Update 7/24/17 – Frogel Properties intends to double the size of the Brainerd CubeSmart self-storage facility when the neighboring Dollar General store closes at the end of August. The $2 million project will add another 280 storage units. Opened in April, the location is already at full occupancy, according to the source.

"Chattanooga has really taken to the CubeSmart brand," Frogel told the source. "I think being near the airport and on a road where more than 40,000 motorists a day pass by, this is still a good location. Unfortunately, the retail appeal went down when the airport tore down the properties near the end of the runway [across Brainerd Road].”

Frogel installed new LED lighting in the shopping center as part of the first phase of the self-storage project. A U.S. Money Shop pawn store also operates in the center.

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1/17/17 – Bernard Frogel, president of Frogel Properties Inc., is converting a former Big Lots store in Brainerd, Tenn., to self-storage. The property at 5952 Brainerd Road will be managed by self-storage real estate investment trust (REIT) CubeSmart and branded under its name. The REIT operates seven storage facilities in Tennessee, but this will be its first in the vicinity, according to the source.

Frogel, who owns the 50,000-square-foot retail space, plans to build 250 indoor, climate-controlled units during the first phase. The development will cost about $3.5 million and should be complete in four months, the source reported. Frogel hopes to eventually expand the facility to more than 100,000 square feet of storage space.

Customer amenities will include package acceptance and a retail store that sells moving and packing supplies. The facility will also include a business center with free Wi-Fi and workstations, as well as and printing, copying and fax services. Moving and organization services will be offered through affiliated service providers, Frogel said.

The property is in the Hill's Plaza Shopping Center, which was originally built for a Hill's Department Store. Frogel has owned the shopping plaza since 1996.

"Since the airport pulled down most of the retail development across the street, the retail centers in this area have about disappeared; so we figured having a storage facility near the airport would be appropriate," Frogel told the source.

Frogel also developed and once owned the East Ridge Flea Market and the Abe Shavin Ace Hardware Stores. He currently owns two commercial centers in Chattanooga, Tenn. Frogel Properties is based in Palm Desert, Calif.

CubeSmart owns or manages 762 self-storage facilities across the United States. Its operating portfolio comprises 50.6 million square feet.

A team from Stock N Lock Self Storage in Worcester, England, is participating in a walk-a-thon fundraiser on Aug. 6 to benefit St. Richard’s Hospice, an independent charity for patients living with life-threatening illnesses. Ryan Kemili, business manager for the storage facility, as well as Toni Hodges-Moore, assistant manager, and Ian Miles, director, will participate in the 21-mile Waterways Walk. The circular, flat route begins at the Droitwich Marina and follows the Droitwich Canal to the River Severn, and then loops back along the Worcester-Birmingham Canal.

Participants can also choose a six- or 10-mile walk, and dogs are welcome. Registration fees are £10 for adults and £5 for children under 16.

Stock N Lock, which supports a different charity every year, chose St. Richard’s after Kemili’s grandfather received care from the organization last year. “This had been an eye-opening episode for me, realizing and understanding all the services a hospice offers both their patients and their loved ones,” Kemili said. “It was a humbling experience being able to visit St Richard’s last year, and see just how fantastic the facilities are and witness the great attitudes of the staff. The hospice makes such a difference in so many people’s lives.”

The storage company’s owners have matched all donations generated by its three walkers, bringing the tally to more than £1,000. “We are all really excited and have been overwhelmed by the support of our customers, families and friends,” Kemili said. Donations are still being accepted at Justgiving.com/fundraising/RyanKemili.

Now it in its eighth year, the Waterways Walk is just one of the fundraisers promoted by St. Richard’s. The group also hosts cycling and running events as well as lunches and dinners. The charity supports more than 3,000 patients each year.

Stock N Lock is in the Venture Business Park off Weir Lane. The facility comprises 44,000 square feet of storage space in 680 units, which are individually alarmed and monitored with closed-circuit television, according to the company website. Additional offerings include electricity in some units, forklift services, package acceptance and delivery, and WiFi. The facility also offers records storage and outdoor vehicle storage.

