11/17/14 1:15pm

Partial Demolition of Wendy's Restaurant, 5003 Kirby Dr., Upper Kirby, Houston

Wendy's Restaurant, 5003 Kirby Dr. at North Blvd., Upper Kirby, Houston

Update, 1:40pm: A revised press release from the mayor’s office now indicates the settlement was for all 6 trees, not 4 as previously indicated. We’ve updated the story below.

A just-announced legal settlement signed late last week means that the owner of the Wendy’s franchise at 5003 Kirby Dr. will be paying a $300,000 fine to the city for the late-night chopping-down and mulching-up of oak trees in the public right-of-way in front of the restaurant late last month. Six trees lining Kirby and North Blvd. were removed in the nighttime incident (illustrated in the before-and-after photos above), which was first reported on Swamplot. Crews from Freddy’s Landscaping and More carried out the tree-removal work under contract; the settlement, however, is to be paid entirely by Mohammed A. Dhanani and HAZA Foods, the Wendy’s franchise owner. All construction work on the restaurant, which was closed and undergoing renovations when the trees were removed, had come to a stop after city officials became aware of the clandestine street-visibility-improvement operation.

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Now That’s Better
10/30/14 10:45am

Chopping Down of Trees along North Blvd. at Wendy's Restaurant, 5003 Kirby Dr., Upper Kirby, Houston

The City of Houston intends to proceed with legal action in connection with the overnight disappearance of half a dozen oak trees from the public right-of-way surrounding the Wendy’s drive-thru at 5003 Kirby Dr., according to 2 separate sources. The trees were chopped down and ground up on site under cover of darkness Tuesday night as part of a renovation of the fast-food spot, which sits at the corner of Kirby and North Blvd. The removals took place on city property, but had not been permitted by the city.

“I have already been assured by the City of Houston’s enforcement officer that the city intends to proceed with a civil case,” writes Trees for Houston executive director Barry Ward in an email sent to members of the canopy-enhancement organization this morning. He calls plans to pursue legal action “a continuation of the recent, positive trend by the current administration to put an end to illegal tree removal in the City right-of-way or on city property.”

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$150K for More Sunlight
09/29/14 4:45pm

A LIFEBOAT FOR THE ROYALTON’S CORRODING CROWN? Top of Royalton at River Oaks Condominiums, 3333 Allen Pkwy., HoustonJudging from court filings, there appears to have been some sort of resolution to the lawsuit filed more than 2 years ago by the condominium association of the 253-unit Royalton at River Oaks highrise over the design of the steel grid at the top of the building at 3333 Allen Pkwy. The lawsuit claimed the structure was corroding and was designed in such away that made maintaining it or recoating it impossible — and sought damages from the building’s contractor, architect, and other parties. The condo association dropped its claims against many of those parties late last month. And a reader wonders if the attachment seen hanging below the structure in the recent photo at left, which “almost looks like a hot tub,” is part of some newly devised cleaning solution. [Prime Property] Photo: Swamplot inbox

08/25/14 11:00am

Zelko Bistro, 705 E. 11th St., Houston Heights

Zelko Bistro, 705 E. 11th St., Houston HeightsLast week Judge Randy Wilson (yes, the same judge who ruled earlier this year in the Ashby Highrise case) granted a temporary injunction preventing the owner of the converted bungalow at 705 E. 11th St. from locking out or evicting Zelko Bistro — or putting a for lease sign in front of the Heights restaurant (as caught in the photo at right from last month). Zelko was required to post a bond equal to a single month’s rent under the previous lease; the ruling requires the restaurant’s owners to comply with the terms of that lease as well.

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Still Serving
08/04/14 10:45am

Zelko Bistro, 705 E. 11th St., Houston Heights

The owners of Zelko Bistro have gone to court to try to prevent their landlord from locking them out, evicting them, or placing a “for lease” sign in front of the Heights restaurant. In a lawsuit and request for a temporary restraining order filed last Thursday, Zelko claims Papa K LLC  failed to honor a 5-year extension written into their lease for the property at 705 E. 11th St., which Zelko first took possession of in 2009 and subsequently spent approximately $600,000 to convert to a restaurant.

According to a copy of the lease included with the petition, Zelko had been paying $5,700 a month in rent, in addition to all property taxes; the term ended on June 30th. Emails between Zelko’s principals and its landlord included in the petition indicate Zelko’s interest in extending the lease in advance of the 90-day-advance-notice deadline, but a few days after that deadline had passed the landlord presented its tenants with a new lease including less favorable terms, including a 50 percent rent increase, according to the suit.

Other details in the court documents shed a bit of light on the goings-on Swamplot noted late last month, when a “for-lease” sign briefly appeared in front of the restaurant, and a broker representing the landlord announced that the restaurant would soon be leaving.

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Lease Extension Battle
06/20/14 12:00pm

Ad for Royce HomesBack in January of this year, the bankruptcy trustee assigned to colorful imploded homebuilder Royce Homes obtained a $9.3 settlement from Amegy Bank for the bank’s role in what attorneys called a $39 million conspiracy — to swindle creditors by draining the collapsed builder’s bank accounts shortly before Royce shut down and was declared bankrupt, in 2008. A separate settlement with Royce Builders’ founder, Michael Manners, was reached in March. And earlier this month, a jury in federal court returned a $27 million verdict against Royce’s former CEO, John Speer, for his role in the escapade. (Back in March, an earlier jury had ended up deadlocked on a number of charges.)

