Gateway seeks Motion for Judgment

6:44 p.m. Dec. 29, 2025

DUANE CROSS
MCO Publisher•Editor

In a filing on Monday, Dec. 29, Gateway at Lynchburg, LP has asked a Chancery Court judge to overturn recent zoning changes that it claims were quickly passed to stop a 42-unit affordable apartment complex on Main Street in Lynchburg. The developer contends the new rules are not legally valid and seeks a court ruling confirming that the original zoning still applies to its project.

• Plaintiff’s Memorandum | Motion for Judgment

Developer’s project

Gateway at Lynchburg, LP is a developer that builds affordable, conventional, and senior housing throughout the Southeast. The company focused on Moore County after the Tennessee Housing Development Agency (THDA) designated the county a top-need area for affordable housing for three consecutive years.

On Jan. 28, 2025, Gateway signed a contract to purchase about 5.13 acres on Main Street in Lynchburg, with plans for a 42-unit affordable apartment complex. To secure federal low‑income housing tax credits, the developer obtained letters from local officials confirming water and sewer capacity, electric service, and that the project was allowed under existing zoning.​

Original zoning and approvals

When the land was put under contract and the letters were issued, the property was zoned R-1 (Residential District – Suburban) pursuant to an ordinance of the Metropolitan Lynchburg Moore County Planning and Zoning Commission. According to the filing, R-1 zoning allowed multifamily uses, including apartments.

On March 27, 2025, the Metro Moore County Utility Department confirmed there was enough water and sewer capacity for up to 44 units.

On April 2, 2025, Mayor Sloan Stewart signed a letter stating that the apartment complex was permitted under the current zoning.

On April 9, 2025, Duck River Electric’s chief engineering officer confirmed electric service was available for up to 44 units.

The THDA awarded Gateway the low-income housing tax credits for the 42-unit project on July 30, 2025, partly based on these confirmations, according to the memorandum.

Disputed zoning changes

The legal dispute centers on zoning changes adopted at the April 21, 2025, meeting of the Metro Council. The memorandum says Planning and Zoning Commission Chairman Dexter Golden presented several proposed changes without prior notice, publication, or listing on the public agenda.

Those proposed amendments would:

• Remove apartment developments as a permitted use in R‑1 and move them to Commercial (C‑1) zoning.​

• Double the minimum lot size for new R‑1 homes from one‑quarter acre to one‑half acre.​

• Increase land‑area requirements for apartment complexes to 50,000 square feet for buildings with more than four units, plus 10,000 square feet per unit over four.​

• Cap apartment developments at 25 units.​

Gateway’s filing calls these combined changes the “Proposed Ordinance” and claims they were made “in an attempt to block a low-income housing complex in Lynchburg.”

Alleged notice and meetings violations

The memorandum states that the Metro Council did not comply with its own zoning ordinance or Tennessee law in handling the Proposed Ordinance. Local rules require a public hearing with at least 30 days’ notice published in a county newspaper. State law also requires at least 21 days’ published notice before making zoning changes.

Gateway argues that:

• No formal public notice of a hearing on the zoning amendments was ever published in a qualifying newspaper of general circulation in Moore County.​

• No notice was published at least 30 days ahead of any public hearing date, as required by the local ordinance.​

• The April 21 zoning item was not listed on the publicly available agenda, in violation of the Tennessee Open Meetings Act’s requirement that agendas be accessible at least 48 hours in advance.​

The memorandum also states that The Lynchburg Times does not qualify as a “newspaper of general circulation” under Tennessee law and does not have a public-notice section or a link to such a section on its website.

Even if it qualified, Gateway notes that the council used an April 23, 2025, Times article titled “Metro Council taps the brakes on growth, again, with apartment zoning changes” instead of a paid legal notice. The filing argues that this is insufficient to meet the legal notice requirement for zoning hearings.

What the lawsuit seeks

Gateway is seeking a ruling from the Chancery Court of Moore County in its favor under Tennessee Rule of Civil Procedure 12.03. In simple terms, the developer seeks a declaration that the April-May 2025 zoning changes are “void ab initio,” or invalid from the start, due to defects in notice, timing, and open-meetings rules.

If the court agrees, the original zoning ordinance, which allowed Gateway’s 42-unit affordable housing project, would apply. This would remove a significant legal barrier to the development.

The case is filed as Docket No. 3308 in Moore County Chancery Court.

Also:
• Gateway files lawsuit against Moore County
• Moore County files answer to Gateway suit