A nearly three-year-old land donation by the city of Tyler, Texas, has become the subject of a legal dispute after the property originally designated for future parkland was sold for a data center project. The 87.97-acre land was donated in 1999 for a symbolic $10, with a deed stating that it should be held in trust for future use as parkland. After a series of transfers between nonprofits and public entities, the land was sold to data center developer Blueprint in 2025 for $10 million. City officials cited the economic benefits of the project, while residents questioning the development argued the original deed restrictions should be maintained.
From $10 park donation to $10 million land sale
On July 7, 1999, descendants of local farmer TJ Bland transferred approximately 87.97 acres to the Texas Parks and Recreation Foundation for $10. The land will be held “in trust for future use as parkland in Williamson County,” the deed states.Residents familiar with the property’s history said Brand hopes the land will become a recreational space for the local community. The covenant language has since become a key part of the legal dispute surrounding the site’s future use.After the initial donation, the property changed hands several times.In 2003, the Texas Parks and Recreation Foundation transferred the land to the Williamson County Parks Foundation. About a month later, the Williamson County Parks Foundation transferred the property to the city of Tyler.In 2008, the City of Tyler sold the land to the Tyler Economic Development Corporation (TEDC) for $15,000. The most recent transfer occurred in 2025, when TEDC sold the property to Blueprint for $10 million.The order of the transfers is crucial to the ongoing legal debate over whether the original parkland restrictions are still enforceable.Blueprint plans to build a 135,000-square-foot data center on the property. Data centers house the computer servers and network infrastructure used to support cloud computing, online services, data storage and artificial intelligence applications.The proposed facility is part of a broader growth in data center development across the United States as demand for digital infrastructure continues to grow.
Concerns raised by residents
Residents who live near the site have expressed concerns about the potential impact of the project on the surrounding area. Issues raised during public discussions included noise, power demands, water usage and possible impacts on nearby property values.Some residents are also concerned about the original use of the land, arguing that property donated for future parkland should not be converted to other uses.Opposition groups attended public meetings and took legal action to challenge the development.
Economic impact cited by officials
City officials say the project could generate about $30 million in tax revenue over the next decade.The city estimates that about $20 million of that amount could benefit local schools. Officials also pointed to the broader economic impacts associated with major technology infrastructure projects.The city said existing zoning at the site limits its ability to block the proposed development.
Legal proceedings continue
Residents challenging the project have filed a lawsuit in an attempt to block the development. Court rulings so far have generally been in favor of the developers, allowing the project to continue through the approval process.Opponents have appealed the case to the 3rd Court of Appeals in Austin. One of the key issues under review is whether the parkland requirements contained in the 1999 deed remain legally binding following a subsequent transfer of the property.The dispute has attracted attention because it involves donated land that was originally subject to certain conditions for public use. The case comes as data center construction is expanding rapidly across the United States.The outcome of the appeal may help determine how similar deed restrictions are interpreted when donated land is transferred over time between organizations and government entities.
