In a notice of claim this month, Union Square Associates accuses the city of methodically forcing it to default on its loan so the city's Redevelopment Agency would be able to reacquire the finished Union Square office, retail and 60-condominium project.

A lawsuit will be filed if the dispute is not resolved, said attorney Vincent Rampton of Salt Lake City. Utah's Governmental Immunity Act requires 60-day notices of claims before lawsuits are filed.

City attorneys were not available for comment Wednesday afternoon.

The city is already defending a federal lawsuit brought in March by a company that claims the city stole its architectural plans and gave them to another developer for the three-story office building at the corner of Lincoln Avenue and 25th Street.

Both that building and the Union Square project are part of Ogden's redevelopment in the block of 25th Street east of Union Station.

Union Square claims the city, acting through Stuart Reid, director of community and economic development, and Scott Brown, the business development manager, engineered the default while negotiating with another developer to take over the property.

Union Square contends it was forced to sell to 25th Street Associates on the eve of a foreclosure sale or file for Chapter 11 bankruptcy. As a result, the company suffered $1.2 million in lost profits, $500,000 in unnecessary expenses and $300,000 in obligations to third parties, the letter says.

Among the specific accusations are that the city forced costly deviations from project plans and interfered with sales of condominiums.

The city didn't deliver on promises of condo down-payment assistance and favorable financing for prospective buyers, and limited the company's marketing opportunities, Union Square's attorney alleges.

The city also failed to fund in full the tax increment financing that had been promised, causing a $125,000 shortfall, Rampton's letter says.

In the other lawsuit, filed March 30 by Exo Properties Inc., Ogden City, several employees, an architectural firm and two construction companies are accused of civil rights violations.

Exo, a limited liability company, claims it spent $50,000 on architectural drawings that were given to another developer to build an office building on 25th Street that matches the historical character of the area.

Exo also claims the city backed out on a deal to finance the project, and found another developer instead.

The city has denied Exo owned the drawings and claims Exo changed the deal before city financing could be arranged.