the City of San Antonio and the City of San Antonio Board of Adjustment v. Asher Reilly and Five Aces/SA, LTD. , 429 S.W.3d 707 ( 2014 )


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  •                               Fourth Court of Appeals
    San Antonio, Texas
    OPINION
    No. 04-13-00221-CV
    THE CITY OF SAN ANTONIO BOARD OF ADJUSTMENT,
    Appellant
    v.
    Asher Reilly and Five Aces/SA,
    Asher REILLY and Five Aces/SA, Ltd.,
    Appellees
    From the 37th Judicial District Court, Bexar County, Texas
    Trial Court No. 2011-CI-18754
    Honorable John D. Gabriel Jr., Judge Presiding
    Opinion by:       Karen Angelini, Justice
    Sitting:          Catherine Stone, Chief Justice
    Karen Angelini, Justice
    Luz Elena D. Chapa, Justice
    Delivered and Filed: March 19, 2014
    REVERSED AND RENDERED
    The City of San Antonio Board of Adjustment appeals from a judgment reversing its
    decision to uphold the denial of a request to demolish a house in a historic district. Because we
    conclude the Board’s decision did not constitute a clear abuse of discretion, we reverse the trial
    court’s judgment and render judgment affirming the Board’s decision.
    BACKGROUND
    Asher Reilly and Five Aces/SA Ltd., (referred to collectively as “Reilly”), own a house
    and a lot located at 112 Lindell Place in the River Road Historic District in San Antonio, Texas.
    04-13-00221-CV
    Reilly planned to demolish the house and construct a six-unit apartment complex in its place. Reilly
    filed an application to demolish the house as required by the City’s Unified Development Code.
    This request was ultimately denied by the City’s historic preservation officer. 1
    Reilly appealed the historic preservation officer’s decision to the City of San Antonio
    Board of Adjustment. The Board held a public hearing on Reilly’s appeal. At this hearing,
    documents, photographs, maps, and drawings were presented to the Board. Included in the
    documents were recommendations prepared by the City’s staff and the historic design and review
    commission. Included in the photographs were photographs of 112 Lindell Place and photographs
    of comparable houses in the River Road Historic District and other historic districts in the City.
    Drawings of the apartment complex proposed by Reilly were also presented. The City’s historic
    preservation officer appeared before the Board, explained her decision to deny the demolition
    request, and answered questions. Several individuals made presentations on Reilly’s behalf,
    encouraging the Board to overturn the historic preservation officer’s decision. Finally, individuals
    who opposed the demolition request, including other River Road Historic District residents, made
    presentations. At the conclusion of the hearing, the Board voted to uphold the historic preservation
    officer’s decision to deny Reilly’s demolition request.
    Dissatisfied with the Board’s decision, Reilly sought judicial review. Reilly filed a petition
    for a writ of certiorari in the trial court. Under the City’s Unified Development Code, a demolition
    1
    According to the procedure set out in the City’s Unified Development Code, the historic preservation officer decides
    whether to grant or deny a demolition request in a historic district. San Antonio, Tex., Unified Development Code,
    § 35-451(d) (2006). Demolition requests are reviewed by the historic design and review commission, which makes a
    recommendation to the historic preservation officer. See 
    id. Members of
    the commission represent a variety of
    disciplines and backgrounds, including but not limited to architecture, history, architectural history, archaeology,
    planning, landscape architecture, public art, art history, real estate/commercial development, economic development,
    law, banking, accounting, civil engineering, and urban design. 
    Id. at §
    35-803(c)(1). In this case, Reilly’s demolition
    request was first considered by one of the commission’s committees—the designation and demolition committee—
    which determined that demolition of the house was acceptable because of its loss of individual integrity and
    significance over time. Nevertheless, the commission eventually recommended to the historic preservation officer that
    Reilly’s demolition request be denied.
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    04-13-00221-CV
    request may be granted when “the owner has established by a preponderance of the evidence that
    the structure or property has undergone significant and irreversible changes which have caused it
    to lose historic, cultural, architectural, or archaeological significance.” San Antonio, Tex., Unified
    Development Code, § 35-614 (2006). Reilly’s petition alleged the Board’s decision to deny his
    demolition request was illegal because he met his burden to establish the structure’s loss of
    significance under section 35-614. No other ground for illegality was alleged in Reilly’s petition.
