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Uptown Development Authority

Uptown lawsuit filed

I suppose we should have expected something like this.

The city’s Uptown Development Authority and the economic development zone that feeds it were created in violation of the Texas Constitution, two critics allege in a lawsuit that seeks to void all resulting actions and block Uptown from collecting or spending another dime.

The Galleria-area agency’s controversial, $200 million effort to widen Post Oak Boulevard and add dedicated bus lanes down the middle is a key focus of the lawsuit. It was filed Wednesday on behalf of restaurateur Russell Masraff and condominium resident Jim Scarborough, who was also was a plaintiff in another, since-dismissed lawsuit seeking to block the bus plan.

The suit argues that Uptown officials repeatedly violated the Texas Open Meetings Act in pricing and purchasing land to widen Post Oak – including tracts in which some Uptown board members had a financial interest – and that the agency’s subsequent decisions should be voided or reversed, to the extent possible.

The plaintiffs’ attorney, Joe Larsen, said he views the filing as having broader significance beyond the bus plan.

“We’re asking the court to order Uptown to make no further payments because all the money involved has been collected through an unconstitutional tax regime,” Larsen said. “The bottom line is the Constitution requires equal taxation.”

He added that the only reason tax increment reinvestment zones, or TIRZs, “are not unconstitutional is that there’s a different provision in the Constitution that allows them.”

“In order to meet that other provision in the Constitution that allows TIRZs to be constitutional, they have to be in an area that’s ‘blighted, undeveloped or underdeveloped,’ Larsen asserted. “That’s it.”

This is not the first lawsuit related to this project; that one was subsequently dismissed, though without a comment on its merits. In this case, the plaintiffs asked the judge for an injunction blocking the Uptown Development Authority from spending money or issuing bonds while the litigation was in progress, but that request was denied. I feel like it’s also in the Constitution that we cannot have a non-freeway expansion transportation project in this town without at least one lawsuit. I’m not qualified to assess the legal argument being made here, so instead let me bring you a video of “Uptown Funk”, since that song has been lodged in my brain since this story first broke.

With all due respect to “Uptown Girl”, I say this song should be played at the beginning of all court hearings in this case. Who’s with me on this? Swamplot has more.