City of Charleston suing company for more than $22 million

CHARLESTON, SC (WCSC) - The City of Charleston, Mayor John Tecklenburg and former Mayor Joe Riley are all suing a company they says owes taxpayers over $22 million.

It’s against the Charleston LDC, formerly known as the Charleston Citywide Local Development Corporation, and other defendants.

According to the city, it was originally created as an arm of the city government and given $10 million in loans back in 1983 to hire developers for Charleston Place.

The city says there was an understanding those funds would come back to the city when the loan was re-paid in June 2016.

The suit states developers gave the Charleston LDC $22.8 million as repayment plus interest.

According to the city, the Charleston LDC is refusing to hand that over to the city which it plans to use for affordable housing.

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