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Los Indios Ventures, Inc.; City of Austin; Kirk Watson, in His Official Capacity as Mayor of the City of Austin; Natasha Harper-Madison, Vanessa Fuentes, Jose Velasquez, Jose (Chito) Vela, Ryan Alter, Krista Laine, Mike Siegel, Paige Ellis, Zohaib Qadri, and Marc Duchen, Each in Their Official Capacities as Council Members of the City of Austin; And TJ Broadnax, in His Official Capacity as City Manager of the City of Austin v. Barton Creek Southwest Property Owners Association, Travis Country West Homeowners Association, Wekshi Capital, and Save Our Springs Alliance

2026-10-23

Authorities cited

Opinion

majority opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-26-00196-CV

Los Indios Ventures, Inc.; City of Austin; Kirk Watson, in his Official Capacity as Mayor

of the City of Austin; Natasha Harper-Madison, Vanessa Fuentes, Jose Velasquez,

Jose (Chito) Vela, Ryan Alter, Krista Laine, Mike Siegel, Paige Ellis, Zohaib Qadri, and Marc Duchen, each in their Official Capacities as Council Members of the City of Austin;

and TJ Broadnax, in his Official Capacity as City Manager of the City of Austin,

Appellants

v.

Barton Creek Southwest Property Owners Association, Travis Country West Homeowners

Association, Wekshi Capital, and Save Our Springs Alliance, Appellees

FROM THE 98TH DISTRICT COURT OF TRAVIS COUNTY

NO. D-1-GN-25-001952, THE HONORABLE JESSICA MANGRUM, JUDGE PRESIDING

MEMORANDUM OPINION

The underlying dispute centers on whether the City of Austin had authority to

enter into and later amend a public restrictive covenant to allow a developer to build a

multifamily development on a 9.6-acre property in southwest Austin (the Property) without

complying with the impervious-cover limit of the Save Our Springs Initiative Petition Ordinance

(SOS Ordinance). We will reverse the trial court’s judgment and remand for further proceedings

because the Property’s owner was not made a party to the suit before the trial court ruled on the

parties’ cross-motions for summary judgment.

BACKGROUND

In 1985, the City annexed the Property, which sits on the Williamson Creek and

Barton Creek watersheds and the Edwards Aquifer Contributing Zone. In 1987, as part of the

Oak Hill Area Study, the City passed an ordinance to zone the Property as Industrial Park–

Neighborhood Plan (IP-NP) and separately passed a Public Restrictive Covenant that required

compliance with the Williamson Creek Watershed Ordinance, limited development to a

maximum .25-to-1 floor area ratio (FAR),1 and limited development to specific uses that did not

include multifamily apartments. The Restrictive Covenant provided that it could be modified,

amended, or terminated by “joint action of both (a) a majority of the members of the City

Council of the City of Austin, or such other governing body as may succeed the City Council of

the City of Austin, and (b) the owner(s) of the Property.”

The Oak Hill Area Study was part of a larger plan for adopting comprehensive

zoning to replace the automatic low-density residential zoning that applied to newly annexed

areas of the city. See Loc. Gov’t Code § 211.004 (requiring zoning to comply with a

“comprehensive plan” and specifying design goals). The Study acknowledges that public

restrictive covenants, a method of “conditional” zoning, were used to add flexibility to a zoning

ordinance to address specific circumstances of individual properties. It further states that

Conditional zoning differs from illegal ‘contract’ zoning, because there is no

agreement that if certain things are done, a certain zoning will be granted. Rather,

an appropriate zoning category is granted on the merits, but because of special

1 See Austin, Tex., Code of Ordinances, § 25-1-21(43) (defining floor area ratio as “the ratio of gross floor area to gross site area.”); see also id. § 25-1-21(47), (48) (defining “gross floor area” as “the total enclosed area of all floors in a building with a clear height of more than six feet, measured to the outside surface of the exterior walls” and specifying that it “includes loading docks and excludes atria airspace, parking facilities, driveways, and enclosed loading berths and off-street maneuvering areas” and defining “gross site area” as “the total site area”).

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circumstances, conditions in addition to these ordinarily applicable are established

to guide development of the property.

Conditional zoning in the Oak Hill Area was meant to protect the Barton Creek watershed,

permit “reasonable development” on properties fully within the Williamson Creek Water Quality

Zone (particularly those exempted from the existing watershed ordinance through

grandfathering), eliminate grandfathered status of certain properties, address various unique

environmental concerns, prohibit uses incompatible with surrounding uses, and enhance planning

for public infrastructure. Under the Study, a goal was to limit FARs either through direct caps or

indirectly via impervious cover limitations.