Storage Express, which operates 92 self-storage locations in five states, has acquired its second facility in Fort Wayne, Ind. Located at 4501 Newaygo Road, the 50,000-square-foot building recently received several security upgrades, including a new access-control system and video cameras. Storage Express also converted the former management office into a 24-hour rental center.

“We’re looking forward to continued growth in this northern region of Indiana. Our rentals are centralized out of our Bloomington headquarters 24-hours a day by our Storage Express team. And our local field service reps keep this and all of our properties in top-notch shape,” said Jefferson Shreve, president.

Storage Express was represented in the transaction by Jesse Luke, a partner with EquiCap Commercial, an Illinois-based brokerage firm specializing in self-storage. The Arizona-based seller was represented by Bill Alter, a broker with Phoenix-based Rein & Grossoehme, a commercial real estate agency specializing the sale of investment properties.

Storage Express has opened three total locations in Indiana in the past year, according to a press release. Founded in 1992, the company owns and operates self-storage properties in Illinois, Indiana, Kentucky, Ohio and Tennessee. It has offices in Bloomington, Indianapolis and Jeffersonville, Ind.

Self Storage Station, which operates eight self-storage facilities in Northeast Pennsylvania, has purchased Parkway Storage in Wilkes-Barre, Pa., for $1.36 million. The 3.5-acre property at 1266 Sans Souci Parkway comprises 10 single-story buildings containing more than 230 climate-controlled and drive-up units. The site also includes rentable warehouse space, two retail offices and an after-hours customer lounge.

The property had been in the seller’s family for more than 50 years, according to a press release from Investment Real Estate LLC (IRE), the York, Pa.-based real estate firm that brokered the transaction. The storage facility was built in 1995, and several phases have been added since. The business was 95 percent occupied at the time of sale.

Established in 2008 by four friends, Self Storage Station is owned and operated by a Pennsylvania-based investment group. The company’s facilities offer traditional self-storage as well as indoor and outdoor vehicle storage. Its additional facilities are in Duryea, Edwardsville, Exeter, Luzerne and Pittston, Pa.

What’s the No. 1 priority at your self-storage facility? Many operators would say “to make money” or “to rent units.” While both are true, we need to drill a little deeper to find the real answer.

You can’t make money or rent units without good customer service. Everything begins and ends there. Excellent service gets you rentals, makes you money, helps you recover debt and protects you from business liability. It should be taught and practiced.

Unfortunately, it isn’t enough to say you’re going to provide good service. It isn’t even sufficient to be friendly and helpful to customers. You need to know who they are and tailor your customer-service practices to the right audience. That said, identifying that audience can be tough.

The U.S. consumer base is more diversified than ever. You must cater to multiple generations of customers: Baby Boomers, Generation Xers and Millennials. As a self-storage operator, you need to learn the difference between these segments to understand what each is looking for when it comes to customer service.

Baby Boomers

The first and most important thing to remember about providing service to different generations is many people don’t like to be labeled this way. Therefore, it’s not good practice to call a person a “Baby Boomer” or “Millennial” to his face.

Baby Boomers are defined as people born between 1946 and 1964. While making the sale with this group may take slightly longer, their business is winnable. Baby Boomers value sales representatives who can explain and describe their product in an intelligent manner. Take the time to define what temperature control means. Spend time reviewing the rental agreement. Know your product and be willing to talk about it.

Contrary to what many people might think, Baby Boomers do know how to use a computer and the Internet. In fact, there’s an excellent chance they looked at your website before visiting your facility. This means it’s acceptable to reference something from your website or ask them for an e-mail address.

Baby Boomers also value a strong work ethic. When they enter the office, get up from behind the counter and open the door. Show them you’re willing to work for their business. Exhibit integrity and treat them with courtesy. The greatest thing about Baby Boomers is once you win their business, they’ll likely be a customer for life. They tend to be very loyal to their favorite brands, and that makes the extra time spent on them worthwhile. If you’re prepared to devote the effort, they have money to spend and are willing to pay for services.

Generation X

Often called “the forgotten generation,” Gen Xers are sometimes overlooked in the juxtaposition between Baby Boomers and Millennials, but they’re a real sector of your consumer base. These prospects want to feel like you value them and consider them a crucial part of your audience.

