Birmingham Buzz

Promoting intelligence and reason in city government.
Our mission: to inform and involve ALL Birmingham citizens.

Number 48: May 13, 2003

Number 47: May 2, 2003

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THE BIRMINGHAM BUZZ
"It's the 2016 Plan, stupid."
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Birmingham Buzz # 47 -- May 2, 2003

Promoting intelligence and reason in city government. Our mission: To inform and involve all Birmingham citizens.

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In this edition:

1) Comment: Intelligence/Reason, 3; Lanzetta/Kulak/PC, 1
2) Comment: Kulak runs amok, and earns reappointment as chairman of Planning Board
3) Comment: Sewer program a good compromise
4) Comment: Tax increases are direct result of anti-development policies
5) City proposes $149 average tax increase
6) Sidewalk scrapped -- Mr. J next?
7) Residents balk at sewer plan
8) Commission OKs ethics, tree ordinances, kills Adams bridge sidewalk, rebukes Plan Board
9) Barnum group picks chair, sets May 1 meeting
10) Comment: Ethics ordinance goes too far
11) Birmingham water rates among area's highest
12) Builder wins $6.4 million court judgment

1) Comment: Intelligence/Reason, 3; Lanzetta/Kulak/PC, 1

April 29, 2003

Logic and reason won three out of four decisions by the City Commission Monday night.

The Lanzetta-Kulak-Presidents Council Axis of Stupidity prevailed in only one of its insidious objectives, the Ethics Ordinance.

Otherwise, City Commissioners intelligently rejected two zoning ordinance changes proposed by Gary Kulak's Keystone Planning Board, and finally (we hope) relegated Dante Lanzetta's Sidewalk to Nowhere to where it belongs -- nowhere.

Get ready for a spate of politically inspired, frivolous complaints to the yet-to-be-named Ethics Board. This is one of the dumbest ordinances ever passed in Birmingham. Does the name Joseph McCarthy ring a bell?

Here are two of the dumber provisions of the ordinance:

On the one hand, it dictates that the Ethics Board hold hearings on "any matter" brought to its attention -- hearings subject to the Open Meetings Act. That means it's all public, regardless of the frivolity of the charges.

Then, on the other hand (which apparently doesn't keep track of what the first hand is doing) it goes on to dictate that "all findings of Board hearings shall be published in permanent form and communicated to the City Commission and the public, with any deletions necessary to prevent disclosure of the identity of the official or employee involved."

So do we get the identities of the alleged criminals, or not?

For the record, and just so you know whence this his piece of garbage originated: It was proposed by Lanzetta and written by his crony (and we hear, soon-to-be-announced Commission candidate) Paul Marion Reagan, ringleader for the phony and discredited Presidents Council of Homeowners Associations.

Bad laws were endemic Monday night.

Another of Lanzetta's cronies, Gary Kulak, proposed two awfully written amendments to the zoning ordinance.

The first, which would have changed conditions for site plan approval, was laughably subjective. You have to wonder: The City Attorney told the Planning Board it was overly subjective. The city planner (backed by her boss, the City Manager) told the Planning Board it was overly subjective. Yet, the Planning Board, in its extremely finite wisdom, chose to ignore these admonitions, sending it to the commission anyway. What were they thinking?

The second, which would have strictly limited the size of single- and two-family residences in the Central Business District, was not only dumb, but spiteful. But don't get us started!

In the end, even Lanzetta, who nominated Kulak for reappointment to the Planning Board, couldn't support his boy.

But he didn't give up without lashing out at those in the gallery who spoke against the ordinances. You see, a couple of years ago, realizing how busy the commissioners get checking their calendars and looking for missing hyphens during commission meetings, they relegated public hearings on zoning matters to the Planning Board. Lanzetta fumes every time a) nobody shows up at the Planning Board hearings, and b) everybody shows up when the matters reach the Commission.

Whatever. Lanzetta stopped listening to his constituents years ago. Proof of that came later in the meeting, when the rest of the commission finally shot down the Lanzetta-sponsored Adams Road Sidewalk To Nowhere, which had the support of no one (but Lanzetta) in town.

