by Jim Foreman
In a developing legal battle, Friendswood resident Chris Johnson has filed a lawsuit against the City of Friendswood, Mayor Mike Foreman, City Manager Morad Kabiri, and Council Members Sally Branson, Trish Hanks, Joe Matranga, and Robert Griffon, alleging that the creation of Tax Increment Reinvestment Zone Number Two (TIRZ 2) is illegal. The lawsuit, filed in Galveston County’s 10th District Court, also names Johnson’s spouse, Blaire Johnson, as a plaintiff.
Chris Johnson, the son of newly elected Galveston County Consolidated Drainage District Board Member David Johnson, claims that the TIRZ No. 2 was established in violation of Texas law, particularly Chapter 311 of the Texas Tax Code. The law requires that a TIRZ be created in areas that are “blighted,” “underdeveloped,” or would not develop without the financial incentives provided by the zone. Johnson argues that the designated area, which includes valuable real estate along FM 528 and Friendswood Parkway, does not meet these criteria.
According to the lawsuit, the TIRZ is intended to redirect an estimated $100 million in future property tax revenue away from the city’s general fund to support private development within the zone, including the extension of Friendswood Parkway. The road project has faced strong opposition from residents like Johnson, who live in the Wilderness Trails neighborhood and are concerned about the road’s impact when it is connected.
The lawsuit asserts that the city council’s decision to create TIRZ 2 and proceed with related developments was an “ultra vires” act, meaning it exceeded the legal authority granted to them under state law. The complaint further claims that the council failed to make the necessary factual findings to justify the TIRZ creation, rendering the ordinance establishing the zone void.
All five city officials named in the lawsuit were served just before a joint meeting of the City Council and the Board of Directors of Reinvestment Zone Number Two on August 26. The purpose of this meeting was to discuss the city’s proposed 2024-25 municipal budget and to consider the appointment of officers for the TIRZ Board of Directors. However, the meeting was halted by a Temporary Restraining Order (TRO) issued earlier that day by Judge Kerry Neves, preventing any further action related to the TIRZ until the case can be heard in court.
Notably, Council Members Brent Erenwert and John Ellisor were not named in the lawsuit, likely due to their votes against the creation of TIRZ No. 2.
As a result, the City cannot move forward with any actions related to TIRZ No. 2 until at least September 9, 2024, when the court will determine whether the TRO should continue for the remainder of the Johnsons’ lawsuit. The outcome of this case could set a precedent for how cities across Texas approach the creation of tax increment reinvestment zones.
