Neighborhood Group Sues Pepper Square Developer

The battle over one of Far North Dallas’ most controversial rezoning cases escalated this month. A group of homeowners filed a temporary restraining order to block redevelopment plans at the Pepper Square shopping center, citing zoning conflicts.

The Save Pepper Square Neighborhood Association filed the April 18 petition against the city of Dallas and developer Henry S. Miller Co., aiming to stop any new permits, site approvals or construction activity tied to the firm’s $200 million redevelopment project, the Dallas Business Journal reported.

The temporary order would last 14 days, pending a court decision on a permanent injunction.

At issue is the city’s March approval of Henry S. Miller’s plan to replace much of the aging Pepper Square retail center at Preston and Belt Line roads with up to 868 apartments and about 67,000 square feet of new retail and restaurant space.

The project, which would rise in phases up to 12 stories, passed the City Council 10-4 despite fierce neighborhood opposition over density, potential traffic and strain on city services.

Attorney Austin Smith, representing the homeowners, said the city engaged in illegal spot zoning by approving a dense development that conflicts with surrounding land uses and its own ForwardDallas 2.0 comprehensive land use plan. Smith also criticized the proposal’s scale, claiming that redeveloping the site with a 12-story tower would harm, not help, community welfare.

This isn’t the association’s first legal maneuver. Last fall, it sued over insufficient public notice for the rezoning hearings and won a court order requiring new signage on the site. Residents have since raised more than $75,000 to fund their legal challenge.

City officials maintain that projects such as Pepper Square are crucial to revitalizing aging commercial corridors and meeting Dallas’ long-term housing needs. Still, council member Jaynie Schultz, who represents the district, previously called her vote in favor of the project one of the most difficult cases of her tenure.

The case is scheduled for another court hearing on April 30. The present restraining order could delay a project pitched as a key test of how Dallas reconciles its push for higher-density housing with neighborhood resistance.

— Judah Duke