Developer MCW claims the city should have granted an extension to allow it to meet development timelines on the Hayden Flour Mill property instead of taking possession of the site in July. Under a development agreement with the city, MCW was required to pay off an $11.8-million loan to BNC National Bank by July 15, but the developer defaulted on the loan obligation and the property was returned to the city.
The Phoenix-based firm, however, claims development was delayed for a number of reasons, including that the city failed to provide design specifications for on-site transit facilities, limited the height of the development in the middle of design work and failed to issue bonds to repay the $11.8-million loan for MCW.
Tempe has until Feb. 20 to file a written response to the claim, after which MCW can file a lawsuit. Neither the city nor the developer returned telephone calls seeking comment about the claim prior to publication time.
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