Galveston zoning board fails to approve variance to rebuild Denny’s at its Seawall footprint

The Galveston Zoning Board of Adjustment on Jan. 7, 2026, declined to approve a variance that would have allowed a Denny’s franchisee to rebuild the restaurant at its pre-fire footprint on Seawall Boulevard, after a heated debate over appraisal numbers and whether a new state law lets the board weigh financial hardship when a structure no longer stands.

Justin Pruett, attorney for RRH LLC, the Denny’s franchisee, told the board the restaurant burned in October 2023 and that reconstruction was halted after the city determined foundation and slab work should be counted toward the cost of rebuilding. Pruett said the franchisee meets traditional variance criteria and pointed to a recent addition to the state government code (subsection B1) that, he said, permits the board to consider whether the cost of compliance exceeds 50% of the structure’s most recent certified appraised value. “We didn’t start the fire,” Pruett said, arguing the circumstances are not self-imposed and that combined rebuilding and site-preparation estimates exceed the 50% threshold cited…