Eviction Defense Center helps secure nonprofit developers offer to buy troubled hotel

Eviction Defense Center helps secure nonprofit developers offer to buy troubled hotel

By Lynda Carson - March 27, 2016

Oakland - The troubled Empyrean in Oakland, is a seven story 96 unit residential hotel built in 1914. It has 36 units with a sink, shower, and toilet. There are 48 units that only have a sink, 12 units that have a sink and shower, and the property also has three retail units on the first floor.

Located at 344 13th St., the hotel and it’s owner Alice Tse, were sued by the Oakland City Attorney’s Office during April of 2015, due to a lack of repairs at the building involving plumbing and electrical problems, an elevator that was out of service, broken windows, and other poor conditions at the building. Additionally the suit charged that Empyrean Towers, LLC, was creating a public nuisance as a direct result of not making the needed repairs, and management was also accused of conducting illegal evictions. The residential hotel was also placed into receivership.

With the help of the Eviction Defense Center (EDC), after a long hard fought battle the tenant’s struggle at the troubled hotel to have a nonprofit housing developer take control of the property, is finally bearing fruit.

Residents Don Fisher and Maria Anast, along with the EDC, have helped to organize the tenants at the residential hotel in the struggle for better conditions, and to fight back against illegal evictions that were taking place. On March 24, 2016, Attorney Andrew Wolff, who has assisted the EDC in defending the tenants at Empyrean Towers said, “We are looking for a bonafide purchaser who believes in mixed affordable housing including very low income people. A purchaser invested in Oakland.”

On March 1st, Judge Roger L. Efremsky authorized a deal to allow Resources for Community Development (RCD) to purchase the Empyrean Towers. It was on March 23, that Oakland City Attorney Barbara Parker confirmed that the deal with RCD to purchase Empyrean Towers, is moving forward.

During 2014, after subtracting their liabilities from their assets, RCD a Berkeley based nonprofit housing developer had net assets or a fund balance of $34,623,157. This is more than enough to cover the estimated costs of $10,000,000 in needed repairs at the Empyrean Towers (ET).

According to a March 23 press release, “The Court’s order makes it possible to ensure that this property is preserved as part of Oakland’s critical low-income housing stock, and that the horrendous conditions at the Empyrean Towers are remedied,” City Attorney Barbara Parker said. “One of my highest priorities is to enforce laws that protect Oakland tenants' fundamental rights to healthy and safe housing; the protection of these rights is vital for Oakland to thrive.”

Oakland City Attorney Barbara Parker also gave praise and credit to Anne Omura, Executive Director of the Eviction Defense Center, for helping to bring about the deal with RCD.

At one point the tenants at ET were very concerned that the hotel would be sold to a for profit developer. During November of 2015 when the situation appeared very bleak at the hotel, tenants Don Fisher and Maria Anast said, “The new receiver, Randy Sugarman, wants to sell Empyrean Towers to a for profit developer, which is not in the best interests of the existing residents. We want City Attorney Richard Illgen to support the tenants here, and want him to push for a nonprofit housing developer to take control of the building.”

According to sources, in competition with RCD, Randy Shaw of the Tenderloin Housing Clinic was also interested in purchasing the troubled hotel.

Empyrean Towers used to be known as the Menlo Hotel, and it’s former owner Richard Singer was charged with trying to hire an arsonist to burn down the occupied hotel in an insurance scam, and landed in prison.

Lynda Carson may be reached at tenantsrule [at] yahoo.com

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