Following The X Company’s failure to respond to a motion by general contractor Clayco in a case seeking payment for work performed on the failed second phase of the X Phoenix multifamily development at 2nd Avenue and Van Buren Street, Maricopa County Superior Court Judge Jennifer Ryan-Touhill has issued a summary judgment in Clayco’s favor.
Clayco claimed $31.6M was owed for work performed on the project before it was halted in September 2023. The general contractor also sought $8.3M in interest on the debt through Jan. 31.
In its motion, Clayco requested a judgment against The X Company and subsidiary XSC Phoenix Investment 2.0 LLC and an order to the Maricopa County Sheriff’s Office to execute the sale of XSC Phoenix’s interest in the tower development.
The project had been planned as a 592-bed, 25-story second phase expansion of the 506-bed, 20-story X Phoenix development completed in early 2022.
After The X Company unexpectedly halted the Phase II development, multiple companies that provided work and materials filed lawsuits in 2024 seeking payment.
Clayco filed its motion in February. The X Company failed to file a response before the March 25 deadline. Clayco submitted a filing April 2 noting XSC’s attorneys had said the company did not intend to file a response.
Clayco has 10 days after the April 9 ruling in its favor to file a proposed judgment for the Court to review.
Since The X Company was building X Phoenix under a Government Property Lease Excise Tax incentive agreement, the City of Phoenix is the property owner. The City has not disclosed its plans for the site. (Source)
