City hires attorney for developer lawsuit
Following the filing this month of a lawsuit by developer Hill Country Texas Galleria against the city of Bee Cave, the City Council voted unanimously during a special session March 8 to retain legal counsel – the Georgetown law firm of Russell Rodriguez Hyde Bullock.
The lawsuit, filed in Travis County District Court, alleges a city ordinance providing access to the developer’s proposed office building was changed, without City Council approval, between the time the council approved the measure at an open meeting and the final, enrolled version of the ordinance signed by city staff, including the mayor. The lawsuit alleges the changed ordinance denies the Galleria access onto its property, substantially impairing the site so that the city’s actions are tantamount to a “taking” of the property for which the Galleria seeks financial compensation.
The purpose of the special session, called by Mayor Pro Tem Bill Goodwin and City Council Member Monty Parker, was to discuss and hear citizen comments on two lawsuits pending against the city, including a suit filed Jan. 22 by the Backyard Partners, developers of the Backyard mixed-use project, Mayor Caroline Murphy said. The earlier-filed action alleges three named council members – Goodwin, Kara King and Parker – and the city had a “targeted agenda” against the 2014 development moving forward following their denial of a November amendment that would remove a requirement for the developer to provide a secondary access from the project to Texas 71.
“I understand these lawsuits have evoked a tremendous amount of emotion and discourse in the community,” Murphy said to a packed City Hall.
Although the lawsuit filed by the Backyard Partners is covered by the city’s Texas Municipal League insurance policy, she said the Galleria lawsuit does not qualify for such coverage.
Because the Galleria lawsuit alleges a “taking” has occurred, the city’s policy will not cover Bee Cave’s cost to defend the lawsuit as its coverage excludes such actions, City Manager Travis Askey said.
Galleria managing partner Adrian Overstreet said his group filed the lawsuit against the city “with great hesitation.” The Galleria was the former owner of the Hill Country Galleria shopping center and Overstreet is a member of another investment group that developed and owns Sonesta Bee Cave.
Overstreet proposed to dismiss the lawsuit if certain conditions were met, including conveying an outright driveway on his property as guaranteed by the council’s 2014 ordinance and each party would assume its own attorney fees. Although Goodwin requested an executive session to discuss the settlement offer, no action was taken by council.