San Antonio landowner sues Toyota, city over housing plan
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A local property owner is accusing Toyota Motor Manufacturing and the city of San Antonio of entering into an illegal agreement that gives the car maker influence over some zoning changes near the South Side automotive plant.
Why it matters: Fermin Rajunov, owner of Southside Affordable Development, had planned to sell 34 acres to a developer who would build an affordable, multifamily housing project at the intersection of State Highway 16 and Watson Road, a historically underserved part of the city.
Driving the news: Rajunov sued the city and Toyota on Monday after the city nixed the plan.
Context: The 2003 Starbright Agreement between the car company and San Antonio gives Toyota a say in residential projects within a 3-mile radius of its facility on the South Side, which encompasses Rajunov's property, according to the lawsuit filed in Bexar County. The company also has the right to veto rezoning initiatives.
- The agreement was critical in Toyota's decision to build the plant in San Antonio, per a 2007 Toyota memo included in court documents.
- In December 2022, Southside Affordable Development requested the rezoning of a parcel of land within the 3-mile radius from commercial to multifamily residential.
- The city ultimately rejected the plan on Oct. 16. The response, which is included in court documents, did not explicitly mention Toyota, but cited "a number of factors and competing objectives."
What they're saying: Rajunov, in a statement, called the decision "unconscionable."
- "We believe there was only one competing objective and that was Toyota," his attorney, David Prichard, said in a statement.
- "Last I checked, this was still a democracy, not a dictatorship whereby land development rights that should be afforded by COSA are passed off to the highest bidder. And, in this case, an international behemoth bidder," Prichard added.
Yes, but: City attorney Andy Segovia tells Axios the city had not been served as of Monday morning, nor did they receive a copy of the lawsuit before the law firm held a press conference.
- "Inflammatory rhetoric does not substitute for facts and sound legal arguments. There have been many zoning cases in the area surrounding the Toyota facility. Some have been approved and some have not, but always with consideration of factors allowed under zoning laws. We will defend the lawsuit and rely on the facts rather than hyperbole and misinformation," Segovia tells Axios.
- Prichard tells Axios the suit was filed Monday morning and it takes up to 10 days for the defendant to be served.
The other side: Toyota was not immediately available to comment.
The intrigue: Single-family housing has been approved in the past within the 3-mile zone, according to the lawsuit.
- Toyota's objection to residential projects in the zone is to avoid possible claims from residents of exposure to fumes, the lawsuit says.
- A June email sent by Councilmember Manny Pelaez to Rajunov (and included in the lawsuit) states that prevailing wind studies were conducted while he was an attorney for Toyota. The tests found that the winds didn't blow towards Rajunov's property, Pelaez wrote.
- "The cynic in me tells me that they're discriminating against people who live in affordable housing projects," Prichard tells Axios.
What's next: Rajunov is asking for the voiding of those provisions in the Starbright Agreement that give Toyota a say in zoning decisions.
- "What it all boils down to, is that if they say yes to our project, then they're going to have to start saying yes to a lot of projects," Prichard says.