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http://thenewsdispatch.com/articles/2012/0...83214433617.txt

Beachwalk homeowners express concerns about ownership of 'common areas' of development

By Tim Moran
Staff Writer
Published: Friday, March 16, 2012 5:07 PM CDT
MICHIGAN CITY — More than a dozen Beachwalk homeowners expressed concern about ownership issues of the “common areas” of the development during a Michigan City Plan Commission subcommittee meeting Thursday night at City Hall.

The meeting was organized by the plan commission to hear comments about the city’s agreement with Beachwalk developer Tom Moss. Beachwalk LP is a resort community of more than 150 homes located between U.S. 12 and Stop 7 on Lake Shore Drive, originally developed in the early 1990s.

According to residents there, homeowners have a vote in the association based on the number of lots owned. Moss previously owned 42 lots, according to resident Julie Grabowski, and currently owns 25 of the community’s 150 lots. Moss currently serves as president of the homeowner’s association, according to Mike Selfridge, a member of the association board.

Many claimed that the community’s Homeowners Association has been responsible for financing the continued maintenance of the “common areas,” of Beachwalk including Cason Park, the neighborhood’s lift station as well as the area’s tennis and basketball courts even though the areas are owned by Moss of the Beachwalk Property Association.

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Esther Epstein has resided in the Beachwalk community for nearly 20 years.

She says when the area’s lake, also considered a common area, flooded in 2009, Moss told her the water was the responsibility of the Homeowners Association, which paid for the required pumping of the lake.

“There was water in my basement for over a month,” she said.

But her son, Jim Epstein, says Moss recently declared the lake is his, and that the Homeowner’s Association must pay him $56,000 to be allowed to use it.

The inconsistencies do not end there, according to other homeowners.

Amy Itoka says the developer “can’t have it both ways.”

“I was told these amenities were common elements,” she said.

Itoka added that over the years, “Our Homeowners Association money has been used to maintain them. So either these are common elements belonging to the Homeowners Association by their money or the developer should be talking to the Attorney General on why he used the Homeowners Association’s money to maintain his private property.”

Real Estate agent Mike Conner says he sold properties for Moss for a number of years — all with the “premise” that the public areas were to be controlled by the Homeowners Association.

“When someone would pay $235,000 or more for a 35 foot lot — the reason they paid that amount of money was for those amenities,” he said. “The lake was assumed to be theirs as well as the roads, parks, courts and putting green. That’s the premise the developer sold by and that’s the premise by which all Realtors sold by.”

“We did not sell on the premise that they (the common areas) will be sold or you’d have to pay an undisclosed amount for that,” Conner added. “A number of people would not have bought their properties if that were presented to them.”

Matt Klein purchased a lot in Beachwalk in 2007, but said he would not have had he known Michigan City was unable to force Moss to live up to “agreements” he had signed when the development began. Had (Moss) adhered to his promises or had the city forced him to, we wouldn’t be here today,” he said.

Another concern regarding the condition of Childers Lane, the development’s “back road,” with access to U.S. 12, was presented by residents as well as Michigan City Fire Chief Ron Martin.

“That road is not adequate for our equipment,” Martin said, notifying committee members Tim Smith, Charles Peller and Jim Powers that he will not send trucks that way until the road is improved.

“We want the access road open,” Martin said, adding his concern is “speed” in getting to the properties quickly, “So I can get some sleep at night.”

But Beachwalk homeowner Bernard Edelman argued that if the parcels owned by Moss, which includes Childers Lane, are foreclosed — it “does not matter” if the road is improved.

“Then there won’t be access to anyone,” he said. “Someone in Michigan City needs to act immediately. If the road does not belong to the Homeowners Association or the city, it will be lost.”

Moss, who was seen in the parking lot of City Hall minutes after the meeting began, did not address the residents’ issues Thursday, instead providing reporters with a written statement that included the community’s accomplishments over the last 20 years.

“A former sand mining pit has been transformed into a thriving and vibrant community of Michigan City,” the statement read. “Our homes generate over $60,000,000 of assessed value.”

The statement did address “operating costs,” which Moss said “the vast majority of Beachwalk’s owners don’t use most of the municipal public services provided by the City of Michigan City and their children do not attend the Michigan City Area Schools.”

As the meeting concluded, Smith, who chairs the sub-committee, said this is “a serious issue, and we’ll take it as a serious issue.”

— Staff writer Ilene Haluska contributed to this report.