According to reporting by Law360’s Jeremy Heallen, the charges stemmed from what the attorneys claimed amounted to an off-the-books leveraged buyout of Royce Homes. In 2006, Speer bought Manner’s 50 percent stake in the Royce Homes for $33 million, to give himself complete ownership of the homebuilder. Though the funds used to finance the purchase (including a $20 million personal loan from Amegy Bank) were borrowed in Speer’s own name, Speers, Manners, and Amegy came to an understanding that Royce Homes would ultimately be responsible for paying them off, the suit claimed. The purpose of the scheme, according to the claims, was to keep the loans off of Royce Homes’s financial statements, because doing so would have “wiped out most of the homebuilder’s equity and caused lenders to shut down vital credit lines,” Heallen reports.

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Amegy Bank and More
05/30/14 12:45pm

Marfreless, 2006 Peden St., River Oaks Shopping Center, HoustonThe former operators of Marfreless — the oh-so-dark bar that hid behind the unmarked blue door under the stairs in back of the River Oaks Shopping Center for more than a decade until shutting down in the middle of last year — filed a lawsuit earlier this month against the group that later renovated the space and opened a bar of the same name inside it in January of this year. In essence, the suit claims that the bar’s current operators are imposters, and are using the Marfreless name in its former leased location — and claiming to have reopened it — without permission. “Marfreless was temporarily closed in March of 2013, when it transitioned to new ownership, the third in its distinguished lifetime,” reads the new Marfreless website, created by the bar’s current operators. But the lawsuit claims that isn’t true. “Despite these representations by Defendant,” reads a filing by Marfreless Ventures, LP, “no such ownership transition has ever taken place.”

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The Lawsuit Behind the Bar
05/01/14 5:00pm

Site of Proposed Ashby Highrise, 1717 Bissonnet St., Boulevard Oaks, Houston

Judge Randy Wilson today issued a ruling affirming a jury’s conclusion that the proposed Ashby Highrise at 1717 Bissonnet St. would constitute a “nuisance.” But he couldn’t both grant an injunction preventing the building’s construction and award the complaining neighbors the approximately $1.6 million in damages determined by the jury, he explains, because that would constitute a “double recovery.” Instead, citing the extremely local nature of the nuisance, the difficulty of enforcing an injunction, possible harm to the developers, the disruption to city development rules a singular decision in this case would bring, and other concerns, he denied the injunction and the portion of the jury award for loss of use and enjoyment — but ordered the developers of the proposed 21-story building to pay 20 plaintiffs the $1.2 million the jury had apportioned for “lost market value damages,” because “these damages have already occurred.” The plaintiffs had argued they preferred an injunction to the payment; it’s likely they’ll appeal.

Photo of 1717 Bissonnet St.: Swamplot inbox

$1.2 Million for Lost Market Value
12/17/13 4:45pm

Rendering of Street in Front of Proposed Ashby Highrise, 1717 Bissonnet St., Southampton, HoustonAfter more than 6 hours of deliberation over 2 days, the jury in the Ashby Highrise trial came back with a verdict this afternoon, awarding damage claims to a subset of the neighbors who filed suit against the developers of the highrise apartment tower planned for 1717 Bissonnet, claiming that the development would cause harm to their property. Jurors who spoke afterward to Chronicle reporter Erin Mulvaney said they believed the development was “out of place” for the Southampton neighborhood it abuts. Expert witnesses for the plaintiffs in the month-long trial presented evidence that the 21-story tower would cause lower property values, structural problems, and increased traffic for its immediate neighbors. Total bill, ordered for 20 of the 30 neighborhood households that entered into the lawsuit: $1,661,993.62. Next up: a hearing before Judge Randy Wilson over whether the project should be allowed to go forward.

Rendering: Buckhead Investment Partners

Surprise!?
12/12/13 10:00am

IN ASHBY HIGHRISE TRIAL, ENGINEERS GET TESTY OVER SETTLEMENT Site and Neighbors of Proposed Ashby Highrise, 1717 Bissonnet St. at Ashby, Southampton, HoustonEngineers for both sides may be spending much of the coming weekend testing the Southampton soil surrounding the site of the Ashby Highrise. Erin Mulvaney reports that the judge in the civil trial has postponed additional testimony from Paradigm Consultants president Woody Vogt until next Monday, after the attorney for the group of neighbors suing Buckhead Investment Partners complained Vogt was attempting to present new evidence their own expert hadn’t had time to analyze and pick apart. Vogt, who was hired by the defendants, told the jury last week that construction of the proposed 21-story highrise tower at 1717 Bissonnet St. would have no adverse affects on the foundations of nearby homes, and produce only one inch of settlement in the soil. But he also admitted he had used separate sets of calculations for each of those 2 predictions, and that the expert witness for the group of neighbors suing the developers had performed a more thorough analysis of the construction’s potential effects. Writes Mulvaney: “Rick Ellman of New York-based Muesler Rutledge Consulting Engineers testified earlier for the resident group that 10 existing homes near the site could suffer moderate to severe damage, including cracked foundations, buckled walls and busted water pipes. Ellman predicted the ground would ‘settle’ four inches.” [Houston Chronicle ($); previously on Swamplot] Photo of site: Swamplot inbox

