In 2022 the Town of Lewisville reached a mediated settlement for approximately $2 million following a threatened $8 million lawsuit by Mr. Zenger when the town council did not approve his 48-foot-high apartment building next to Shallowford Square.
It’s important to understand the roles of the planning board and the council. The planning board is a technical group and determines if a project adhears to town ordinances. The council is a legislative body that can take into consideration other factors and other town documents in making its decision.
It was the opinion of the majority of the council that the size and scale of the building at that location was not consistent with the guidelines in our Comprehensive Plan or in the town’s Downtown Overlay Document.
The town’s position was that by its size, it would tower over the adjacent single-family homes, would not be compatible with the surrounding neighborhood and did not meet the goal of having pedestrian friendly scale around the Square.
Mr. Zenger had the option to resubmit a building that met the above considerations. However, he chose to threaten litigation against the town and personally against several of its council members and a planning board member.
The town has a Public Liability Policy through the North Carolina League of Municipalities who agreed to provide a defense against the threatened lawsuit. In their review of the lawsuit the NCLM stated that their analysis of claims against the town was, “no indication that the (NCLM) gives any credence to any of Solomon’s allegations.” However, they reserved their right to waive coverage if it was found there was a willful violation of statues by the town.(Solomon is one of Mr. Zenger’s development companies.)
That determination could be made in two ways. Either through an administrative hearing before a superior court judge or at a jury trial.
The factors involved in this dispute are highly technical and involve a thorough understanding of a number of town ordinances, documents and state regulations. It was not a simple yes or no decision.
Because of its technicality, the town was willing to have this matter heard before an administrative judge who had the background to discern the merits and relevant facts that would be presented by counsel. However, Mr. Zenger demanded the case be argued before a jury.
After many hours of discussion among council members, and at the advice of our attorneys, the council agreed to a settlement to avoid several years of costly litigation and the unpredictability of a laymen member jury trial in which a favorable verdict for the town was uncertain and could have resulted in damages significantly greater than a settlement.
This settlement was reached after Mr. Zenger was elected to the North Carolina House of Representatives to represent the residents of Lewisville.
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