Gen Xers were born between 1965 and 1982. They’re incredibly busy advancing their careers and raising children, so they value efficiency and capability. They shop to accomplish a goal. While Baby Boomers want you to spend a little extra time with them, Gen Xers want to get in and get out. They’ll be impressed with a well-trained, knowledgeable sales representative. Ensure you can answer their questions efficiently and accurately, and can complete the rental process promptly and precisely.

Gen Xers are consumed with providing for their families. They’re typically financially responsible, often children of divorce who grew up needing to be independent. They’re also cost-value conscious, so they’re going to do a lot of research before making a purchase. They have most likely looked at reviews of your business. These are the customers you want to present with your best deal. They want to know about specials and promotions, but the price won’t be the bottom line. Rather, you must provide them with the best value for the best price.

Millennials

It’s challenging for many business owners to relate to Millennials, who were born between 1983 and 2001. These customers don’t care if you listen to them. They don’t even care if you talk to them, so how do you convince them to choose your product and service? Millennials have always had the Internet. They don’t remember life without the Web. If you want to impress and earn their business, you must have an online presence.

They also like to make decisions as a group, so they’ll look to see what others have posted about their experiences online. In addition to looking at reviews, they want to learn all they can about you from social media and blogs. They’re looking for an experience they can share with others. They’re not a transaction. They visit your facility to write their “story” about renting self-storage.

Millennials value customer-focused technology. They think good service comes in the form of a well-developed app. They’ll value paperless leases and online rentals. They’ll have combed the Internet to learn everything they can about you, so there isn’t a need for face-to-face communication.

Millennials live online and appreciate service they can get on demand. They’ll welcome text-message communications. They also want to be part of the process. They need this level of involvement to make their “story” compelling. A good way to do this might be a campaign on social media titled “The Customer Who Taught Me the Most” or something that focuses on their contribution.

While they’re different, these three generations share similarities. All of your customers want you to make them feel important. As you research, learn and practice good service, it will be easier for you to develop a basic approach that can easily be tweaked and adjusted to fit any generation’s needs. The most important thing to know is you must get to know your customers and the differences among them to make the biggest impact.

Cheli Rosa is director of marketing for StorageStuff.Bid, which provides online storage-auction services. She’s a former high school teacher turned storage professional turned auctioneer. She’s worked in all areas of self-storage. Her constant desire for additional knowledge led her to immerse herself in the lien-foreclosure process. For more information, call 877.758.4243; visit www.storagestuff.bid.

Self-storage is a real estate investment as well as a retail business. It’s all about developing an income stream using the most efficient method. Your project might be a new single- or multi-story structure, a building conversion, or a renovation of an existing property. Whatever the type, it’s essential to maximize revenue and yield the best return on investment (ROI).

Whether you’re building your first or 51^st location, following are five areas on which to focus your attention. Sometimes it’s easy to become complacent after a string of successes, so even the seasoned owner/developer should heed the details and avoid these mistakes.

Mistake 1: Building in the Wrong Location

It all starts with the right location. Your land must have good visibility, access, traffic count, demographics, size, topography and shape. Just because the guy down the street is “full” doesn’t mean the area is ripe for development. You need to do a considerable amount of market research to find the right market.

Every self-storage owner wants to know how much land he needs and how much it’ll cost to develop. The answer is always the same: It depends. Inexpensive land can yield a poor rate of return depending on the anticipated revenue stream and construction costs. Here are a few scenarios to consider:

• Is the location in a densely populated, high-end retail area with little or no competition?
• Is it in a suburban or outlying area with plenty of room for growth, which often makes the land more affordable?
• Are there significant construction-related challenges that will drive up the cost?
• Is the location an infill site near a booming customer base but requiring a complex, multi-story design?

In short, each site has its own metrics, and it’s important to calculate the total ROI based on those figures. Your goal is to maximize that rate of return.

Mistake 2: Hiring an Engineer Who Lacks Industry Experience

Hire a quality engineering firm that has experience with self-storage design. It may cost you a little more, but your site will be more successful in the long run. A good firm can minimize construction costs by using proper techniques and not “over designing” the property. This includes the grading, storm-water retention, and building footprints and orientation.

