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TIRZ 16, known as the Uptown Development Authority, is the latest Houston district to face legal trouble. A lawsuit filed Wednesday alleges the creation of the reinvestment zone in the Galleria area was in violation of the Texas Constitution, since the zone cannot reasonably be considered “unproductive, underdeveloped or blighted.” It claims the justification for the creation of the TIRZ was to tackle traffic decongestion to avoid losing Uptown's status to expanding suburban centers, the Houston Chronicle reports.
The suit was filed on behalf of restaurateur Russell Masraff and condo resident Jim Scarborough, who was also a plaintiff in a since-dismissed lawsuit seeking to block Uptown's bus plan.
A hearing will be held on Thursday over a possible injunction on further spending or work on Uptown projects. City Council delayed a vote Wednesday that could allow Uptown an additional $65M in debt.
