Family Loses Their Self-Storage Business Due To Grievances From Neighbors

January 16, 2013 8
Family Loses Their Self-Storage Business Due To Grievances From Neighbors

An Ohio family’s American Dream has turned into a legal nightmare.

Back in 2004, Lisa and Howard Gray bought land on Pennyroyal Road in Clearcreek Township, borrowed $300,000, built buildings on the property, and created a successful self-storage business.

Business was booming–until neighbors filed complaints about traffic on the Grays’ driveway and a Warren County judge ordered the Grays to discontinue their business.

Although Clearcreek Township Planning and Zoning Director Jeff Palmer initially approved Howard Gray’s request to construct a storage facility on his land, the Township subsequently decided that Jeff Palmer made a mistake. Howard Gray says he bought the property along Pennyroyal Road solely based on Palmer’s zoning approval.

“Everything was approved,” said Gray. “He gave us permission to use the driveway–I have it in writing.”

The Grays’ land includes six acres in Warren County, zoned “residential,” and three acres in Montgomery County, zoned “light industrial.” Based on Palmer’s advice, the Grays decided to build their home in Warren County and their self-storage facility in Montgomery County. Unfortunately for the Grays, it now appears that the zoning inspector led the family astray.

After neighbors complained to Clearcreek Township that dust and heavy traffic from the road posed a danger to their children, the Township filed suit against the Grays in 2009. With the Grays’ driveway located partially on land zoned only for “residential use,” a Warren County judge ruled that they could no longer use this driveway to access the storage facility, which was deemed a “commercial enterprise.” The judge ordered Howard Gray to build a fence, block the entrance and help all tenants remove their belongings from their storage units.

The Grays appealed the ruling, but it was upheld in an Ohio appeals court. Despite the court rulings, Howard Gray allegedly continued to use the driveway to access the self-storage business, for which he faced contempt of court charges.

In a December 21st contempt of court hearing, Howard Gray was looking at fines of $97,000–$500 for every day he continued to use the road. However, Judge James Flannery lowered the fine to $1,750 after Gray promised to give up his five-year-long legal battle and concede defeat.

Due to rivers and a steep ravine, there is absolutely no way to access the storage facility from Montgomery County, so the recent court decision has rendered his self-storage buildings completely inaccessible. Moreover, the nature of the land makes it impossible for Gray to find a buyer for the business.

“It’s landlocked,” said Gray. “I talked to the banks. We’re losing it.”

It is estimated that Lisa and Howard Gray will lose over $60,000 annually in lost tenant revenue. Additionally, they still have to pay property taxes and mortgage on their now-inaccessible storage facility worth $300,000.

Judge Flannery rejected the Grays’ request for compensation.

Images courtesy of Jim Witmer, wdtn.com, whiotv.com, daytondailynews.com.

  • http://twitter.com/StorageGurl A Storage Center

    This is a disgusting representation of a government with no accountability, and no responsibility to the citizens it is supposed to govern. The small business is already facing immense challenges – and this sad situation is a perfect illustration as to why. We are asked to compromise every day; in business and in our personal lives – it is part of being human. I find it difficult to believe that there was no other solution to this scenario, and I’m horrified that the original approval was dismissed so carelessly. Shame on that judge, and the people who stand behind a decision that closes a thriving business. I hope the neighbors understand the economics of their temper tantrum, and the effect on their community’s tax revenues as well. Ugh.

  • Craig

    This is a good reminder that government organizations have significant legal protections for “mistakes” which land and business owners do not get. The burden remains, in perpetuity, with the owner to be in compliance with the law; Regardless of statements or contracts made with the government. This is particularly infuriating given that it is nearly impossible to actually obtain or understand every law with which you are supposed to comply. Make me a bit stabby.

  • http://twitter.com/Lucky13X Lucky13X

    Great story John. It’s been a while since I have seen a story from you.

    This is truly a sad story of bureaucracy at it’s potential worst.

    • JohnDonegan

      Thanks! Great to be back..

  • MikeS

    Story submitted to Drudge. Hopefully it will get the attention it needs via that site.

    • http://thestoragefacilitator.com Rachel Greenfield

      Hi Mike, thanks for reading and submitting this to Drudge Report!

  • MikeS

    Courts and local governments do not have protections from national scrutiny and public opinion backlash. Lets get this the visibility it needs with national news outlets.

  • MikeS

    Hey, what happened to the responses……?