In 1992, in response to growing concerns regarding the impact of development on

the City’s watersheds, voters approved the SOS Ordinance by a 64% vote. The SOS Ordinance

restricts impervious cover and requires owners to protect watersheds from various pollutants. In

2010, Property owner Los Indios Ventures, Inc. (Los Indios) sought to develop the Property with

an office building and possibly a religious and educational facility, so it sought to amend the

Restrictive Covenant and to rezone the property to General Office–Neighborhood Plan (GO-NP).

As a result, the City passed a rezoning ordinance and passed the 2010 Amendment to the

Restrictive Covenant, which doubled the FAR from .25-to-1.0 to .5-to-1.0 in exchange for

certain deed restrictions on the Property relating to neighborhood access and other items. This

development did not materialize.

In 2024, Manifold Real Estate (Manifold) obtained an option to purchase the

Property from Los Indios, intending to develop a multifamily project called the Sunset Ridge

Apartments, which was set to include a certain number of affordable housing units. Rather than

seeking Multifamily zoning, Los Indios negotiated with the City an amendment to the Restrictive

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Covenant, which doubled the allowable FAR from .5-to-1.0 to 1.0-to-1.0 and allowed the

property to be developed with 55% impervious cover.2 The 2024 Amendment also added a

provision stating that “Multifamily residential is not prohibited by this Restrictive Covenant.”

By amending the Restrictive Covenant to allow multifamily development, Manifold’s proposed

project could have proceeded despite the Property’s GO-NP zoning because it would have been a

“Qualifying Development” under Austin’s Affordability Unlocked Bonus Program, such that

Multifamily zoning was not necessary. According to the City, in exchange for the City’s

agreement to the 2024 Amendment, Los Indios agreed to comply with other facets of the SOS

Ordinance. Manifold’s proposed development met with opposition from neighbors, but City

Council nonetheless approved the 2024 Amendment by a voice vote. Shortly thereafter, on

May 10, 2024, the City made a vested rights determination for the Sunset Ridge Apartments

project, in which it stated that the project would be “subject to regulations in effect on 11/1/2023,

except as modified by [the Restrictive Covenant and its amendments].”

In March 2025, Appellees Barton Creek Southwest Property Owners Association,

Travis Country West Homeowners Association, Wekshi Capital, and Save Our Springs Alliance

sued the City of Austin; Kirk Watson, in his Official Capacity as Mayor of the City of Austin;

Natasha Harper-Madison, Vanessa Fuentes, Jose Velasquez, Jose (Chito) Vela, Ryan Alter,

Krista Laine, Mike Siegel, Paige Ellis, Zohaib Qadri, and Marc Duchen, each in their Official

Capacities as Council Members of the City of Austin; and TJ Broadnax, in his Official Capacity

as City Manager of the City of Austin (collectively, the City). In their original petition,

Appellees sought declaratory and injunctive relief based on assertions that (1) the 2024

2Appellees state that the SOS Ordinance, in the absence of the amended Restrictive Covenant, would limit impervious cover for the Property to 25%.

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Amendment was void ab initio because the City violated its charter, which requires it to legislate

by ordinance, see Austin City Charter art. II § 14 (“Procedure to Enact Legislation”); and (2) the

City violated the Texas Open Meetings Act (TOMA) by posting inadequate notice of the subject

under consideration when the City considered the 2024 Amendment, see Tex. Gov’t Code

§§ 551.001–.146. According to Appellees, on September 23, 2025, Appellees, the City, and

Manifold participated in negotiating a Rule 11 agreement whereby the parties agreed to a

“unique” briefing schedule pursuant to which they would present cross-motions for summary

judgment to the trial court. That same day, Appellees filed an amended petition, which added an

assertion that the Restrictive Covenant is unlawful “contract zoning” that is also an unlawful

delegation of legislative power. See Tex. Const. art. III, § 1 (vesting legislative power in the

House and Senate), art. XI § 5(a) (delegation to home-rule cities); Texas Boll Weevil Eradication

Found. v. Lewellen, 952 S.W.2d 454, 469 (Tex. 1997) (“[P]rivate delegations clearly raise even

more troubling constitutional issues than their public counterparts. On a practical basis, the

private delegate may have a personal or pecuniary interest which is inconsistent with or

repugnant to the public interest to be served.”). Appellees’ amended petition stated that they

sought “mandamus relief to restrain the implementation and enforcement of the modifications

contained” in the 2024 Amendment; they sought a declaratory judgment that the

2024 Amendment was void because of a TOMA violation and also argued that the City

defendants “are subject to mandamus and injunction from recognizing as valid and enforcing and

implementing the unlawfully adopted” 2024 Amendment; and that “Defendants should be

enjoined from recognizing these [contract zoning] provisions [of the Restrictive Covenant] as

binding or otherwise hindering its exercise of its legislative zoning powers.” The petition further

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asserted that as a result of the City’s ultra vires acts, the Restrictive Covenant and its

amendments are “void, unenforceable, and subject to injunctive relief.”