Let the record show that Lanzetta cast the lone vote in favor of the sidewalk Monday night. He never gave up, and his political opponents will never let him, or Birmingham's voters, forget it.

2) Comment: Kulak runs amok, and earns reappointment as chairman of Planning Board

April 17, 2003

Gary Kulak has been reappointed to the chairmanship of the Birmingham Planning Board.

The City Commission named him to a second term on the board several weeks ago; his fellow Planning Board members named him chairman.

Many of those who appear before him name him something else.

"My request for outdoor dining has been approved (even though Mr. Kulak was clearly against it), and therefore I will not have to encounter this self-important jackass for the foreseeable future," Louis Dortch recently wrote to City Manager Tom Markus.

In a "formal complaint" to Markus, which you can read in its entirety by visiting http://www.bhambuzz.org/pdfs/qdoba.pdf, Dortch, President of Qdoba Mexican Grill on E. Maple, said, "I have attended dozens of planning, zoning and other types of municipal meetings over the years and have never been treated with such contempt and antagonism. Mr. Kulak seems to enjoy using his position to deride people seeking approval for their given project. His treatment of the local businessman or resident is only outdone by his deplorable abuse of the City of Birmingham staff."

"Ms. Jana Ecker and Ms. Kelly Mathews [city planners] are both competent and enjoyable people to work with. Mr. Kulak treated each of these city employees with little respect, even though each had done their job. ... I would worry about retaining the competent, professional and enjoyable staff currently working for the city that may have the misfortune of interacting with this man," Dortch wrote in his April 2 letter.

In the letter, copies of which were sent to City Attorney Timothy Currier and planner Ecker, Dortch concluded, "Please contact me if you have any questions or if I might be of assistance in having Mr. Kulak removed from his position."

Dortch isn't the only petitioner going public with his concern. Kulak, who controls the Planning Board agenda and appears to be adopting the disdainful attitude of his mentor, City Commissioner Dante Lanzetta, is well known for his propensity for delaying projects. His actions prompted two letters recently from an attorney for Melvin Kaftan, who has been seeking approval to redevelop the property at 369 E. Maple, between Woodward and Old Woodward, in downtown Birmingham, since June of last year. While the language isn't as direct as Dortch's, attorney Mark Cohn, of Seybourn, Kahn, Ginn, Bess and Serlin makes cogent legal arguments for allowing Kaftan's project to move forward.

Click on the following links to read:

April 4 letter to City Planner Jana Ecker: http://www.bhambuzz.org/pdfs/Kaftan01.pdf{{PERIOD}}

April 10 letter to City Attorney Tim Currier: http://www.bhambuzz.org/pdfs/Kaftan02.pdf{{PERIOD}}

Others who appear before Kulak are being urged to go public, but anyone who does so risks further abuse and delays of future projects.

One need only tune to Channel 15, one of Birmingham's public access channels, to catch Kulak in action. His antics on the Planning Board are replayed repeatedly. Visit http://www.gorillainteractive.com/cableboard/channel15.cfm for a schedule of board replays. Or show up in person. Visit http://ci.birmingham.mi.us/AgendasMinutes/Planning/minutes.htm for a schedule, agendas and minutes of Planning Board meetings.

3) Comment: Sewer program a good compromise

May 1, 2003

>From the Birmingham Eccentric

The city administration and commission are to be commended for pursuing a plan to replace failing sewers in the city that minimizes the cost to residents.

Some residents were facing costs of up to $20,000 to replace the old "Orangeburg" pipes that were installed decades ago. While the pipes were considered state-of-the-art then, they essentially were made of tar paper and now are failing.

Repairing the pipes or replacing them must be done. But at what cost?

Some residents claimed the pipes actually are on city property, but that argument won't wash with the city and most likely would fail in court.

But the city's new plan could significantly reduce the replacement costs for each resident by essentially buying in bulk. The city would hire a contractor to do the work who could charge a lower rate by being assured the volume of work.

