A battle between a local developer and Pima County over the responsibility to pay for roadway improvements in a residential community has taken a new turn.
Real estate developer Joseph Cesare earlier this month filed a defamation lawsuit against county officials in U.S. District Court in Tucson, saying public comments and the actions of Pima County officials, including those of county Administrator Chuck Huckelberry, amount to defamation and have damaged his continued business interests in the development.
Cesare is the main force behind Star Valley, a contested residential development on the southwest side near West Valencia and South Wade roads. He and the county have been at an impasse over building entry roads and traffic signals to the development and widening existing streets.
“I think it’s personal,” Cesare said.
The lawsuit claims county officials’ comments and actions have damaged Cesare’s reputation and hurt his business prospects.
In particular, Cesare said a contract to sell 572 lots in Star Valley was terminated as a result of county officials’ public comments and threats to deny future building permits in the development.
Cesare said the cancellation means millions in lost revenue and potentially millions in lost impact fees for the county.
The list of allegations in the complaint includes violation of the First Amendment, defamation, false light, injurious falsehoods, tortuous interference and federal and state racketeering violations.
“We believe that the county is retaliating against Joe Cesare for his political positions against some of the county supervisors,” said John Munger, a local attorney who represents Cesare in the lawsuit.
Huckelberry declined to comment on the lawsuit because the matter is pending in court. The county has not yet filed an answer to the complaint.
The lawsuit is the third Cesare and his development partners have filed against the county over the development.
The most recent lawsuit says county officials have pressed Cesare to complete a new entry road to the existing neighborhood and pay for other improvements, all things Cesare denies having the responsibility to do.
The lawsuit suggests the development impact fees paid to the county in the normal course of business were enough to meet any of the public infrastructure needs the neighborhood placed on the area.
Cesare’s attorneys say Star Valley has been responsible for more than $5 million in Pima County impact fees since 2003. During that time, according to the complaint, county officials did not pressure Star Valley developers to build or otherwise pay for the construction of additional roadways or traffic signals associated with the development.
“From 2003 to 2012, the County never once mentioned any purported agreement with the Master Developer that obligated the Master Developer to pay additional monies toward construction of traffic infrastructure around Star Valley,” the complaint reads.
Munger said that began to change after the 2012 general election wherein District 3 County Supervisor Sharon Bronson ran for re-election against Tanner Bell. Bronson also declined to comment on the pending lawsuit.
“There was no problem until after the 2012 election,” Munger said.
The lawsuit says Cesare’s support of Bronson’s opponent in the election prompted punitive and revengeful county actions.
Since then, the suit claims, county officials have rallied Star Valley residents to demand Cesare pay for the improvements.
County officials also have begun to move on plans to strip the undeveloped areas of Star Valley of its platting.
If the county did that, areas would be stripped of established property boundaries, easements, flood zones, roadways and rights-of-way, putting development in those areas back at square one.
County officials also said they would deny building permits submitted for the area if the improvements were not completed.
Munger said the alleged county actions against Cesare are part of a long history of politically motivated attacks against developers.
“This town finally needs to open up to what has been happening,” he said.
The Pima County Board of Supervisors was scheduled to vote on the Star Valley issue on Dec. 16 but postponed the matter.
Star Valley was first approved in the late 1980s, when the supervisors permitted a plan to develop more than 1,400 acres and as many as 7,000 houses. The plan has been amended at least two times, and some parcels were sold for alternate uses.
About 2,000 homes have been completed.
