Federal authorities sued New Berlin on Thursday, claiming racial discrimination drove the city's decisions to block a low-income housing development, in violation of the Fair Housing Act.
A 13-page complaint spells out the lengths to which city leaders and staff purportedly went to stymie MSP Real Estate Inc.'s plans, even so far as revising the city's 2020 comprehensive plan.
"The defendant's actions as described herein were taken because of race and because of community opposition that city officials understood to be based on the race and on racial stereotypes of the prospective tenants of affordable housing," the complaint states.
The complaint details threats against the mayor and his children and racially derogatory terms used during the controversy.
The developer, MSP, filed its own federal suit in March claiming Fair Housing and Americans with Disabilities acts violations by the city. It seeks nearly $13 million in compensatory damages plus punitive damages. In response to that action, the city has denied race was a factor in rejecting the project.
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