A developer who wants to build a $600 million luxury hotel in Scottsdale is in a battle with the federal government.
The government is upset over the destruction of an apartment complex that was home for low-income people.
The Phoenix Revitalization Corporation this month sued Scottsdale Canal Development in federal court.
The nonprofit Phoenix Revitalization Corporation is a remnant of the Resolution Trust Corporation, which sold distressed properties at bargain prices.
In some cases, it attached low-income-housing restrictions to properties.
The government claims the developer violated restrictions requiring the 12-unit complex to remain low-income housing.
It’s the latest hurdle for Scottsdale Canal Development in a three-year push to rezone and clear the site for development.