Dallas' historic Mercantile building floods, displacing residents as leases terminated

Water leak forces lease terminations at historic Downtown Dallas apartment building

In Downtown Dallas, residents at "The Merc" at Mercantile Place are being told their leases are being terminated following a recent water leak that led to a power outage.  

Tenants of The Merc shared a message they received from the management company with CBS News Texas on Thursday:

"We regret to inform you that given the scale and severity of the damage to the building's electrical infrastructure, the building will not be inhabitable for a prolonged period of time.
As a result, your lease will be terminated in accordance with its stated terms. We know and regret how difficult and disruptive this is for you and your family. It is not the outcome we hoped for."   

The City of Dallas said the historic Mercantile building has not been condemned after flooding inside the building knocked out power last week.  

Residents who have been displaced are now scrambling to retrieve their belongings.  

Jacqueline Kolski describes this situation as a "total nightmare." 

"This is negligence on their part. Our apartments have been flooding for about six months now," Kolski said.  

Historic Mercantile building floods, displacing dozens of residents

Dallas Fire-Rescue crews responded to The Merc just before 4 p.m. on Thursday, October 2, after a ruptured water line on the 20th floor caused a major electrical short on the 11th floor. The incident generated heavy smoke and led to the evacuation of approximately 175 occupied units, according to the building's management.

The property owner and management company told the City of Dallas that accommodations had been arranged for displaced tenants who did not have alternative arrangements. 

The city said the plumbing and electric systems are inoperable. 

Future for residents uncertain

Management said The Merc will become a "restricted access building" on Friday to "help secure everyones [sic] home." Residents were asked to remove "any valuables or personal items' from their homes within 24 hours

The building's elevators are not currently working, so tenants who need to retrieve items have been using the stairs, the city said.

"We have no air," said Kolski. "We have no electricity. The floors are completely cluttered with mechanicals."     

The property owners told the city that it is refunding tenants' rent for the month of October in full. The property owners initially allowed tenants to end their lease agreements without penalty due to the hazardous conditions and displacement. 

The letter from the management company also said there would be additional compensation of $3,700 for residents in one-bedroom apartments and $4,800 for residents in two-bedroom apartments to assist with moving expenses.

"So what's going on right now is we're all having to pay out of pocket — if we can pay out-of-pocket — in hopes that we're going to be reimbursed," Kolski said.

City of Dallas inspectors say contractors are working on-site, and Code Compliance is monitoring the property until all issues are resolved.  

As for Kolski, she's now scrambling to move out her most precious belongings.

"I grabbed my two cats, Elon Dusk and Donatella Versace," Kolski said. "I grabbed jewelry."

Kolski said she'll be staying with family, something she knows not everyone in this situation has. 

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