RD Olson’s Legal Battle with City Gains Momentum

A lawsuit involving the planned Oak Creek Heritage Lodge in Sedona is advancing through the Yavapai County court system, with a trial expected by late 2025 or early 2026. The case follows the Sedona City Council’s controversial decision to overturn a previous approval by the Planning and Zoning Commission.

On April 16, the commission approved a development review for RD Olson Development’s lodge project off Schnebley Hill Road. However, resident appeals led to a June 25 council meeting where the council’s 4-3 vote rejected the commission’s decision. Mayor Scott Jablow and other council members argued the project did not adhere to Land Development Code (LDC) requirements regarding project type, size, and environmental considerations.

In response, RD Olson Development filed a lawsuit against the city and council members on July 24, alleging the council improperly influenced its zoning decision during the administrative appeal process. They seek to reverse the council’s decision, claiming it violated state statutes governing administrative reviews.

The city has filed motions to dismiss the allegations, asserting that the council acted within its rights and that its decision was justified by the evidence presented. Individual defendants in the lawsuit, including resident appellants, have taken various actions, including motions to dismiss and requests for extensions.

Currently, RD Olson and the city have reached a consensus on the discovery phase of the proceedings. However, one appellant, Christine Wagner, disagrees and insists that only the underlying administrative record should be reviewed. While mediation discussions are underway, Wagner maintains that such discussions are inappropriate for this case. Mediation is scheduled to conclude by July 11, 2025.

The Superior Court is yet to rule on the city’s dismissal motions, with parties anticipating further responses by December 13. A ten-day trial is currently planned to begin after November 10, 2025. Notably, the yellow-billed cuckoo, a species linked to ecological concerns in this area, has not been included as a defendant in this lawsuit.

Adding to the ongoing interest in this case, a recent U.S. Geological Survey announcement called attention to the nesting behaviors of the yellow-billed cuckoo in southern Arizona, marking a significant ecological finding that could impact local developments.