Although the final replacement cost can be steep, it's still better than having to pay the full amount. It's never been cheap to live in Birmingham, but these multi-thousand dollar expenses can put an intolerable strain on some residents, particularly those who have paid for their homes and now live on fixed incomes.

Some residents have demanded that the city pay for the portion of pipe in the city right of way. Costs for doing that could be staggering - up to $40 million across the city.

It would be nice if the city could cover all those costs, but since that just isn't going to happen, this plan is the next best thing.

4) Comment: Tax increases are direct result of anti-development policies

May 1, 2003

If you're looking for someone to blame for increased taxes in Birmingham, look no further than your City Commission and Planning Board.

Former Commissioner Chuck Moss began the slow drumbeat soon after his election to the Oakland County Commission a while back: Birmingham cannot sustain its services, he explained, on a tax base that's locked into place by the Headlee Amendment and Proposition A. Redevelopment is the only way to increase the tax base and bring more money into the General Fund.

We'll let Moss's many presentations, some of which have been published here, explain this in more detail. Visit http://www.bhambuzz.org/pdfs/ecc_moss011302.pdf to read his January 13, 2002 editorial in the Eccentric.

The fact is, our City Commission and Planning Board are doing everything in their power to stop development. They've altered zoning laws and become so hostile and antagonistic toward developers that few are even willing to begin a project in Birmingham.

Planning Board Chairman and control freak Gary Kulak -- "Krazy Kulak," as he is known to many -- seems to bring to his job only anger, resentment and a determination to delay any project that comes before him. Oh, yes: He wants to dictate the aesthetics of every project as well.

The fiscal irresponsibility of these two boards is appalling. It took hours of discussion, three formal votes and scores of comments from the general public before they abandoned the $1 million Dante Lanzetta Sidewalk to Nowhere.

To be sure, every member of these two boards is not culpable. Just a majority of each. As election time approaches, let's be clear on who stands where.

On the Commission, the bad guys are Lanzetta, Donald Carney and Gordon Thornsby. Seth Chafetz joins them often enough to make a majority on many of their bad decisions. Dianne McKeon seems to be coming around, and Russell Dixon and Rackeline Hoff seem to be firmly rooted in reality.

On the Planning Board, there are really only two good guys, who unfortunately make up a very weak minority: Brian Blaesing and Bruce Thal. Otherwise, look to the solid majority of Kulak, James Neuhard, Jean Holland, Willem Taazelar and George Dilgard when placing responsibility for bad decisions.

There appears at this sorry stage to be only one way to get our city back on the track of fiscal responsibility, and that is to replace many of the members of these two boards. Until then, open your wallets and look for more bad decisions, more animosity toward redevelopment, more fiscal irresponsibility, and more tax increases.

5) City proposes $149 average tax increase

April 10, 2003

>From the Bimringham Eccentric

By Larry Ruehlen

Trash will be picked up, city streets will be safe and recreation opportunities will increase in Birmingham. But providing those services will cost the average taxpayer an extra total of $149 per year.

"I think we provide a pretty wide range of services, and we will continue to try to deliver those services as efficiently as possible," said Birmingham City Manager Tom Markus.

Markus proposed a budget for the coming year that will increase property taxes for the average resident from $2,196 to $2,324, for a difference of $128. Eighty percent of the increase will go to pay off new city debt and 15 percent is attributed to added costs for library services.

Factors that made balancing the budget a challenge this year included cuts in state-shared revenue and mounting medical and liability insurance premiums for city employees.

Also going up are sewer costs, with the average Birmingham resident paying $21 more. The commission is expected to vote on the budget within a month and the new rates take effect July 1.

What the $55 million budget will pay for includes:

* $3.1 million in sewer improvements
* $1 million in water main improvements
* $2.89 million in improvements to streets and bridges
* $1.3 million in repairs to Quarton Lake Dam
* $3 million for parkland acquisition and improvements.

Markus recommends maintaining reserves of 16.7 percent of the city's operating budget. To do that, he cut $1.2 million from the budget.

