Lawsuit filed against Nursing Home Developer

Lawsuit by luxury condo owners targets senior living facility developer

By Erin Mulvaney

March 18, 2015 Updated: March 18, 2015 10:28pm

The latest battle over land use in Houston is between luxury condo owners who live near River Oaks Shopping Center and a developer planning to build nearby senior housing.

Seven residents who live in the high-end Gotham Lofts and Renoir Lofts complain that the mid-rise facility planned for a site between their buildings on South Shepherd will harm their property values, in part because of potential emergency vehicle visits needed by elderly residents, according to a lawsuit filed in Harris County Civil Court this month.
Lawsuits against planned development have gained more attention in recent years, particularly following the high-profile battle between some residents near Rice University and the developers of the planned 21-story Ashby high-rise, which the residents claimed was out of place in the neighborhood. This latest case has a bit of a twist in that the condo residents also live in mid-rise buildings and are most concerned about the planned use of the new development, rather than its scale.

Houston-based Bridgewood Property owns the nearly 2-acre tract at 1015 South Shepherd Drive, where it plans to open The Village at River Oaks in 2016. The site has been razed to prep for building a nine-story, 80,000-square-feet assisted-living and senior living care facility, the suit says. The facility will include 193 units and a 250-vehicle parking lot.

REAL ESTATE

A rendering of The Village at River Oaks. Emergency care for elderly residents is at issue in a lawsuit. Lawsuit by luxury condo owners targets senior living facility Liberty Pipeline Services has subleased 9,313 square feet of newly built-out and upgraded space at The Reserve at Sierra Pines in The Woodlands. The company is filling space vacated last year when midstream energy services company Strike relocated its head-quarters. Deal of the Week: Company makes move Pilates Place of The Woodlands has purchased a 13,000-square-foot office warehouse building on 2 acres at 33219 Forest West Drive near FM 1488 and FM 2978 just outside The Woodlands. Rob Banzhaf and Krissie Vanyo of Newcor Commercial Real Estate represented the seller, Zinterests. Rick Stallings with Keller Williams, The Woodlands represented the buyer. Real estate transactions A patient tower is under construction at the Methodist Hospital of Sugar Land. Architect says good design can strengthen health care Joel Kotkin moderates the panel discussion about opportunity urbanism with David Friedman, Houston developer Walter Mischer, urban demographer Wendell Cox, Houston architect Tim Cisneros, and Houston Strategies blogger Tory Gattis, during the inaugural luncheon of the Center for Opportunity Urbanism, Thursday, March 12, 2015, in Houston. ( Marie D. De Jesus / Houston Chronicle ) Think tank believes Houston should be a model for other cities “Sold” signs tend to go up quickly on Houston houses. The inventory of available homes in the Houston area stood at 3.3 months in August, down from the year-ago level of 4.9 months of inventory, the Houston Association of Realtors reported. Sales fall as housing slowdown takes root
The residents who filed suit live in condo buildings that boast floor plans between 2,500 and 3,000 square feet on either side of the site. They want damages of more than $1 million and are seeking to halt construction, according to the Harris County court documents.

Echo of Ashby case

Some of the complaints echo those in suits filed by neighborhood groups against other planned developments in the Inner Loop, including those against the Ashby high-rise and a 17-story office tower on San Felipe and Spann. The similar arguments include that the developments in question will change the character of the neighborhood. This suit also claims the project could cause extra traffic, interfere with privacy and cast a shadow over the outdoor pool area.

At the same time, the lawsuit complains that the developers refused to send detailed plans about the project to the residents.

Attorneys for Bridgewood said the residents’ claims are baseless. Jim Gray, president of Bridgewood, met with concerned residents a year ago and showed renderings.

“Obviously, this is not an Ashby high-rise situation,” attorney Lee Larkin said. “One of the reasons Jim selected this site was because it did fit in with surrounding properties and seemed an appropriate location for it.”

He added that the residents mischaracterized the project as a hospital or nursing home. Neither is accurate, he said, adding that the city of Houston determined the project would have such a low impact that it would not require an extensive traffic study, as many of the seniors will not have cars.

Bridgewood bought the site in 2013 to build the retirement community, which will offer independent living, assisted living and memory care services and be managed by Retirement Center Management. The developer has similar properties in Tanglewood, The Woodlands, Meyerland and the Heights.

“The exceptional architectural design will complement the surrounding affluent residential neighborhood and will offer interior and exterior spaces that allow for socialization, activities, exercise and recreation catered to the needs and sophisticated lifestyle of our residents,” Gray said in 2013.

Possible nuisance

The residents’ attorney, Matthew Zarghouni, said the issue for his clients is property rights. They believe the building, as a home for seniors, could mean frequent visits from medical professionals and other visitors and, as a result, will be a nuisance.

The residents may have been empowered to file suit because of previous cases, said Josh Blackman, assistant professor at the South Texas College of Law. Residents who don’t like developments can file these suits and hope to get a favorable jury and potentially could get some money, he said

“This basically puts the developers between a rock and a hard place,” Blackman said. “A developer can get all his permits and at the last minute, this lawsuit could bring them to court. … It could put a crimp in the planning for Houston developers.”

A temporary injunction hearing is set for Monday, where residents will seek to halt the project.