On October 2, 2025, Appellees moved for traditional summary judgment on all

claims, and the City filed a cross-motion on all of Appellees’ claims, stating that Appellees’

claims “raise pure questions of law, and the parties have agreed by Rule 11 Agreement to present

this case to the Court for final resolution via cross-motions for summary judgment.” The City

and Appellees filed responses to the motions and exchanged letters regarding the content of the

proposed summary-judgment order. The trial court held an oral hearing on the summaryjudgment motions on October 16, at which point the parties “communicated the terms of the

Rule 11 Agreement to the Court, including the hope the Court would rule by October 27, 2025.”

On November 4, 2025, the trial court advised the parties of its preliminary ruling granting

Appellees’ motions for summary judgment and denying the City’s motion and asked them to

provide an order agreed as to form by November 10.

On November 10, 2025, Los Indios filed a petition in intervention, asserting that it

had recently learned of the claim added by Appellees’ amended petition—that the Restrictive

Covenant was void as a result of being contract zoning or an unlawful delegation of authority—

and acknowledging that all of the claims impact its rights as the Property owner. See Tex. R.

Civ. P. 60 (“Intervenor’s Pleadings”). On November 14, Appellees filed a motion to strike the

petition in intervention as untimely because it was not filed “until after the parties fully briefed

cross-motions for summary judgment, after the hearing, and after the Court indicated her

intended ruling.” Los Indios sent a letter to the trial court on November 21 urging the court not

to rule on the summary-judgment motions and explaining that it was seeking to “protect its rights

that were only recently put at issue” and to alert the court that Appellees lack standing. On

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November 25, 2025, the trial court signed an order granting Appellees’ motion for summary

judgment and denying the City’s. The order stated that it “finally disposes of all parties and all

claims and is appealable.”

A few weeks later, Los Indios and the City moved to modify the trial court’s

judgment, arguing that the court did not state the relief it was granting to Appellees. See In re

Guardianship of Jones, 629 S.W.3d 921, 925–26 (Tex. 2021) (per curiam) (recognizing that

order lacking decretal language adjudicates nothing and is not final unless it clarifies through

other language that it disposes of all parties and issues and is intended to be final). Los Indios

argued that the judgment lacked decretal language, that Appellees’ motion for summary

judgment should be denied, and that Los Indios should have been joined as an indispensable

party. Appellees agreed with the City and Los Indios that the judgment lacked decretal language

and asked that the trial court grant the motion to modify “only to the limited extent necessary to

provide decretal language” for the sake of clarifying “that Plaintiffs are entitled to their requested

declaratory and injunctive relief.” Appellees attached a proposed order adding the following

language to the summary-judgment order:

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the

Restrictive Covenant, adopted in conjunction with zoning case C14-85-288.116,

as amended multiple times, including most recently by Defendants’ approval of

Case No. C14-85-288.166 (RCA2) on May 2, 2024 (recorded as Instrument

No. 2024059849 in the Real Property Records of Travis County, Texas) is void ab

initio, as the result of ultra vires actions, and the Defendants are enjoined from

implementing any actions or approvals that have resulted therefrom.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the approval

of Case No. C14-85-288.166 (RCA2) is void, as a violation of the Texas Open

Meetings Act. The Defendants are enjoined from its implementation, all actions

that have resulted therefrom are void, and Defendants are enjoined from

implementing any approvals that resulted from the action.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that nothing in this

Order shall prohibit Defendants from approving a site plan or other approval that

does not rely upon the Restrictive Covenant or its amendments.3

On February 3, the trial court held a hearing on the motion to modify. The City, Los Indios, and

Appellees participated in that hearing. Los Indios argued that it had no notice of the suit, that its

intervention less than two months after the amended petition was filed was not untimely, and that

Appellees chose not to name Los Indios as a defendant despite Appellees’ undisputed awareness

that Los Indios owned the Property. Los Indios therefore asked the trial court to withdraw its

summary-judgment ruling and allow the parties to re-brief the summary judgments to include

Los Indios and to allow it an opportunity to respond. Appellees argued that the scope of the

hearing was limited to the motion to modify and pointed to Manifold’s participation in the

proceedings as evidence of Los Indios’s awareness of the suit. Appellees also asserted that Los

Indios, as an intervenor, had to “take the case as-is” and could defend its rights on appeal.

