COMMENT OF THE DAY: WILSHIRE VILLAGE PAYMENT DUE “I forgot to mention that with regard to the loan Dilick took out to pay for taxes on the property four years ago, sources have reported that the bank set a deadline of early April 2009 for him to take steps toward paying back that loan. In demolishing the apartments and selling the land, Dilick would be able to pay back the loan and make a profit as well. . . . As to the comment, ‘This is private property. The owner should be able to do with it as he sees fit,’ the problem is that Jay Cohen, who inherited the property from his parents, still holds 80 percent ownership. Sadly, he was duped or forced by circumstance into signing over managing control to Dilick. . . .” [dredger, commenting on Comment of the Day: Grand Unified Wilshire Village Conspiracy Theory]
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Tag: Wilshire Village
COMMENT OF THE DAY: GRAND UNIFIED WILSHIRE VILLAGE CONSPIRACY THEORY An “anonymous news reporter/non-resident” explains all the wacky goings-on at Wilshire Village — complete with a detailed timeline. Here’s an excerpt, but if you love real-estate soap operas, settle in with a snack and read the whole finger-pointing thing: “. . . The original owner, Jay H. Cohen, inherited the apartments and property from his parents, who had the apartments built in 1940. In November 2005, Matthew Dilick partnered with Cohen under a partnership called Alabama & Dunlavy, Ltd., taking out a loan to pay for taxes. Through this partnership, Dilick was able to obtain general partnership status to make management decisions, and his widely published plan all along has been to demolish the buildings and sell the land. Before the apartments could be demolished, they would have to be vacated. But the original owner Jay H. Cohen maintained majority ownership and wished to keep the buildings standing. Toward that goal, Cohen obtained two repair permits in January and February 2009 and set electricians to consistently making electrical repairs over the course of the next couple of months. . . . Questions: If the buildings were demolished and new condos were built, would the City of Houston stand to profit by the increased value of the land and therefore increased taxes? Was the City of Houston working in coordination with Alabama & Dunlavy, Ltd to cause the buildings to be vacated? Why were Cohen’s repair efforts disregarded by Alabama & Dunlavy, Ltd. and the City of Houston? Has everything been legit? . . .” [dredger, commenting on Wilshire Village Is Ready for Its Closeup]
Note: Story updated below.
Over at Wilshire Village, all appears on track for one of those classic salvage-free start-over-the-weekend demos — the kind this town is famous for! A pre-demo sewer-disconnect permit for the apartments was pulled yesterday. And a Swamplot reader has sent in a photo report:
I saw that one of your commenters had noticed the Komatsu in the parking lot of Wilshire Village. It’s from Ambush Demolition, so that’s not a particularly good sign. There are numbers spray-painted on the sides of at least some of the buildings there and orange cable (and gas line?) markings on the sidewalks . . .
Will Wilshire Village’s actual demo permit be purchased sometime today? You’ll get a definitive answer . . . in next Monday’s Daily Demolition Report, right here on Swamplot!
Now, about that closeup:
The nonprofit Historic Houston Salvage Warehouse sure would like some of them nice materials that went into the Wilshire Village Apartments. But no dice:
“All efforts to contact owner have been a dead end,” founder Lynn Edmundson writes:
If anyone knows or can get in contact with the owners…my crew could start immediately!!!
Hey, that would be great — because there’s apparently a Komatsu excavator hanging out in the parking lot on Dunlavy, looking for some action.
More from Edmundson:
The reader who provided this “tip” wouldn’t or couldn’t tell us where the information came from, so there’s no particular reason to take it seriously. But it raises a few interesting questions about the future of the 8-acre property at W. Alabama and Dunlavy that’s apparently soon to be the former site of the Wilshire Village apartments.
. . . So here it is:
The buzz in the air over the demolition of Wilshire Village is Mr. Dilick plans to try to sell the property soon after the demolition, word is he hasn’t the funding to develop this tract.
- Wilshire Village coverage [Swamplot]
Photo: Swamplot inbox
The Wilshire Village Apartments at Alabama and Dunlavy have been surrounded with a chain link fence topped with barbed wire since Friday, reports a Swamplot reader. And over at the Chronicle, Nancy Sarnoff confirms that the now-vacant complex is “set to be demolished.”
Swamplot readers may especially enjoy parsing this passage:
In 2005, the owner announced plans to tear it down and possibly build an upscale tower in its place.
Matt Dilick, a commercial real estate developer who controls the partnership that owns Wilshire Village, said the demolition process will start “relatively soon.â€
“The buildings are unsafe, and for numerous years prior groups have not kept the buildings maintained or the property up to city code,†he said. “The dilapidated buildings are an eyesore to the public and to the numerous homeowners and businesses in the area.â€
Helpful hint: the “owner” who announced plans to tear down the complex way back in 2005 was . . . Matt Dilick.
Extra credit: Unwrap the sequence of events Sarnoff gently suggests in this passage:
These bright letters, dated this past Friday, are now posted throughout the Wilshire Village Apartments. They’re a friendly notice from the city Building Official, informing the remaining residents of the 17-building maintenance-deprived apartment complex at Alabama and Dunlavy that their residences “pose a serious and immediate hazard to the occupants” — and yanking all Certificates of Occupancy.
Oh . . . but all is not lost! The owner can appeal:
The Owner of the Property is entitled to request a hearing by delivering a written request to the Building Official at 3300 Main, Houston Texas 77002. The Building Official or his designee shall hold a hearing within three business days after receiving such request, unless the owner requests an extension of time.
Given the apparent owner’s evident interest in scrapping the place, that’s not likely. Any objections from anybody else?
