A Maricopa County Superior Court judge has favored the Town in its ongoing legal dispute with N-Shea Group, LLC, the developer for the Park Place development.

Judge M. Scott McCoy supported the Town’s position in a brief issued following an evidentiary hearing on July 27. In a ruling on Aug. 9, McCoy denied the N-Shea Group’s request for a preliminary injunction on the development agreement.

The court found that the plaintiff (N-Shea Group) did not demonstrate a probability of success on the merits of their claims of breach of contract and breach of implied covenant of good faith and fair dealing.

“There is no evidence that plaintiffs applied for or received permits for vertical construction within the allotted (six years) time,” the judge states.

He also states that he was not persuaded that the Town’s actions regarding efforts to bring Phases II and III of the development to fruition were in bad faith.

McCoy did say that dealing with the Town was very frustrating. However, he added that Town Manager Grady Miller and Development Services Director John Wesley testified “credibly and persuasively” about the Town’s efforts to accommodate N-Shea Group’s tight timeline in presenting the concept plans.

He acknowledged that the Town interpreted the zoning regulations and governing documents differently than the plaintiff, but said the court was persuaded that this was done in good faith.

The court also recognized that with the investment of time and money on the part of the plaintiff, not being able to move forward is a hardship but believes contract damages should make them whole.

McCoy also said it would be a hardship on the Town if the court, assuming it has the authority to do so, requires the development agreement to be extended.

“The Town’s duly elected representatives had the opportunity to extend the Development Agreement,” McCoy said. “‘Hard pass’ was their response. Public policy militates against the court second guessing or overriding that decision.”

The Town and N-Shea Group, LLC and Park Place Properties, LLC, owners and developers of Park Place, agreed to a six-year agreement effective June 17, 2016. The agreement called for the project to be completed in three phases. The contract expired on June 17, 2022.

The Development Agreement states that “in no event shall construction on any Phase commence more than six years following the Effective Date of this Agreement.” The parties agree the Effective Date was June 17, 2016; the Development Agreement therefore required construction to commence on or before June 17, 2022.

The N-Shea Group, developers of Park Place, are still pursuing a claim against the Town for $67 million.