Living Spaces sues developer of proposed adjacent hotel

The Hilton Home2Suites hotel is planned for the parking lot behind Living Spaces. (Staff photo)

By Doug Spoon, Editor

An attorney for the Living Spaces furniture store in Menifee has filed a lawsuit against the developer of a hotel proposed for a parcel behind the store on Antelope Road.

The Hilton Home2Suites hotel was approved by the Planning Commission on June 12. An appeal of the decision was filed by an environmental group, but that appeal was denied by the City Council on Aug. 7. Council members acknowledged receipt of a letter of opposition from Living Spaces, but agreed with city staff that the basis for the objection was “not within the purview of the city.”

Living Spaces cites a decades-old Operation and Easement document, which is a legal agreement that sets the terms for co-existence of businesses within a shared space. The agreement was created in 1991 for tenants of the original Menifee Town Center, now anchored by a Ralphs supermarket and the Living Spaces store.

That document prohibits “any living quarters, sleeping apartments; or lodging rooms.” Living Spaces representatives say they first became aware of the nature of the proposed project when they received a letter on Jan. 23 from shopping center owner Fabio Conti, requesting permission to designate a portion of the center’s parking spaces as reciprocal spaces for hotel guests’ use.

An attorney for the Norton Rose Fulbright legal firm responded to Conti on Feb. 7 with Living Spaces’ objection to the project, which would be located directly behind the furniture store. Then on Aug. 6, the day before the appeal of the project went before the City Council, the legal firm sent a letter of protest to the City Council.

At that meeting, council member Bob Karwin asked for and received confirmation from the city attorney and city staff that the dispute was over a private document and could not be ruled on by the City of Menifee.

“Those are private agreements that we wouldn’t enforce,” said Cheryl Kitzerow, Community Development Director. “Our job is only to determine whether city codes permit the project.”

“Then this would be a legal issue between the two parties,” Karwin added.

Brian Saltikov, Senior Project Manager for Living Spaces, addressed the council to oppose the project. He acknowledged that the issue wasn’t in the purview of the City of Menifee but that he wanted to go on record in opposition of the project.

The City Council went on to approve the project unanimously. On Sept. 27, Living Spaces filed suit against Apollo VI Development LLC, developer of the hotel project.

“The OEA prohibits lodging at this shopping center,” Living Spaces attorney Ammad Waheed told Menifee 24/7. “That document has been available to anyone for decades. We were only made aware of the potential hotel when a representative asked, “Can we get permission to park on your property?” We said, “Are you aware that a hotel is not even allowed?” [Apollo VI] said, “We can work something out.”

Chintu Patel of Apollo VI Development told Menifee 24/7 that the OAE states that any tenant in opposition of a project should come forward with objections. He said Living Spaces management was informed last year of the impending sale and nature of the business and didn’t object to the project until after escrow closed.

“An email was sent in September [2023] between our broker and Living Spaces,” Patel said. “We sent them a copy of the plans. We never heard an objection, so we assumed we were moving forward.

“They never opposed it before the Planning Commission. The only time they spoke out publicly was to the City Council.”

Regarding the OAE, Patel said, “The document was made in 1991. Menifee was not Menifee at all as it is now. It’s a different economy and the city does need this. [The project] is not impossible. All they have to do is make an amendment.

“If you read the spirit of the document … it says that if anyone is in opposition, both parties should come to the table and discuss it. But I don’t mind if we have to fight in court.”

Apollo VI Development filed a cross complaint in Riverside Superior Court. A trial date has not been set.

The hotel is planned as a four-story structure with a height of 54 feet, which exceeds City standards, but an exception was made for the project. The 65,463-square-foot project is designed to have 96 rooms, plus a pool, gym, and barbecue grill area.

Eight of 10 public commenters spoke in opposition of the project during the Planning Commission, and others spoke in opposition during the City Council meeting.