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Preservationists argue the property at Barret Avenue and East Breckinridge Street has historic value that includes landscaping that has warranted protection in other high-profile cases.
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The officials claim Metro Government violated Kentucky law when it allowed the developer Upper Paristown Preservation Trust to revise its proposal for the property.
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An effort to grant landmark status to Lawton Court in the Meriwether neighborhood failed despite getting a majority of votes at a January meeting of Louisville's landmarks commission.
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Residents are making their voices heard over concerns they will no longer be able to afford to live in their own homes if the district goes into effect.