 2016, Rhodes proposed another unnamed community that would have 5,025 homes. This proposal also received some opposition, leading to several lawsuits. The number of homes was later reduced to 3,500. The project remains unbuilt, although Rhodes still intends to proceed with development. His company, Gypsum Resources, was approved in October 2022 to build 429 homes across 671 acres.
Background The Blue Diamond Mine has operated on the land since the 1920s. Gypsum has been mined at the site, which is known as Blue Diamond Hill and is located west of Las Vegas. Blue Diamond Hill is located near the eastern edge, but not inside, of the Red Rock Canyon National Conservation Area, near the community of Blue Diamond, Nevada. In 1999, mine owner James Hardie Gypsum put 2,700 acres of mine land up for sale, at a price of $45 million.
History Cielo Encantado 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. John Laing planned a housing community for the area, which lacked power and sufficient water for any major development. Any project on the land would require approval from the Clark County Commission and the Las Vegas Valley Water District, and John Laing would likely need to get approval from the Bureau of Land Management (BLM) to build roads and get power to the future community. The finalization of the sale was dependent on planning and regulatory approval for the future project.
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. Opponents were worried about the land near Red Rock Canyon becoming an area of urban development. They were also concerned that a housing project with thousands of homes would affect the native Blue Diamond Cholla cactus. In addition, there were concerns that houses would negatively affect the view from Red Rock Canyon. John Laing planned to set aside 100 acres to preserve the view, and another 80 acres to protect rare plant life.
Details about the housing project were unveiled in July 2002. The project would be known as Cielo Encantado, Spanish for "enchanted sky". It would include more than 8,400 houses and would bring an estimated 21,000 new residents to the area. By comparison, the town of Blue Diamond had only 300 residents. The two communities would be a mile apart from each other. The Red Rock Citizens Advisory Council had concerns about how fast the project was progressing. The council advises the Clark County Commission on land issues regarding Blue Diamond, Red Rock Canyon, and other nearby areas. The project was expected to face a years-long process before final approval. This included rezoning the rural area, which, at the time, only allowed a home for every two acres. The project was also dependent on whether the BLM would approve a 979-acre land swap, which would give John Laing a total of nearly 3,000 acres for Cielo Encantado. Such a decision was at least a year away. John Laing needed the land to form a contiguous property for the new community, but said that it would proceed with the project regardless, simply reducing the size in the event of rejection from the BLM.
John Laing hoped to have some homes on the property as soon as 2004. Approximately $100 million would be spent on water, sewers, and roads, including a four-lane highway. Home prices would range from $250,000 to $10 million, and the new community was expected to bring in a $1.7 billion profit. The project was designed by Quadrant Planning to have a minimal impact on the environment and nearby residents. This would include constructing the four-lane highway at the east side of the hill, away from the existing Blue Diamond community. Most of the housing project would be located in a mined-out valley located on top of Blue Diamond Hill, keeping it hidden from people visiting Red Rock Canyon. 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. The developers stated that a residential project would be a better use of the land than continued gypsum mining. Some opponents were concerned that increased traffic from the project would result in more fatalities to wild horses and burros in the area.
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. Attendees expressed their concern about the project and its potential effects on the surrounding area, including recreational activities at Red Rock Canyon. Also questioned was the availability of services such as water, police, and firefighters. In addition, G.C. Wallace, an engineering firm, was working on the project while simultaneously conducting a feasibility study on the proposed land swap with the BLM. Residents complained that G.C. Wallace had a conflict of interest, although the BLM determined that there was no such issue. State senator Dina Titus was among those who attended the meeting. Years earlier, she had proposed the establishment of a boundary around the Las Vegas Valley that would prevent development from occurring outside the boundary, and she considered reviving the proposal in response to the Cielo Encantado project. In the event that the project were green lit, the final approval was not expected until at least March 2003, and the project was expected to take a decade before being fully built out.
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. A week later, the Red Rock Citizens Advisory Council unanimously recommended denial of Cielo Encantado. Clark County commissioners were also reluctant to approve the project, and the Sierra Club had joined the list of opponents to the project. 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. This would give the company time to respond to concerns from Blue Diamond residents. In addition, the company stated that political elections were having a negative impact on the project, as commissioners were reluctant to approve the project while simultaneously seeking re-election or higher office. Approximately 150 protesters arrived at the meeting, demanding that the Planning Commission vote rather than delay consideration of the project. Officers of the Las Vegas Metropolitan Police Department were eventually called to the meeting to disperse the protesters. No arrests were made.
A few days after the meeting, opponents held a protest rally at Red Rock Canyon, where they gathered signatures against Cielo Encantado. More than 4,000 people signed the petition, and Clark County commissioner Dario Herrera proposed a county law that would make it more difficult for projects like Cielo Encantado to get approved. The proposed law would include buffer zones for certain areas where such projects would face tougher scrutiny from the county. 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.
Preservation proposals Although John Laing had withdrawn its project, a number of other developers had become interested in developing the land, and further proposals were expected to be made in the future. Among the prospective buyers was Rhodes Homes, owned by developer Jim Rhodes. 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. The changes were devised by a group that was formed by Herrera.
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 county nominated the property for purchase by the BLM. However, a BLM spokesperson said, "We are very, very hesitant. The problem is reclamation. We've got a lot of mined-out land up there and it would be very expensive to reclaim. Who knows how much it would cost?"
Another proposal came from The Conservation Fund in January 2003. 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. The easement would ideally be sold to the county or the BLM. James Hardie rejected the proposal, with a company attorney stating that The Conservation Fund appeared to be "misrepresenting James Hardie's position to the Bureau of Land Management and to others..."