The trial court signed the modified order on the following day. Los Indios and the

City filed notices of appeal.

DISCUSSION

The City asserts in five issues that the trial court erred in granting summary

judgment in favor of Appellees. In its first two issues, the City argues that Appellees’ challenges

to the Restrictive Covenant and its Amendments implicate Chapter 245 of the Local Government

Code. See Harper Park Two, LP v. City of Austin, 359 S.W.3d 247, 250–51 (Tex. App.—Austin

2011, no pet.) (explaining the framework for Chapter 245). In its remaining issues, the City

3 According to the City, the project has been “derailed” by the trial court’s ruling, but the City maintains that “because the issues in the lawsuit impact the Property’s development rights, the case is not moot regardless of what happens with the affordable housing project.”

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argues that it did not delegate legislative authority, it did not violate the TOMA, and that

Appellees did not properly raise the validity of the 1987 Restrictive Covenant in their motion for

summary judgment. In addition to joining the City’s issues, Los Indios argues that Appellees’

failure to join Los Indios “deprived the court of authority to proceed and enter the summary

judgment order for Appellees”; that the “trial court erred by granting a summary judgment on

grounds that were not presented and relief that was not requested as to the 1987 Restrictive

Covenant and 2010 Amendment”; and that the trial court erred by ruling that the Restrictive

Covenant and its Amendments are void ab initio.

We first address Appellees’ failure to join Los Indios. “We review a trial court’s

rulings on issues concerning joinder of parties for an abuse of discretion.” Crawford v. XTO

Energy, Inc., 509 S.W.3d 906, 910–11 (Tex. 2017). “A trial court abuses its discretion if it acts

in an arbitrary or unreasonable manner without reference to any guiding rules or principles.”

Bowie Mem’l Hosp. v. Wright, 79 S.W.3d 48, 52 (Tex. 2002). “Texas Rule of Civil Procedure

39 provides the framework for determining when joinder of a party is mandatory.” Crawford,

509 S.W.3d at 911. Rule 39 provides:

(a) Persons to be Joined if Feasible. A person who is subject to service of

process shall be joined as a party in the action if

(1) in his absence complete relief cannot be accorded among those already

parties, or

(2) he claims an interest relating to the subject of the action and is so

situated that the disposition of the action in his absence may

(i) as a practical matter impair or impede his ability to protect that

interest or

(ii) leave any of the persons already parties subject to a substantial

risk of incurring double, multiple, or otherwise inconsistent

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obligations by reason of his claimed interest. If he has not been so

joined, the court shall order that he be made a party. . . .

Tex. R. Civ. P. 39(a). The supreme court has indicated that, despite Rule 39(a)’s language that

certain persons “shall be joined,” “there is no arbitrary standard or precise formula for

determining whether a particular person falls within its provisions.” Cooper v. Texas Gulf

Indus., Inc., 513 S.W.2d 200, 204 (Tex. 1974). Each case under Rule 39 turns on an application

of the Rule to its facts. See Pampell v. Pampell, 554 S.W.2d 20, 21 (Tex. App.—Austin 1977,

no writ) (“As there is no litmus paper test for determining whether or not a party is

indispensable, the facts in each case should determine whether or not an indispensable party has

not been joined as plaintiff or defendant in a suit. This determination should be made in

conformity with” Rule 39).

Appellees sought declaratory and injunctive relief. Specifically, they sought—

and received in the amended final judgment—declarations that the Restrictive Covenant for

Los Indios’s Property was void ab initio and that the City’s notice of the meeting at which the

2024 Amendment was adopted violated TOMA. See Tex. Civ. Prac. & Rem. Code § 37.006(a)

(“When declaratory relief is sought, all persons who have or claim any interest that would be

affected by the declaration must be made parties. A declaration does not prejudice the rights of a

person not a party to the proceeding.”); Brooks v. Northglen Ass’n, 141 S.W.3d 158, 164 (Tex.

2004) (declaratory judgment was “purely advisory” as to owners from sections of property not

before the court, resulting in risk of inconsistent judgments for party that did not seek to join all

homeowners in suit); see also In re Kappmeyer, 668 S.W.3d 651, 655 (Tex. 2023) (orig.

proceeding) (“When a party seeks to compel joinder of persons as parties to a proceeding,

including a declaratory-judgment action, Texas Rule of Civil Procedure 39 governs.”); Twin

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Creeks Golf Grp. v. Sunset Ridge Owners Ass’n, 537 S.W.3d 535, 547 (Tex. App.—Austin 2017,

no pet.). The trial court also declared that “Defendants” were correspondingly “enjoined from

implementing any actions or approvals” resulting from the void Restrictive Covenant. See In re

Texas Educ. Agency, 442 S.W.3d 753, 755 (Tex. App.—Austin 2014, orig. proceeding) (noting

that petition seeking injunctive relief should name as party defendants all those against whom

injunction must run and whose interests will be injuriously affected in order to make it effective).

