by Mary Wilson, firstname.lastname@example.org
Should the former Rodeway Inn motel building, which has been deemed a public nuisance, be demolished or allowed to be repaired? That was the question during the Grandview Board of Aldermen’s administrative hearing concerning the property last Tuesday, September 26.
According to the hearing’s background report, the building at 15201 South US 71 Highway was subject to a high-wind event on December 31, 2011, and sustained damage to the flat roof of the motel. As a result of the damage, the motel was vacated due to interior water leaks. The property owner at that time filed claims with his insurance carrier so that repairs could be made. The owner engaged the services of a structural engineer to develop plans for the roof replacement and worked with the City to have a new, sloped roof constructed and installed over the existing flat roof.
The second phase of the repair and remodel for the Rodeway Inn motel concentrated on the demolition of the interior to provide rooms that met the needs of today's lodgers. The property owner utilized several contractors on the demolition portion of the work with very few issues. The remodel project started to bog down in 2014 when permits were pulled, very litte work was completed and communications with the property owner dropped off significantly.
In August 2014, the City received notification that the property owner had declared bankruptcy. During this process, no work was completed on the structure. The bankruptcy process was completed in 2016. City staff had some meetings with the commercial real estate professionals about the property as they prepared to market it to potential buyers. In May 2017, the property was purchased from the lender. The property was purchased in July 2017 by an entity called RW1 LLC. RW1 LLC, according to its corporate filing with the Missouri Secretary of State, has two owners, Charles Soucek and James Woodley.
Shortly after taking ownership, large quantities of materials were brought on to the site by Soucek, with the intent to have a flea market. City staff, including the Building Official, Building Inspector and Fire Marshal, completed a comprehensive inspection of the property. The composition of materials brought on to the site was cause for concern by the City. In addition, Soucek made little effort to clean up the property or to hire the required professionals to develop plans for the continued remodel of the former motel so that it could be re-opened as a motel or demolished and removed to make way for another allowable use.
The purpose of the hearing was to allow the owner of the building to show cause as to why the building should not be declared a nuisance detrimental to the health, safety or welfare of the community. However, if such findings were made, the building would be ordered to be demolished or repaired.
Joe Gall, an attorney for the City of Grandview for the purposes of the administrative hearing, asked to testify first to provide the Board of Aldermen with some background on the property’s ownership before offering a recommendation. While paperwork filed for the LLC show Soucek as the registered agent, according to Gall, the organizer was Woodley.
“I’ve learned some additional information today that I want to share with you at this point,” said Gall. “From the face of this document, we really can’t tell who the owner of the company is. The owner of the company, RW1 LLC, is related to another company, IPX 1031. We didn’t know that and as a consequence, didn’t send notices of the hearing to IPX 1031.”
Gall said that the registered agent, Soucek, was attempted to be served notice of the hearing, however, Soucek died on September 1, after sustaining injuries in a car accident on August 31. The notice of nuisance, sent to Soucek, was signed by his daughter, Susan Miller.
“Under Missouri law, when you’re serving a registered agent, I think a court would find that the delivery of service has to be to the registered agent,” said Gall, “not someone else on his behalf. So, that’s a service issue there.”
Another notice of the public hearing, dated August 28, directed to Soucek was also signed by his daughter, Susan Miller, on September 1, the day that Soucek died.
“I have a bit of discomfort about the validity of the service of this notice of hearing on the registered agent of RW1 LLC,” said Gall.
Miller, who attended the hearing to speak on her father’s behalf, stated that her mother has Alzheimer’s; and because she needs round-the-clock care, she was in her parents’ residence and signed for the notices addressed to her father.
After his death, Soucek’s assets have gone into a trust, with Miller now serving as the successor trustee due to her mother’s health. The property, the former Rodeway Inn, will eventually end up as an asset in that trust.
Gall recommended that, due to the complicated ownership issues with the property that will likely change, the hearing be continued to allow those issues to solidify before returning to look deeper into the evidence on the condition of the building.
“We need to come back and ensure that the proper parties have been given notice and they have the opportunity to appear,” said Gall.
Ultimately, the Board of Aldermen unanimously supported Gall’s recommendation to continue the hearing until Tuesday, October 24, providing Miller opportunity to clean up some of the material on the property that was a cause for concern before the hearing to determine whether the property should be demolished or repaired.