End of the Legal Battle Over Pepper Square Redevelopment

The legal battle over the planned $200 million redevelopment of Pepper Square, a Far North Dallas shopping center, is finished. The Save Pepper Square Neighborhood Association has voluntarily dropped a lawsuit it filed against the city of Dallas and developer Henry S. Miller — marking the end of a contentious, yearslong zoning battle.

The Dallas-based firm said it will move forward with its plans to turn the retail strip into a mixed-use development with nearly 900 apartments. The lawsuit was dropped by the neighborhood association Monday after court-ordered mediation failed. The neighbors filed their initial lawsuit in October 2024. The case was set for trial in October.

Background of the Dispute

The dispute over the redevelopment of Pepper Square began several years ago, with the neighborhood association opposing the plans due to concerns over traffic, density, and the impact on the community. The association had argued that the development would lead to increased traffic congestion and parking problems, and would alter the character of the neighborhood.

The city of Dallas and the developer, Henry S. Miller, had argued that the development would bring much-needed housing and economic growth to the area. The city council had approved the development plans, but the neighborhood association had appealed the decision, leading to the lawsuit.

Factors Leading to the Withdrawal of the Lawsuit

Matt Bach, president of the Pepper Square Neighborhood Coalition, said two factors led the group to abandon its fight — money and a new development law passed by state lawmakers earlier this year. Bach said Senate Bill 840 made their efforts futile. Under the new law, apartments and mixed-use developments can be built by right in areas currently zoned for commercial use.

The law applies to cities with more than 150,000 residents located in counties with more than 300,000 people. “Even if we had won this case, (Miller) could come back two months later and say ‘I’ve got a commercial center that now I can convert to multifamily. I don’t need approval from anyone,’” Bach said. “It would have been a hollow victory to go to court, spend a lot of money and time only for that to happen.”

Development Plans

Gregory Miller, president and CEO of Henry S. Miller, told The Dallas Morning News that his firm plans to break ground on the new Pepper Square by the end of 2026. Under the plans, the firm will build a maximum of 868 apartments on a 15.5-acre site near Preston and Belt Line roads.

The company originally aimed to build 2,000 apartments before proposed unit counts were chopped multiple times over the years. A minimum of 35,000 square feet of the project must be set aside for retail or personal service businesses. The Dallas City Council limited the maximum allowable height at the site to 165 feet if certain conditions are met.

Phases of the Development

The first phase of the development will be a five- or six-story building that includes podium parking along Belt Line Road, Miller said. The firm will build nearly 868 units across multiple residential buildings. The second phase will be an eight-story building that includes two or three floors of parking along Preston Road.

Miller previously told The News that the company planned to build a 12-story structure at the site, but the market likely wouldn’t support the firm building an apartment complex that size. While SB 840 would allow the firm to increase density at the site, Miller said he will abide by the terms of the agreement passed by the Dallas City Council in March.

Reaction from the Neighborhood Association

Bach said he was disappointed that the parties couldn’t come to an agreement, but he was pleased that Miller has no plans to increase the number of apartments at the site. Bach and other neighbors opposed apartment buildings taller than four stories. Bach also said he was happy to hear that Miller wouldn’t build a 12-story structure on the site, but the proposed unit count is still too high for his liking.

While the outcome isn’t what the group wanted, Bach said the yearslong zoning struggle has proven the power neighborhoods have in city government. “The community is much more connected, aligned and willing to take on issues that we feel threaten neighborhoods,” he said. “We’re a bit of a force now at City Hall.”

Conclusion

The end of the legal battle over the redevelopment of Pepper Square marks a new chapter for the neighborhood. While the outcome may not be what the neighborhood association had hoped for, it is clear that the community has become more engaged and empowered to take on issues that affect their quality of life.

The development of Pepper Square will bring new housing and economic growth to the area, but it will also require careful planning and management to ensure that the needs of the community are met. As the project moves forward, it will be important for all stakeholders to work together to ensure that the development is a success for everyone involved.

Frequently Asked Questions

Q: What is the planned redevelopment of Pepper Square?

A: The planned redevelopment of Pepper Square is a $200 million mixed-use development with nearly 900 apartments, as well as retail and personal service businesses.

Q: Why did the neighborhood association drop its lawsuit?

A: The neighborhood association dropped its lawsuit due to two factors: money and a new development law passed by state lawmakers earlier this year. The law made their efforts futile, as it allows apartments and mixed-use developments to be built by right in areas currently zoned for commercial use.

Q: What are the plans for the development?

A: The development plans include building a maximum of 868 apartments on a 15.5-acre site near Preston and Belt Line roads. The first phase will be a five- or six-story building with podium parking, and the second phase will be an eight-story building with two or three floors of parking.

Q: How will the development affect the community?

A: The development will bring new housing and economic growth to the area, but it will also require careful planning and management to ensure that the needs of the community are met. The community has become more engaged and empowered to take on issues that affect their quality of life, and it will be important for all stakeholders to work together to ensure that the development is a success for everyone involved.