Tenants return to Stewart Beal-owned apartments after building temporarily condemned
A group of Ypsilanti-residents are returning home after their Stewart Beal-owned apartment building was condemned Friday night for a lack of heat.
DTE Energy shut off the utilities sometime Thursday or Friday for nonpayment at the building at 206-210 N. Washington St., prompting City of Ypsilanti building inspector Frank Daniels to temporarily condemn the structure. A subsequent investigation by DTE found “unauthorized utility connections” on the property, according to a DTE spokesman.
Daniels confirmed residents were returning to the 16-unit apartment building Tuesday evening after the utilities were turned back on.
Beal said the shutoff at the Washington Place building was the result of an oversight on his management team’s part. He said he has 50 buildings with more than 80 DTE accounts, and DTE last sent a bill to that address in October, but no one noticed.
When informed by DTE on Friday that he owed $18,000, Beal said he paid immediately.
While the power was out, Beal said, he put up 14 tenants at a local hotel. He also said he would pay their DTE bills next month.
“When you own 50 buildings, there’s sometimes problems with the heat or the bills,” Beal said. “Whenever that happens, you make whatever repair is necessary, put the tenants up in a hotel, then get them back in their apartment.”
Daniels said the building was condemned after a tenant called and complained about a lack of heat Friday morning. He contacted DTE to confirm that the utilities were shut off and requested that they look into the situation.
DTE spokesman John Austerberry confirmed there was an unauthorized gas line connection, but said the bill had been paid in full and the account restored to normal. DTE representatives did not provide any details about the unauthorized connection, but punitive fines were included in the $18,000 bill.
Beal said he wasn’t aware of any improper connections, but said his company would comply with any investigation.
Tom Perkins is a freelance reporter for AnnArbor.com. Reach the news desk at 734-623-2530 or at news@annarbor.com. Read more Ypsilanti stories on our Ypsilanti page.
Comments
Slider
Sun, Feb 13, 2011 : 3:49 a.m.
@ Mr. Burns: The gas/heat went out for the building during the day on Thursday, as well as the electricity of at least three units. Beal passed out space heaters that night, and, as I understand it, somehow rigged the electricity back on in units where it had been shut off. The hotel was a last resort for Beal after the building was condemned. If the city (or whoever does the condemning) hadn't stepped in, I believe they would had us live off the space heaters the whole weekend, which would have been a terrible fire hazard. The building was condemned Friday around midday. The signs on the building said it was due to "NO HEAT/GAS". Friday afternoon I received a call asking if I had friends or relatives I could stay with--otherwise, Beal would put me in a hotel. I accepted the hotel, but there was additional confusion throughout the afternoon--I went to the hotel and they had no record of a reservation for me or any of the other tennants. Another tennant who tried to check in to another hotel was told that Beal's credit card was refused. That tennant had to pay the bill himself, and said he would take it out of the next rent check. I got into the hotel after 6 o'clock. We were told the building would be uncondemned on Monday, meaning that we would stay Friday, Saturday and Sunday nights at the hotel. But as of Sunday night I hadn't heard anything from Beal. I got a call 9:30 Monday morning saying the building was still condemned. Luckily, I work nights, so I was still in the room and didn't have to check out before going to work, as some other tennants did. Tuesday I extended my check out time till noon to buy an extra hour of time to hear from Beal. I got a call at 10:30 telling me that the heat should be back on and the building open "by five o'clock". I had nowhere to spend the afternoon, but the building was opened up in the late afternoon, and within a few hours the building had warmed up.
Mr. Burns
Sat, Feb 12, 2011 : 5:55 p.m.
Dangerous was the first word that came to mind when I read this. From the article it is not clear what 'utility' was actually tampered with, the electricity or the gas? Both are dangerous, but ask yourself; would you mess with a gas and carbon monoxide for an entire building just to get heat to you or your fellow apt. building neighbors? That is one big building. Dangerous. I am so glad the tenant wrote the comment above. There where not any details questions asked or answered by Beal so I hope the tenant will post again and give us a better timeline of what happen. I am also curious what he/she met when writing; "they tried every temporary fix they could think of before finally putting us in hotels." I wonder if the tenant means that they were told to use space heaters? For how many days? (I guess that would explain why Beal says he offered to pay the tenants DTE bill.) Also did the city condemn the building because of no heat…or because of the "unauthorized connection"? I contribute the many holes in this story sue to the fact that DTE and the city won't comment on private accounts or ongoing investigations and that Beal most likely won't hand over his bills to a reporter. But I do hope that annarbor.com does a story that will inform about DTE's policies on shut -offs and commenting on ongoing theft investigations. It is easy to set up a payment plan with DTE, you really don't have to pay a big percentage of your bill in order to keep your power on. I hope that annarbor.com with report on these facts. An $18,000 bill is not likely to been amassed in just one month. People blamed DTE for the Savoy too, but in all actuality it is rarely DTE's fault in shut off cases
Slider
Fri, Feb 11, 2011 : 8:02 p.m.
