Sioux Falls wins dismissal in court dispute with developer
City and Sundance Group fought over terms of settlement on low-income housing project
A federal judge dismissed a developer’s lawsuit against the city of Sioux Falls Monday, agreeing with the city that the developer did not have a federal cause of action against the municipality.
Still, the ruling to dismiss the Sundance Group’s lawsuit against the city and its officials, including Mayor Paul TenHaken, might still end up in court under another cause of action, after U.S. District Court Judge Charles Kornmann determined that the developer had a potential breach-of-contract claim against the city.
The Sundance Group had alleged various federal violations against the city, but Kornmann shot them down one by one. The dispute involved an affordable housing project at 2100 E. Walnut St. in Sioux Falls.
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