    The Board filed a verified return showing the grounds for its decision. The Board’s return consisted
    of the documents, photographs, maps, and drawings presented to the Board at the hearing and a
    transcript of the hearing before the Board.
    The parties filed cross-motions for summary judgment on the only issue presented in
    Reilly’s petition: whether the Board abused its discretion in denying Reilly’s demolition request
    because Reilly met his burden to establish “loss of significance.” Reilly’s summary judgment
    motion argued the evidence presented to the Board established that 112 Lindell Place had lost its
    historic, cultural, architectural, or archaeological significance, and therefore, the Board clearly
    abused its discretion in denying his demolition request. The Board’s summary judgment motion
    argued that Reilly failed to establish that its decision to deny Reilly’s demolition request
    constituted a clear abuse of discretion. The trial court granted Reilly’s summary judgment motion,
    and denied the Board’s summary judgment motion. The Board then filed this appeal.
    JUDICIAL REVIEW
    A decision of a board of adjustment may be challenged by filing a petition in a district or
    county court stating that the board’s decision is illegal in whole or in part, and specifying the
    grounds of the illegality. TEX. LOC. GOV’T CODE ANN. § 211.011(a) (West 2008). When a petition
    is filed, the trial court may grant a writ of certiorari directed to the board to review the board’s
    decision. TEX. LOC. GOV’T CODE ANN. § 211.011(c). The purpose of the writ of certiorari is to
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    04-13-00221-CV
    require the board of adjustment to forward to the trial court the record of the particular decision
    being challenged. Tellez v. City of Socorro, 
    296 S.W.3d 645
    , 649 (Tex. App.—El Paso 2009, pet.
    denied). If the trial court grants the petition for writ of certiorari, the board must submit the record
    of its decision, otherwise known as a return. 
    Id. The board’s
    return must be verified and must
    concisely state any pertinent and material facts that show the grounds of the decision under appeal.
    TEX. LOC. GOV’T CODE ANN. § 211.011(d). The trial court may reverse or affirm, in whole or in
    part, or modify the decision that is appealed. TEX. LOC. GOV’T CODE ANN. § 211.011(f).
    In an action challenging a decision by a board of adjustment, the trial court sits as a court
    of review, and the only question before it is the legality of the board’s decision. City of Dallas v.
    Vanesko, 
    189 S.W.3d 769
    , 771 (Tex. 2006); Town of Bartonville Planning and Zoning Bd. of
    Adjustments v. Bartonville Water Supply Corp., 
    410 S.W.3d 23
    , 29 (Tex. App.—San Antonio
    2013, pet. denied). The board’s decision is presumed to be legal, and the party attacking it bears
    the burden of establishing that the board clearly abused its discretion. 
    Tellez, 296 S.W.3d at 649
    ;
    City of Alamo Heights v. Boyar, 
    158 S.W.3d 545
    , 549 (Tex. App.—San Antonio 2005, no pet.).
    To establish that the board’s decision is illegal, the party attacking it must present a very clear
    showing of abuse of discretion. 
    Vanesko, 189 S.W.3d at 771
    ; Bd. of Adjustment for the City of San
    Antonio v. Kennedy, 
    410 S.W.3d 31
    , 34 (Tex. App.—San Antonio, pet. denied). A board abuses
    its discretion when it acts without reference to any guiding rules or principles, or when it clearly
    fails to analyze or apply the law correctly. 
    Vanesko, 189 S.W.3d at 771
    ; 
    Boyar, 158 S.W.3d at 549
    .
    In determining whether a board abused its discretion, the trial court may consider the
    board’s verified return and any other evidence presented to the trial court. See TEX. LOC. GOV’T
    CODE ANN. § 211.011(d), (e). As to a board’s factual findings, the trial court may not substitute its
    judgment for the judgment of the board. 
    Vanesko, 189 S.W.3d at 771
    ; 
    Kennedy, 410 S.W.3d at 35
    .
