City of Austin, Petitioner v. Harry M. Whittington, Respondents

Summary

The Texas Supreme Court reversed the Court of Appeals and remanded, holding that the City of Austin’s condemnation of Block 38 for a parking garage and a district cooling plant was not fraudulent, was not made in bad faith, and was not arbitrary or capricious, and that the inclusion of the twenty‑foot strip and the applicability of Government Code §2206.001 did not invalidate the taking. The Court also held that the statutory exceptions for public buildings and utility services shield the taking from the economic‑development prohibition. Justice Hecht, joined by Justice Willett, filed a concurrence in part and dissent in part, arguing that the benefit to the hotel developer should render the taking invalid.