After the Contractors, the City Sues The McDaniel

The McDaniel as its architect drew it: the townhomes planned for East McBee Avenue.

Rendering by MHK Architecture

GREENVILLE, S.C., Nov. 3. The city of Greenville is suing the developers of The McDaniel, the stalled luxury townhomes on East McBee Avenue, and is the first public body to join the legal fights over the project, the Post and Courier reported. The suit, filed Nov. 3 against Keene Development Group and two McBee Townhomes companies, says they did not follow approved engineering plans or stormwater requirements on the 2-acre site.

Stormwater from the site in 2024 eroded city land on the abandoned railbed behind the Greenville Zoo, the suit says, leaving it "unstable and in danger of eroding away." The city plans to carry the Swamp Rabbit Trail along that railbed to Cleveland Park. It seeks the cost of repairs and punitive damages, WYFF reported.

The project sold half of its 20 first-phase homes within six weeks of its announcement in 2023. Work on the second phase stopped in 2024, and the project has since drawn more than a dozen legal actions, among them breach of contract claims, foreclosure filings and mechanic's liens, most from contractors who say they were not paid, the Post and Courier reported. The general contractor, Ineo Builders, ended its role in March 2025, the paper reported. Most buyers have had their down payments refunded, WYFF reported.

Kyle Keene, the developer, has sued too, claiming a general contractor sabotaged the project and secretly shopped it to other investors, the Post and Courier reported. He told WYFF his companies are raising new money and restructuring their debt, and plan to begin repairs in February and resume building in the spring.