S.C. City Sues Nonprofit Over Loan

Nearly twenty-three million is owed

Patrick Gentry
March 29, 2019 - 2:41 pm

A South Carolina city is suing a nonprofit over nearly $23 million city leaders say is owed taxpayers.

Charleston, Mayor John Tecklenburg and former Mayor Joe Riley on Thursday sued Charleston LDC, which they say received the money when the developer of Charleston Place paid off a loan.

The city said Charleston LDC was created and given $10 million in loans in 1983 to hire a developer for the hotel.

The city says there was an understanding the money would come back to the city when the loan was re-paid in 2016. The city says Charleston LDC is refusing to give the money to the city, which planned to use it for affordable housing.

Charleston LDC attorney Beth Richardson said the nonprofit is prepared to resolving the dispute without litigation.

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