The City of Greenville has taken legal action against the developers of The McDaniel, a multimillion‑dollar luxury condominium project that has sat idle at the intersection of East McBee and McDaniel avenues for the past two years. The complaint, filed on Nov. 3, accuses McBee Townhomes LLC, McBee Townhomes II LLC and Greenville‑based Keene Development Group LLC of ignoring approved civil‑engineering plans and neglecting proper site maintenance.
Alleged code violations and erosion
According to the filing, the developers failed to complete required stormwater management during site work. The omission allegedly allowed significant amounts of storm and surface water to flow onto city‑owned property downhill from the site in 2024, causing erosion and destabilizing the land.
Impact on city projects
The city plans to extend the Prisma Health Swamp Rabbit Trail along its property between the development site and the Greenville Zoo. City officials say the runoff erosion has made that portion of the trail corridor unsafe and will require remedial measures before construction can continue. The lawsuit seeks damages to cover the cost of those repairs.
Background on The McDaniel
Construction on The McDaniel began in 2023 with an original vision of 30 luxury condos priced up to $2.5 million each. Keene Development Group intended to complete the project in two phases at an estimated cost of $28 million. However, work stalled in 2024 and the site has remained dormant ever since.
Wider legal context for Keene Development Group
The new suit adds to a series of financial and legal challenges facing Keene Development Group. A separate luxury townhome project, Biltmore Walk in the Haynie‑Sirrine neighborhood, is embroiled in lawsuits over unpaid labor and services. Another Keene development, The Vardry Residences at Rhett and North Markley streets, was sold at a foreclosure auction in September to satisfy a $4.6 million mortgage debt owed to The Fidelity Bank of Spartanburg.
City’s response and next steps
Greenville’s City Attorney’s Office emphasized that the city will enforce compliance with engineering standards to protect public land and ensure the safety of future trail users. The city is prepared to pursue the lawsuit vigorously to recover costs and to hold the developers accountable for any further damage.
What this means for Greenville residents
Residents can expect the city to prioritize the stability of the Swamp Rabbit Trail corridor, a popular recreational asset that connects downtown Greenville to the zoo and surrounding neighborhoods. By addressing the erosion now, the city aims to keep the trail safe and open for families, cyclists, and walkers once the remedial work is completed.
Stakeholders and interested parties are invited to follow the case as it proceeds through the courts, with updates expected from the City Attorney’s Office and the Greenville Planning Department.
Original reporting: Greenville Journal — read the source article.
