Pepper Square Fight Gears Up for Jury Trial

It looks like the fight over Pepper Square will be going to trial in October, and developer Henry S Miller has tentatively agreed not to break ground on the project until then.

SAVE Pepper Square Neighborhood Association filed a lawsuit last month seeking a temporary restraining order to keep the city from advancing the development any further through permitting or any other authorizations, claiming the defendants (the developer and city officials) engaged in illegal “spot zoning.”

Pepper Square Fight Heads Back to Court

A hearing last Friday saw Dallas County Judge Martin Hoffman and attorneys on both sides acknowledge there is little precedent in terms of Texas case law when it comes to spot zoning, which is defined as officials arbitrarily or maliciously rezoning a small tract of land to a use that’s inconsistent with the surrounding neighborhood or the jurisdiction’s overall zoning plan.

Hoffman expressed reservations about ruling on the restraining order himself, stating he felt zoning is ultimately a political issue outside the purview of the judiciary. Luckily for the judge, it appears the parties have negotiated the parameters of an expedited trial.

“The defendants have agreed not to break ground on any residential construction on this property until October 6 when the trial is going to occur, which will be a jury trial,” Hoffman said. “In return, the plaintiffs agreed not to seek any temporary restraining orders or temporary injunctions until that time.”

Hoffman and the defense went on to clarify that Henry S Miller would be allowed to seek permits and proceed with the development up to the point of beginning construction on the controversial residential component of the project. It was also noted that the agreement is still tentative.

“I think this is a good step forward, guys,” Hoffman said.

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Lindsey Marsh Brown of the law firm Jackson Walker, representing Henry S Miller, said last Friday that every week of delay would cost her client up to $290,000. It is unclear how the tentative agreement prohibiting residential construction will impact the development timeline and potential loss projections.

Steve Nordseth, the treasurer for the neighborhood group, told CandysDirt.com he felt the claim was a little disingenuous since Henry S Miller has held the property for a number of years now and has been collecting rent from commercial tenants.

“I’m sure there’s a cost for not going forward, but nowhere near that kind of magnitude, I believe,” he said.

Nordseth said he and others affiliated with the group are pleased that the matter will be heading to trial and they’re confident the outcome will be a positive one for them, noting they wish the developer would improve the existing retail at the old shopping center rather than “create some monstrosity of a residential complex.”

The fight over Pepper Square has become a lightning rod in District 11, where the project site is located off the intersection of Preston Road and Belt Line Road. Council Member Jaynie Schultz (District 11), who voted to rezone the property for mixed-use development along with a majority of Dallas City Council, is not running for re-election.

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Most of those running for Schultz’s seat have been staunchly opposed to Henry S Miller’s plans to introduce apartment towers up to 11 stories tall (comprising more than 800 units in total), turning out to city meetings to speak out against the company’s rezoning request. CandysDirt.com reached out to the candidates for comment on the tentative agreement.

CandysDirt.com also reached out to Greg Miller, CEO and president of Henry S Miller, for comment on the tentative agreement and the potential impact and losses related to the project having to wait until October to break ground.

This article will be updated with their statements when they are received.