Efforts to turn a Far North Dallas shopping center into a mixed-use destination won approval from the City Plan Commission Thursday, setting the stage for city council debate in the coming months.
Developer Henry S. Miller’s plan to redevelop the Pepper Square shopping center along Belt Line and Preston Roads was unanimously approved by the commission.
The firm wants the property zoned as a MU-2 Mixed Use District. Under the proposal, just under 1,000 apartments could be built at the 15.5-acre site.
The plan is to build at least 750 units, but 984 apartments may dot the landscape if the additional units are available as affordable and retirement apartments. A minimum of 35,000 square feet of the project must be set aside for retail, or personal service businesses.
While the entire commission voted in favor of the project, not everyone felt the plan went far enough. Commissioner Melissa Kingston advocated for more density at the new Pepper Square.
“We desperately need more housing,” she said.
Gregory Miller, president and CEO of Henry S. Miller, told The News that the project’s first phase will include a four- or five-story residential building with parking. The second phase will include a residential building up to 12 stories, and may include another structure up to 12 stories if the city council approves the rezoning.
“It could be a combination of office. We might put our own office in there,” Miller said about the second, 12-story building. “It could be condominiums for sale. Our hope is a combination.”
A third phase will include two more residential buildings around five stories. At full build-out, Pepper Square will have up to 67,000 square feet of retail and restaurant space. Up to 25,000 square feet could be new retail. The southern portion of the site will not be redeveloped, allowing tenants Hobby Lobby and Trader Joes to remain, Miller said.
Some area residents have contested the redevelopment plans for more than a year, and the opposition resulted in a reduction of proposed apartments.
In the summer of 2022, Henry S. Miller aimed to build up to 2,300 units at the site. Proposed unit counts were then chopped to 1,550 and cut once again to just under 1,000 in late 2024.
Residents from nearby neighborhood associations have opposed Miller’s plans, advocating for either no residential units, a small smattering of townhomes, or fewer than 400 apartments at the site.
In previous interviews with The Dallas Morning News, opponents cited concerns over traffic, other planned apartment projects in the area, city service delays, and potential negative effects on home values.
Michael Morris, transportation director for the North Central Texas Council of Governments, previously told The News that traffic simulations show only a slight increase in traffic if all planned apartments in the area are built.
A Kimley-Horn traffic analysis conducted on the developer’s behalf found the proposed mixed-use development “generates approximately 50% fewer trips” than the existing shopping center would if it were fully leased.
This is the second time the planning commission endorsed the Pepper Square project. Commissioners voted in favor of the proposed redevelopment in August.
However, the Save Pepper Square Neighborhood Association filed a lawsuit against the developers, the city of Dallas, its City Council and the City Plan Commission in October. The organization alleged that Henry S. Miller didn’t properly follow sign-posting requirements at the property to notify residents of the public rezoning case.
A Dallas district court judge ruled in favor of the association, and Henry S. Miller was forced to bring the application before the plan commission again.
Matt Bach, president of the Save Pepper Square Neighborhood Association, said he was disappointed but not surprised by Thursday’s vote.
“I’m still holding out hope that at some point (Henry S. Miller) and the neighborhood leaders will sit down and work something out,” he said. “It’s been a frustrating process.”
Miller said he was pleased with Thursday’s vote but added that the redevelopment process has been frustrating.
“We’ve been working on this for so long,” he said. “We can’t make any new leases and we can’t begin our new project. The delay has been incredibly harmful to us.”