City Wide Community Development Corp. v. City of Dallas, et al.

CourtUnited States Bankruptcy Court, N.D. Texas
DecidedDecember 8, 2025
Docket22-03051
StatusUnknown

This text of City Wide Community Development Corp. v. City of Dallas, et al. (City Wide Community Development Corp. v. City of Dallas, et al.) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City Wide Community Development Corp. v. City of Dallas, et al., (Tex. 2025).

Opinion

ER. CLERK, U.S. BANKRUPTCY COURT Joy ED SA NORTHERN DISTRICT OF TEXAS S/ RerogeA ve “| ane Jo} THE DATE OF ENTRY IS ON ‘Qe fae jg THE COURT’S DOCKET Oy LS * Vasa The following constitutes the ruling of the court and has the force and effect therein described. V2) f ae A f ed // ft ltl fe ‘(SP On Signed December 8, 2025 Ne United States Bankruptcy Judge

IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION § In re: § Chapter 11 § CITY WIDE COMMUNITY § Case No. 21-30847 DEVELOPMENT CORP. ET. AL. § § Debtor. § aS § CITY WIDE COMMUNITY § DEVELOPMENT CORP., § § Plaintiff, § § V. § Adv. Pro. No. 22-03051 § CITY OF DALLAS, ET AL., § § Defendants. § §

MEMORANDUM OPINION AND ORDER GRANTING THE DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

]

Pending before the Court is a Motion for Summary Judgment (the “MSJ”) filed by Defendant City of Dallas (the “City” or the “Defendant”) on August 15, 2025 [ECF Nos. 138, 139]. In the MSJ, the City requests that the Court grant the motion in favor of the City on each of the causes of action alleged by Plaintiff City Wide Community Development Corporation (“City Wide” or the “Plaintiff” or the “Debtor”) in its Third Amended Petition to Remove Cloud and

Quiet Title by Injunctive and Declaratory Relief (the “Complaint”) filed on January 25, 2023 [ECF No. 53]. In the Complaint, City Wide alleges four causes of action. However, pursuant to the Memorandum Opinion & Order (the “District Court Order”) entered by the District Court for the Northern District of Texas (the “District Court”) on January 7, 2025, affirming in part and reversing in part the Order Granting Motion to Dismiss entered by this Court (the “Dismissal

Order”) on October 6, 2023 [ECF No. 99], in which the Court granted the Motion to Dismiss for Lack of Subject Matter Jurisdiction and Failure to State a Claim (the “Motion to Dismiss”) filed by the City on February 8, 2023 [ECF No. 67], only three causes of action remain in this matter. As for the three claims, City Wide alleges: (1) Injunctive relief with regard to the City’s alleged breach of contract; (2) Declaratory relief that City Wide did not default under the parties’ contract, as well as declaratory relief to remove “cloud of title”; and (3) Declaratory relief that the City cannot foreclose upon the properties in question under promissory estoppel. ECF No. 126.

The Court held a hearing on the MSJ (the “MSJ Hearing”) on November 18, 2025. Counsel for City Wide and the City appeared. After hearing arguments on the merits and considering the evidence presented, the Court hereby GRANTS the MSJ with respect to all causes of action pursuant to Federal Rule of Civil Procedure 56 (the “Rules”), incorporated through Federal Rule of Bankruptcy Procedure 7056 (the “Bankruptcy Rules”) and finds that there is no genuine issue of material fact with regard to any of the remaining causes of action.1 The following constitutes the Court’s analysis underlying its ruling.2 Bankruptcy subject matter jurisdiction exists in this proceeding pursuant to 28 U.S.C. § 1334. This is a core proceeding under 28 U.S.C. § 157(b)(2), and/or the parties have consented to this Court’s authority to issue final orders.

I. FACTUAL/PROCEDURAL HISTORY A. Factual History Given both the parties’ and the Court’s intimate and extensive knowledge of the factual history of this case, the Court will provide a brief summary of the factual history of this case. City Wide entered into a loan agreement with the City in September 2008 (the “Loan Agreement”) to obtain and demolish several properties, with the intention of then re-developing the properties under a mixed-use development. ECF No. 139 at 6. Under the Loan Agreement, the City would

provide City Wide with $500,000 to acquire and demolish the properties in question within five years of the execution of the Loan Agreement. Over time, the Loan Agreement was modified and extended on at least four separate occasions between August 2009 to June 2014, ultimately moving the deadline on the development project to a September 2018 completion deadline, in exchange for approximately $1.3 million loaned by the City. ECF No. 136, Ex. E. Under the modified Loan Agreement, any breach by City Wide would be remedied by conveyance of the properties to the City. Per the agreement, ten (10) properties were ultimately purchased with funds provided by the City, under what became known as City Wide’s “Opal Project”. However, as stipulated by City Wide, the Plaintiff never actually began construction on any of the properties under the Opal

1 Therefore, the Court also dismisses the case. 2 The Court issued a lengthy oral bench ruling at the conclusion of the MSJ Hearing. That ruling is incorporated herein. Project, and eventually filed for Chapter 11 bankruptcy on April 30, 2021. See Case No. 22-03051- mvl11. On December 6, 2021, the City filed a proof of claim related to the Opal Project properties. On March 21, 2022, the City and City Wide stipulated that the Opal Project was an executory contract—which City Wide acknowledged it was therefore in breach of—and that resolution of the City’s claim would be handled through the above-captioned adversary proceeding. See ECF

No. 139, Ex. G. After the filing of the adversary proceeding, and according to the most recently amended Complaint filed by City Wide, the reason that the properties under the Opal Project were never re- developed and completed within the specified timeframe was because the City had an issued a moratorium on all development projects, thereby hindering City Wide’s ability uphold its contractual obligations under the Loan Agreement. More specifically, the president of City Wide—Mr. Sherman Roberts (“Mr. Roberts”)—was allegedly advised by Ms. Raquel Favela (“Ms. Favela”)—the former Chief of Housing and Economic Development for the City of Dallas—in early 2017 that the City was placing a “freeze” on all affordable housing development

for the time being, thereby forcing City Wide to cease development on the Opal Project properties. ECF No. 53 at 5. At Mr. Roberts’ deposition taken on July 9, 2025, Mr. Roberts testified that the alleged moratorium on development of the Opal Project was in effect primarily because City Wide was unable to secure another extension to the completion date on the project. See ECF No. 140, Roberts Dep. at 38:3–38:12. Mr. Roberts further testified that he took this inability to secure an extension, as well as the inability to “draw down” additional funding based on City Wide’s development plans, as confirmation that the City was not allowing any development projects to progress at that time. Id. Although Mr. Roberts testified that he was not told specifically by Ms. Favela or anyone else for the City that a moratorium was in place, nor was he given anything in writing that established the same, he testified that the moratorium was “implied” based on the fact that no city projects were allegedly “moving forward” at that time. Id. at 41:9–41:22. As to the implied moratorium, Mr. Roberts further testified that not only did Ms. Favela never tell him directly that a moratorium was in place, but, when asked if he could point to a

specific conversation in which that information was relayed to him, Mr. Roberts could not. Id. at 42:3–42:9. Mr.

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