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PRODUCEbe redacted

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Document4

PAGEMILL

February

2009

Mr

TheodoreInvestment Public

Eliopoulos Officer Real Estate

Senior

California

Empolyment

Retirement

System

Lincoln

Plaza NorthStreet

400

Sacramento Dear Thank

CA 95811

Mr

Eliopoulos

you

for

the

opportunity meeting

to

Properties at the board of that meeting

made against Page Mill respond to the allegations have reviewed the transcript on December 15 2008to

and prepared responses

each allegation

They cover

eight

general

areasAlleged Attacks

on RentMill

Control

Allegationcontrol rent

Pagerent

Properties tenants.to

is

engagedin

in

t..anin

outrageous the Citys

attack

on

rent

and on

controlits

by challenging

court

moratorium

on

increasesand

attempt

make changesEast

the rent

control

law

Responsetenantsfiveits

Pagedecisions

Mill

is

not

attacking the

Palo

Altos

rent

control

ordinance

or

the

covered

by

it

Quite

oppoditeour

supportIt is

and abide by the Citys law andtheIt

court legal

have vindicatedthat

actions

interpretation

of

the City andto

aid with

lawyerstheir

has

beenIts

found illegalto

is

they

who appeardays the Boardquietly

havethe

problem

own

law

interesting aid

note

that

twenty-one before the

beforeto

Mayor Pagemotion the

ofMill

East Palo Altowith

and theforward

legal

lawyersrent rent

appearedincreases

charge

goingits

with that

illegal claimed

City

signed

to

dismiss

own

lawsuit

hikes above never uses

3.2% werethe term

illegal

Evenrent

city-financed

Berkeley insteadin

Peer

Reviewthe

Report

illegal the

increases

butis

recommendsof

obvious

go back

and

re-write

ordinance

The

City

nowin

the process

doing

exactly that

Having

lost

courtthat

the

CityMill

and tenantsis

are turningin

to

political

rhetoric

to

makeactually

theirit

case and claimquite

the

opposite

Page Each

engagedMills

an

attack

on

rent

control

whenat

is

of

Page

lawsuits

has

been aimed

maintaining

and

Transcript

of

Meeting

Public

commiuee Open Session Monday

Employees Retirement System Board December 135 15 2008

of

Administration

Investment

480 CowperTel

Street

2nd

Floor

Palo Alto 650.688.6820

cA

94301

650.833.38130

Fax

PM-0001

Mr

Theodore 2009

Ellopoulos

February

Page

enforcing

the local

rent

ordinance

and State

rent

control

laws

rather

than tearing

them

down Pagecontrol

Mill

has

never

taken

any

steps

to

repeal

or circumvent

East

Palo

Altos

rent

ordinance

Aflegationfictions.

Pagebiggestlimited of that

Mill

hasof

employedrental to

whatin

think

we

can

at

best

call

legal set

.As the

owner

property which

East

Palo Altofour of

they

have

uptheis

numerousownershipcalled

liability

companies

they

transfer benefits to

units

each

into

companyby therent

and then they claim thewhich laws.2

East Palo Altos what

the mom-and-pop

exemptioncontrol

was

designed

help small property owners

not be restricted

Responsedontlike

As with so many other issuestheir

in

East Palo Alto

the City and the advocatesunits thatif

own ordinancethecity-financed

which

controlintention

Even

exempts owners of four or fewer Peer Report recommends Berkeleyexisting definition of of

fromit

rent

is

the

of the City to the

narrow the

the ordinancein

they should

do

so

No one accusedFurthermoreseparatelegal

Berkeley

Peer Reportthe

engaging

legal

fictions

as

CaIPERSis

knowsindustry

practice

of

takingis

title

to

individual

properties

as

entities

an

standard

and

required by our lender

Nonethelessunitssingle

Page

Mill

has done so onlywith less

to

limited

there are only 38 propertiesfamily

than four units property

degree Of our more than 1700 Of the 38 properties 16 arewhich are exempt understate

residences

plus one commercial

law

The

Costa-Hawkins

ActIncreases

Alleged

Illegal

Rent

Allegation a-yearrent

Theveryhigh

City of

of East Palo Alto 3.2 percent..

