Hawley sues St. Louis developer, alleges tax credit fraud

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ST. LOUIS (AP) _ 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.

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