Always try to minimize the earthwork involved and, thus, the grading costs. Use an efficient combination of catch basins and sheet flow to keep water controlled and moving away from door openings. In cold climates, buildings should be oriented north to south to allow for faster snow and ice removal on drive aisles (from solar warming).

There may be “hidden” development costs related to traffic such as the need for deceleration lanes or other unspecified road improvements. These are typically mandated by the local authorities responsible for permitting your project. An experienced engineering firm may be able to negotiate a reasonable compromise with the governing agency to help reduce the costs considerably.

Mistake 3: Failing to Maximize Building Functionality

A facility’s functionality is critical to its success. You need to consider the design of the management office, customer parking, keypad and gate access, building positioning, etc., and how well these elements serve customers.

A large, well-designed office with a nice reception area makes a good first impression with prospective tenants. It should include a large counter and a retail area for the display and sale of ancillary moving supplies. Sometimes several customers will visit the office at once. To accommodate multiple visits, make sure you have enough parking, counter space and seating.

The gate and keypad need to allow for straight-through vehicle access when possible. This helps keep tenants for damaging your equipment and buildings as well as their own vehicles. The drive aisles should be sufficiently wide to accommodate two-way traffic and allow for truck access. You’ll minimize the chance of building damage if there’s a well-planned traffic flow.

Finally, make it easy for tenants to access their units. Your design should minimize the distance from the parking lot to the unit, especially when it comes to climate-controlled hallways. The simpler your design, the better their self-storage experience will be and the more success your business will enjoy.

Mistake 4: Skimping on Curb Appeal

The facility should be physically appealing. Gone are the days of unpaved drives with rows of metal buildings and weathered doors surrounded by a chain-link fence. A modern, successful storage property has a retail storefront, excellent landscaping and beautiful signage. You might use more brick for the retail look, or perhaps more glass and metal in urban or industrial areas. Always try to make the store fit in with the local market. Good overall curb appeal will attract more prospects, lease up faster and a provide a better ROI.

Mistake 5: Growing Too Fast

Slow and steady is normally the best plan for a self-storage business. Don’t try to grow too fast. Make sure you’re adequately capitalized and operating at a healthy level in terms of occupancy and income before you start on an expansion or a new development.

Too often, an owner tries to expand or build a new store before the existing one has stabilized. He opens his first store to great initial success and dives in on location No. 2. However, the success of the first store will undoubtedly attract several new competitors. So, while developing the second site, the owner may start to feel the squeeze of competition on the first. If you grow at a measured pace, under a well-capitalized plan, you’ll achieve long-term success.

Final Thoughts

In summary:

• Don’t buy or develop a site just because the land is cheap or a competitor is fully occupied. Do your homework.
• Hire an engineering firm that has experience designing self-storage. It can save you a considerable amount of development time and money.
• Design your store with ease and functionality in mind. It’ll result in a better experience for customers and yield a greater return to you.
• Curb appeal is important. Use aesthetically pleasing architectural features, landscaping and signage to give your facility a competitive edge.
• Finally, don’t grow your storage business too fast.

Avoid these mistakes, and you’ll be an industry success.

Jeffrey Turnbull is president of Kodiak Property Management Corp. He’s been involved in the self-storage business as a developer, operator and owner for more than 20 years. He owns three stores in Charlotte, N.C., and is developing a fourth in the city. He’s also a licensed attorney in North Carolina, a licensed real estate broker in North and South Carolina, and a past president of the North Carolina Self Storage Association. To reach him, e-mail turnbull1031@aol.com.

Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Many are covered in detail on the ISS website and available for viewing on the “Real Estate” topics page. Following are additional acquisitions and sales that weren’t covered.

I-30 Self Storage in Mesquite, Texas, was sold to a Dallas-based buyer. Built in 1984, the property at 4018 Interstate 30 is nine miles east of Downtown Dallas. The buyer and the Provo, Utah-based seller were represented in the transaction by John Arnold, Bill Bellomy and Michael Johnson of Bellomy & Co.

