Mormon church sues Mission
The lawsuit also states that Mission violated laws that protect rights to practice religion, including the Religious Land Use and Institutionalized Persons Act, the Texas Religious Freedom Act, the First Amendment to the U.S. Constitution and Article 1 Section 6 of the Texas Constitution. Ref. Source 9
It sounds like somebody else wanted the land for building, so it seems the city are playing a tactical game denying the Church to be built there.
Good luck to The Latter Day Saints for standing up for justice, I hope they succeed!