Good points guys! It all sounds like common sense after you mentioned it, but it's not. ie. 3rd party inspection, duh!
I told the neighbor "no" and he practically got down on his knees. I guess he has invested over 100K in subdividing his property and getting all the necessary permits, and then the 16ft driveway requirement went into effect. He said the driveway won't connect to his property, only goes up to his property - the backyard. It's kind of weird...the fire dept would have to drive down my driveway, get out, and hike a couple hundred feet down a gorge to get to the neighbor's backyard. Chances are that they'll never use my driveway.
Neighbor said there will be an easement only for the fire dept. It'd be about 35-40K out of his pocket for 450ft of concrete driveway. And it'd take about 3-4 weeks. He said don't worry about utilities, because digalert will mark all utilities. Said don't worry about the driveway, because it's not like they're building a new driveway. Said the dirt is already compacted, and just needs a little fixing here and there.
I'm still no longer interested, but told him I'll think about it.