A&C Storage in Lakeside, Ariz., was sold for $760,000 to an out-of-state buyer. The property at 5028 Highway 260 contains more than 100 storage units as well as 50 vehicle-parking spaces. The seller was represented in the transaction by Jeff Gorden, vice president, and Seth Hodges, associate, of Eagle Commercial Realty Services, who are both Arizona broker affiliates for the Argus Self Storage Sales Network.

Baton Rouge Mini Storage in Baton Rouge, La., was sold to a Salt Lake City-based buyer. The portfolio includes two sites that are just over a mile apart. Together, they comprise 58,340 net rentable square feet of storage space. The buyer and the Los Angeles-based seller were represented in the transaction by Arnold, Bellomy and Johnson.

Discount Self Storage in Shreveport, La., was sold to a Salt Lake City-based investor. The property at 900 E. 70th St. comprises 70,057 square feet of storage space in 578 units. The buyer and the seller, a firm based in Marshall, Texas, were represented in the transaction by Arnold, Bellomy and Johnson.

Dungan Storage Warehouses in Austin, Texas, was sold to a limited-liability company (LLC). The property at 1605 Dungan Lane comprises 19,453 square feet of storage space. The buyer and the seller, also an LLC, were represented in the transaction by Jon Danklefs and Mark V. Diebold, senior associates in the Marcus & Millichap San Antonio office.

Real estate developer Gorman & Co. purchased a commercial building in a Philadelphia suburb for $3.7 million for self-storage development. The property at 212 Church Road in Upper Gwynedd Township comprises 94,000 square feet of space. The seller, Patriarch VIII, was represented in the transaction by Justin Bell, managing director, and Neil Shupak, senior managing director, for Newmark Grubb Knight Frank (NGKF).

Hull Street Storage LLC purchased a former Strange’s floral shop in Richmond, Va., for $675,000. The buyer, Don Smith, plans to develop a self-storage facility on the 3-acre parcel at 6710 Hull Street Road. The seller was represented in the transaction by David Smith, senior vice president of Cushman & Wakefield.

Mariposa Self Storage in Nogales, Ariz., was sold for $3.3 million to an out-of-state buyer. The property at 1200 Mariposa Road contains more than 500 drive-up units as well as 400 rentable mailboxes. The seller was represented in the transaction by Gorden and Hodges.

Phoenix Self Storage in Phoenix was sold to a limited-partnership investment firm based on the East Coast. The 8.6-acre property at 3650 W. Broadway Road comprises 128,240 square feet of storage space in 1,031 units. The buyer and the seller, a private investor, were represented in the transaction by Devin Beasley, Luke Elliott and Michael Mele, investment specialists with The Mele Group of Marcus & Millichap. They were assisted by Ryan Sarbinoff, regional manager in the firm’s Phoenix office.

Powell Self Storage in Powell, Ohio, was sold to an LLC. The property at 72 Industrial Park Place comprises 45,920 net rentable square feet of storage space. The buyer and the seller, also an LLC, were represented in the transaction by Brett R. Hatcher, first vice president of investments and director of the National Self Storage Group in the Marcus & Millichap Columbus, Ohio, office.

Carpenter Storage purchased Rock Solid Self Storage Inc. in Dallas, Ga., for $2.5 million. The property at 137 Amberhill Drive comprises 22,000 rentable square feet of storage space and 140 vehicle-parking spaces. The buyer plans to expand the facility. The seller was represented in the transaction by Mike Patterson, a realtor with Commercial Realty Services of West Georgia and an Argus broker affiliate for the state.

Upton Self Storage in Upton, Mass., was sold to a Delaware-based LLC for $4.6 million. The property at 226 Milford St. comprises 43,250 square feet of rentable storage space in 287 units. The buyer and the seller, Upton Self Storage LLC, were represented in the transaction by Joseph Mendola, senior advisor for NAI Norwood Group and the Argus broker affiliate for New England.

U-Store It in East Bridgewater, Mass., was sold for $900,000 in all all-cash transaction between a local buyer and seller. The property at 15 Whitman St. opened in 1985 as an adaptive reuse project within an old, multi-story mill building. The 8.17-acre site features an 80,000-square-foot building containing 19,085 net rentable square feet of storage space in 246 units. The buyer and the seller were represented in the transaction by Nick Malagisi, national director of self-storage, and Connie Neville, managing director, of SVN National Self Storage Product Council.