    To prevail in the trial court, a party challenging a board’s factual findings must establish that the
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    04-13-00221-CV
    board could have reasonably made only one decision, and not the decision it made. See 
    Vanesko, 189 S.W.3d at 771
    ; 
    Kennedy, 410 S.W.3d at 35
    . It is not an abuse of discretion for the board to
    base its decision on conflicting evidence. 
    Kennedy, 410 S.W.3d at 35
    . And, as long as some
    evidence of substantive and probative character supports the board’s decision, there is no abuse of
    discretion. Pick-N-Pull Auto Dismantlers, v. Zoning Bd. of Adjustment of the City of Fort Worth,
    
    45 S.W.3d 337
    , 340 (Tex. App.—Fort Worth 2001, pet. denied); Sw. Paper Stock, Inc. v. Zoning
    Bd. of Adjustment of the City of Fort Worth, 
    980 S.W.2d 802
    , 805-06 (Tex. App.—Fort Worth
    1998, pet. denied).
    SUMMARY JUDGMENT STANDARD
    The issue of whether a board of adjustment has clearly abused its discretion is a question
    of law appropriately determined by summary judgment. Sw. Paper Stock, 
    Inc., 980 S.W.2d at 806
    ;
    see 
    Kennedy, 410 S.W.3d at 35
    . To prevail on a summary judgment motion, a movant must meet
    his burden to establish that there is no genuine issue of material fact and he is entitled to judgment
    as a matter of law. See TEX. R. CIV. P. 166a(c). When, as here, both sides move for summary
    judgment, and the trial court grants one motion and denies the other, we consider all of the
    summary judgment evidence, determine all questions presented, and render the judgment the trial
    court should have rendered. Gilbert Tex. Const., L.P. v. Underwriters at Lloyd’s London, 
    327 S.W.3d 118
    , 124 (Tex. 2010); 
    Kennedy, 410 S.W.3d at 35
    .
    ARGUMENTS PRESENTED
    In the instant appeal, the Board argues the trial court should have denied Reilly’s summary
    judgment motion and granted its summary judgment motion. The Board emphasizes that, as the
    party attacking the legality of the Board’s decision, the burden was on Reilly to establish in the
    trial court that the Board could have reached only one decision, and not the decision it made. The
    Board contends that Reilly failed to meet his summary judgment burden. In addition, the Board
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    04-13-00221-CV
    argues that the summary judgment record establishes as a matter of law that it did not abuse its
    discretion in upholding the denial of Reilly’s demolition request.
    In response, Reilly maintains the trial court’s summary judgment rulings were correct and
    should be upheld for two reasons. First, Reilly contends he established that the Board clearly
    abused its discretion in denying his demolition request, particularly in light of the fact that the
    evidence submitted in opposition to his demolition request was not relevant or competent. Second,
    Reilly contends the City’s historic preservation officer should have granted his demolition request
    without a recommendation from the City’s historic design and review commission and without
    any consideration by the Board. However, Reilly’s second contention was not presented in his
    petition or his summary judgment motion. Because Reilly’s second contention was not raised as a
    ground for illegality in the trial court, this contention is beyond the scope of this appeal. See TEX.
    LOC. GOV’T CODE ANN. § 211.011(a) (providing that a board of adjustment’s decision may be
    challenged by filing a petition in a district court stating that the board’s decision is illegal in whole
    or in part, and specifying the grounds of the illegality); see also TEX. R. CIV. P. 166a(c) (requiring
    a summary judgment motion to present the specific grounds therefor).
    LOSS OF SIGNIFICANCE
    In San Antonio, the demolition of structures in historic districts is governed by section 35-
    614 of the Unified Development Code. The purpose of section 35-614 is to “provide criteria to
    prevent unnecessary damage to the quality and character of the city’s historic districts while, at the
    same time, balancing these interests against the property rights of landowners.” San Antonio, Tex.,
    Unified Development Code, § 35-614. Under section 35-614, an applicant may obtain a demolition
    certificate if he “demonstrates clear and convincing evidence supporting an unreasonable
    economic hardship … if the application for a certificate is disapproved.” 
    Id. at §
    35-614(a)(3).
