Now you'll need to hire an architect and a civil engineer to draw up a new site plan, which will need to get approval from the development board.

The trick to avoid losing your shirt in any litigation is to win your case before it ever goes to trial.

I've spent my life in the construction industry, but primarily in heavy civil.

And while setting it up is fairly easy, maintaining complete separation of money (separate bank accounts, credit cards, money draws and deposits) can be rather difficult - any mistakes could disregard LLC status in events of litigation.  

The design process can take 4-8 months depending on your feedback and the level of detail required, and permitting can take another 2-6 months (depending on the jurisdiction processes and amount of projects they need to review).Consider all the soft costs- surveys, civil engineers, architect, structural engineers, geotechnical engineers, permitting, etc., and have your architect consult with a MEP engineer after you get the survey back to ensure you have enough electrical service and water/sewer supply for the size of the home.

You might have to hire a civil engineer at this step.

So I guess we're just out of luck unless we want to litigate.

Managing civil engineers, architects, lenders, raising equity, etc. are all major parts of the development process. 

Almost always when the contracts are contested, it's a civil matter, not a criminal matter.

By the way I am not concluding anything about you , because I don't know enough about you.I am also definitely not encouraging the OP to litigate and enter in to disputes , but merely stating that , we need more information to come to a conclusion .