His proposed cuts will eliminate out-of-state conferences, freeze or delay new hires, reduce a historic survey of city neighborhoods by $275,000 and cut nonessential employee activity requests. He also recommends eliminating the city's mounted police unit, which would effectively put Mr. J, the only remaining police horse, out to pasture.

While most Birmingham residents will be able to fork over the additional $149, that's not the case for everyone.

"I guess I'll have to plead poverty and go on the dole," said Ruth Plew, a resident of 60 years. "That amount of money doesn't mean a hoot for the city commission, but it means a whole lot to me. My house is paid for, but what good does that do me when I'm burdened with all these taxes?"

6) Sidewalk scrapped -- Mr. J next?

May 1, 2003

>From the Birmingham Eccentric

By Larry Ruehlen

The Birmingham City Commission on Monday nixed plans for a $1 million sidewalk over Adams Street Bridge, but the move may not spare Mr. J, the city's last police horse.

"We have to look longer into the future and make lasting budget cuts," said Birmingham City Manager Tom Markus. "My recommendation and that of staff continues to be to cut the mounted patrol division, but that decision will ultimately be up to the commission."

Faced with a budget crunch that has the city cutting back non-essential programs, the Birmingham City Commission Monday reversed a December 2002 decision to include a sidewalk on both sides of a new bridge. The $4.7 million project to replace a four-lane bridge on Adams near Putney Street was to start in the fall.

The total cost of the additional sidewalk exceeded $1 million, but Birmingham's share of the cost was $574,500. The vote to get rid of the second sidewalk was 6-1 with Commissioner Dante Lanzetta Jr. voting no.

The bridge issue came up when officials from the Canadian National Railroad called to say that it had granted easements to fiber-optic companies and that the replacement bridge had to be redesigned.

"There is going to be a delay and we have no idea when the project will start now," said Dennis Dembiec, director of engineering and public services. "The railroad led us into a mess on this one."

Just how saving the $574,500 in city funds will impact Mr. J's stay in Birmingham remains to be seen.

Mr. J is the city's only remaining police horse, but he is slated to be removed from the force if the proposed budget is approved by the Birmingham City Commission on May 12.

Markus said declining revenues from the state forced him to ask all department heads to suggest budget cuts. Patterson identified some $122,000 in cuts, and Mr. J's oats and board were at the top of the list. Patterson said the department stood to save $15,000 if Mr. J went to work elsewhere.

Patterson said a local businessman who volunteers for the mounted division of the Oakland County Sheriff's Department has offered to care for Mr. J for a year. If the city's bottom line improves next year, Mr. J could resume his duties in Birmingham, said Patterson. If not, the horse could continue to make appearances at city parades.

Another option is temporarily placing the horse with the Detroit Police Department.

Under the new budget, city services won't be cut. But the average taxpayer will pay an additional $149 per year in taxes - most of which would go to retire new debt, including bonds for parks and recreation improvements.

Commissioner Rackeline Hoff said the second sidewalk wasn't needed and that the money could be better spent elsewhere. A handful of residents continued to make the same point at city meetings over the past few months. Whenever talk of needing money surfaced, the phrase, "What about that sidewalk on Adams?" came up.

"We are satisfied because most of us agreed that the money would be better spent in other areas," said Dorothy Conrad, who rallied against the sidewalk.

Only one parent said the second sidewalk was needed, while others said they wouldn't use it if it were installed. The only family that lives directly in front of the proposed sidewalk was against it.

Lanzetta maintained that Birmingham prides itself on being a walkable community and that the additional sidewalk would allow children, joggers and bikers a safe place to travel.

7) Residents balk at sewer plan

May 1, 2003

>From the Birmingham Eccentric

By Larry Ruehlen

Thanks for the favor, but we want the city to pay its fair share.

That's what a group of Birmingham residents said about a proposed repair and replacement program for lateral sewer lines.

"There are many residents who believe it is the city's responsibility to repair the laterals," said resident David Bloom. "... I don't own the sidewalk, the city does, but it's my responsibility to keep it clean. Maybe that's akin to the city keeping the sewer pipes clean."

Bloom is one of some 475 residents who signed a petition asking the city to foot the bill for repairing the lateral sewer lines that connect individual houses to the city sewer system.

