HistoricOmaha

Omaha World Herald
Published Sunday April 16, 2006

BY MAHALIA ASANAENYI

Several business properties in the Dundee neighborhood are sitting empty, the result of a family feud that, at times, plays out like a television script or a novel.

A fight over how to manage the properties led two men to sue their grandmother and will soon lead to the sale or auction of eight properties currently valued at $1.2 million.

At the center of the controversy is a 98-year-old family matriarch, Hazel Ruge.

Since the early 1930s, Hazel and her late husband, William Ruge, owned property and ran businesses in Dundee.

When William Ruge died, his wife, children and grandchildren inherited the property. They currently own nearly two-thirds of a block along the north side of Underwood Avenue from 50th Street west.

The family is divided over management rights. Grandsons Douglas Ruge and Dustin Ruge are on one side, and their aunt Carolyn Ruge Lorenz, uncle Walter Alan Ruge and grandmother are on the other side.

Management disputes have played a part in keeping three of the four available office spaces vacant, creating a hole in the heart of the business district.

Douglas Ruge claims that his grandmother gave him permission to manage the property. When Hazel Ruge signed a management contract with a local real estate company, Douglas and his brother Dustin sued.

“I love my grandmother,” Douglas Ruge said. He said the only reason she is involved in the lawsuit is because his aunt and uncle drew her into the struggle.

Hazel Ruge, however, said she is involved because she and her grandson can’t agree on how to manage the property.

In the courtroom, the family’s interaction appears picture-perfect. Grandmother and Douglas share a tender kiss and hug.

Behind closed doors, their relationship is strained. According to a court affidavit, the five joint-owners scheduled a meeting to discuss the property in the months leading to the lawsuit.

Douglas Ruge said the meeting’s rules were firm. Don’t invite grandmother’s former power of attorney. Sit in your assigned seat. Don’t make contact with grandmother, who for many years made management decisions for the family.

Ultimately, communication broke down. Subsequent attempts to rent and maintain the property were unsuccessful.

With no agreement in sight, Douglas County District Judge Joe Troia chose Richard Secor, senior vice president of the Lund Co., to sell the property and split the money among the family members.

There also is a case in County Court disputing Hazel Ruge’s competency. Court officials said Georgia Ruge Barker, Douglas’ mother, filed the petition within a day of the District Court lawsuit filed in October.

While the cases have no bearing on each other, they have contributed to the stalemate, attorney Michael Nelsen said. Nelsen represents Hazel Ruge’s side in the District Court case and Hazel Ruge in the County Court case.

Nelsen and Hazel Ruge say they want to select a proper guardian for her and will fight the claim that she is incompetent. “We don’t want to leave Dundee, but this is better for the area,” Hazel Ruge said.

The sale of the property would likely bring merchants and neighbors a step closer to seeing vacant storefronts filled.

“Now, I look outside the window and I get depressed,” said Pat Nichilo, owner of Le Marche, which is across the street from the property.

Many merchants like Nichilo complain about the loss of several businesses within the past year, including Dundee Hardware and Jackie Oh’s.

“We are just watching to see what happens with the Ruges’ property,” said B.J. Reed, president of the Dundee-Memorial Park Neighborhood Association.

Some have already taken interest in the property.

So far, the former Dundee Hardware owner made an unsuccessful bid for that property. Douglas Ruge said he, too, will bid for the properties. “I want the property to stay in the Ruge family, and I would love to retain ownership,” he said.

Secor, who will oversee the sale of the property, said once the property is appraised, he will decide whether to put it on the market or up for auction.

He expects results in 30 to 45 days.

Omaha.com: Family’s feud idles properties in Dundee