    When an applicant fails to prove unreasonable economic hardship, he may provide additional
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    04-13-00221-CV
    information regarding loss of significance in order to obtain a demolition certificate. See 
    id. at §
    35-614(c). The only ground for demolition at issue in this appeal is loss of significance.
    Section 35-614 of the City’s Unified Development Code sets out the procedure and criteria
    for establishing and evaluating loss of significance. Although section 35-614 expressly references
    the historic design and review commission, the Board applies the same criteria as the commission
    when it considers an appeal involving loss of significance. See 
    id. at §
    35-451(d)(3) (“In
    determining whether or not to grant the appeal, the board of adjustment shall consider the same
    factors as the commission, the report of the commission, and any other matters presented at the
    hearing on the appeal.”). Section 35-614 provides, in relevant part:
    (c) Loss of Significance. When an applicant fails to prove economic hardship the
    applicant may provide to the historic and design review commission additional
    information which may show a loss of significance in regards to the subject of the
    application in order to receive historic and design review commission
    recommendation of approval of the demolition.
    If, based on the evidence presented, the historic and design review commission
    finds that the structure is no longer historically, culturally, architecturally or
    archaeologically significant it may make a recommendation for approval of the
    demolition. In making this determination, the historic and design review
    commission must find that the owner has established by a preponderance of the
    evidence that the structure or property has undergone significant and irreversible
    changes which have caused it to lose the historic, cultural, architectural or
    archaeological significance, qualities or features which qualified the structure or
    property for such designation. Additionally, the historic and design review
    commission must find that such changes were not caused directly or indirectly by
    the owner, and were not due to intentional or negligent destruction or a lack of
    maintenance rising to the level of a demolition by neglect.
    The historic and design review commission shall not consider or be persuaded to
    find loss of significance based on the presentation of circumstances or items that
    are not unique to the property in question (i.e. the current economic climate).
    For property located within a historic district, the historic design and review
    commission shall be guided in its decision by balancing the contribution of the
    property to the character for the historic district with the special merit of the
    proposed replacement project.
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    04-13-00221-CV
    See 
    id. at §
    35-614 (emphasis added). Thus, in his appeal to the Board, Reilly had the burden to
    establish by a preponderance of the evidence that 112 Lindell Place had undergone significant and
    irreversible changes that caused it to lose historic, cultural, architectural, or archaeological
    significance.
    DISCUSSION
    At the hearing before the board, Reilly’s architectural expert, Irby Hightower, presented
    photographs of the house at 112 Lindell Place and diagrams of the lot and the surrounding
    neighborhood. He pointed out that there were multiple additions made to the house, roof lines that
    were problematic, and “overall it’s a very sort of problematic structure in terms of just keeping
    rain water out of it.” He noted that it’s a “clay tile house, which has been [] roughly stuccoed over
    on the outside, plastered over on the inside.” After showing the Board photographs of the house,
    Hightower stated, “[T]he number of alterations and additions made over time, the basic poor
    workmanship, the amount of alteration to the original structure, how it’s really hard to determine
    what’s original from what’s added on, and why all of those things taken together really show that
    it has—if it ever were significant, it has lost its significance.”
    Next, Tom Brereton, who identified himself as a professional city planner but did not claim
    to have worked on this case, addressed the Board on Reilly’s behalf. Brereton stated he owned 112
    Lindell Place from 1976 to 1983. He had bought the house from an elderly couple, who were the
    first to convert the structure to a single-family house. According to Brereton, the couple told him
    the house was built to be a servant’s quarters to support a larger house, but the larger house was
    never built. He discussed the floor plan of the house and its additions. Brereton told the Board,
    “[T]his building really has no significance. It has no architectural merit. It has no architectural
    integrity. . . . It certainly has no historic significance except perhaps as a curiosity.” Additionally,
    Reilly’s lawyer, Matthew Wymer, emphasized the City’s initial findings that the structure no
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    04-13-00221-CV
    longer possessed architectural integrity, design, materials, and workmanship due to extensive
    alterations and additions made over time. Wymer further contended that 112 Lindell Place did not
    contribute to the neighborhood.
