The co-owners of many of the buildings along Swarthmore (between Sunset and Monument) have agreed to mediation in an effort to resolve their disputes, which have led to two lawsuits and community concern about longstanding vacancies. Retired Superior Court judge Patricia Collins has been chosen as the mediator, but no date has yet been set for a meeting, according to the attorney for Pacific Palisades resident and co-owner John Wilson. Wilson filed suit against his co-owners June 22, asking to have the properties sold so that the owners could take out their interests in cash. A cross-complaint, filed on behalf of the MacDonald and Joslyn family interests on September 16, sued instead for a partition of interests ‘in kind,’ meaning that each owner would be allotted some portion of the properties. A third group of interests, including at least one member of the Carey family, which financed the original construction of the properties in the early 1950s, has not yet filed a suit of its own. ’The parties are all trying to work together to get this resolved,’ said Robert Clarkson of Clarkson/Riley, Wilson’s counsel on Tuesday. They agreed to mediation, which is simply an agreement to sit down ‘like a family would over a kitchen table,’ back in September or October, he said. But to date, there seems to have been little consensus amongst the landlords, which has left empty stores in continued disrepair and more than $400,000 in back rents uncollected, according to Wilson. ’If things fall badly,’ Wilson said, he stands ready to file a second legal challenge of his own against the Carey family group and their representative John Watkins individually, alleging that they have destroyed the value of the properties. But Wilson’s lawyer sought a more conciliatory tone, and said he was hopeful that the parties could reach agreement. Because the parties own the properties as ‘tenants in common,’ decisions can be made only by agreement of all the co-owners, even those with the smallest ownership interest. The properties have been jointly owned since the buildings were constructed, and no written agreement was ever drafted to dictate how disputes might be settled, according to Clarkson. In a letter to the editor of the Palisadian-Post this week, Watkins responded to the newspaper’s story ‘Swarthmore Landlords Trade Lawsuits,’ dated December 8. ’The article contained numerous misstatements and omissions about my position and my actions,’ Watkins wrote in a letter that is printed in full on page 2. Adding ‘a person’s reputation and character are very important,’ Watkins offered to share e-mails with the Post that he said would directly contradict statements made about him. The December 8 story also generated comments from residents frustrated by the vacancies, which include three spaces once occupied by U.S. Bank, The Office Supplier and the Nest Egg on Sunset, and four more empty storefronts on Swarthmore. A letter from one reader stated that the landlords had refused a free offer of a bit of paint and landscaping to fix up some of the stores so that they could serve as ‘pop-up’ galleries. Both Watkins and Wilson said they had tried to improve the properties and been thwarted in their efforts. ’During the past four years, we have repeatedly requested in writing that the owner representatives support upgrading the vacant stores, but our efforts have been met with resistance,’ Watkins wrote. ‘The dilapidated appearance of the vacancies hurts our tenants, the rents, the image of the property and the Village.’ Watkins urged the community to keep advocating for upgrades, but Wilson alleges that Watkins himself has blocked such work. ’We’ve attempted to put in awnings and do some painting, but Watkins’ group said no,’ Wilson explained. ‘We can’t even get them to agree to the repair of a roof and a storm drain in the old Mort’s space.’ Asked what would happen if someone just wandered over with a can of paint in an attempt to spruce up the storefronts, Wilson responded, ‘I certainly wouldn’t object, but they might end up with a vandalism complaint against them.’ Another thing that Wilson said the group has failed to agree on is serving tenants who owe back rent with a three-day notice to quit the space or pay rent. That notice is typically a first step toward eviction. Watkins said that is something his group has tried to prevent. ‘Friction has occurred because we believe that the property manager should communicate and work with the tenants if they fall behind in their rent.’ But Wilson retorts that ‘calls, letters and personal contacts are made several times a month’ with tenants through Robert Stelzl, a trustee who represents the MacDonald and Joslyn interests. But without any real consequences, rents go uncollected, Wilson said. Stelzl has not responded to the Post’s requests for comment. Watkins also charges that other co-owners have urged heavy-handed treatment of certain tenants and preferential discounts to those they favor. Wilson, in turn, accuses the Carey interests of blocking tenants who might be competitive to interests they allegedly hold on the west side of Sunset, including Noah’s Bagels and The Coffee Bean & Tea Leaf, while Watkins said the group has only tried to protect businesses run by existing Swarthmore tenants. While the facts remain in dispute and the co-owners at odds, perhaps they can agree on one thing. ‘[The stores on Swarthmore] are a great resource to the community and deserve the community’s support,’ Watkins wrote. ‘Please consider visiting the Village when looking for a gift, clothing, personal services, or if you just want a place to relax, meet with friends and enjoy,’ he urged Post readers.
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