Hawley Sues St. Louis Developer, Alleges Tax Credit Fraud

Jun 13, 2018

One day after St. Louis officials announced plans to cut ties developer Paul McKee over a massive but long-stalled project in an impoverished area, Missouri Attorney General Josh Hawley has filed suit against the same developer.

The suit filed Wednesday says McKee's company, Northside Regeneration LLC , received $4.5 million in state tax credits but failed to complete the purchase of more than $5.2 million worth of properties. The suit accuses Northside Regeneration of tax credit fraud, breach of a tax credit application and unjust enrichment.

A message left with McKee's attorney was not immediately returned.

St. Louis city officials on Tuesday accused McKee and Northside Regeneration of violating a development agreement that began in 2009. McKee's proposal called for redeveloping 1,500 acres in north St. Louis.