    City staff also addressed the Board. Andreina Davila-Quintero, the city planner who
    reviewed Reilly’s demolition request, explained that the River Road historic district is mostly
    characterized by a distinctive collection of early twentieth century residences. 2 All structures
    within the district are considered to be contributing structures. The structure on the property at 112
    Lindell is a 2400 square foot single-family residence built around 1948. Davila-Quintero went on
    to summarize the history of Reilly’s demolition request. Initially, the design and demolition
    committee categorized the structure as non-contributing due to its loss of architectural integrity,
    and determined that demolition was acceptable. City staff concurred with the committee’s
    findings. Later, however, the historic design and review commission held a hearing and determined
    it would recommend denial of the demolition application to the historic preservation officer.
    Consistent with the commission’s recommendation, the historic preservation officer denied
    Reilly’s demolition request, and Reilly appealed to the Board of Adjustment.
    Next, the historic preservation officer, Shannon Peterson, addressed the Board. Peterson
    said that residents in the historic district voiced their opposition to Reilly’s demolition request at
    a commission hearing, and this input was important to the commission’s ultimate recommendation.
    2
    The record shows the City Council approved the designation of the River Road Historic District on February 4, 2010.
    A “Statement of Significance” presented to the City Council on February 4, 2010, describes the neighborhood as
    follows: “The neighborhood is characterized by narrow, winding, tree-shaded streets and a collection of early 20th
    century residences, including [b]ungalows, Tudor [r]evival cottages, and minimal traditional houses.” The statement
    also indicates that “River Road is eligible for a historic district designation” “based on” “[e]mbodiment of
    distinguishing characteristics of an architectural style;” “[h]istorical and architectural integrity of location, design,
    materials, [and] workmanship;” and “[i]ts character as an established and geographically definable neighborhood
    united by architectural style, plan, and development: early 20th century residential development.”
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    Peterson explained that “part of the reason . . . you create a local historic district is to allow that
    opportunity for public input, which certainly weighed into the ultimate decision.” Peterson stated
    that when the River Road historic district was created, each property was not expressly identified
    as contributing or non-contributing properties. Peterson further stated that there is an assumption
    that if a property is in a historic district, it is a contributing property unless and until it is determined
    otherwise.
    Subsequently, Bebb Francis, a lawyer, made a presentation on behalf of some River Road
    residents. Francis informed the Board that ninety-three percent of the River Road residents
    opposed the demolition of the house at 112 Lindell Place. Francis emphasized that Reilly had to
    show that the structure had undergone significant and irreversible changes that have caused it to
    lose “historical, cultural—that’s a key word—architectural or archaeological significance.”
    Francis pointed out that even Brereton, a former owner of 112 Lindell Place who spoke in support
    of Reilly’s demolition request, stated that he thought it was “kind of a funky, little house” when
    he bought it. Francis contended that River Road “is one of the last remaining unique environments
    in San Antonio.” Francis also presented the minutes from the public meeting where the historic
    design and review commission decided to recommend denial of Reilly’s demolition request. These
    minutes showed that one of the commissioners, who was a professional architect, “believed that
    the structure did not have [] great significance, unto itself, but in context of being a contributing
    structure within the neighborhood it does have importance.” Similar observations were made by
    two other commissioners. One commissioner noted that the house was significant to the history of
    River Road and “is livable and [] unique to River Road.” Another stated that there was more to the
    case than the structural significance of 112 Lindell Place, namely its cultural significance and its
    position in the historic district.
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    Thereafter, other members of the public, including River Road residents, addressed the
    Board. One resident noted the house was commonly known as “The Little Tile House” because it
    was constructed of D’Hanis red clay tile. This resident presented a 1948 newspaper ad listing the
    house for sale, which favorably portrayed the house as an “extra large, 2-bedroom house on a large
    corner lot [] ready for immediate occupancy.” A woman whose sister had owned the house from
    1983 to 1989 presented a letter from her sister, describing the house as a “peaceful place, and the
    neighborhood had a homey cottage personality . . . The outside structure was two layers of brick.
