East Lansing in court again over nearly $20K in rental fines

EAST LANSING – A city code enforcement officer wrote nearly $20,000 in tickets on one day in February to an East Lansing couple for renting their condominium without a license between 2012 and 2015.

The couple Seth and Elizabeth Kelser have challenged the citations in 54B District Court, and a hearing before District Court Chief Judge Andrea Larkin that began Wednesday is expected to continue Tuesday.

Lansing attorney Pamela Amato, who is representing the Keslers, said the proposed fine was “punitive” and “draconian”, and said the Keslers were "shocked" when they received the tickets. She added the city's initial rental license fee is $1,550 and renewals are $240 annually.

Three local judges have ruled against the city in similar cases in recent years.

In February 2015, District Court Judge Richard Ball reduced $23,000 in city fines levied against an Ann Arbor woman to $3,000 for renting out a West Saginaw Street condominium to tenants for nearly four years without a license. In May 2014, Ball tossed out 33 citations and more than $18,000 in fines issued to Ingham County Commissioner Penelope Tsernoglou for a home she owned in East Lansing. In that case, Ball said the ordinance was applied unconstitutionally and didn’t serve any governmental interest.

In 2012, Ingham County Circuit Judge William Collette ruled the city’s fine of $53,300 for about 90 daily tickets issued for a three-month period in 2009 and 2010 — all involving one rental — was excessive. He ruled the fines violated the 8th Amendment to the U.S. Constitution.

And Circuit Judge Clinton Canady III ruled in 2011 that the issuance of 50 tickets for daily violations involving an East Lansing condominium — resulting in a $21,750 fine — was excessive. He ruled only five tickets were permissible.

Deputy City Attorney Erin Housefield declined comment until after the case is settled.

Mayor Mark Meadows said Thursday that contrary to perception, it's rare for cases like this to be thrown out.

"We enforce our ordinance, and it's up to the judge to determine the appropriate fine and whether a violation has occurred," Meadows said.

Judge tosses more East Lansing rental fines

'Let this one slide'

Code enforcement Officer Rodney Young testified Wednesday that his investigation began in May 2015 after getting a report from the city's assessing department regarding who was living at the Erica Lane address. In a June 30, 2015 phone call, Young said Elizabeth Kesler told him their tenants had moved out.

Young admitted Wednesday to telling Elizabeth Kesler that he would "let this one slide," but that the couple would need a rental license before leasing to any future tenants.

Young reopened his investigation in July after being notified by city staff that the Keslers had instead submitted a home-sitting exemption form. When questioned about the form, Seth Kesler said the couple wanted to get into "some form of compliance" with the city.

Young then issued 35 ordinance violation tickets on Feb. 16; 33 for $570 apiece and two for $575 apiece. Including $350 in court costs, the total being sought is $19,960.

Kesler testified that he moved out of the condominium in the 1400 block of Erica Lane in 2011. Kesler said he asked the condo association president what they needed to rent out the condo, and was told they only needed to let the board know their tenants' names.

He and his wife then rented out the unit for what Kesler said was $800 to $850 per month for the first year, later raised to $900. Seth Kesler bought the condo in 2005 for $131,000.

Testimony is expected to continue Tuesday.

Contact Dawn Parker at (517) 377-1056 ordlparker@lsj.com. Follow her on Twitter at @arwen22266.

What's next

A hearing contesting nearly $20,000 in fines for renting without a license will continue at 9 a.m  Tuesday in 54B District Court in front of Chief Judge Andrea Larkin.