REHOBOTH BEACH, Del. — A city in Delaware is being forced to prove it owns the land where it’s constructing a new City Hall building.

The federal government is withholding the final $2.2 million payment of an $18 million construction loan until Rehoboth Beach proves ownership of the site.

The News Journal reported Saturday that construction crews are completing the 3-acre complex. About 40 employees already occupy the 40,000-square-foot center.

The city has a long history of using the land despite lacking a clean title. But the lack of one is another hiccup for the project, which is nearly $3 million over budget.

Rehoboth Beach has petitioned Delaware’s Chancery Court to grant it a clean title. The court has asked anyone who might dispute the city’s claim to make their case.

Information from: The News Journal of Wilmington, Del.,

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