Las Vegas Developer Bails on Joshua Tree Resort After Environmental Lawsuit and Market Shift

A Las Vegas-based developer, Ofland Hotels, has officially abandoned its controversial plan to build a luxury eco-resort on 152 acres just outside Joshua Tree National Park. The project, which faced fierce opposition from neighbors and conservation groups, was targeted in a lawsuit alleging the city of Twentynine Palms failed to conduct a thorough environmental review before approving the development last year.

Though local activists and the Center for Biological Diversity challenged the city’s adoption of a mitigated negative declaration—a less rigorous environmental assessment than a full impact report—Ofland Hotels cited “softening market demand” and financial infeasibility as the primary reasons for pulling out. A letter from the company’s attorney to the city also noted that a potential buyer fell out of escrow, further complicating the project’s future.

The proposed resort would have included 100 small cabins, two lodges, pools, a stargazing area, and even a wastewater treatment plant processing over 13,000 gallons daily. City officials touted the development as a boon for local tax revenue and job creation, projecting $500,000 to $800,000 annually in tax income and 40 full-time positions. Twentynine Palms city manager Stone James lamented the lost economic potential and blamed some local homeowners for opposing what he called a “conservation-focused tourism project.”

But neighbors and environmentalists see things differently. Indian Cove Neighbors co-founder Cindy Bernard described the area as a fragile wildlife corridor essential for species like the endangered desert tortoise, golden eagles, and burrowing owls. Bernard, who lives adjacent to the site, criticized the city and developers for relying on flawed environmental surveys that failed to follow U.S. Fish and Wildlife Service protocols and overlooked the presence of desert tortoises documented on nearby properties.

The lawsuit filed in August argued that the city’s environmental review was insufficient and that the project posed significant risks to at least 27 threatened or endangered species. To protect these vulnerable animals, the Bureau of Land Management has already closed popular off-roading trails in parts of the Mojave Desert.

For now, the legal challenge is on hold as the developer and city work to formally undo project approvals. Conservationists see the halt as a rare victory against unchecked development in ecologically sensitive areas, underscoring the ongoing tension between economic development and environmental preservation in the American West.

This case is a stark reminder that even projects pitched as eco-friendly can threaten critical habitats if proper oversight is ignored. As Ofland Hotels shifts focus to resorts near other national parks, the fight to safeguard Joshua Tree’s unique desert ecosystem continues.