Group files lawsuit against City of Austin over Statesman PUD

AUSTIN (KXAN) -- The Save Our Springs (SOS) Alliance filed another lawsuit aimed at the City of Austin's proposed use of property just south of the river from downtown, this time targeting the Planned Unit Development (PUD) for the former Statesman property.

The Statesman PUD was approved by Austin City Council in December 2022.

Plans for the area include a 275-room high-rise hotel, offices and residential units spread throughout six towers and just under 1,400 living units. It also includes affordable housing requirements, though they will not be on-site, and the city plans to build a light rail station in the area, KXAN previously reported.

The lawsuit claims the City of Austin violated the Texas Open Meetings Act and the Austin City Charter Related to Parkland. The group also claimed there were inconsistencies in procedure and that the city engaged in "Contract Zoning to Provide Special Variances to Zoning Requirements."

“The package of development entitlements associated with the Statesman PUD is unprecedented,” said Bobby Levinski, an attorney with the Save Our Springs Alliance. “This PUD goes beyond zoning by essentially adopting a separate code unique only to this property.”

The lawsuit asked a judge to file an injunction against the City that will force them to stop approving permits, city fee waivers and other "development subsidies contained in the final December 1, 2022, ordinance for the Statesman PUD."

KXAN reached out to the City of Austin after business hours and will update this story when we hear back.

South Central Waterfront District

It's the same group that got a Travis County district judge to rule against the City of Austin in an April 2023 lawsuit, saying the city violated state law when it approved the use of some property tax dollars to help redevelop the South Central Waterfront District which includes the Statesman property.

The tax increment reinvestment zone (TIRZ) approved for the area would have diverted $354 million away from the city’s general fund over 19 years, court documents said.

“Every other property owner has to comply with the laws that protect Austin’s water bodies and parks and that ensure the creation of income-restricted housing,” said Levinski. “The City Council shouldn’t be granting special privileges to billionaires at the expense of its other taxpayers.”