    So it was stucco and very energy efficient.” Another resident said his family had lived in the River
    Road neighborhood for fifty years. He explained that because of its location on the roundabout,
    112 Lindell Place plays a key role in shaping the character and streetscape cherished by
    neighborhood residents. He further noted that “the aggregate charm and beauty of the composite
    historic structures” was more important than the dollar value of any particular property. Another
    resident explained that 112 Lindell Place “is no different than any—the majority of other houses
    in the neighborhood. And if this house isn’t significant, [if it] gets torn down, there’s nothing to
    prevent other houses [in the district] from being torn down ….” Finally, some evidence was
    presented about the very early history of the River Road area. A representative from a Native
    American organization presented several maps of the area dating from 1764 to 1913. He explained
    that 112 Lindell Place is situated near a pre-civil war road, and therefore, is historically and
    culturally significant and archaeologically sensitive.
    On appeal, Reilly’s primary argument is that the evidence presented by River Road
    residents was not relevant or competent because the residents were not experts. In essence, Reilly
    argues the Board was required to rely on the opinions of experts to evaluate loss of significance.
    We disagree. First, even though the Board is a quasi-judicial body, it is not required to apply strict
    rules of evidence. Bd. of Adjustment of the City of San Antonio v. Willie, 
    511 S.W.2d 591
    , 594
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    04-13-00221-CV
    (Tex. Civ. App.—San Antonio 1974, writ ref’d n.r.e.). Second, even under the rules of evidence,
    the residents’ testimony was in all likelihood permissible. A non-expert witness may offer opinion
    testimony when it is rationally based on his perception and helpful to a clear understanding of his
    testimony or the determination of a fact issue. See TEX. R. EVID. 701 (providing that a non-expert’s
    opinion testimony is limited to opinions that are rationally based on the witness’s perceptions and
    helpful to a clear understanding of the witness’s testimony or the determination of a fact issue).
    Finally, the City’s Unified Development Code requires the historic preservation officer to ensure
    that demolition decisions are based on the Secretary of the Interior’s standards and guidelines for
    archaeology and historic preservation. San Antonio, Tex., Unified Development Code, § 35-
    451(d)(2). The Secretary’s guidelines emphasize the overall importance of public participation in
    the historic preservation process. 3 For these reasons, we are of the opinion that the Board properly
    considered the evidence presented by the River Road residents.
    At the hearing before the Board, the onus was on Reilly to establish by a preponderance of
    the evidence that 112 Lindell Place had undergone significant and irreversible changes that caused
    it to lose historic, cultural, architectural, or archaeological significance. The evidence before the
    Board showed that the River Road neighborhood was established as a historic district because of
    its architecture, its history, and its culture. The unique nature of River Road housing and the
    configuration of the neighborhood itself were critical to its designation as a historic district. Reilly
    presented some evidence to the Board indicating that 112 Lindell Place had undergone a loss of
    architectural significance, but this evidence failed to address a loss of historical or cultural
    significance. On the other hand, the evidence presented by the City and River Road residents
    showed that 112 Lindell Place retained some architectural, historical, and cultural significance.
    3
    “Archaeology and Historic Preservation: Secretary        of   the   Interior’s   Standards   and   Guidelines,”
    http://www.cr.nps.gov/local-law/arch_stnds_1.htm.
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    04-13-00221-CV
    In the trial court, the burden was on Reilly to establish that the Board committed a clear
    abuse of discretion. In this context, Reilly was required to establish that the Board could have
    reasonably made only one decision, and not the decision it made. See 
    Vanesko, 189 S.W.3d at 771
    ;
    
    Kennedy, 410 S.W.3d at 35
    . However, based on the evidence presented, we cannot say that the
    Board had no choice but to find that Reilly established a loss of significance by the preponderance
    of the evidence. To the contrary, based on the evidence presented, the Board acted within its
    discretion in upholding the decision to deny Reilly’s demolition request. As previously stated, “[a]
    board does not abuse its discretion ‘if it bases its decision on conflicting evidence and some
    evidence supports its decision.’” 
    Kennedy, 410 S.W.3d at 35
    (quoting In re Barber, 
    982 S.W.2d 364
    , 366 (Tex. 1998)). We, therefore, conclude that the trial court erred in granting Reilly’s
    summary judgment motion, and in denying the Board’s summary judgment motion.
    CONCLUSION
    The trial court’s judgment is reversed, and judgment is rendered affirming the decision of
    the Board of Adjustment.
    Karen Angelini, Justice
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