Zoning lawsuit could shape county development

Chancery Court hearing scheduled for Monday on Gateway lawsuit challenging Moore County zoning amendments.

DUANE CROSS
MCO Publisher•Editor

With a Moore County Chancery Court hearing set for Monday, Jan. 12, a legal dispute between Gateway at Lynchburg LP and Moore County is highlighting months of zoning decisions, ordinance changes, and procedural questions. The court will now decide the future of a proposed 42-unit affordable housing development and review how the county has handled zoning amendments.

This timeline outlines the key events leading up to Monday’s hearing, starting with Gateway’s original plans for a 42-unit affordable housing complex. It covers the Metro Council’s zoning changes, the developer’s legal actions, and the county’s responses, showing how these issues have brought the case to chancery court.

January-April 2025: Planning, Approvals

Jan. 28, 2025
Gateway at Lynchburg, LP, an Alabama-based developer of affordable housing, agrees to purchase approximately 5.13 acres on Main Street in Lynchburg with plans for a 42-unit affordable housing apartment complex.

Between March and April 2025
The developer secures key written confirmations from local authorities indicating sufficient utility capacity and zoning compliance:

• Metro Moore County Utility Department confirms water and sewer capacity for up to 44 units.

• Mayor Sloan Stewart issues a letter stating the project is permitted under the existing zoning classification.

• Duck River Electric Membership Corporation confirms the availability of electric service.

These confirmations support Gateway’s application for federal low-income housing tax credits administered by the Tennessee Housing Development Agency (THDA).

April-May 2025: Zoning Ordinance Changes

April 2, 2025
A letter from Mayor Stewart confirms that apartments are allowed under the property’s then-existing R-1 (Residential) zoning.

April 21, 2025
Planning Commission Chair Dexter Golden introduces proposed zoning changes during a Metro Council meeting. The proposal would:
• Remove multifamily apartments as a permitted use in R-1 zones;
• Shift apartment approvals into the C-1 (Commercial) district;
• Increase minimum lot sizes and cap apartment developments at 25 units.

Gateway’s filings state that these amendments were not listed on the council agenda or properly published, raising concerns about whether the county followed the Tennessee Open Meetings Act and local notice rules.

May 19, 2025
Moore County adopts the ordinance after a second reading. The amendment removes apartments as a permitted use from R-1 zoning and adds new restrictions, which effectively block Gateway’s planned 42-unit development under the current rules.

Summer-Fall 2025: Project Advancement

July 30, 2025
Despite the zoning changes, Gateway receives low-income housing tax credits from THDA. This is a key step in financing its affordable housing project.

Oct. 20, 2025
Gateway representatives go before the Metro Council to ask for reconsideration of the zoning change and to continue under the previous R-1 classification. Council members raise questions but do not reverse the zoning amendment.

Oct. 22, 2025
Gateway submits a full site plan application for the 42-unit complex, listing the zoning as R-1. The county later disputes this in its response.

November 2025: Lawsuit Filed

November 10, 2025
Gateway at Lynchburg, LP files a lawsuit in Moore County Chancery Court (Docket No. 3308) against the Metropolitan Lynchburg Moore County Planning and Zoning Commission, the Metropolitan Council, and the Metropolitan Government of Lynchburg–Moore County.

The complaint claims that the zoning amendments were adopted in violation of Tennessee law and local procedures, especially regarding public notice and hearing processes. It asks the court to declare the amendments void ab initio (invalid from the beginning).

Gateway also argues that its development should be reviewed under the original zoning that allowed apartment construction.

December 2025: Legal Maneuvers

Dec.17, 2025
Moore County files its formal answer to Gateway’s lawsuit, denying the developer’s procedural claims and defending the validity of the zoning amendment.

In its answer, the county contends:

• The Metro Council followed open meetings and notice requirements, including agenda posting and public publication on The Lynchburg Times website;

• The Planning Commission acted in an advisory capacity, with final authority residing with the council;

• Gateway’s site plan was ineligible under the updated C-1 classification when submitted in October.

The county requests that the court uphold the May 19 zoning amendment and deny all relief sought by Gateway.

Dec. 29, 2025
Gateway files a Motion for Judgment on the Pleadings, asking the court to rule in its favor based solely on the legal claims and the existing record, without further discovery or trial.

The motion repeats that the main issue is whether the required public notice and agenda procedures were followed. It argues that if the court accepts Gateway’s claims as true, there are no real factual issues left to resolve.

January 2026: Prep for Hearing

Scheduled Hearing – Monday, Jan. 12, 2026
According to court filings and notices, the chancery court will hear Gateway’s motion based on the written arguments. At this hearing, the judge will decide whether the zoning amendment should be declared void for procedural reasons, which could settle the case without further litigation.