The village of Huntley’s motion to dismiss a lawsuit over the Village Board’s rejection of an industrial project on the former site of the Huntley Outlet Center, 11800 Factory Shops Blvd., was denied by a McHenry County judge Thursday. The site’s owner, Huntley Investment Partners LLC, and the village have been at odds for months over how to best use the space. The Huntley Outlet Center was opened in 1994 and was zoned as a C-2 regional retail – planned development district, which is intended to accommodate larger-scale commercial developments that serve the broader needs of the region, according to Huntley’s village code. Occupancy rates at the center peaked in the late 1990s, and by 2016, they had dropped to about 35%.