It is undisputed, and evident from the pleadings, that the City and Appellees were

at all relevant times aware that Los Indios owns the Property and that Los Indios’s property

rights were at issue in the suit. In addition to undisputedly having an interest in the suit, the

record shows that Los Indios claimed an interest in the suit by intervening. See EIS Dev. II, LLC

v. Buena Vista Area Ass’n, 715 S.W.3d 689, 702–03 (Tex. 2025) (distinguishing between

“having” an interest and “claiming” one for purposes of joinder); Crawford, 509 S.W.3d at 913

(Tex. 2017) (“Rule 39 does not require joinder of persons who potentially could claim an interest

in the subject of the action; it requires joinder, in certain circumstances, of persons who actually

claim such an interest.”). Appellees generally assert that Los Indios was aware of the

proceedings, implying that Los Indios could have intervened sooner, and they conclude that,

“[t]o the extent Los Indios was a required party, the Rule 39 remedy was joinder,” which

occurred when Los Indios intervened. But the record contains no evidence that Los Indios was

aware of the proceedings prior to intervening in the suit, and, as Appellees themselves explained

in their motion to strike the petition for intervention in the trial court, Los Indios’s petition in

intervention was filed after the City and Appellees had fully briefed and argued their motions for

summary judgment and the trial court had indicated its ruling. Los Indios states that the City and

Appellees reached a Rule 11 agreement that they would not conduct discovery and “also agreed

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to a compressed briefing and hearing schedule for their motions for summary judgment.” The

result of that agreement, which was reached the same day that Appellees amended their petition

to challenge the 1987 Restrictive Covenant as void ab initio, and the timing of Los Indios’s

intervention was that Los Indios was not able to protect its property interest.

Los Indios states that “Appellees’ failure to join Los Indios resulted in Los Indios

being prevented from conducting discovery, participating in the summary judgment briefing,

attending the summary judgment hearing, and presenting support for any proposed order.” Los

Indios clarified at oral argument that had it been able to conduct discovery, it could have shown

that “the homeowner’s association” had previously agreed to the Restrictive Covenant and the

2010 Amendment, that there was no issue with respect to some of the alleged objections to the

proposed Multifamily development, that waiver and collateral estoppel should have prevented

the trial court’s ruling, and that the Save Our Springs Alliance lacked standing.

We are mindful that “today’s concern is less that of the jurisdiction of a court to

proceed and is more a question of whether the court ought to proceed with those who are

present.” Cooper, 513 S.W.2d at 204. Here, although Los Indios ultimately intervened, it was

not present until after the final hearing on the merits and after the trial court had indicated its

ruling. Consequently, the trial court issued a ruling that necessarily impacted Los Indios’s rights

as the owner of the Property without Los Indios having had an opportunity to participate in a

hearing on the merits. On this record, we conclude that Los Indios was a party needed for just

adjudication. See Kodiak Res., Inc. v. Smith, 361 S.W.3d 246, 251–52 (Tex. App.—Beaumont

2012, no pet.) (holding that all lessors under single mineral lease were necessary parties to a suit

filed by some of lessors against operator lessees for declaratory judgment that lease had

terminated); In re Estate of Bean, 120 S.W.3d 914, 921 (Tex. App.—Texarkana 2003, no pet.)

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(all beneficiaries under will with interest in estate such that their interest in estate property

will be affected by construction are persons needed for just adjudication); Page Airways, Inc.

v. Associated Radio Serv. Co., 545 S.W.2d 184, 190 (Tex. App.—San Antonio 1976, writ ref’d

n.r.e.) (holding trial court erred in striking Page’s intervention in suit by API against Radio on

note because Page was party needed for just adjudication because any judgment rendered would

necessarily involve construction and interpretation of note and joint Loan Agreement and would

affect Page’s legal and equitable rights.). Accordingly, we sustain Los Indios’s joinder issue and

need not address the appellants’ remaining issues. See Tex. R. App. P. 47.1.

CONCLUSION

Having determined that Los Indios was a party needed for just adjudication of the

claims in the underlying suit, we reverse the trial court’s judgment and remand this case to the

trial court for further proceedings.

Rosa Lopez Theofanis, Justice

Before Chief Justice Byrne, Justices Kelly and Theofanis

Reversed and Remanded

Filed: October 23, 2026

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