Recall that the city of Charlotte the other day re-wrote its $2.2m. subsidy to EpiCenter developer Ghazi Co. in order to advance $550,000 to the company before the project was completed. Turns out Ghazi is being sued by its development partner over the idled condo component of the Uptown project.

The Uptown paper of record reports that Flaherty & Collins Properties has filed a $70m. lawsuit claiming that Ghazi has failed to develop an ownership plan that would allow the project to move forward with clear property titles. In essence, Ghazi grafted a mixed-use development onto a 50-story condo project without first nailing down who would own what in the $200m. property.

In addition, Flaherty wants $2m. because some of the sight-lines it promised its condo buyers have been obstructed by EpiCenter’s party complex. Nothing very difficult to resolve, except that Charlotte taxpayer money in caught up in the mess.

Meanwhile, expect more of these types of lawsuits as lawyers move in to recover money once it is clear that the bankers have turned off the taps to speculative projects.