A legal dispute blocking the restoration of a historic building in downtown Bolinas has finally been resolved. Once a community hub, the Waterhouse building has been sitting vacant since it was badly damaged by fire three years ago, displacing five tenants and several businesses.

With a lien on the property lifted, the building owner, former Bolinas resident Gregg Welsh, hopes to sell the building as soon as possible. He is seeking $5 million for the burned-out property and the adjacent building, which sits on an adjoining parcel on Brighton Avenue and housed the Bolinas Post Office until it was shuttered in February.

Community members are hoping to recruit a buyer for the property but think the asking price might be too high to attract investors. Mr. Welsh’s attorney, Patrick Morris of Santa Barbara, told the Light that the price is firm.

A fire that began in an upstairs apartment struck the Waterhouse building on June 5, 2020. Two months later, Mr. Welsh hired a Novato firm, McCauley Construction, to remediate the property. 

But six months later, the two parties became embroiled in a dispute over money, with the McCauleys claiming Mr. Welsh owed them $360,000 in unpaid cleanup and restoration bills. They filed suit in August 2021, and the project has been tied up ever since.

The McCauley family owns two Novato-based construction companies, McCauley Construction and McCauley and Father Construction. They filed suit against Mr. Welsh under the latter name. 

Mr. Welsh argued that McCauley and Father Construction had no standing to sue him because he had hired the first company, McCauley Construction, to clean up and restore the Waterhouse property.

On July 24, Marin County Superior Court Judge Stephen P. Freccero lifted the lien that had been placed on the property while the dispute was litigated. A month later, the McCauleys withdrew their suit.

Mr. Morris said the McCauleys agreed to pay Mr. Welsh $150,000 to cover legal fees and lost income. Scott McCauley of Novato, who was coordinating the cleanup, declined to discuss the settlement.

“I can’t talk about it other than to say, I got screwed,” Mr. McCauley said. “I wish there was a better outcome, but we’re still afloat.”

In a statement issued by his attorney, Mr. Welsh said the claim against him was baseless. 

“I look forward to returning this important resource to its role in the Bolinas community,” he said. 

The Waterhouse building housed four apartments, the Bolinas Book Exchange, a hair salon, a real estate office and a surf shop. The adjacent building still houses a liquor store and was home to the Bolinas Post Office until it closed in February due to a landlord-tenant dispute between Mr. Welsh and the United States Postal
Service. 

The buildings have a large presence downtown, and Bolinas residents have been trying to recruit someone to buy the properties from Mr. Welsh and restore them. They have brainstormed potential uses for the site during the monthly Bolinas Civic Group meetings. The ideas have included affordable housing, a swimming pool and a learning center for kids, and restoring the book exchange.

Since the post office lost its lease, residents have also been working on a plan for a temporary post office to be housed in trailers on Mesa Road, next to the fire station and clinic. They are engaged in discussions with the U.S. Postal Service, which is holding regular talks with them about the proposal.