West Seneca Self-Storage in West Seneca, N.Y., was sold for $1.4 million to West Seneca Self Storage LLC, which is owned by Charles W. Haring. The property at 1711 Union Road features nine buildings comprising 21,600 square feet of space in 167 units and 84 vehicle-parking spaces. The site also has an additional acre of land for development. The property was owned by Tzetzo Cos., a real estate investment firm that specializes in apartment buildings and nursing homes. The company is owned by attorneys Dimitri and Nicholas Tzetzo.

Winston-Salem Self-Storage in Winston-Salem, N.C., was sold to a first-time self-storage owner. The property at 401 Jonestown Road comprises 70,962 rentable square feet of storage space in 558 units across two floors. The 1.22-acre property opened in 2015. The buyer and the seller were represented in the transaction by Elliott and Mele. They were assisted by Raj Ravi, a broker in the firm’s North Carolina office.

A global-investment group purchased 3 acres of vacant land in the Travis neighborhood of Staten Island, N.Y., for $4 million on which it plans to build a self-storage facility. The property at 260 and 266 Wild Ave. will comprise 200,000 square feet of storage space. Once complete, it will be the largest storage facility in the area, according to Michael Schneider, owner of Schneider Realty Services and the broker in the transaction.

Argus is a Denver-based network of real estate brokers who specialize in storage properties. Formed in 1994, the company has 36 broker affiliates covering nearly 40 markets.

With offices in Atlanta, Houston, and Austin, Texas, Bellomy & Co. focuses on the sale of self-storage, industrial, office and retail properties nationwide.

Founded in 1917, Cushman & Wakefield offers a complete range of services for all property types including consulting and appraisal, corporate services, debt and equity financing, investment banking, leasing, and sales and acquisitions.

Founded in 1971, Marcus & Millichap is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout Canada and the United States.

NGKF offers investment sales, transaction management, debt placement, proprietary lending, and appraisal and valuation advisory services.

SVN has broker representation in more than 100 markets across the United States. Its team specializes in the marketing, sale and disposition of self-storage properties nationwide.

Virtus Real Estate Capital LLC, a real estate private equity firm, has raised $408.5 million, the majority of which will be used for property investments including self-storage. Of the committed amount, $308.5 million is earmarked for Virtus Real Estate Capital II LP (VREC II), while $100 million will be directed into a separate discretionary account, according to a company press release. Launched in late 2015, the capital-raising exceeded the company’s goal of $400 million.

VREC II will invest in U.S. property types Virtus officials believe “can sustain their income stream and value, even in the face of a recession or a decline in general real estate values,” the release stated. In addition to self-storage, targeted property types include medical-office buildings, senior living, student housing and workforce housing.

“These property types benefit from major long-term demographic and economic trends, such as the aging of the Baby Boomer generation, the coming of age of Millennials, as well as certain inuring societal needs,” company officials said.

VREC II has already made 12 property investments across six states totaling $116.5 million in equity, the release stated.

“Knowing which deals to avoid is equally as important as knowing which deals to seek,” said Robert Schweizer, chief investment officer. “Likewise, it pays to be hands-on and more local in these more operationally intensive property types.”

Based in Austin, Texas, and founded in 2003, Virtus has acquired more than $3.2 billion of commercial real estate in 200 properties across the United States.

Update 7/21/17 – The Nebraska Supreme Court upheld the Omaha City Council’s August 2015 decision to approve the rezoning and conditional-use permit required for Leise and Redbird LLC to build a self-storage facility near homes in two Elkhorn neighborhoods. The ruling will enable Leise to proceed with construction on a three-story storage building and five single-story structures. “There’s no legal obstacle to the development moving forward,” deputy city attorney Alan Thelen told the source.

