The N-Shea Group, LLC, and the Town of Fountain Hills have mutually agreed to settle and dismiss a $67 million claim filed by N-Shea Group, LLC. N-Shea Group, LLC filed a lawsuit against the town after Town Council denied an extension of an expired development agreement for the construction of Park Place on June 17, 2022. Town Council approved the settlement on Tuesday, Oct. 18, during the regular Town Council meeting.
The Town and N-Shea Group, LLC and Park Place Properties, LLC, owners and developers of Park Place, agreed to a six-year agreement effective June 17, 2016. The agreement called for the project to be completed in three phases. The contract expired on June 17, 2022.
Over the past several weeks, the Town and the Shea Group have worked together to resolve differences and issues between the parties, including resolving the litigation relating to the Park Place development. As a result, both sides negotiated key provisions to amend the development agreement that are important to each side.
Under the terms of the amended development agreement, the developer will have a 12-month extension of time from the date of the settlement agreement to obtain the permits to construct the remaining phases of the Park Place project. The settlement agreement also reaffirms several existing provisions in the previously approved development agreement.
Some provisions include the developer repainting all exterior Phase I buildings using the same color scheme approved for the Phase II and III buildings. Additionally, the previously unpainted/unfinished concrete surfaces, such as beams, patios, and other edges, will be repainted using the same color scheme approved for the Phase II and III buildings. Other additions to the agreement include installing plantings and trellises ("Screens") in place of the green screens for buildings C and D.