Marietta Daily Journal

City settles suit over shuttered shop for $14K

by Lindsay Field The Marietta Daily Journal

December 04, 2012 12:31 AM | 71 views | 0 | 1 | |

KENNESAW  — The city of Kennesaw and Mack Dobbs Properties LLC have settled for $14,000 in the developer’s lawsuit over a now-closed pawnshop.

Celestino Venturi, who owns Mack Dobbs Point strip mall, filed a lawsuit in June against the city arguing that zoning stipulations enacted in 2004 that prohibit several types of businesses in the strip mall deny property owners like himself “an economically viable use” of the property.

Kennesaw city manager Steve Kennedy said that under the settlement made Nov. 13, the city will pay Mack Dobbs Properties $14,000 through its insurance provider, Georgia Interlocal Risk Management Agency, and give Cobb Superior Court Judge Grant Brantley $1,200 for mediating the case.

Mediation began Nov. 1.

“This should be it,” Kennedy said Monday. “They pretty much agreed to hold us harmless.”

However, Kennedy said the city has held themselves to some accountability in the past by admitting their error in granting Cruchelow Jewelry & Loan a business license in 2011 to open in the strip mall.

Kennedy also said he doesn’t anticipate insurance costs in the city going up because of the settlement and that there will be a prohibition against pawn shops at the location until the stipulations get changed, should that ever take place.

The Kennesaw City Council signed off on approval of the settlement before Nov. 13, but Kennedy could not recall the exact date.

Garvis Sams, who represented Mack Dobbs Properties, said, “My client is satisfied with the settlement and we thought the mediator did an excellent job bringing the two sides together.”

The business, which was located in the strip mall at North Cobb Parkway and Mack Dobbs Road in Kennesaw until it was vacated in June, has moved to the corner of Powder Springs Street and Bellemeade Drive in Marietta.

Neighbors in the subdivision behind the strip mall contacted the city around the first of the year to complain about the zoning violation.

Read more: The Marietta Daily Journal - City settles suit over shuttered shop for 14K

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From the Kennesaw Watch:

City to pay in Pawn Shop Settlement Agreement

Admin on December 1, 2012

To conclude the pawn shop zoning fiasco that plagued the city earlier this year, the city of Kennesaw has agreed to the following in a recent mediation with Venturi properties regarding Cruchelow Jewelry and Loan:

1) Mutual release of all further claims between parties,
2) City pays through its insurer $14,000,
3) City pays through its insurer all costs of mediation,
4) Mack Dobbs indemnifies City/Defendants from all claims which may be raised by Cruchelow Jewelry and Loan,
5) Settlement contingent upon Mayor and Council approval

The settlement includes paying out $14,000 as well as costs of mediation. While the city will not actually be paying this out of the their fund, this money will once again come from the insurer.

For more details, please visit Bill Harris’ site at: http://kennesawpawnproblems.blogspot.com

The Watch would like to thank Mr. Harris for his continued efforts to keep the taxpayers updated on the pawn shop zoning issues and its financial impact on the taxpayers and businesses.

Settlement Agreement Between Mack Dobbs Properties and City of Kennesaw

The 3 page 'Settlement Agreement' of 11/13/12 provides:

1) Mutual release of all further claims between parties,
2) City pays through its insurer $14,000,
3) City pays through its insurer all costs of mediation,
4) Mack Dobbs indemnifies City/Defendants from all claims which may be raised by Cruchelow Jewelry and Loan,
5) Settlement contingent upon Mayor and Council approval

For larger image:  right click and open in new window.

 

Gone and pretty much forgotten -

Cruchelow's left 5 months ago for Marietta and the old location remains unrented. The only reminder that the Pawn Shop was there is a small sign which has not yet been taken down.

The shopping center has 4 empty units out of 17 and the foolish civil suit filed by property Owner has now been settled in arbitration, although the settlement remains unknown at this writing.

 

Below Photo:   John and Serena Cruchelow from May 2012 City Council Hearing

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11/15/12

Details on settlement to be available soon-

Thurs. Nov 1st is the mediation hearing between Venturi and the City.  The case title is Mack Dobbs Properties, LLC vs. The City of Kennesaw, Georgia.  The cost for arbitration is $300 an hour, but the City has insurance and after the deductable of $1,000 is paid the lawyer fee, court costs and arbitration is covered.  So we are not out all that much for this useless BS of Venturi and Sams.

It isn't open to the public but any resulting settlement will be published on the Cobb Court web site and if no agreement can be reached it will then go back before a judge for a trial.

If you want to keep up on this yourself you can go to:  http://www.cobbsuperiorcourtclerk.org/courts/default.htm and click on for 'Civil Search' then enter Kennesaw and after that choose which item you want to look at.  Or you can just come back here and I will have the info posted FYI.

Still Open - No Business

The truck is John's and the car is Serena's, still no customers.  I have never seen any business at this shop.

Place of Mediation changed

Click on for larger image then open in new window

Shop remains open but has no customers.

Pawn Shop Closed

At 2 PM on a business day the Pawn Shop is closed. For Good or a long lunch?

The Mack Dobbs v City Of Kennesaw is going to a mediation conference 11/1/12. 

The City is insured under Georgia Municipal Association (GMA) and we have a $1,000 deductible. That deductible has been paid and the GMA appoints the legal firm to represent the City.  There should be no other cost to the City except the deductable.

Business x 3

Is a business that does no business still a business?

Since opening I have looked in 4 times and there has never been any customer vehicles present. In the below photos the truck is his and the car is his wife's.

You might just wonder how they stay open, particularly as they close Sunday and Monday.

FYI:  Other interesting Kennesaw items are available at:  http://kennesawupdate.blogspot.com/

Alternative Dispute Resolution or Mediation

Notice of ADR Referral

The case has been referred to the ADR Program of the Cobb County Superior Court and the parties have been given the opportunity to select either:  Case Evaluation or Mediation and they have until Sept 4 to select their preferred ADR process.

Closed Sunday and Monday

 

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From:  8/8/12

 

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From:  7/30/12

It isn't quite the 'final chapter' of the Cruchelow Pawn Shop as we still have a lingering suit against the City by the property owner Venturi, but at least the last mention of the Pawn Shop is gone with the removal of the sign over those 2 units. 


The Pawn Shop is now in Marietta and hopefully the next tenant of the strip mall with be something that is not in violation of the zoning conditions.

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