New lawsuit challenges tax plan for Dog’s Head development in Austin

A new lawsuit is challenging Austin’s approval of the large Dog’s Head development in southeast Austin.

Save Our Springs Alliance, People Organized in Defense of Earth and Her Resources (PODER) and a group of neighbors and taxpayers say they’ve sued the city.

They’re seeking to block a tax incentive plan and a 45-year development agreement with Endeavor Real Estate Group. The Austin City Council approved the development agreement in July.

The developer plans to build thousands of homes, offices and retail space.

The council also voted to create a tax increment reinvestment zone for the project, which would use future property tax revenue to pay for things like roads and other infrastructure.

The groups argue the deal unlawfully diverts future property and sales tax revenue to the private development and gives away too much of the city’s future regulatory authority. The lawsuit asks a Travis County court to find both approvals invalid.

“Austin families are being priced out of the city, yet City Hall keeps asking residents to pay more and accept less,” Susana Almanza, executive director of PODER said in a statement. “Taxes keep going up, while basic services are being stretched thin or cut back. The last thing Austin should be doing is diverting billions in future public revenue away from libraries, parks, public safety and affordable housing to subsidize private development that was already moving forward.”

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Read the full story at our news partner KVUE.com.