Pepper Square Rezoning Signs Must Be Reposted, Case Remanded Back to Plan Commission

A district judge ruled Friday that developers planning to build a high-density mixed-use project at Preston and Belt Line roads must delay their plans for at least a month and repost signage about the project. The case will be presented again before the City Plan Commission, a local news station reported late Friday.

District Judge Martin Hoffman continued injunction proceedings this week with the Save Pepper Square Neighborhood Association, a conglomerate of nearby homeowners’ groups that filed suit hours before the Dallas City Council was set to vote on the project last month. They claim the City of Dallas did not give residents proper notice of zoning changes planned by Pepper Square developer Henry S. Miller Company.

Pepper Square Standoff Continues, Ruling Now Expected on Nov. 8

Friday’s hearing was the third time the matter has gone before 68th District Court Judge Hoffman, who previously granted a temporary restraining order on Oct. 23 and heard testimony on Nov. 1.

City code requires that signage be posted 14 days after the filing and remain in place continuously until the matter is approved or denied by the City Council. It’s the responsibility of the developer to ensure the signage stays intact, plaintiffs with the Save Pepper Square Neighborhood Association argued in a legal filing last month.

The Dallas CPC is a quasi-judicial board composed of volunteers appointed by the City Council. The panel makes recommendations on zoning cases but does not approve or deny them.

A Contentious Zoning Case

Plaintiffs in the case told CandysDirt.com they consider the ruling a victory.

“What was said in open court is that, per the code, if notice requirements are not complied with, then they have to issue a minimum of a four-week delay and make the applicant comply with the code,” said Natalie LeVeck, an attorney and Save Pepper Square board member. “My understanding is it will be kicked back to the CPC for a vote and then it would go to City Council.”

She said this is the “most contentious zoning case in Dallas,” and council members, many of whom are seeking re-election in May, will be campaigning when this case goes to the horseshoe. District 11 Councilwoman Jaynie Schultz currently represents the Pepper Square area and has said she will not seek re-election.

District 12 Councilwoman Cara Mendelsohn, who lives near the proposed Pepper Square development, commented briefly after the ruling.

“Developers are required to post signs on the property when going through a zoning case and the city should enforce that requirement for all developments,” she said.

City Plan Commission Chairman Tony Shidid and Commissioner Brent Rubin, both of whom testified in court Friday, could not be reached for comment.

Case Delays

According to court documents, the defendants — every Dallas council member and plan commissioner — argued that the Save Pepper Square Neighborhood Association does not have grounds for injunctive relief because injunctions are only valid if explicitly authorized by statute or necessary to fulfill the statute’s purpose. In this matter, the defendants said the City Council can review CPC decisions independently.

Additionally, the defendants claim that any delay Save Pepper Square Neighborhood Association sought has already been granted. The City Council postponed the public hearing on the zoning issue for nearly three months, exceeding the code’s four-week delay requirement.

Plano attorney Anthony Ricciardelli, who was hired to represent Save Pepper Square, said he hopes the ruling underscores the importance of complying with notice requirements. Immediately after the hearing, Ricciardelli said he planned to ask that the matter be remanded back to the City Plan Commission for another public hearing and vote.

“We’re gratified that Judge Hoffman ordered the City of Dallas to follow its own rules,” Ricciardelli told CandysDirt.com late Friday. “His ruling puts renewed focus on rigorous adherence to notice requirements and ensures that they are not treated as mere technicalities.”

Here’s the Back Story

The rezoning case was originally filed in September 2022. If approved, backers say it would revitalize an abandoned shopping center into retail, greenspace, and up to 984 housing units. Opponents are concerned about traffic, density, height, and aesthetics of a mid-to-high-rise residential tower in the area. About 91% of the surrounding neighbors oppose the development, Save Pepper Square members maintain.

Judge to Rule Friday on Whether Pepper Square Rezoning Was Properly Advertised

Residents brought up the missing-sign issue at the Aug. 8 CPC meeting at which the commission voted 12-2 to support the rezoning. Before the public hearing kicked off that day, neighbors asked to have the case dismissed, saying proper notification was not posted. At the time, CandysDirt.com reported that “commissioners determined that developer Henry S. Miller operated in good faith when displaying signs about the rezoning.” You can watch the Aug. 8 CPC meeting here.

Save Pepper Square Neighborhood Association said in its 117-page filing that the Dallas City Council shouldn’t be allowed to vote on Pepper Square because proper notice was not given about the proposed zoning change. Signs advertising the rezoning may have come down during a windstorm prior to an August City Plan Commission hearing and were not replaced, residents have told CandysDirt.com. Consultants with Masterplan, who were hired by Henry S. Miller, did not immediately respond to an email late Friday.

Former Dallas Councilwoman Sandy Greyson testified at Friday’s hearing in support of Save Pepper Square.

“They’re taking a community asset that we currently have, which is a retail shopping center used by all the surrounding neighborhoods,” Greyson said. “They want to fundamentally change it into something that is too high, too dense, and in the wrong place. I can see why the surrounding community says, ‘That is out of character for us. Don’t do it.'”

Additionally, Keller Williams Realtor Racheal Potter testified that the increased density and height of the development would diminish home sales and could hurt the real estate values of nearby homes.

LeVeck said Save Pepper Square neighbors have spent $30,000 on legal proceedings, and they shouldn’t have to go to those lengths to be heard by city officials.

“For me personally, I got involved because I think they should follow city code and I don’t think people with credible evidence put together in an organized manner should be dismissed just because they’re viewed as a NIMBY [Not in My Backyard],” LeVeck said.

We’re continuing to follow this story and will add to it as more information becomes available.