The city of South Burlington's largest taxpayer is filing suit against the City Council.
The University Mall's ownership group recently asked the city for permission to convert an old house under commercial use into a new 6,000-square-foot building.
The council denied that request saying the proposal might not comply with future land development regulations.
Lawyers for the mall say the city can't block development based on ordinances it might pass in the future.
"The University Mall's position that the interim bylaw that South Burlington adopted and the manner in which the City Council applied it to their application is unconstitutional," says Dan O'Rourke, lawyer for the mall.
City Manager Sandy Miller told WCAX News he knew the mall had appealed the council's decision, but said he has not seen the lawsuit yet. He added that the city does not comment on pending litigation.
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