New proposed regulations would limit a resident to five signs per garage sale.

Up until now, residents hosting garage sales really only had to follow two simple laws: 1. keep it in the backyard, 2. sell only household goods, furnishings or personal effects.

It was a gloriously simple formula that allowed citizens to enjoy the least regulated garage sale community in the area.

Those days appear to be just about over as the City Council is close to approving tighter garage sale restrictions consistent with others held by nearby cities.

No legal ability to curtail garage sale abuses

The need to revise the city’s garage sale regulations became apparent in early May when, according to Law Director Kevin Butler, one of the top men in the Division of Housing and Building found himself unable to clearly address garage sale complaints.

The administration had some general ground rules, but nothing that would hold up in court.

Resident peeved by neighbor’s non-stop garage sales

Although the city doesn’t track garage sale complaints, one recurring irritation mentioned by Director Butler is a very small number of residents who run continuous weekly garage sales.

At a committee meeting earlier this month, Parkside Drive homeowners Tom and Joann Callahan shared their unpleasant experience of living next to someone who frequently puts as many as 25 bicycles in the front yard for sale.

“It’s a joke,” Mr. Callahan said.

“They’re using it for a commercial purpose,” Mrs. Callahan said. “I try to be a good neighbor, but I’ve just had it.

Latest revisions set a range of new standards

The Housing Committee gathered for 90 minutes on Monday to iron out the fine points of the proposed ordinance which will probably go before the full Council for a final vote at its next meeting in September.

The major changes:

Frequency of sale limit: Three garage sales per property, per year

Length of sale limit: Three consecutive days (since garage sales traditionally begin on Thursday, this essentially means no Sunday sales.)

Hours of sale limit: Between 8:00 a.m. and 6:00 p.m.

Signage limit: Five signs; must be five-square-feet or smaller; not permitted on front porches or utility poles; must be removed within six hours after conclusion of sale

The permissible locations and contents of garage sales mostly stay the same. People who can’t reasonably operate a sale out of their backyard can get permission to run it in the front or side yard.

And be careful about that last one, a councilperson admitted to calling the police on his two neighbors who set up in the front yard. They were forced to relocate to the rear.

Has Council nothing better to do?

The ordinance, if passed, will be policed by the Division of Building and Housing. More than anything else, the law will set clear standards and discourage neighborhood discord.

Reasonable people have wondered if the time and attention the Council has given to this matter suggests a certain loss of focus and misplaced priorities.

Law Director Butler disagrees.

“This is not intended to invite additional bureaucracy,” Butler said during a committee meeting. “It’s important to those people who live next to these habitual flea markets.”

“I don’t think this is an overreach,” the one-time Ward 1 councilperson added. “[It's] to preserve the residential feel of a neighborhood.”

Finance director sleeping well at night

Also on Monday, Finance Director Jennifer Pae presented the Finance Committee with a quick mid-year update on the status of the city’s general fund revenue projections. On the whole, everything is on track. When asked if anything was keeping her up at night, she replied, “Not at this point.”

You can see her overview here. [see .PDF].

Some highlights:

- “The forecast for the remainder of 2012 generally remains positive. Income taxes are anticipated to meet 2012 expectations. Intergovernmental revenues are on track to meet estimated budget.”

- Total tax collections through June 2012 are up $198,655 versus last year. “All categories have experienced significant increases compared to our lows in 2010 illustrating the local economy is recovering and collecting the most revenue since leaving RITA in 2005. The quarterly tax billings of July and October will be significant indicators for 2013 estimated revenues.”

- Estate taxes: “Total collections through June 30th and amounts to be distributed later this year will be in excess of $950,000 or $250,000 above 2012 estimates.” The highest level was $1.7 million in 2010, after former Cleveland Indians owners Dick Jacobs passed away. The estate tax will be eliminated effective Jan. 1, 2013.

