Modern liberals, many neo-conservatives, and radical libertarians are all too willing to use central power to destroy or control the "little battalions" of family, church, private associations, and local governments that are the most effective barriers against centralized tyranny.
I don't think the interview explained much.
Looking for more info, all I came across was this:
http://www.msnbc.msn.com/id/11434439/site/newsweek/
Which still doesn't explain much about the legalities.
Is it privately-owned property that he's renting out, or is it set up like condominiums or a commune? If so, there shouldn't be a problem with it, should there?
Also, I remember hearing about a "town" Disney built in Florida that is entirely controlled by Disney.