title: "Judge rules developer breached contract on stalled Phoenix tower" url: "https://www.abc15.com/news/business/judge-rules-developer-breached-contract-on-stalled-phoenix-tower" author: "Angela Gonzales, Phoenix Business Journal"

A Maricopa County judge issued a final judgment that the developer of a long-stalled downtown Phoenix apartment tower "materially breached its contract" with one of the Valley's most prolific general contractors.

Maricopa County Superior Court⁠ Judge John L. Blanchard found in the Nov. 2 ruling that XSC Phoenix Investment 2.0 LLC, an entity affiliated with Chicago-based developer The X Co., violated the Arizona Prompt Payment Act and breached its contract with general contractor Clayco Inc.⁠ to build the second phase of the X Phoenix apartment complex on the corner of West Monroe and 3rd Avenue, which stopped mid-construction in September 2023.

Chicago-based Clayco Inc. and other subcontractors tied to the project are now owed $40.3 million in principal and another $16.3 million in accrued interest through June 30, plus accruing interest at the rate of 1.5% per month thereafter until paid, according to the Nov. 2 judgment.