Council Orders Review of Rent Arbitration Law

Five months after the city’s rent arbitration ordinance was upheld in a landlord-sponsored challenge to the law, the ordinance has yet to settle any rent disputes.

Park residents and city officials are accusing the owners of Brookside Mobile County Club, which has had three rent increases this year, of trying to subvert the law by refusing to negotiate with tenants.

The City Council, alarmed by successive rent increases, has directed City Atty. David F. Gondek to review the ordinance and suggest any possible amendments to strengthen it.

The ordinance, passed by the City Council in December and affirmed by the voters in June, was meant to provide a two-step system of binding arbitration for rent increases and other disputes. Under the ordinance, management and tenants first meet as a park committee to discuss a settlement. If the committee cannot reach agreement, the matter goes before the city’s 5-member rent commission, which consists of two park owners, two tenants and a tie-breaking mediator appointed by the city.

Increase Protested

But Brookside management and tenants have never had a negotiating session despite a protested rent increase dating back to March.

“Something has got to be done to give (Brookside’s management) incentive to come to the table,” said tenant leader Donald E. Smith, who claimed management had backed out of “three or four” bargaining sessions.

“They have no reason to meet with us. “Procrastination is their key weapon.”

Jim Kosik of Glenneyre Management, Brookside’s on-site manager, denied Smith’s accusations, saying that the reason negotiations have not taken place is that the residents are disorganized and unable to properly elect representatives as provided by the ordinance.

“We’re willing to negotiate,” Kosik said. “But these people cannot even tell us who they represent.”

One rent committee meeting at Brookside fell through when one of the residents’ elected representatives moved. Smith said the tenants wanted to appoint a substitute, but management did not recognize her as a representative. Kosik said it was unclear if the substitute was fairly elected, as was mandated under the ordinance, and negotiations were put off until the tenants had another election.

Accused of Harassment

Councilman Ernest Gutierrez, one of the tenants’ strongest supporters in City Hall, accused Brookside of harassing the citizens, after failing to strike down the law.

“What’s happening is that these older citizens are getting rent increases” despite the ordinance, he said. “It scares the hell out of them.”

The March rent increase at Brookside ranged from $30 to $70, bringing any tenant who had not already entered a long-term lease to a monthly rent of $345. In June, an inflationary adjustment of $5.18 was added. Tenants were notified this month that in January there will be a rent increase of $45.

Last week, Smith urged the council to move quickly in amending the ordinance so the changes could be in effect in time to forestall the January increase. Gondek’s report is expected by the Nov. 22 meeting, which would allow time for the amendments to take effect before the anticipated increase.

Stall Tactics Possible

Under the current law, Gutierrez said, it appears there is no mechanism to stop landlords from raising rents while previous increases are in arbitration. If that is allowed to continue, he said, the managers could stall indefinitely while never having to face a ruling by a park committee or the citywide commission.

“If they can do this, we should strengthen the ordinance so they are not allowed to get away with it,” Gutierrez said.

Gondek said that because the June vote was a referendum on a City Council action, and not a voter-initiated law, the council can amend the ordinance without seeking voter approval.

Kosik indicated that Brookside will likely oppose any amendments to the ordinance.

After it was adopted by the City Council, the ordinance was attacked in a hard-fought campaign that focused on Brookside’s owners, Jeffrey Kaplan and Tom Tatum, and the residents of their park. Each side hired political consultants and accused the other of dirty campaigning.

Kosik said it was never his firm’s understanding that rents could not be increased while a previous increase was under arbitration.

“There’s no way you can deprive the owners of their constitutional right to collect that money,” he said.

Kosik said there may be some question of whether the council can legally amend an ordinance that was approved by the electorate.

“Our position is that they’ve done illegal action all along,” said Kosik, adding that Brookside has a handful of pending lawsuits challenging the city’s actions.

City officials said they were unaware of any problems at the four other parks covered by the ordinance and no mediation efforts are currently under way.