Lawsuit Dropped Against Henry S. Miller’s Pepper Square

The yearslong fight over Pepper Square is over, and the developer came out on top.

The Save Pepper Square Neighborhood Association dropped its lawsuit against Dallas and developer Henry S. Miller Company, ending a high-profile zoning dispute that had stalled plans to redevelop the aging Far North Dallas shopping center, the Dallas Morning News reported.

The Dallas-based firm is moving ahead with a $200 million mixed-use project with 868 apartments on the 15.5-acre site near Preston and Belt Line roads. The maximum height was set to 165 feet by the Dallas City Council, and a minimum of 35,000 square feet of retail, office or other personal service business space must be set aside. Miller originally pushed for as many as 2,000 units at the site before negotiations with City Hall slashed the density.

The outcome underscores the sweeping impact of a new Texas law that could accelerate redevelopment of aging retail centers across Texas. For developers, it opens the door to higher-density plays on underperforming commercial sites. Set to take effect Sept. 1, the law requires cities to allow mixed-use residential and multifamily development in a zoning classification that allows office, retail or industrial development and applies to cities with more than 150,000 residents located in counties with more than 300,000 people.

Matt Bach, who led the neighborhood opposition group, told the outlet that winning the lawsuit would have been a hollow victory once the law takes effect, prompting the organization to drop the case.

The developer expects to start construction by the end of next year, starting with a midrise fronting Belt Line Road and moving next to an eight-story building along Preston. Gregory Miller, president of Henry S. Miller Company, said the new law would let him pack in closer to 1,900 units, but market fundamentals make that unrealistic. The project’s scale was cut substantially, as the originally proposed 12-story tower and higher apartment number was scrapped.

— Eric Weilbacher