Toad’s Place, Yale at odds over exits

NEW HAVEN >> Toad’s Place, where Bruce Springsteen, the Rolling Stones, U2 and Bob Dylan have played, is in a land dispute with its powerful neighbor, that if not successfully resolved could see the end of the club in its current space.

It’s a legal fight about land boundaries, adverse possession, easement by necessity that all boils down to adequate exits from the nearly 1,000-person capacity club to satisfy the fire marshal.

The fight between Toad’s Place and Yale University, which has been festering for five years, is heading to court in a few months short of a settlement.

The club, which has been there for almost 40 years, wants a solution that allows its patrons, by right, to exit onto the adjoining Yale property in the event of an emergency.

The legendary music hall is adjacent to a walkway owned by Yale that provides access to two of its residential colleges. It is also a way for pedestrians to walk from York Street to the stores on Broadway, most of which are on commercial land owned by the university.

There are multiple doors at Toad’s that open onto the walkway and to the rear of its building.

The side doors at Toad’s Place on York Street face Yale University property. The side doors at Toad’s Place on York Street face Yale University property. Photo: Peter Casolino — New Haven Register Photo: Peter Casolino — New Haven Register Image 1 of / 1 Caption Close Toad’s Place, Yale at odds over exits 1 / 1 Back to Gallery

An agreement that was in place for 30 years allowed patrons to empty out of the club onto the walkway, as well as to the rear of the structure.

Attorney James Segaloff, who represents owner Brian Phelps and the club, said Yale offered to extend this license for another ten years, but it could be revoked for any reason. This was also the case with the previous deal.

“Toad’s is contending that it does not need Yale’s permission to use Yale’s property. Yale is still willing to enter into a license agreement affording Toad’s access for emergency purposes while at the same time preventing the improper and disruptive use of Yale’s property,” said Tom Conroy, spokesman for Yale.

Segaloff said if the university is able to revoke the deal whenever it wants, this is too unstable for Toad’s. He said signing this would negate any further right to an easement.

While Segaloff is Phelps’ attorney, William Gallagher is representing the club in fighting Yale’s suit seeking an injunction against Toad’s from “trespassing” on its property.

Toad’s, which is also known as S.K.M. Restaurants, is technically a tenant of EWP Realty, which owns the 294-300 York St. property. Phelps is connected to both entities.

Gallagher, in a counterclaim, argues that since the original license with Yale was signed by Michael Spoerndle, a partner in S.K.M., it is moot because he was a tenant of property owned at the time by the Kligerman family.

The court will have to sort out the fight, but Gallagher argues that since Toad’s has used the property in question for emergency egress for decades, it has acquired title by adverse possession. It argues further that it also has an easement by necessity.

In motions filed in court, Gallagher said if Yale prevents the club from using exit doors and the paths leading to York Street “this would have a devastating effect on plaintiff’s business, the value of the real property and the leasehold.”

He argues further that in addition to a safety hazard, not allowing an exit onto the walkway “renders the commercial value of (its building) virtually worthless.”

The attorney contends that the university is violating the Connecticut Unfair Trade Practices Act by “managing its real estate in a manner designed to destroy competition of a business which it does not control but which is contiguous to its property.” He said this “offends public policy, is oppressive, and will cause substantial injury ... by putting S.K.M. out of business.”

Yale responded that Phelps “present commercial use of the property as a nightclub is not the only beneficial use of the property.” The university said it cannot be charged with violating the unfair trade act since this is essentially a boundary dispute.

Phelps, in a deposition, testified that it is his belief that he owns three or four feet from his building all around the property and that Spoerndle had no need to sign the license deal because they already had an easement, as did the Kligerman family when they owned the building.

He said he remembers a handful of times when they had to exit in an emergency — once when a Yale student broke the sprinkler system around 2009 and a few times when bomb threats were called in.

The land was owned by the city until 1955, when it was sold to Yale.

“It is obvious that neither of the parties, Yale or the city of New Haven, anticipated the potential problem which is now facing Toads,” Segaloff said of the building that has been there since the early 1900s.

Just before Thanksgiving, a number of students were still in town and had various opinions about the situation, if Toads had to close.

“I think it would be really sad. It’s a great place for the music community to come together. We don’t have too many venues of this size around here,” said Matthew Fowler, a music industry major at the University of New Haven.

Yale freshman Jonathan Simonds said he would be surprised if the parties couldn’t work out something.

“Having this at the center of the campus, people come here regularly. It’s free if the football team wins, so some people only come then,” Simonds said.

Another student said it was a place that she has come to often.

“I feel like it has become a Yale tradition. I feel like you have to go to Toad’s on Wednesday night, which we call Woad’s,” when it is only open to people with a Yale ID, she said.

Senior Zoe Mohl was skeptical about the problem and generally praised Yale in its real estate dealings.

“I really don’t have an opinion. I know Yale has done a fantastic job reviving the city and I’m so grateful for it,” Mohl said.

Segaloff, somewhat tongue in check, said if they can come to an arrangement, he would see to it that Toad’s let Yale President Peter Salovey, who is a bass player in a New Haven band, The Professors of Bluegrass, have a standing gig at the nightclub.

Segaloff referred to the restaurant Bespoke that closed after it could not reach an agreement with Yale on egress to the rear of its location on College Street and he hoped that doesn’t happen with Toad’s.

“This appears to have serious implications for Toad’s viability,” Segaloff said. “It’s a real asset to the city with a great history.”

Mary O’Leary can be reached at 203-789-5731. Have questions, feedback or ideas about our news coverage? Connect directly with the editors of the New Haven Register at AskTheRegister.com.