11/19/13 3:15pm

JURY TO URBAN LIVING: PAY UP FOR SUING YOUR FORMER CLIENT Urban Living, 5023 Washington Ave., HoustonA Harris County jury declared today that the parent company of Urban Living should pay more than $150,000 in legal fees to the former client it filed suit against last year. The real estate broker failed to comply with promises made in the same buyer’s representation agreement it insisted former client Christopher Drummond sign, the jury found, and Drummond therefore doesn’t owe the company anything. The company filed suit against Drummond last year, hoping to win just under $13,000 in commissions and bonuses it said it was owed after Drummond purchased a Dickson St. townhouse from another broker. [Prime Property; previously on Swamplot] Photo of Urban Living offices at 5023 Washington Ave.: Vinod Ramani

11/14/13 1:15pm

WHEN THE BROKER YOU SIGN WITH SUES YOU When you’re looking to buy a home, do you sign an agreement with an agent before that agent has shown you any properties? Testifying in a trial going on now at the Harris County Civil Courthouse downtown, a former VP of sales for real estate firm Urban Living says it was the firm’s policy not to show customers any homes unless they’ve signed a buyer representation agreement first. And that’s what’s landed Christopher Drummond, buyer of the townhouse drawn above at 4245 Dickson St. in Magnolia Grove, in court: The parent company of Urban Living is suing Drummond for the commission it says the company should have earned in 2011 after Drummond found and purchased the home using a different broker. Drummond claims Urban Living didn’t explain what the agreement required of him when he signed it, and that the company hadn’t used its “best efforts” — as the document requires — to find him a home. Drummond heard about the Dickson townhouse, then under construction, from a Sudhoff Properties agent he met at a party. Nancy Sarnoff has been tweeting live from the trial, which is expected to continue into next week. [Houston Chronicle ($); more on Prime Property] Drawing: NuHabitat

11/11/13 11:30am

THE WOODLANDS’ NO-FAULT DEFENSE The Woodlands Development Company is trying to hold the line in its legal battle against a growing number of homeowners claiming that repeated damage to their homes is the result of movement along 3 separate geological faults running through the community. According to reporter Cindy Horswell, the company is going further than simply claiming that the building and ground cracks and resulting new alignments in the properties must have been the result of something other than surface fault lines. A statement penned by developer spokesperson Susan Vreeland-Wendt appears to claim the fault lines do not exist: “We have done actual testing, and none of the testing that we’ve done to date has found any evidence of an active fault line in proximity to any Woodlands residence.” That contradicts the claims of the now 2-dozen families from the Carlton Woods, Alden Bridge, Cochran’s Crossing, and Sterling Ridge neighborhoods involved in or about to join the lawsuit, which was originally filed in March of this year, who say a 1993 letter proves the developer knew about the problem. “The plaintiffs’ attorneys say five different geologists have verified the existence of at least three fault lines — Big Barn, the longest and most active line that runs about 33 miles underground from a salt dome near Hockley to the flank of a salt formation near Conroe, as well as two smaller faults, Jones and Panther Branch. The San Jacinto River Authority’s geological report also recently pinpointed these same surface faults when working on plans to install a new 52-inch pipe to bring water into The Woodlands. To protect from the shifting soils, a special flexible pipe will be used wherever the pipe crosses a fault zone. ‘They do exist, and they are active,’ said Mark Smith, division manager over the water authority’s water project.” [Houston Chronicle ($)] Fault-line map: KHOU

10/25/13 4:36pm

Declaring the 42-unit Montrose complex a “common nuisance,” the county attorney’s office and the state of Texas have filed a lawsuit against the owner of the former Skylane Apartments at the corner of Richmond and Hazard St. The suit claims that the apartment complex, now known as 1901 Richmond, “habitually” harbors criminal activity and that the owner has not done enough to fix the problem. Between August 2012 and October 2013, according to the complaint, police were called approximately 100 times to the property, resulting in reports of drug possession and sales, aggravated assaults, and the discharge of firearms. The attorney’s office wants the owner to post a bond and clean up the crime problem, or shut down for a year and forfeit the money.

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10/09/13 12:00pm

This is one of the trees that the city alleges was “wantonly” and “maliciously” chopped down over the weekend by developer Signature City Homes. (This and another 100-year-old live oak that used to stand across town on Bomar in Hyde Park.) In response, the city is seeking $500,000 in damages. The tree stood in front of 1702 Blodgett — which, you’ll remember, was demolished a few weeks ago to make room for 4 townhouses. That demolition was precipitated by an approved variance request by Signature City to reduce the setback on this lot at the corner of Blodgett and Jackson in Museum Park, just down the street from that strip center that caught fire in August.

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