The Sixth Court of Appeals has ruled in favor of TexAmericas Center (TAC), dismissing a high-stakes lawsuit brought by the Hooks Independent School District (HISD) over allegations of unpaid revenue from a tax-exemption program.
The decision, handed down on February 25, 2026, reverses a lower court ruling and effectively ends the district’s pursuit of more than $1 million in additional payments.
The legal battle began when Hooks ISD accused TexAmericas Center officials of operating in a “deceitful and dishonest manner” regarding a Payment-in-Lieu-of-Taxes (PILOT) program. According to the district’s original filing, HISD agreed in 2019 to support state legislation exempting TAC from property taxes on leased land, provided the district was “made whole” through the PILOT program.
The district alleged that TAC failed to remit the full amount of lost tax revenue, claiming the industrial park created an “additional revenue stream for itself” rather than supporting the schools. HISD specifically pointed to a 2019 board meeting where a TAC official allegedly promised to “cut a check” for the full amount of lost taxes, a promise the district claimed was never honored.
The Texas appellate court rejected these claims, citing governmental (sovereign) immunity. The three-judge panel determined that Hooks ISD failed to provide a “qualifying written contract” that would prove TAC had waived its immunity or failed to meet a specific legal obligation.
“This decision is a significant victory for TexAmericas Center and affirms a foundational principle of Texas law: governmental entities cannot be haled into court absent a clear legislative waiver of immunity,” said Josh Thane, appellate counsel for TexAmericas Center.
TexAmericas Center, which operates one of the largest mixed-use industrial parks in the U.S., maintained that its PILOT program is a vital tool for regional growth. Since 2020, the program has supported 41 partnerships, helping the park create over 1,500 jobs and report $95.2 million in payroll in 2025.
Scott Norton, Executive Director & CEO of TexAmericas Center, expressed disappointment that resources were diverted from economic development and student success into litigation.
“Our focus on quality job creation, driving investment, economic diversification, and growth benefits every taxing body, business, and individual in our region,” Norton said. Despite the legal friction, TAC officials stated they remain committed to working with local partners to foster economic opportunity.