- 2013 property tax estimates: “The County Fiscal Officer estimates an average decline in real property values for 2013 will be 3.6%. The Finance department is estimating an additional decline of .4% in 2013 due to property value adjustments and current collection rate for a total reduction of 4.0%

- Fire Department overtime is trending lower each year and Police Department overtime is on target. In response to a query from Ward 4 Councilperson Mary Louis Madigan about some rumblings she’d heard about the level of OT in the Fire Dept., Pae responded, “There’s budgeted overtime and it’s managed properly.”

In retrospect, an early sign of trouble at the restaurant may have been when it introduced a senior citizen weekday half-price menu.

Sullivan’s, the popular Irish pub and restaurant on Madison Ave., has closed.

Patrick Sullivan, the former owner who sold the business in January and still owns the building, declined to elaborate on the matter. “I can’t really speak to it,” he said.

A gentleman who tried to enter the locked building late this afternoon for a meeting with Sullivan indicated the new owner was losing money and decided to walk away from the business. The man was unsure if Sullivan’s would reopen.

News of the closure was first posted on LakewoodBuzz.com. A comment left by a customer on the Sullivan’s Facebook page suggests the restaurant may have shutdown on Friday.

Neighborhood vibrancy sprouts outside of Mahall’s

There was unusual sight this evening on the stretch of Madison Ave. across from Madison Park: People were gathered on a sidewalk dancing, grooving to cajun music and generally enjoying themselves.

For too long, the area has been a dead zone in terms neighborhood vitality.

The new ownership team at Mahall’s is trying to change all of that.

Earlier this year, they gained permission from the Architectural Board of Review to cut a couple of garage door-sized roll-up windows into the front of the building in order to open up a small performance stage to the street.

At the meeting, a few Clarence Ave. residents shared their concerns that the changes would result in a lot of unwelcome noise and bar-related nuisances.

Linda Lee, who owns the house behind Mahall’s welcomed the investment the owners were making in the facility, but worried about noise disturbances and commotion from smokers who wander down the street.

Her neighbor, Jean Barrett, displayed more of a hair trigger sensitivity. She recounted several aggravations over the past decade-and-a-half attributable to Mahall’s and the former Bella Dubby, including limited on-street parking availability, litter, and excessive noise.

Neighbors who live around the corner from Mahall’s on Clarence Ave., above, are concerned Mahall’s set-up could lead to noise problems.

She also threw in a couple of complaints about a drug dealer who lived in the apartment building at the end of the street a few years ago, as well as one of her neighbors who incessantly uses a power saw in his garage.

None of it had to do with Mahall’s request, but it showed her state of mind. “I’m not happy about letting them have patio doors,” she said. “It’s only a matter of time [before there are problems].”

The Mahall’s team showed a sincere interest in their neighbors’ concerns and assured them they would do their best to minimize any possible problems.

People gather to hear a performance by cajun artist Buckwheat Zydeco.

In the few months that the rolling garage doors have been installed and in operation, the police have been called to Mahall’s at least twice for noise complaints. Tonight, they made another visit around 9:30 p.m. after receiving another noise complaint.

The volume of noise was certainly loud, although not unreasonable. The band and the cheering crowd could be clearly heard around the corner on Clarence Ave., where several residents had their windows propped open seeking relief from the summer heat.

A few noise complaints aren’t reason for panic, especially at this stage of summer. It is slightly worrisome, though, that someone is unhappy enough with the situation to call the police.

With all the positive energy Mahall’s is generating, it would be a shame to get all mucked up with noise violation problems.

Hopefully, the folks at Mahall’s will double down their efforts to make friends with their neighbors and encourage them to phone Mahall’s directly with noise concerns, instead of the police.

And if you haven’t already done so, stop over at Mahall’s and check it out. They’ve got some fun stuff going on that has been absent from the neighborhood for a long time.

The residence is located at 13405 Lake Ave., on the southwest corner of Lake Ave. and Nicholson Ave.

The federal agency responsible for liquidating the assets of the defunct St. Paul Croatian Federal Credit Union has appointed a trustee to prevent the sale or transfer of the 26-room Faerber-Morse mansion on Lake Ave.

The recent action is part of a civil lawsuit filed earlier this year in federal court by the National Credit Union Administration Board (NCUA) to recover $356,233 in delinquent loans made to property owner Sako Satka.

