x
Breaking News
More () »

'I'm going to go bankrupt' | Dallas permitting error leaves builders in limbo

The mistake is another setback for the much-maligned city permitting department, which has faced embarrassment in recent months.

DALLAS — The City of Dallas has ordered construction work to stop on more than a dozen homes and duplexes it previously -- but erroneously -- granted permits to in the Elm Thicket-Northpark neighborhood, a Friday memo to City Councilmembers disclosed. 

The memo from Assistant City Manager Robin Bentley said a review found 19 sites had building plans initially approved by the city that included violations of zoning restrictions. Five of the sites had not yet started construction, but the city issued work-stop orders and placed holds on the other 14, the memo said. 

The city's mistake -- which will cause significant setbacks to the nearly two dozen property owners affected -- is the latest issue to plague the Dallas permitting operation. Councilmembers and developers have long complained of lengthy permit processing times, and the city faced embarrassment earlier this year when it was forced to close its office for building permits after an inspection issue

"It’s the city’s fault 100 percent," said Danny Le, a real estate developer who said the city ordered work stop on his half-built duplex last month. "Had they told me I couldn’t build something like this, I never would’ve built it." 

He and other builders plan to ask for an exception from the zoning rules but aren't sure they'll receive permission to keep building.

"There’s nothing I can do. I mean, at this point if they tell me I can’t build, the bank is going to take this project. I’m going to go bankrupt after this," Le said. 

A city spokesperson acknowledged but did not respond to a request for an interview Tuesday.

"In addition to resolving these specific Elm Thicket-Northpark permitting errors, staff is looking at larger systemic changes to ensure this type of error does not occur in the future," Bentley wrote in her memo. 

In late June, Interim City Manager Kimberly B. Tolbert combined the city's development services department with its planning and urban design department. Among her stated goals with the reorganization was to streamline and speed up the permitting process. 

The city laid off Development Services Department Director Andrew Espinoza, who oversaw permitting, as part of the changes. Monday was set to be his final day with the city, according to his pink slip obtained by WFAA through a public records request. 

The city's inquiry into the permitting errors in the Elm Thicket-Northpark neighborhood began immediately upon the reorganization of the city departments, Bentley wrote. 

Neighbors in the area successfully pushed for city zoning changes to preserve its "historic character" amid concerns newer developments could invite contemporary homes that "tower over some of the traditional structures." 

"Every new modern build that looked like a dentist’s office was kind of eroding and chipping away at the history of the neighborhood," said Gus Perez, co-founder of the Save Elm Thicket neighborhood group.

The zoning amendment took effect Oct. 12, 2022, the city said. 

But this year Perez -- and other neighbors -- began noticing the houses with designs they believed they had successfully banned were still popping up in their neighborhood. 

"I’m saying this can’t be right," Perez said. "I mean I was on the authorized hearing steering committee I know the restrictions."

He was right.

Permit applications reviewed between Oct. 12, 2022, and June 2, 2023, were "evaluated using outdated zoning information, and some permits may have been approved in error," Bentley's memo said. 

Save Elm Thicket, which neighborhood group that pushed for the zoning changes, worked with the city to identify 29 potential violators of the new historic preservation zoning restrictions. Of those examined, the city said it found 19 in violation and began contacting contractors and applicants last week.

"Our residential and enforcement teams are working closely with applicants and contractors to quickly bring these sites into compliance with the new development provisions," Bentley wrote. 

But Perez said he doesn't want the new builds to be granted exceptions to the zoning rules he and others fought to establish -- no matter the city's error.

"It’s clear they can’t build this here," he said. "We don’t want it on the backs of the neighbors to fix."

City planning and development staff will now review all permits issued in the neighborhood between the zoning changes taking effect and June 2, 2023, and promised to provide councilmembers an update in the coming months, Bentley said. 

Also on WFAA.com:

Before You Leave, Check This Out