After Years of Acrimony, Dallas City Council Approves Revised Pepper Square Project

A zoning case that has been a flashpoint in Dallas politics finally came to a resolution at a raucous city council meeting on Wednesday, when council members voted 10-4 to approve mixed-use zoning for the Pepper Square redevelopment in North Dallas.

City Council’s approval of the controversial Pepper Square — Jesse Moreno, Carolyn King Arnold, Cara Mendelsohn, and Paul Ridley were opposed — may be the final hurdle to redeveloping the aging shopping center at the southeast corner of Preston and Belt Line into a mixed-use development.

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

Read the March 26 city council briefing packet for the proposed zoning change.

The Developer’s Vision

Masterplan, the consultant representing Dallas-based developer Henry S. Miller, says in proposal documents that they intend to “breathe new life into Pepper Square, transforming it into a vibrant mixed-use, mixed-income development with pedestrian-friendly elements and impactful open space.”

The development’s public benefits include tailored design standards, enhanced open space, upgraded sidewalks, additional landscaping, transit shelters, and a trail connection to White Rock Trail, city staff said in the council’s briefing documents.

Residents in Yellow Pack the Chamber to Protest

Dozens of residents turned out in person to speak out against Henry S. Miller’s request to rezone the mostly vacant shopping center from community retail to a planned development district, or PD, that would allow mixed-use zoning, including residential. Wearing matching yellow shirts to signify their stance on the issue, the project’s opponents called on council members to reject the redevelopment proposal over issues ranging from privacy concerns to increased traffic congestion.

Since its proposal in September 2022, nearby residents have been concerned about the traffic that the originally proposed 2,300 apartment units would bring and have formed a vocal coalition of neighborhood associations.

Following 11 community meetings, multiple postponements or vote deferrals, and a lawsuit filed against the city, the developer widdled down the firm’s original plans for Pepper Square from that 23-acre project with a maximum of 2,300 apartment units to a 15.5-acre development with 984 units.

On Wednesday, a 116-unit mixed-income or retirement housing component was removed from the proposal during the meeting, bringing the total to 868 apartment units, the Dallas Morning News reported.

Some of those who showed up to speak at the meeting framed the issue as a case of city government refusing to listen to constituents for the benefit of “greedy developers.” Much of the acrimony was directed at Council Member Jaynie Schultz (District 11), who represents the district where the redevelopment will take place and has decided not to run for re-election.

Council Member and Mayor Pro Tem Tennell Atkins, who chaired the meeting in Mayor Eric Johnson’s absence, had to repeatedly remind the gallery to refrain from any outbursts (positive or negative).

Some anti-Pepper Square speakers argued that the right move would be for the city council to delay approval of the project until after the May election, when they would have a new council member.

Four candidates are running for Schultz’s vacated seat, including Kendal Richardson, Mona Andy Elshenawy, Bill Roth, and Jeff Kitner.

Supporters Argue for Redevelopment and Housing Needs

While the majority of those who appeared at city hall were against the rezoning, several Dallas residents voiced their support for the project, arguing that the commercial area desperately needed revitalized retail and dense residential.

“I’m quoting here from the North Dallas Neighborhood Alliance that ‘growth should be directed at abandoned and derelict shopping centers.’ So my request is that we do go big, that we get as many housing units here as we can,” said Adam Lamont, founder of Dallas Neighbors for Housing.

“[The developer] has already made a lot of changes and compromises to get to this point,” he added, also noting that he wished the project still had an affordable housing component.

A Motion to Delay Fuels Frustrations

Mendelsohn motioned for the case to be deferred for six months, arguing that the conflict could benefit from having a District 11 council member who she said better represented their constituents. Her commentary set off a bit of a back-and-forth debate between her and Schultz until Atkins and Bazaldua asked to reestablish decorum.

When asked what a delay would do to the project, a visibly frustrated Greg Miller, CEO of the development firm, quipped he might open “all-night dance halls” on the property if the rezoning didn’t go through, stressing that the project needed the density to be economically feasible.

“I can’t handle another delay. I’m begging you to please vote on this,” he said.

A vote to defer the matter until August failed.

Schultz Proposes Last-Minute Compromise

Instead, Schultz offered an amended rezoning proposal that reduced the number of apartment units to 868 (a good chunk of which would have to be reserved for retirement housing) and shortened the allowable height of the tallest structures, which might be able to accommodate 11 stories. The amended proposal also called for the prohibition of drive-thru services at commercial operations, among other tweaks.

Schultz said Pepper Square was one of the most difficult zoning cases she’s faced.

“In fact, it’s one of the most difficult among the hundreds of cases I’ve participated in over my 11 years of service to the City of Dallas,” Schultz said. “What makes this case difficult is not necessarily the complexity of zoning, it’s the way our community has become divided.”

“Land use … can also be one of the most contentious aspects of leadership because a wide variety of perspectives can come from actual next-door neighbors, each claiming to represent the voices of the [community],” Schultz continued. “Such is the situation with Pepper Square.”

She leveled criticism at some of the project’s most vocal critics, claiming they’ve turned the area into a “test market for media campaigns,” making Pepper Square into a “political scapegoat.”

Schultz’s critics have characterized her comments in the past as dismissive of their concerns.

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

Reactions After the Vote

CandysDirt.com spoke briefly with Lee Kleinman, a former District 11 council member and Masterplan consultant for Henry S. Miller on the Pepper Square project.

Kleinman said negotiations with the community took a turn in March 2024 when a meeting became particularly contentious. A resident interrupted the presentation to poll neighbors clutching “No” signs; he subsequently published that video challenging Kleinman to his “Recall Jaynie Schultz” YouTube channel and published others attacking council members who have been supportive of the Pepper Square project.

Here’s What Went On Inside the Pepper Square Meeting That Has Some Calling for Jaynie Schultz Recall

CandysDirt.com’s engagement with Kleinman was cut short when that same vocal resident, Damien LeVeck, confronted him with a GoPro camera during our interview. The two men’s interaction grew heated before Kleinman disengaged and walked off.

CandysDirt.com also caught up with several District 11 candidates after the vote. Three of the four candidates running for the seat were in attendance and spoke out on the record against the rezoning, as well as several other city council candidates in other districts.

Bill Roth said, “The neighborhood is going to watch the process very closely. I think there’s going to be a requirement on the developer to be sensitive to their development process and to include the community.”

Kendal Richardson told CandysDirt.com, “I’m very disappointed in the leadership that we’ve had down here. … If we are the people, and we elected you, you should be the public servant working for the people.”