Pappas CEO on legal action against Houston: 'Our concerns that the city failed to comply with state law' not taken seriously

The Houston-based restaurant group that was denied a renewal of its contract to conduct business at William P. Hobby Airport (HOU) has pursued legal action against the City of Houston.

Houston Daily reported last month that the Houston City Council voted 10-6 to terminate its professional relationship with Pappas Restaurants and award a lucrative concession contract to Miami-based Areas.

Houston ABC affiliate KTRK reported that Pappas filed a lawsuit against the City of Houston on Wednesday on claims statutory procedures for competitive sealed proposals weren’t followed and Texas Open Meetings Act were ignored. 

Pappas has maintained four establishments at HOU since at least the last decade, and one of its key arguments to stay at Houston’s second major air gateway was the restaurants helped the airport earn international rating agency Skytrax’s first five-star rating for a North American airport last year. 

The item was delayed a few times before coming to a vote in early March.

Houston FOX affiliate KRIV reported that Pappas staved off eviction by obtaining a temporary restraining order (TRO) after a judge looked over the suit. 

Per the station, the complainant alleges in court papers that a former aide of Houston Mayor Sylvester Turner violated city code in late 2019 by placing a phone call to its chief executive officer (CEO), Chris Pappas, about the Hobby agreement during what’s called a "no contact" period during the opening round of proposals. 

Houston NPR affiliate Houston Public Media (HPM) reported that Pappas filed an unsuccessful protest with the city.

"Unfortunately, the response was conclusory at best and clearly did not take seriously our concerns that the city failed to comply with state law (and) city code as well as the city's own policies and procedures in this procurement,” Pappas said in a statement obtained by HPM. 

According to Houston Daily, the conflict involved Houston celebrity chef Chris Shepherd, who was alleged to have helped Areas land the purportedly controversial 10-year, $470 million contract. 

Shepherd, the former leader of Underbelly Hospitality, denied the claims and said his legal counsel is looking into the issue. 

KTRK reported that Turner’s office hasn’t seen the suit nor has comment on it.