COMMENT OF THE DAY: RELEASING THE WILSHIRE VILLAGE INSURANCE HOLD “. . . Why keep residents there? Insurance for an occupied commercial exposure is MUCH cheaper than a vacant one. Vacant buildings or sites have to be secured to prevent problems with the city and attractive nuisance lawsuits. Rent was coming in, even if it was minimal. All roads lead to the fact that it was financially advantageous to not change anything until time to do something else with the property.” [Hellsing, commenting on Wilshire Village Moving Day: They Shall Be Released]
The latest from the drawn-out, soap-opera-worthy Wilshire Village kick-’em-out festival: A source tells Swamplot that owner Matt Dilick’s Commerce Equities has informed a tenant that electricity for the 8-acre complex will be turned off on March 28th.
Plus: complaints about what our source terms the “psychological warfare” waged against the remaining residents of the complex on Dunlavy and W. Alabama:
[Dilick] has never identified himself as the owner or contacted [any of the residents]. An army of COH inspectors was here as well as the Fire Marshal touring the property with Jay Cohen, to whom [residents have] paid rent for 20 years. Now [the complex has been] papered with fire hazard and code violation signs. It preys on your mind. Why can’t Dilick say he’s the owner and give . . . a proper eviction notice? Guess it’s cheaper to scare [them] out.
The source also claims a city representative had instructed residents not to pay rent for March, but also told them they could be evicted with only 24 hours notice. And then there’s a little rumor Swamplot’s source has heard — that the place will be bulldozed on March 29th.
The River Oaks Examiner‘s Michael Reed reports that “more than 10 families” are serious about leaving Wilshire Village . . . and they’ll be hosting a couple of eviction sales over the next 2 weekends to prove it:
“We are going to be OUT, but you don’t have to be … shop indoors at those apartments participating,†fliers being distributed for the event read.
Could that mean? . . . Yes, apparently:
A resident, told the Examiner that tenants had recently been given until the end of March to leave, and that the owner had agreed to help with the moving expenses.
“We haven’t seen anything in writing,†he said, but added that he is “reasonably pleased.â€
- Wilshire residents plan eviction sale [River Oaks Examiner]
- Wilshire Village coverage [Swamplot]
Photo of Wilshire Village window: Katharine Shilcutt Gleave
COMMENT OF THE DAY: WHO OWNS WILSHIRE VILLAGE? “Dilick purchased the property in 2002. He was aware that prople still lived in Wilshire Village as the rent checks continued to come in. He/Flat Stone II Ltd./Alabama & Dunlavy Ltd. was not only a developer at that point but a property owner and a landlord. . . . here’s where the circus music gets cued. Jay Cohen continued to ACT in the capacity of property manager/landlord/owner for the next SEVEN years. It is highly unlikely that Dilick had no idea this was going on. Texas law considers a principal to be vicariously liable for the torts of agents committed in the course and scope of their employment. Was Jay Cohen actually employed as the Wilshire Village property manager or do we have a case of ostensible (“for all appearancesâ€) agency? If Dilick ALLOWED him to walk, talk and act like one, then a reasonable person could legitimately assume that such was the case. Jay Cohen made the statement to more than one resident, acting in the capacity of someone with the authority to do so, that they would not have to leave the property as stated in the eviction notice. Texas recognizes oral agreements as binding with 4 exceptions that must be in writing, but lease extension is not one of them. Implied authority is further conveyed by Cohen being cc’d on the notice. Looks like Lucy has some ’splainin to do, hmmm?” [Hellsing, commenting on Comment of the Day: Wilshire Village Town Meeting]
COMMENT OF THE DAY: WILSHIRE VILLAGE TOWN MEETING “Residents met with an official of the City of Houston Police Department last night at a “town meeting†regarding the fate of Wilshire Village. They were informed that in the next 2 days the city will post orange notices for residents to vacate. They will follow up no later than the first week in March to remove personal items and toss them “on the side of the road, off the propertyâ€. Matt Dillick also reportedly has a request to a district judge to have anyone still on the property next week “removed†as well. Considering the age of those who were told they didn’t have to leave by Jay Cohen and now have 4 days to get out, I hope the authorities won’t feel the need to pull a Robbie Tolan on any of them.” [Hellsing, commenting on Comment of the Day: Wilshire Village Plan]
COMMENT OF THE DAY: WILSHIRE VILLAGE PLAN “The notices from the fire marshall are actually Fire Hazard warning stickers not condemned notices. Yes, they are very different according to the Fire Marshall. The condeming of the property will take a little more time but I am sure the plan is in motion. According to the fire marshall when he was at the property on thursday we will still have till the end of the month to get out. After that it’s going to get messy for the people who decide to stay.” [Dawn, commenting on Wilshire Village Apartments: Okay To Stay?]
COMMENT OF THE DAY: WILSHIRE VILLAGE LIMBO WEEK “This is falling under the ‘oh, come on’ category. The end of the month falls on a Saturday; perfect time for a new lease to start on March 1st in a new place. Now people who had plans settled have to find someplace to store their lives for a week and themselves as well. I don’t care who made the complaint or whatever that got the fire marshall out there – he/she is a shithead of the first water. The complex didn’t just fall into total entropy in the last few days. No one got electrocuted or drowned or caught on fire. A week isn’t going to make one bit of difference to the developers or owners.†[Hellsing, commenting on Wilshire Village Apartments: Fire Hazard, Everybody Out!]
City officials have declared the Wilshire Village Apartments on Dunlavy and West Alabama a fire hazard, reportedly slapping these notices on all the buildings. Residents, here’s that number to call: (713) 865-7100. A little more here.
- Wilshire Village Apartments: Condemned? [Swamplot]
- Wilshire Village coverage [Swamplot]