The case was heard by the state’s highest court after homeowners appealed a district-court decision in favor of the city. Homeowners contended the council’s approval was illegal and the conduct of officials during public hearings had denied them due process. Among their arguments was that Leise had made errors on his application and the council “acted judicially and not legislatively” by conducting simultaneous hearings on two self-storage applications. The court dismissed the first argument because it wasn’t part of the homeowners’ argument in district court and rejected the judicial-body notion since both proposals were discussed as separate agenda items, according to the ruling.

The court also rejected homeowners’ assertion that the planning board approved the permit “without any consideration of extensive public opposition to the project and the unrebutted concerns regarding compatibility, adverse economic effects, and safety concerns.”

“Although the homeowners raised valid concerns, we cannot find from the record that the planning board did not evaluate the application using its own criteria as outlined in §55-885 or that its decision was not supported by sufficient relevant evidence,” the justices wrote.

In their argument that due process had been denied, homeowners contended the planning board failed to allow enough time for those opposed to the project to make their case and that it disregarded the arguments presented because board members had “already decided in favor” of the project. In his presentation to the court, Moats also contended the board “in effect became witnesses” and not an “impartial adjudicator” during proceedings when board members admonished him for raising socioeconomic concerns about typical self-storage tenants and the potential for negative impact on property values in the area.

“Certainly, the homeowner who offered the suggestion had the right to protect his property investment, which he believed would be adversely affected by the proposed uses. However, a planning board member’s redirecting the homeowner’s comments does not equate with partiality or becoming a witness,” the court ruled.

The court also determined homeowners were properly allowed to present evidence against the development, offer opinions and question Leise in a public forum. “As an appellate court performing a review of the record for due process, we are positioned not to judge the wisdom of the planning board’s decision, but to ensure that an aggrieved party had the opportunity to be heard,” justices wrote. “Based on our review of the record, we find that the homeowners were provided due process.”

Moats said homeowners were disappointed in the court’s decision. “The court expanded government's ability to adversely impact private property rights,” he told the source. “They affirmed actions taken by the Omaha Planning Board, Omaha City Council and Mayor [Jean] Stothert, which have a detrimental impact on residential dwellings."

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10/26/15 – A group of residents have filed a lawsuit against the city in Omaha, Neb., to block the development of a self-storage facility in the suburb of Elkhorn. The suit was filed on behalf of Elkhorn residents by Rex Moats, an attorney and resident of the area, which is dominated by horse ranches. It names as defendants the city, council members, the Omaha Planning Department, the self-storage-business owners and others, according to the source.

The lawsuit claims the council’s August approval of a special-use permit to allow the self-storage development was arbitrary and illegal. The city has yet to respond.

Omaha Planning Department board members voted 5-2 on Aug. 5 to permit Daryl Leise to build a self-storage property at 204th and Farnam streets, a vacant commercial corner, despite objections from hundreds of residents. The project was approved because it complied with the city’s master development plan and zoning regulations, according to Cheri Rockwell, planning manager. Homeowners presented the board with a petition containing more than 350 signatures to persuade members to reject the proposal.

Leise’s site plan includes one three-story building and six single-story structures to be built near homes in the Elk Valley and Skyline Ranches subdivisions. Residents claim the self-storage project wouldn’t be compatible with the area or the best use for the property. They also say it would be unsightly, cause light pollution and traffic problems, and attract crime, the source reported.

Russ Daub, Leise’s attorney, assured the board the buildings would be well-designed and blend with existing properties, including nearby Elkhorn South High School. Large trees and other landscaping would add a buffer, and the lighting would be controlled, Daub said.

An “opposition document” was also submitted to the board, showing that half of self-storage tenants earn less than $50,000 annually. The median household income in Elkhorn was $80,490 in 2013, according to the document. Residents suggested the facility would be better suited to an area with lower-valued homes. Developed in the 1960s, Skyline Ranches was designed for homeowners with horses. The neighborhood has dedicated trails and a park for horse-related activities.

Rockwell reiterated that planners should review proposals for compatibility to the city’s master plan and zoning regulations, and it “doesn’t matter what the value of the property next door is,” she told the source.

Leise’s proposal is in line with storage-development trends for more aesthetically pleasing buildings in high-profile areas, said board member Trenton Magid. “You can also store Ferraris, horse feed and saddles there. It’s not only [for] plastic folding chairs from Walmart.”