Satka acknowledges his debt to the credit union, but disputes the exact amount.

Lakewood residents may recall that Satka acquired the house at sheriff’s auction for $610,000 in 2006, not long after the previous owners, failed businessman Otto Lombardo and his wife Judith, tried to strip the property of its architectural details and sell them in a futile effort to avoid foreclosure.

Satka made extensive renovations to the house. It was listed on the market in 2009 for $1.5 million, but is now available for $849,000

Credit Union bust wide-ranging

The 2010 collapse of St. Paul Croatian Federal Credit Union is one of the most expensive credit union busts in United States history. It created a loss of approximately $170 million for the NCUA — the credit union equivalent of the FDIC — which ensured deposits of St. Paul Croatian’s roughly 5,400 members. It had two branches, ten full-time employees and about $238 million in total assets.

The credit union was undone after it issued more than 1,000 fraudulent loans valued at $70 million to more than 300 members. Then-chief operating officer Anthony Raguz received kick-backs for cooking the books and directed the multi-pronged swindle to benefit a variety of people, including a Pepper Pike financier and a member of the Macedonian underworld.

Propriety of other loans made to Satka being scrutinized

Scene Magazine’s 2006 profile of Lakewood’s burgeoning Albanian population described Satka’s path to the American Dream. He arrived in 1997 with his family of six and lived with his brother-in-law. He entered the real estate business by leasing a couple of Cleveland parking lots and later expanded his holdings to include larger commercial properties, as well as the appropriately-named Titanic restaurant at the site of what is now occupied by Buckeye Beer Engine.

While hard work likely helped Satka succeed, he may have been aided by some unusual financing from St. Paul Croatian Federal Credit Union.

To be clear, Satka has not been charged with a crime. However, the NCUA indicated it is “still investigating the propriety” of certain loans made to Satka.

In an affidavit, a NCUA real estate analyst working on the St. Paul liquidation outlined the details of a 2004 maneuver that allowed the balance of loans made to Satka, his family members and related business entities totaling $3.5 million to be zeroed out and reissued “in the names of fictitious and likely sham entities including Play Magazine, Victor-John Model, World International Pictures, Jay Kay Records, Mr. Aqua Limousine, Buckeye Cartage, Celebrity Limousine, Cinar Film Productions, and New Majestic Charter.”

Preparation for the court case regarding Satka’s delinquent loans is scheduled to continue through the end of the year.

Former chief operating officer Anthony Raguz has admitted to receiving at least $1 million in kickbacks and is set to be sentenced for his role in the credit union debacle on November 20.

Satka’s son struggles with renovation of Edgar Building

Work on the Edgar Building has excellerated this year, but the bottom half is still open to the elements.

Sako Satka’s son, Firdeo, was found guilty in May of numerous building code violations related to his efforts to renovate the Edgar Building, located on Detroit Ave., between Merry Arts and Jammy Buggars.

Firdeo took control of Arberia, LLC., the company that owns the building, last year when the original ownership group ran out of money and left the property in an unfinished state of disrepair.

The city has had an especially close eye on the project since a laborer died after falling through a hole in the building’s roof that led directly to the basement.

During a compliance hearing last month in Lakewood Municipal Court, Robert Apanasewicz, the assistant building commissioner for commercial buildings, said he had “great concern” about work done “in violation of the approved plans.”

Signs of some progress on Edgar Building’s interior

Firdeo had electrical work performed by an uncertified electrician who did not bother to pull a permit. And worse yet, he had rear stairs built and tied into the building in a manner prohibited by state fire code — a mistake Apanasewicz went to great length beforehand with the architect to prevent. “Apparently, the carpenter ignored that,” he said, adding that it would need to be ripped out and redone.

The news didn’t sit well with Judge Patrick Carroll. “You haven’t gotten it sir,” he told Firdeo. “There’s a standard this city mandates, and you’re going to comply with that. Do you understand?” Firdeo tried to respond with a feeble excuse, but his lawyer cut him off.

The rear of the Edgar Building looks better than it has in the past.

