I'm thinking I will ask them to move out, but to be fair will propose at 3/31 move-out day.

They have committed to building a $300 million mixed use development in the north part of the city and have proposed a $50 million amphitheater.

You are correct, no increase limits in Texas, however, substantial rent increase for the propose of discriminating or having the Tenant moved out, believe is against the law.Better to provide 30-day notice of rent increase or whatever the lease dictate. 

I proposed this idea to a friend of mine to partner up and take this beast on.

These neighborhoods are typically low income with low income tenants that propose higher turnover and increase risk of the neighbors stealing from the home while it sits vacant.  

You cannot do what you propose.

It's not I'm  asking for your political beliefs to be included in the investment proposal.

You would need to be giving notice 48 hours in advance, and even then, there is a common courtesy element to this that you would want to use since tenants often have different work schedules or sleep schedules and have issues accommodating what you are proposing. 

Houston is on the cusp of passing big changes to Ch. 42 of the development code. The INTENT of the changes is to promote specific kinds of development like small multifamily (3 to 8 units), more ADUs, courtyard style ...

How much is the first, what is the value of the house today as is without the proposed whatever?