building with excessive height in Dallas can maintain its structure following city's error in issuing building permit, as per ruling from Texas Supreme Court.
Fresh Take:
In a shocking turn of events, the Texas Supreme Court has given a North Texas builder a free pass to keep a home that's taller than Dallas city rules allow, after city officials botched the building permit process big time. This decision doesn't make Dallas' residential proximity slope ordinance obsolete, but it does set a precedent for relief in similar screw-ups.
The court's ruling doesn't mean Dallas' residential proximity slope ordinance is unenforceable. However, it does pinpoint that cities risk being halted from enforcing their rules too late in similar situations. In simpler terms, it's a warning to the city to get their act together and avoid making errors that could come back to bite them.
Justice Brett Busby penned the court's decision, emphasizing that allowing this particular over-height structure to remain would neither prevent future enforcement of the RPS ordinance in other cases nor hinder the city's ability to ensure public safety.
In 2018, Dallas ordered Phillip Thompson Custom Homes and PDT Holdings, whose owner is McKinney developer Phillip Thompson, to halt construction on a three-story Knox-Henderson duplex townhome. The fiasco began when city officials approved the developer's plans showing the home would be just 36 feet tall, but later informed builders the home was too tall due to the residential proximity slope ordinance. This rule, although less known, limits the home's height to 26 feet.
Thompson's team tried unsuccessfully to snag an exemption from the zoning rule, leading to a lawsuit against the city. They argued that they shouldn't have to demolish the home after being misled about height requirements. The city, on the other hand, argued that the court should still allow them to enforce the ordinance for the neighborhood's well-being.
In a stunning decision, the high court ruled that it would be downright unfair (or a "manifest injustice") to let Dallas enforce the ordinance in this specific situation. The city's ruling was reinstated in Thompson's favor, with the court citing that the city intentionally misled builders about the height requirements and didn't inform PDT Holdings about the RPS ordinance soon enough.
The home has remained empty throughout this legal battle. With the court's ruling, attorney Christopher Kratovil expects Dallas to finally clear the final hurdle and let the home be occupied or sold.
Addressing the question of city authorities enforcing their ordinances, Kratovil noted that cities have every right to do so. However, he emphasized, they should exercise this power with promptness and avoid coming in at the last minute, trying to enforce a rule that they haven't mentioned before.
The city gave the green light to PDT Holdings' project in 2017. Two buyers signed a contract to purchase the home the following month. Then, a city inspector informed builders that the home didn't comply with the general 36-foot height limit due to a parapet wall on the roof. Despite several rounds of communication between the city and builders regarding the height issue, they managed to fix the parapet problem.
Yet, when the home was almost complete in April 2018, the city dropped the RPS ordinance bomb, which set a 26-foot height limit due to the home's specific location. The only viable solution to meet this shorter height requirement would have been to demolish the home.
The Texas Supreme Court's ruling isn't the first instance of city officials approving building permits in error. Just a few months back, the city manager's office admitted to the Dallas City Council that several permit applications for projects in the Elm Thicket-Northpark neighborhood had been approved using outdated zoning information between 2022 and 2023. In fact, permits were incorrectly granted!
Residents joined forces, filing lawsuits over certain variances the Board of Adjustment granted in the aftermath. Once again, the moral of the story seems to be: be precise, be accurate, and always double-check—because mistakes have costs, and no one wants to bear them!
- The Texas Supreme Court's decision in the Dallas building case has set a precedent for relief in situations where cities may incorrectly enforce their rules or fail to communicate critical information to builders.
- In finance and investing, it's essential to be precise and accurate, as mistakes can lead to significant costs, as demonstrated by the Dallas building permit fiasco.
- Thompson's legal team argued that it would be unfair for the city to enforce the RPS ordinance in their case, given that they were misled about height requirements and the city failed to inform them about the ordinance promptly.
- Public safety is a crucial aspect of any city's governance, but the Texas Supreme Court ruling shows that cities must exercise their power to enforce ordinances responsibly, avoiding last-minute enforcement and potential misinformation to builders.
- The Dallas case is not unique; city managers have admitted to approving permit applications in error, leading to legal disputes and costly resolutions.
- Real-estate development requires careful attention to detail, with proper understanding of local regulations and ordinances like the residential proximity slope (RPS) ordinance, to avoid legal disagreements and potential financial losses.
