The City of Greenville filed a lawsuit Tuesday against the developers behind The McDaniel, a $1.4 million housing project on McBee Avenue, accusing them of failing to follow approved civil engineering plans and required maintenance that the city says left its own nearby property eroded and unstable.
According to FOX Carolina, the complaint names McBee Townhomes LLC, McBee Townhomes II LLC, Keene Development Group LLC, and the developers of The McDaniel as defendants. The lawsuit alleges that in 2024, significant amounts of storm and surface water moved from the McBee property onto city-owned land, and that the city's property had been stable before construction on the townhomes began.
The city claims that runoff caused erosion and left the land unstable, and it is now seeking damages from the developers, per the station's report. Greenville has said it wants to use the affected property to extend the Swamp Rabbit Trail, and the city intends to do additional work to make the land stable again, though the scope and timeline of that work were not detailed in the filing described by the outlet.
Developers Say They Haven't Been Served
Asked for comment, the developers told the station that the city has not served the lawsuit yet, so they will withhold comment at this time. The same account notes that the lawsuit was filed Tuesday, placing the new legal action squarely in the middle of an already complicated stretch for the McBee Avenue project.
The McDaniel has drawn scrutiny well before this latest suit. The project's exact scope has been described inconsistently in press coverage: FOX Carolina reports the development consists of around 20 units across five buildings on McBee Avenue, while The Post and Courier has described a 30-unit project planned in two phases, with 20 townhomes built first and 10 more to follow. The discrepancy between the two counts has not been resolved.
A Project Already Tangled in Litigation
A Project Already Tangled in Litigation The Post and Courier reports that a developer sued P + F Construction over its work on the project. The suit alleges that P + F worked without securing insurance.
Separately, three contractors allege in Greenville County court filings that they are collectively owed $274,367 for work performed on The McDaniel, per the same account. The newspaper also reports that the project's original general contractor, Ineo Builders, ended its involvement in March 2025, leaving the development without its initial builder partway through construction.
A South Carolina Court of Appeals opinion affirmed summary judgment for the City of Greenville Planning Commission in a challenge by McDaniel Jones, LLC over the denial of a subdivision application, according to the appellate opinion hosted on Vlex. That opinion states it carries no precedential value except as provided under Rule 268(d)(2) of the South Carolina Appellate Court Rules.
For now, the city's newest lawsuit adds another layer to a project that has faced delays and financial troubles since 2024. With the developers saying they have yet to be formally served, it remains unclear how they will respond to Greenville's claims that runoff from their stalled site damaged land the city had earmarked for a greenway expansion.
