The city sent a letter Wednesday to Gary Matthews, terminating the agreement to build the multi-million dollar hotel.
The city says it has the legal right to do so, because Matthews hasn't proven he has the project financed.
But in a letter sent to the city late today from Matthews' attorney, Matthews claims the city can't cancel the contract.
Matthews says he has met all requirements laid out in the agreement and says he'll take legal action if the city tries to kill the project.
We spoke with City Manager Patrick Urich this evening.
All he would say is the city's original letter canceling the agreement speaks for itself.
Now, local leaders are already trying to move on.