Thompson Block case postponed, reassigned
A lawsuit by the City of Ypsilanti against developer Stewart Beal has been reassigned to a new judge.
Beal’s attorney, Nora Wright, made a motion for the case to be heard by Judge Donald Shelton instead of Judge David Swartz during a hearing today over the future of the Thompson Block property.
The city filed a complaint April 7 against Beal, whose Historic Equities Fund 1 LLC owns the historic Depot Town structure. The city wants Beal to remove shoring put in place to prop up the Thompson Block’s exterior after a Sept. 23 fire gutted it.
The future of the Thompson Block is now tied up in litigation.
Tom Perkins | For AnnArbor.com
Assistant City Attorney Karl Barr said the defense argued appeals stemming from a 2002 court case involving the building are still pending, so the same judge must hear both cases.
Barr contended the new lawsuit is a different issue than the 2002 case, which involves a city lawsuit against the Thompson Block’s former owner, David Kircher. Barr argued the fire is what prompted Beal to put shoring in the city’s right-of-way, which is unrelated to the Kircher lawsuit.
Although Barr expressed concerns over delaying the process by reassigning the case, he also said he wasn't entirely opposed to it because Beal could appeal if it wasn't reassigned.
Barr said he believes Beal's attorney is attempting to stall the case, which would buy Beal more time to obtain financing for the restoration. Beal previously told the City Council he doesn't have the financing in place.
Beal blamed the delays on city officials and called today's court decision a loss for the city.
"If City Council had supported their city manager by allowing him to move forward with our agreement, we would be mostly done by now," Beal said in a written statement. "The only thing in our way at this point is the city itself. I hope that city attorney Mr. Barr will be discouraged by his loss today and ask the city manager to allow us to complete our plan under a reasonable time table."
Swartz tentatively scheduled a new hearing for May 12.
Earlier this month, the City Council rejected a deal between Beal and City Manager Ed Koryzno that offered a timeline for Beal to remove shoring from the city’s right-of-way and begin rehabilitating the structure. Council members who voted against the proposal expressed frustration with how slow the process has been.
Barr said a traffic control order allowing Beal to have the shoring in the right-of-way expired in March, and the property is considered a hazard and nuisance without it.
Tom Perkins is a freelance writer for AnnArbor.com. Reach the news desk at news@annarbor.com or 734-623-2530.
Comments
YpsiDude
Fri, Apr 30, 2010 : 1:28 p.m.
I feel bad for Beal, but if he isn't going to be able to repair it, he needs to give up. He's had since September to get going on this project and has done nothing. That's not entirely his fault--he hasn't obtained the financing (unless, of course, he and his family has the money but are unwilling to spend it). The city doesn't want to tear it down just as much as Beal doesn't want to tear it down (I don't want it torn down either). However, after 7 months with no progress and with the streets still obstructed, what other options does the city have? I don't think we should blame anyone here, but the reality is that Beal hasn't been able to obtain financing and rebuild. He hasn't shown that he will be able to obtain the financing and he has had 7 months to do it. The city needs its streets back. So, reluctantly, I agree with the others who think that the building should come down.
itguy
Thu, Apr 29, 2010 : 8 a.m.
Johnny, you're probably right, Beal is probably having issues finding commercial financing. But, correct me if I'm wrong, isn't he waiting on approval of a federal or state grant, which probably requires him to rehab an existing structure. By leaving what's left from the fire he can still qualify for the grant and get at least part of the funding he needs, and will then make a commercial lender more willing to loan him the rest of what he needs to complete the project. If everyone believes Beal cant get financing to rebuild, what makes you think he can get financing to tear down whats left to start with a completely new structure? Bottom line give the guy a reasonable time line for the arson inspection, insurance inspection, grant funding (if there is any) to play out, because if hes forced to tear it down youre likely going to end up with little more than a gravel parking lot.
treetowncartel
Wed, Apr 28, 2010 : 9:46 p.m.
Ok, tesar it down and make retributioon monetary on the criminal. Clearly, the time that was spent by the property owner avoiding doing anything could be just as well spent pursuing a garnishment.
AndyYpsilanti
Wed, Apr 28, 2010 : 8:41 p.m.
The Ypsilanti Citizen has just published a story confirming that the Michigan State Police have confirmed the fire was Arson and issued and arrest warrant: http://ypsiciti.com/section/News/Thomson+Block+fire+deemed+arson%2C+suspect+named-article-1918.html
CountyKate
Wed, Apr 28, 2010 : 8:09 p.m.
Sorry about that, my wireless connection went down before I could fix the typo. Make that John Barr.
CountyKate
Wed, Apr 28, 2010 : 8:06 p.m.
Kpjm Barr is right, this is a stall tactic. Beal must be pretty desperate to pull this.
dading dont delete me bro
Wed, Apr 28, 2010 : 7:42 p.m.
financing for what? a building that's going to fall over once the shorring is removed. then it will become a lawsuit for a bodily injury lawsuit. demo and rebuild it to today's codes.
Johnny
Wed, Apr 28, 2010 : 7:19 p.m.
Lets face it. Their will be no financing anytime soon. There is NO bank going to loan that kind of money, not for that project at least. I would suggest to Beal to either gather some investors OR wash his hands of the place. Anything shy of that and this eyesore will continue to be under our noses and greet every out of towner when they inch towards Depot Town. There are just some things that cannot be salvaged. This Building is one of them. Actually it could be salvaged but the costs will not be worth it plus in this day and age, no bank is going to fron that kind of money. If Beal had about 40-50% of the projected costs in liquid "cash on hand", maybe, and I mean maybe, finance the rest. Other then that, the City and Beal are whipping a dead horse. I seriously advise Beal to either pay for the demolition and sell the lot OR come up with the financing-QUICK! There is more to this city then Beal and the Thompson building. Lets move on from this and focus on other things to invest into (Water Street Project anyone?) I truly think the Thompson building is cursed by Kircher!!