The pipes are failing all over town, and Dennis Dembiec, director of engineering and public services, unveiled a plan to help residents bring down the typical $10,000 to $20,000 repair costs.

Dembiec said the Private Building Sewer Investigation and Repair Program would reduce costs to the $6,000 range. Residents who attended Monday's City Commission were grateful for the effort. But they also wanted to know why they must pay for pipe in the city's right of way.

"It appears the program would help the homeowner through a very difficult situation," said Birmingham resident Bob Shopp. "... But how does that pipe become the residents' sole responsibility? That's the problem we are having."

Hundreds of residents have already had to replace pipes and the city has no plans to reimburse them for the repairs. Many of the pipes were a product called Orangeburg that the city installed from 1945-62. Orangeburg pipes - though considered by some to be the industry standard - were made of tar paper, and later proved to be inferior to other types of pipe.

The majority of lateral sewer failures have occurred on the city's east side where Orangeburg pipe was installed on a wide-scale basis. The city provided a 30-year warranty on the pipes but the warranties have expired. Birmingham City Manager Tom Markus has said the pipes benefit individual homeowners and are on private property so the cost of repairs falls to the residents and not the city.

Residents counter that roughly half of the pipe is within city rights of way so Birmingham should fix at least that much of it. They also want to know if the work can be done with special assessment districts, which are tax-deductible in some cases.

Dembiec said having the city replace that section of pipe would cost $3,000 to $4,000 each. There are 10,000 houses in the city and if the city had to reimburse or pay for pipe repairs for all of them, it would cost as much as $40 million. The city's annual budget is $55 million.

"We look at this as being a gift, to a degree, to a homeowner," said Dembiec. "But no one is forcing this on anyone."

Dembiec had planned to tell residents how the plan would work at a 7 p.m. Monday, May 5, meeting. Instead, commissioners said they would attend and make the proceeding an official commission meeting so they could hear what residents had to say. The meeting will take place at City Hall, 151 Martin.

Dembiec cautioned that allowing the residents to tweak the program could delay it for months or years, which would force anyone who is having a problem now to pay the higher rates for repairs and proceed on their own.

The basics of the program are as follows:

* A resident would call a facilitator, Hydro-Designs Inc., to start the repair process. An application and a $300 security deposit are required.
* The lateral sewer pipe is cleaned out, investigated for damage and videotaped for about $200.
* An agent with Hydro-Designs discusses options with the resident. If it is determined that a repair is necessary, the resident would have several choices of companies and methods.
* Repair methods range from installing a pipe liner at $4,000 to replacing the entire pipe at $6,000 to $8,000, depending on the complexity of the job.
* Dembiec expects to have experts demonstrate different techniques for repairing the laterals at the meeting.

8) Commission OKs ethics, tree ordinances, kills Adams bridge sidewalk, rebukes Plan Board

April 29, 2003

In an action-packed session Monday night, the Birmingham City Commission approved an ethics ordinance, gave final OK to a tree ordinance, effectively killed the $1 million Adams bridge "sidewalk to nowhere," and sharply rebuked the Planning Board by rejecting two ordinance amendments proposed by the board.

The ethics ordinance requires financial disclosures by city employees, elected officials and appointees, and establishes an Ethics Board to oversee the ordinance. Visit http://www.bhambuzz.org/pdfs/Ethics_Approved.pdf to read the approved ordinance.

The tree ordinance covers trees located on public property. Visit http://www.bhambuzz.org/pdfs/Tree_Approved.pdf to read the approved tree ordinance.

The sidewalk was effectively killed after city staff reported on the need to redesign the project. Staff asked the commission if the redesign should include the sidewalk, and the commission voted 6-1 against including it. Commissioner Dante Lanzetta alone voted to keep the sidewalk.

Two proposed ordinance amendments from the Planning Board were defeated.

