Suit aiming to halt Old Town Scottsdale development dismissed

Article originally posted on AZ Central on April 16, 2026

A Maricopa County Superior Court judge dismissed a lawsuit aiming to halt construction of a $300 million Old Town Scottsdale development.

The suit, filed by residents of the Gateway at Main St. Plaza Condominium Association against the city and developer ARC Scottsdale Holdings, sought to invalidate an agreement between the then-president of the association and the city and developer.

The project, called Museum Square, is planned near Second Street and Goldwater Blvd. in Scottsdale. It is planned to include a hotel, condo buildings and apartments.

The city approved the project in 2019, and at the time, no members of the public spoke in opposition to the plan at the council meeting.

Superior Court Judge Christopher Coury ruled the suit was time-barred and could not proceed because too much time has passed since the city’s decision and the filing of the lawsuit.

Why are residents against the project?

Prior to the council’s approval of the project, the condo association had held covenants on the land that would have limited building heights on the site, which members of the association said were worth about $8.5 million. However, according to the suit, then-president of the association, Dick Lamden, signed the rights away without any compensation.