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Hotel Chelsea's Owner and Tenants Reach Settlement as Conditions Improve

By Aidan Gardiner | September 27, 2013 7:13pm
 Hotel Chelsea tenants and management settled after years of legal disputes.
Hotel Chelsea tenants and management settled after years of legal disputes.
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MANHATTAN — Hotel Chelsea tenants, who were locked in a yearslong legal dispute with the landmark's former owners over living conditions, settled weeks after new owners took over, according to a Friday evening announcement.

Construction work in the building had impeded on tenants' lives—cutting off gas, creating mold, spreading dust and other debris—to the point where they felt compelled to take legal action against its owner, Joseph Chetrit.

Tenants complained, but said Chetrit continued to drag his feet even after a judge ordered him clean up in 2012.

Then in late August, Chetrit sold the building to Ed Scheetz, who runs King & Grove, which operates hotels in Midtown, Williamsburg, and Montauk.

Shortly afterward, tenants said conditions were improving, then Friday they announced that they had settled with Scheetz and his company Chelsea Dynasty LLC.

"Management has dramatically improved its approach towards the tenants," said Zoe Pappas, of the Chelsea Tenants' Association.

Management also hailed the settlement.

"When we became involved, our priority was to enter into a dialogued with the residents, to enhance it and to make immediate and continuing improvements in living conditions during the hotel's restoration," Scheetz said.