Prosecutor Pamela Roessner also complained about ownership “shell games” that have been used to avoid responsibility for repairs. “It’s gonna stop this summer,” she said.

Firdeo is due back in housing court on Friday.

Construction of the church began in 1913 and finished in 1922. The building ceased to be used by Christian Scientists around 2004 and was then converted into office space for a short-lived business. It has been vacant for the last few years.

The California-based owner of one of Downtown Lakewood’s iconic structures has filed an appeal in Cuyahoga County Common Pleas Court seeking to overturn the Planning Commission’s designation of his building as a historic property.

Eric Choi, who controls California Phone, Inc., the entity that owns the First Church of Christ, Scientist church building on Detroit Ave., believes the designation’s preservation restrictions will limit future development of the property and hinder his ability to sell it.

Choi acquired the property for $1.5 million in 2010 and has it on the market for $1.975 million. The structure had been renovated and converted into office space for Maxxum Group, LLC, a plastics commodities company. Maxxum folded in 2009, and the building has been vacant ever since. Its total annual property tax bill is $45,000.

Historic designation mandates upkeep, preservation of property

When a building is designated as a historic property, it essentially becomes frozen in time. The property owner is obligated to maintain its same appearance and must get the approval of the Architectural Board of Review before making any alterations.

St. James Catholic Church on Detroit Ave. and Lakewood Park’s Oldest Stone House have each been designated historic properties.

LakewoodAlive, Heritage Advisory Board recommended church building for historic designation

The formal process of historic designation began in April when the Lakewood Heritage Advisory Board agreed the property fit the qualification requirements.

In May, LakewoodAlive Executive Director Ian Andrews nominated the church building to the Planning Commission as a historic property, claiming the building met eight of the 10 criteria.

The Commission agreed the building was a candidate for the designation. However, A. James Artiano, a lawyer representing Eric Choi, e-mailed the Commission to object to the nomination.

Dru Siley, the city’s director of planning and development, said he hoped he could persuade Choi to appreciate the virtues and benefits of the historic property designation.

“[The property] is well-positioned to be repurposed by the right company,” he said. “We want to make sure it’s here for the next 100 years.”

Lawyer: Church building lacks bona fide historic qualifications

After confirming the property’s eligibility, the Planning Commission met in June to decide if it would bestow the official historic property status upon the church structure.

Artiano flew in for the occasion, and was joined at the meeting by local attorney Kirk Roessler, who presented the Commission with some research suggesting the building didn’t meet the criteria.

Although many of the observations Roessler made were reasonable, an attorney representing the city said it was moot point — the building had already been affirmed as a candidate for the designation. The issue before the Commission was solely whether or not the designation should be granted.

Artiano sat in the front row during the exchange and wore the unhappy look of a man in the middle of a disorganized mess. After a brief huddle with Roessler, Artiano complained he hadn’t had enough time to prepare. “I was misled about the process,” he said. Planning and Development Director Siley denied the allegation.

Artiano described his client as “an unfortunate absentee owner” who acquired the property as a favor to friend. “It is a really difficult property to rent or sell,” he said.

David Berkovitz, who is managing Levey and Company’s effort to revitalize nearby Lakewood Plaza, said his group checked out the church property when they acquired the plaza. He told the Commission a historic designation would be an “additional burden” on the owner. Berkovtiz felt the city had plenty of other laws and regulations at its disposal capable of preserving the building.

Roessler thanked Berkovitz for his support and was careful to point out they had “no relationship whatsoever.”

“To date, there have been no offers received,” he said.

Heritage Advisory Board member Heather Rudge countered Berkovitz and noted that the historic designation is an asset for a developer who knows what he’s doing.

Long-suffering Brian Lenahan, a broker with Ostendorf-Morris who has been tasked with locating a buyer for the property, asked the Commission to hold off on any designations until a new owner can be found. He feared the restrictions would discourage a deal. “Dru, find me someone to take this away,” he said half-jokingly to the city’s planning and development director.

The Planning Commission voted unanimously with one abstention to designate the property as historic property.