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Developer Files $22M Lawsuit Against City of Carrollton, Mayor, Council, City Manager and Other Staff Members

A real estate developer is suing the city of Carrollton —  alleging that the city has caused the plaintiff more than $22 million in damages by unlawfully withholding sewer services from a 260-unit residential development planned for outside of city limits.

The plaintiff alleges that they were notified via email from Carroll County government  that their property near the Sand Hill Community north of Carrollton meets the zoning requirements for a planned unit development (“pud”)… and that Carroll County’s approval included up to 275 single family dwelling units… and authorization from city (of Carrollton) to connect to sewer.

The filing also claims that a Carrollton city official notified the plaintiff by letter that “the city . . . Has a sanitary sewer system located within the Highway 61 right-of-way (along the eastern side of the roadway [and adjacent to the property]) that is available to serve the . . . [p]roperty.”

However, in a future letter- the plaintiff claims, that same city official stated that “[i]t is the position of the current administration [of the City] that the City of Carrollton sewer capacity is best utilized by supporting construction within the City limits,” and “[t]he City would consider sewer service to a project outside the City, if such a project had regional impact and significant positive impact on the City of Carrollton itself. Such a project might be a large industrial user.”

The plaintiff asserts that the only thing preventing development of the property is Carrollton withholding sanitary sewer service to the Property.

(The document filed in the United States District Court for the Northern District of Georgia is available below)

A city representative declined to comment on the filing Friday.

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