One would have redefined the conditions to be met by developers seeking site plan approval. Visit http://www.bhambuzz.org/pdfs/Site_Plan_Ordinance.pdf to read it. The city's planning staff and the City Attorney had said the conditions were too subjective, but the Planning Board ignored their recommendations and submitted the ordinance amendment to the commission anyway. Visit http://www.bhambuzz.org/pdfs/Site_Plan_Letter.pdf to read the City Attorney's letter.

The other would have set strict limits on the size of single- and two-family residences in the Central Business District. Visit http://www.bhambuzz.org/pdfs/Single_Family_CBD.pdf to read it.

9) Barnum group picks chair, sets May 1 meeting

May 1, 2003

The Barnum Center Feasibility Steering Committee has appointed Ralph Seger as chairman and held its second meeting on May 1 at 6 p.m.

Visit http://www.bhambuzz.org/pdfs/Barnum_Minutes_041003.pdf to read the minutes of the committee's April 10 meeting.

10) Comment: Ethics ordinance goes too far

May 1, 2003

Escaping notice of many Birmingham residents is the recently approved Ethics Ordinance. Residents here took careful notice of the overreaching Tree Preservation Ordinance introduced earlier this year and spoke out in such great numbers against the incursion on private property rights that the ordinance was effectively rejected. Even many who originally supported it backpedaled.

The Ethics Ordinance is no less troubling. The document is pared down substantially from the original and stripped of most of its unconstitutional provisions, such as prohibiting any city employee, elected or appointed official from making political statements that go against the political leanings of the sitting commission.

It is notable that the Ethics Ordinance was proposed by a small but vocal group of Birmingham residents who call themselves the Presidents Council of Homeowners Associations. Although they lay claclaim to representing the neighborhoods of our city, their membership is arbitrarily limited and their meetings closed to uninvited public.

The ordinance has two particularly disconcerting requirements:

1. A financial disclosure statement that requires a city employee, elected or appointed city official and their immediate family (spouse, children) to publicly disclose business interests in which more than 5 percent ownership is held; interest owned in real property under certain circumstances, and any business entity for which an immediate family member serves as director or officer.

2. The appointment of a three-member Board of Ethics selected by the City Commission, ultimately to three-year terms. All questions and complaints pertaining to a violation of the ordinance are to be directed to the Board of Ethics, where a public hearing is to be held and the findings, including proposed "sanctions," published for public review - without regard for the legitimacy or severity of the charges. Given the emotive nature of local politics, this will almost certainly lead to abuse of the process.

Once the Ethics Board recommends sanctions, the City Commission, or the City Manager in the case of an employee, is then responsible for enforcing them. There is no appeal process.

Of course, this begs the questions: What kind of "sanctions?" The ordinance doesn't say. Does the City Commission have the legal power to enforce sanctions against private citizens? The ordinance doesn't say.

Ponder this hypothetical situation: A candidate wins a commission seat in the next election, but refuses to abide by the financial disclosure requirement of the Ethics Ordinance. Can an Ethics Board determine that the winning candidate is prohibited from serving? Isn't that up to the electorate?

Another hypothetical to ponder: An Ethics Board receives a complaint that a citizen serving on the Parks and Recreation Board refuses to submit a financial disclosure statement. The Ethics Board advises that the citizen must be removed from service. Is the City Commission compelled to vote to enforce the sanction?

Birmingham is remarkable in that we have many dedicated citizens who freely give their time and talent for the good of the city. We are accustomed to loyal and valuable city employees. However, the Ethics Ordinance introduces an aura of mistrust. It is an inherently punitive document that presumes culpability and represses the expectation of privacy. Fewer good citizens will volunteer, and we will lose the loyalty of city employees.

The City Commission should be commended for promoting ethical behavior and seeking to create an atmosphere where public duty is not compromised by personal interests.

An attractive alternative, one that would have allowed the commission to advance its good intentions while preserving the trust and good faith of the community, would have been to adopt an Ethics Statement. No financial disclosure, no Ethics Board, no sanctions, just respect for doing things right.

