HOLLY TOWNSHIP, Mich. (WXYZ) — The historic Holly Hotel's reconstruction after a fire ripped through the building last year and sent several firefighters to the hospital with heat exhaustion has been halted, leaving the community in shock.
It's a dispute over a property line that has resulted in a lawsuit.
Joyce Cleaver has been working for Creative Fashions of Holly for 37 years.
“It's going to hurt everybody,” she said.
Cleaver is upset that the Hotel's reopening could be delayed further.
“All the girls and women that went to the hotel in the afternoon, they shopped with us, and they shopped throughout our town,” Cleaver said.
The nearby Battle Alley Arcade Antiques Mall was also damaged in the fire, forcing it to permanently close.
Related: Photos: Massive fire burns buildings in downtown Holly
The hotel quickly started the reconstruction process but during the rebuilding of the west wall and the roof, it was discovered that a wall was encroaching by 6 inches.
One of the owners of the hotel, George Kutlenios, says at the time of the discovery, which was last year, the antique store's owner gave them permission to go ahead with the reconstruction, as per the original blueprint.
But earlier this year Kutlenios was hit with bad news when they got a call from the new owner of this land.
“He wanted us to correct this defect and said that we had to fix the problem, or part of our wall being on his property and the eaves at the top on the roof that extended over into what he called his air space about 14 inches,” Kutlenios said.
Due to the lawsuit, Kutlenios chose to talk with us over the phone.
The Detroit Investor Club is the new owner of the former Battle Alley Arcade Antiques Mall property. It’s a business that's a stone's throw away from the Holly Hotel and managed by Jeremiah Roberts.
“We tried to reason with him. Then in February when he closed on the deal and purchased it, he sent me a notice saying if we don't cut off the eaves and fix this line, fix this wall, he wouldn't give access to the construction company to use his land.
Related: Video shows aftermath of devastating fire in Holly that destroyed historic buildings
Whie Roberts refused to talk with us, he shared a statement:
"Unfortunately, most of the information out there regarding the Holly Hotel is false. I am unable comment further at this time."
Meanwhile, Kutlenios says the reconstruction has been pushed back by at least a year due to the litigation.
“Now we are not on anyone's project board to resume work. And even if we were to resolve this in a month or two, it would take at least a few months to get back on the project list to continue work, which puts into winter, which creates a whole other problem,” Kutlenios said.
Village Manager Jerry Walker says the dispute is holding back progress for the community. He shared a message for both parties.
“Sit down on the table and get it worked out,” Walker said.
Related: After massive fire, Holly community starts the healing process by coming together
Walker confirmed that the head of the Detroit Investor Club is his son-in-law and because of that, he says he is staying out of the conflict.
“Certainly not our preference. We would like all those businesses open. For decades, the hotel has helped the Holly community thrive by generating a lot of business for local stores,” Walker said.
Cleaver said, “Everybody wants the business to open to bring more business into Holly.”
