Lebanon officials notched a key courtroom victory this week after a federal judge tossed a $25 million lawsuit brought by South Carolina developer RealtyLink LLC over a stalled industrial park deal.
In a June 10, 2026 order, U.S. District Judge Sarah Evans Barker dismissed RealtyLink’s federal claims against the City of Lebanon, ruling the complaint did not plausibly show that the U.S. Constitution provided a basis for relief. The dismissal was entered “without prejudice,” and the court gave the plaintiffs 40 days to file an amended complaint, according to Justia. The decision leaves state-law claims unresolved for now and narrows the immediate fight to whether RealtyLink can salvage its federal case.
RealtyLink, a South Carolina-based development firm, had accused Lebanon officials of backing away from promises of tax abatements, tax-increment financing and bond support, and of blocking access to water and wastewater service for the 119-acre Cedars of Lebanon industrial project. The company pegged its damages at more than $25 million, as reported by the Indianapolis Business Journal. RealtyLink closed on part of the property in July 2022 and sought an IDEM pump-and-haul permit after running into utility constraints. Local coverage by the Zionsville Reporter has tracked the dispute and the developer’s claims that the city shifted water priorities away from Cedars.
Judge Barker concluded that RealtyLink’s due-process and equal-protection theories did not add up to a constitutional injury, which undercut the federal hook for the lawsuit. With no viable federal claims left, the court declined to exercise supplemental jurisdiction over the remaining state-law counts and dismissed those as well, also without prejudice. That leaves the developer free to refile its state claims in state court if it chooses, according to Justia.
What’s Next for the Case
RealtyLink now faces a tight deadline. The company has 40 days from the June 10 order to amend its federal complaint. If it does not, Judge Barker warned that final judgment will be entered, a timeline reflected in court dockets and case summaries. Case summaries on CaseMine show the current procedural posture.
Meanwhile, the fight over Cedars of Lebanon is still playing out against a much bigger backdrop. The state’s ambitious LEAP district and regional water plans, including studies of new pipelines and additional water supplies for Boone County, remain central to how projects like Cedars will clear the utility hurdle in the future, according to the Indianapolis Business Journal.
Local Response
When the suit was first filed, Lebanon city officials did not immediately return requests for comment, and the mayor’s office has not issued a public statement about the June dismissal order, local reporting shows, according to the Zionsville Reporter. Attorneys and company representatives listed on the filings also did not immediately respond to media inquiries about their next move.
For Lebanon residents and nearby landowners, the ruling is a reminder that development incentives and scarce utility capacity are not just line items on a spreadsheet. The financial stakes are real, and the next chapter in this dispute will likely unfold either in an amended federal filing or in state court over the coming weeks.