11) Birmingham water rates among area's highest

April 21, 2003

Click on the following link to see a chart of water and sewer rates that appeared in the Detroit News on March 25, 2003

http://www.bhambuzz.org/images/waterrates.jpg

12) Builder wins $6.4 million court judgment

May 1, 2003

>From the Birmingham Eccentric

By Larry Ruehlen

Citing "reprehensible" conduct that must be punished, Chief U.S. Bankruptcy Judge Steven W. Rhodes ordered Franklin resident Kevin Adell to pay local builder John Shekerjian $6.4 million in damages Friday. Adell had maintained that Shekerjian committed fraud in a $3 million house deal. Shekerjian said he didn't and that Adell was trying to destroy his reputation.

Rhodes sided with Shekerjian, developer of the 250 Martin St. condominium in downtown Birmingham.

"The evidence of Adell's bad faith is overwhelming," said Rhodes, in a written opinion. "... He withheld crucial information from his bankruptcy attorneys. He engaged in a campaign of publicity and disparagement with the specific intent to injure John Richards Homes. He threatened JRH with criminal prosecution. He flaunted his wealth ... this involuntary bankruptcy petition is an extreme case of abuse of the bankruptcy process "

Rhodes had earlier ruled that Adell did not have legal standing to file an involuntary bankruptcy proceeding against John Richards Homes because the debt involved was disputed. Under involuntary Chapter 7 law, the debt must be an undisputed fact. In this case, Shekerjian contended that he didn't owe Adell anything, and in fact had been injured by Adell's decision to renege on the land deal and pursue bankruptcy charges.

Adell purchased a 1.8-acre lot at 525 Haverhill from Shekerjian in December 2001. The deal was for just over $3 million including the land and the construction of a luxury house. Adell claimed the house was supposed to be worth $2 million and the property $1 million. Shekerjian claimed the property was worth $1.75 million and Adell signed closing papers on Feb. 28 that stated the land price as $1.75 million.

Rhodes said there was proof that Adell intended to harm Shekerjian.

The judge cited a June 3, 2002, conversation in which Adell asked Shekerjian: "Can the company take the hit to its reputation if an involuntary bankruptcy was filed?" Adell denied making the statement but Rhodes said the denial lacked credibility.

Rhodes also mentioned Adell's hiring of public relations firm Marx Layne to publicize the bankruptcy filing. An associate at Marx Layne contacted several newspapers promising them an exclusive story on "payoffs" by John Richards Homes to creditors.

Michael Layne, a partner at Marx Layne, said in his testimony that he personally talked about the public relations campaign with Adell and it was Adell who provided information about the "payoffs." Layne also said under cross examination that the firm wasn't hired simply to handle media inquiries. Layne's testimony was key because it helped establish Adell's intent to harm John Richards Homes, said Rhodes. Shekerjian has not been criminally charged with anything in connection with the case.

Rhodes based the amount of the award on lost business and damage to Shekerjian's reputation.

Shekerjian reacted to the latest ruling with a prepared statement.

"This is an important first step to restoring the reputation that we have worked so long and carefully to attain," said Shekerjian. "We are most grateful to all of our clients, employees and business associates who have stood by us this difficult past year."

Norm Lippett, Adell's attorney, said an appeal is planned.

"It's our belief that the judge committed several errors," said Lippett. "The first of which was expressing an opinion about the case before hearing testimony."

Lippett said he will file the appeal at U.S. District Court within the 10-day limit. Some of the potential issues for the appeal are that Rhodes didn't allow a rebuttal accounting expert, that John Richards Homes was in financial trouble before the case began and that the basis for the $6.4 million award was faulty.

Norman Ankers, who represented Shekerjian, summed up his opinion on the ruling.

"Some home buyers aren't sophisticated enough to discriminate between involuntary and voluntary bankruptcy," said Ankers. "That's why there are such severe penalties involved. The court realizes how damaging it can be to be dragged into involuntary bankruptcy."

Ankers said he is confident his client will prevail even if the case goes to the U.S. Supreme Court. He expects it will take more than a year to collect the $6.4 million from Adell.

Adell is vice president of Clinton Township-based Adell Broadcasting - a cable network specializing in religious programming.

To be removed, send mail to info@bhambuzz.org
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