I am one of the tenants from the building, and yes--there was more to this than Beal lets on in the sanitized version he presented here. Beal could have handled it worse, but could have handled it much better. They tried every temporary fix they could think of before finally putting us in hotels. Once we were in the hotel, we didn't know when we'd be checking out, because we didn't know how long the situation would take to get resolved. So me and my neighbors basically had to pack up and move out of the hotel in the mornings before going to work, then find out later where we'd be headed for the night. When we finally checked out for good on tuesday morning, the fourth night in the hotel, the building was still condemned until late afternoon, so I had nowhere warm to be for about five hours. When I read here that Beal was paying our next DTE bill--that was news to me. That wasn't, and still hasnt been communicated to tenants. But we are all planning to prorate our next rent payment to exclude the days that we couldn't lawfully occupy the building. Who knows why the bills weren't being paid in the first place--regardless of the reason, it has been obvious since I moved in here that the right hand doesnt know what the left hand is doing over there. There twice threatened to evict me because of miscommunications amongst their staff. Can't wait until my lease is up. But if you are looking to rent in Ypsilanti, and want something overpriced and poorly managed and maintained, check with Beal.
Steve Pepple
Thu, Feb 10, 2011 : 1:48 p.m.
A comment that was posted earlier has been removed because it contained name calling and other violations of our conversation guidelines.
andralisa
Wed, Feb 9, 2011 : 5:59 p.m.
Shame on Beal! If every apartment management claimed that excuse ...well wow... what a terrible company- Maybe learn from Mckinley? No excuse for an oversight like that. Beals are way to big for their britches.
glimmertwin
Wed, Feb 9, 2011 : 1:34 p.m.
Something very fishy here. If I were the tenants, I would be looking for a new place to live. The stories of these developers and their problems, their financial problems and their problems in Ypsilanti seem to never end.
average joe
Wed, Feb 9, 2011 : 1:30 p.m.
@ Thomas- I'm confused, can you tell me how the city is "the ones forestalling everything." in relation to the Thompson block building?
Thomas
Wed, Feb 9, 2011 : 1:22 p.m.
I think that Beal did a good job here. The minute he was notified he took care of the situation. The thing I don't understand is "He also said he would pay their DTE bills next month. " How are there electric bills in both Beal's name and the tenants? Who didn't pay here?? If the tenants have their own bills, then it's their problem. But overall, he took care of it and he should be commended for the quick turn around. As to Cross and River - Talk to the city. they're the ones forestalling everything. Not Beal.
Tony Livingston
Wed, Feb 9, 2011 : 1:13 p.m.
I find it hard to believe that DTE can shut power off after just one bill. There are all kinds of regulations for this and I just don't believe it. There is more to this.
average joe
Wed, Feb 9, 2011 : 12:28 p.m.
When does an "oversight" explain an "unauthorized connection"? And, given the possible result of non-payment of expected but not recieved bill (i.e. shut-off during winter), one should be on the phone finding out why this account wasn't billed for 3-4 months.
bob
Wed, Feb 9, 2011 : 2:36 a.m.
Don't be so quick to judge Beal as not knowing he had a bill that was overdue from DTE. I know someone who switched electric into their name at an apartment in Ypsi, DTE turned on electric and then NEVER sent them a bill. In fact, DTE didn't catch the error for over 18 months before they shut off the power. (that original tenant had moved out and another tenant had moved in) Then DTE wanted the property owner to pay for the 18+ months that they never billed the tenant for. DTE does not have their stuff together.
Steve Hendel
Wed, Feb 9, 2011 : 11:47 a.m.
Well I WOULD be quick to judge him and doubt his account of the incident for several reasons: 1. This late payment has happened before, most recently with property taxes on certain of his properties. 2. That blot on Depot Town called the Thomson Property has a long history of deadlines missed (i. e. promises not kept) by Beal's company. 3. A well-run entity anticipates recurring bills like utilities, and at least investigates when one has apparently not been received.
ypsilanti
Wed, Feb 9, 2011 : 1:53 a.m.
So this is the guy so many people are glad is investing in Ypsilanti? He runs a property management company, was uninsured for fire at the Thompson Block, owns 50 buildings with 80 DTE accounts and has no clue when a bill is SO overdue, the power is shut off? He must be kidding.
Jim Pryce
Wed, Feb 9, 2011 : 1:36 a.m.
Beal, Isn't that the same name that owns the burned out eyesore at the corner of Cross & River in Depot Town that is supposed to be reconstructed, but is still nothing being worked on?
Joe Hood
Wed, Feb 9, 2011 : 12:59 a.m.
DTE shuts off power in winter? Which checks and balances were in place so that no 85 year-old froze to death? Wasn't there a safeguard in place from DTE that lowered the power level to properties owing them money versus complete shutoff? @David: I think we all make mistakes. Seems like Beal is making a good faith effort to make right, putting folks up in hotels and paying their following month's heating bill.
David Briegel
Tue, Feb 8, 2011 : 11:47 p.m.
Do good management companies really cause people to be uprooted to hotels? Do good management teams really NOT pay the bills on time? Don't good management teams Manage effectively to prevent such situations? Why does the city continue to give preferential treatment to this management style?