‘We Need Housing Desperately’: Pepper Square Mixed-Use Passes CPC, Headed for Council

Following a years-long battle that pitted Far North Dallas residents against City Plan Commission members, elected officials, and a former councilman who now works for Masterplan zoning consultants, the controversial Pepper Square mixed-use development is headed for the city council. On Thursday, the CPC unanimously recommended approval for Henry S. Miller’s mixed-use development proposed at Preston and Belt Line roads. 

The project will bring 984 new housing units to the aging retail center but the trade-off of this re-development, neighbors say, is increased traffic. They’re also concerned about density, building height, green space, and preserving the character of the neighborhood.

Rezoning for Far North Dallas’ Pepper Square  Deferred Again to Feb. 6

Residents who formed the Save Pepper Square Neighborhood Coalition say they haven’t been heard and that despite 91% opposition from the surrounding residents, allege “the fix was in” for Pepper Square’s approval from Day One. 

Representatives for Henry S. Miller Co. said Thursday that nothing significant has changed in their proposal since it was originally approved by the CPC in August 2024. That action was voided after a judge ruled the case had to be readvertised and remanded back to the CPC. 

CPC Vice Chair Brent Rubin made the motion Thursday to follow staff’s recommendation for approval, and it was seconded by Commissioner Tip Housewright — but it was District 14 Commissioner Melissa Kingston who made the most passionate plea to support the project. It will ultimately be decided by the Dallas City Council before developers can move forward.  

Kingston said she supports more density and mid-rise construction because the site is at an intersection of a state highway, Preston Road, and a six-lane roadway, Belt Line Road, near a Dallas Area Rapid Transit station.

“I think that this site would support more housing,” she said. “I drive by this site weekly. I’m unconvinced that traffic is the issue that that community makes it out to be. I think the data makes it very clear that residential traffic is reduced over commercial traffic at this site … I frankly think this is a good thing for this community. We need housing desperately, and this developer has listened to this community in a lot of ways.”

Residents of single-family neighborhoods are going to have to come to terms with the fact that the city is growing and density, in some cases, is the answer, Kingston said.

“I’m going to support the motion, but I really think that it could and should be a more dense project,” she said.

The Battle to Halt Pepper Square Redevelopment

Save Pepper Square Neighborhood Coalition fought the rezoning fiercely, filing suit against every member of the plan commission and City Council, and getting a judge’s order to substantiate their claim that the rezoning wasn’t properly advertised. City code requires that signage be posted 14 days after the zoning case is filed 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 year. 

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. 

The project was on a CPC agenda in December and again in January but deferred, presumably so negotiations could continue between neighbors and the developer — but neighbors say that hasn’t happened. 

Save Pepper Square member Matt Bach said he’s opposed to Henry S. Miller Co.’s current proposal but supports the idea of a revitalized Pepper Square that aligns with the neighborhood’s vision. He asked again on Thursday for more time so that residents could meet with the developer and work out a compromise.

“The neighborhood is not opposed to redevelopment,” he said. “In fact we strongly support transforming Pepper Square into a vibrant, thriving mixed-use development. Our vision includes community-oriented retail spaces with indoor-outdoor restaurants, diverse shopping options, and owner-occupied housing that fills the missing middle gap.” 

Real estate broker Janet Marcum is president of the Northwood Hills Homeowners Association, an area with more than 1,150 residences southeast of Pepper Square. 

“The assertion that nearby residents have always said no to rezoning and always refused to consider any compromise that includes residential is patently false.”

“As early as August 2023, we shared our sentiments surrounding a mixed-use project.” Marcum said. “At that time, residents said they’d accept a max of four- to five-story buildings with owner-occupied options and preferred some senior living options.”

They were told by consultants in October 2023 that only the opinions in the three closest neighborhoods were relevant, Marcum said.

Henry S. Miller Co. is represented by consultants Andrew Ruegg and former Dallas City Councilman Lee Kleinman. Current District 11 Councilmember Jaynie Schultz, who represents the area, has been heavily criticized for her “unwavering support” of Pepper Square, prompting some residents to suggest that developers didn’t have to work with the neighborhoods because they knew the rezoning would pass at the council level.

Following an attempt by some North Dallas residents to recall Schultz, the councilwoman said she would not seek a third term. Bill Roth and Mona Andy Elshenawy have filed paperwork to seek the D11 seat, and Park Board member Jeff Kitner is expected to enter the race before the Feb. 14 filing deadline. 

Schultz said in a newsletter to constituents on Thursday that her office has worked to address traffic concerns.

“As soon as we recognized that the largest concern was traffic, our office contacted the North Central Texas Council of Governments (NCTCOG) for a comprehensive traffic study. They held community meetings and performed traffic engineering studies. Their research revealed that 62% of the traffic congestion at Preston/Beltline is the result of people commuting from Plano to Dallas. The only way to reduce this traffic congestion is to slow down the cars and reshape the way the lights operate. Currently, the property’s zoning allows for 40,000 vehicles per day due to its designation as regional retail, which includes large stores like Stein Mart. However, transitioning to a mixed-use development, even though it seems counterintuitive, would significantly reduce the amount of local traffic because residential components generate fewer vehicle trips. Additionally, including retail within the development encourages pedestrian activity, further lessening traffic.” JAYNIE SCHULTZ DIstrict 11 Dallas City Council member

CandysDirt.com reported about a year ago that concerns about Pepper Square were exacerbated in part by other “significant apartment communities” under construction in the immediate area.

Tonti Properties is developing the vacant property southeast of Preston and Alexis as a multifamily complex with apartments and townhomes. On the northwest corner of Preston and Belt Line, the City approved the redevelopment of Terra Cap’s Preston Del Norte, a senior community, to include 358 garden-style apartments and more than 1,500 additional units.

Support for Pepper Square 

“Aging retail and empty storefronts can become a blight on the community,” declares a webpage on the Pepper Square project designed by Masterplan. “This part of Dallas is economically strong but shopping habits have changed. A lack of quality tenants gives the wrong impression. The proposed change will update the property to a mix of uses including restaurant, residential, office, and appropriate retail. Interior structured parking allows for a much more inviting development with green space, landscaping, and amenities. A traffic management plan will better control the site to minimize the impact on the surrounding streets.

“The planned upgrades will enable a revitalization of the shopping center to better serve the next generations in this neighborhood as Pepper Square has served the community in the past.”

Sean Jensen, president of Prestonwood Trail Neighborhood Association, said he was among the community representatives who worked with developers on the proposal and believes Henry S. Miller acted in good faith “while we kept moving the goalpost.” 

“For months our position was no residential, no negotiation, so it fell upon your staff and that of our council member to push for our interests,” Jensen told the CPC. “The plans changed significantly over the past two years in response to our input … We’re all tired of the status quo. So many of my neighbors are excited to see what Pepper Square can become.” 

Masterplan’s Ruegg said during a brief rebuttal portion of the discussion Thursday that Masterplan and Henry S. Miller have worked hard over the past two years to reach an agreement.

“In order to make a better project we would like to go with staff’s recommendation to increase density here but we know in the spirit of negotiation, we’re willing to accept a floor of under 1,000 units in order to make as many people OK with this request as we can,” Ruegg said. “What this request will do is breathe new life into the Pepper Square area. This is exactly the kind of project at the exact location that Dallas needs more of. I’ve heard that this is too high and too dense, and I couldn’t disagree more.”