Cottage rehab plan hits new roadblock

Legal battle puts timeshare plan in limbo

Preliminary plans to rehabilitate the turn-of-the-century Red Roost and Red Rest cottages overlooking La Jolla Cove have apparently been shelved due to a longstanding legal squabble among the three owners.

Plans for redeveloping the site where the 113-year-old Red Roost and Red Rest cottages sit at 1179 and 1187 Coast Blvd., until recently, had envisioned creating a 14- to 16-unit time-share development terraced up the hillside behind the historic existing structures.

But between the continuing legal fight and the current economic picture, it appears other plans may be in the wings.

“We’re still winding things up with litigation over the property,” said Richard Annen with Sparber Rudolph Annen who represents the owners of the California bungalow-style cottages, Cove Properties Inc. The company is a wholly owned subsidiary of La Jolla Cove Motel & Hotel Apartment Inc., owned by members of the Heimburge, Jackman and Baroudi families.

“In 2007, a lawsuit was filed against Larry Jackman alleging mismanagement of the property,” said Annen, who added a jury trial ended with a judgment, including punitive damages against Jackman, whose subsequent appeal went all the way up to the state supreme court.

Annen said the litigants settled in December 2006, agreeing that an appraisal be conducted on all seven properties owned jointly by the three parties, which are widely dispersed throughout San Diego County and include the Red Roost and Red Rest La Jolla beach cottages. The deal took almost a year and a half to reach.

“Because the lawsuit was so contentious,” said Annen, “all parties recognized the best solution was for the families to divide up the properties and go their separate ways.”

According to the terms of the 2006 settlement, said Annen, the Jackmans had the option of either being paid money, or receiving the Shell Beach Motel on Coast Boulevard in La Jolla, or a combination of those things depending on their relative values, in compensation for the Jackmans removing themselves from the three-way partnership.

“To date, the Jackmans have refused to finalize the settlement.” said Annen.

Completed in 1895, the Red Roost and Red Rest are among a handful of dwellings left from La Jolla Cove’s early development as a seaside resort and artist colony. The beach cottages are said to have influenced the styles of renowned architects Irving Gill, who built widely in La Jolla, and Frank Lloyd Wright.