TUSTIN : Builder Sues Over Loss of Upper Story

Anaheim developer Feridoun Rezai filed a $785,000 claim against the city of Tustin on Monday because of changes that he is being ordered to make on a controversial apartment project.

Faced with complaints from nearby residents, the City Council ordered Rezai to remove the upper story from the rear four units of the nearly completed project on Pasadena Avenue.

In his claim, Rezai is seeking compensation for lost income, reduced property value, additional construction and demolition costs, professional fees and other costs related to the council’s decision.

Neighbors living behind the complex, who say the council’s order did not go far enough, have also filed a lawsuit. They say the 2 1/2-story, 11-unit complex towers over their homes and robs them of their privacy.

City Atty. James Rourke has called the council’s decision “reasonable,” but could not be reached for comment on Rezai’s suit.

Neighbors began complaining about the project last spring. When the city staff discovered that 17 property owners never received notice of a hearing last year when the project was approved, they revoked the building permit.

Although the Planning Commission voted unanimously to deny Rezai a new permit, the council voted to issue a new permit with several conditions.

Beverly Hills attorney Joel Ward said that Rezai plans to begin the demolition and remaining construction immediately.