has

rent

control

ordinance properties 50 percentin

and allows oncePagein Mill

increases

After

acquiringof

the

began cases

imposing over

rent rent

increases increasesin

reports rent

20 percentmultiple

some

100 percent

increases

times

one year some as

many

as three increases

year.3

ResponseMill

Prior

to

purchasing valueof

anytherent

residential properties

rental including

properties

in

East Palo Alto therents

Page

investigated

the

specifically

allowable

under

the Citys

long-standing

control

ordinance

Members

of

the

media and theto

public

have repeatedlyis

claimed

that

rent

increases

in

East Palo Alto

are limited

3.2%

That

incorrect

2Ibid.p 1373lbid p.136

PM-0002

Mr

Theodore 2009

Eliopoulos

February

Page

Thefrom

ordinance increase

hasin

two the

key

provisions rent

related citywide

to

maximumon anin In

rents

First

it

allows

an

annual

maximumgeneral

basedto

inflationary

factor

derived

the CPI for housing as the annual

Thats the 3.2%adjustment

referred

this

knownincrease

or

AGA

common allegation This is 2007 was 3.2% The AGAit

for

2008 was 2.9% secondunderstood the ordinancesingle

HoweverCity to

there

is

less

provision

in

that

requiresiheunit for that

issue

Certificate

of

Maximumstates

Legal

Rent

for rent

everythat

rent-controlled

every

yearunit

Each

Certificate

the

maximum

may be

charged

particular

Certificates landlordin

are prepared the City

and issued by the

City

and go

to

every

rent-control

tenant

and

Whenin

Page

Mill

representatives theythe

inquired that for

with

the

Citys rent

board

staff

before

investing

East

Palo Alto stated

were

toid

rent-controlled

landlords could therent control

charge

amountlaw also being

on

Certificate

unit

Both

ordinance

up to the and State wereyearly for theiris

confirmedless

that

information the certified fromto put thelet

At the time of

the purchases tenantsof

many

tenants

charged

than

maximum TheCity

thoughthe

would onrent

basis receive unit This

Certificate

informing them

maximumtheir rent

process

serves also to

tenants

knownotice

bothto

whether what the

landlord legally

overcharging raised to

them

but

them

on

as

can

be

Pagerents

Mills

investment

strategyto

was

to

purchase

the

properties

spend

considerableraise

sums on improvementsuntil

the propertiesin line

and the neighborhoodthecertified

and incrementallyallowed under

they

were

more

with

maximums

the

ordinance

By

the

fail

of

2007

Page

Mill

had

already

maderent

considerableIt

headway

with

its

improvement plans the Citys Rent Boardeliminate certified

but had

not

instituted

anyof

increases

wasthe

at rent

that

time that

beganto

discussing as

potential rentis

changesincreases theto

to

what theythen

referred

banking

The

difference

program to between TheCitys

ordinancerent

maximum and tenants actual and now does not requirebut

rent

bankedchargeless

amounttenant than the the

landlord

every

year

even

if

landlord to

charges

tenantyearly

maximum maximum thefactor

certified

maximum

continuesto

be

increased

onto

basis by the

inflationary

which

allows

landlord

defer an increase

subsequent yearreduce thecertified

Oncethan

the

Rent Boardthe deferred planned from

began

to

take steps

to

maximumrent

rents

and

eliminate

increasesin

Page

Mill

instituted

broaderrent

and deeper were

increasesto

originally the

November

of

2007

The

increases planned

necessary

prevent

City

permanently

confiscating

the future

increases

The

result

M-0003

Mr TheodoreFebruary

Eliopoulos

2009

Page

to

tenants

was

that

for

example

instead

of

receiving for

three

increases

for

$50 over 18

months

they would receive

one immediatethe the

increase

$150theCity

After

Page

Mill

gave

notice rents

of at

lawful

rent

increases

adopted an UrgencyAlthough the freeze the City

Ordinance implemented would freezeit

freezing

December

2001

levelslasting for

by the Urgencythe authority to

Ordinance extendMill

was temporaryfreezefurtherits

seven

months

have

the

up

to

22 monthsrent

The

rent

not only prevented

Page

from collecting upto

previously noticed

increasesprohibited

prevented

Page on

Mill

from

collecting unit for

the Certifiedincluding

maximumafter

rent

and

raising

the rent

covered

any reason

legitimate

vacancyCourtin

Page Mateoviolated with

Mill

challenged

thethat

Citys

Urgency

Ordinance unlawful the

and The

the

Superior foundthat

San

County agreedthree separate Citysthat

the action laws

wasand The

Court

the City hadinconsistent further

State

that

Urgencyprohibited

Ordinance wastheCity

the

owncould

rent

ordinance

Court

from

taking

actionsthat

would

implement the same policyindeedof lawfully

At the

Page

Mill

charge

tenants

same time the Court up to the maximum rent

confirmedstated

on

the city-issued

Certificates

Maximum

Legal Rent

The

City

disregardedtoits

the

Superior

Court

Order

The

Citysto

Rent Board

in

July

2008therule the

and Regulations designed adopted changes as the Court had already rejectecL policy changes PageRules rulemaking process

implement manyactively that

of

the samein

Mill

participated

andthe

repeatedly the

advised

the State

Rent

Board

the

proposedwithin

changesrent

were

contrary toAfter

Courts Orderrules

law and were

inconsistent

ordinance

new

were adoptedfinding

Pagethat

Mill

challengedrules

them

court law

And

with again the Court agreed Page Mill and were inconsistent with the rent ordinance

the

new

violated

State

In

addition

while to

the key issuesfurtherits

were being decidedFor

in in

court

the

City

continued

to

take

other actions

agendatenantit

exampleto

Februaryrents

2008

Board Hearing

Examiner grantedrejected

individual

petitions

lower

based

on the same theory

by theto

court

Also beforelandlordsto

attemptedMills

require

the proposed rule changes the City even adopted comply with them and twice refused to accept Page they didMill

registration

packets

because Page

not comply

with

the

new

rules

which

the the

BoardCity to

had

not

yet

adopted

sought

and received

Court

Order

requiring

accept

the contested

registrations

It

is

clear

that

Pageof

Mill

and the

City

have

different

views

as

toMill

the

implementationCity thatis

the

Rentits

Stabilization

Ordinanceits

RSOpolicy to

meaningthat

andtheisit

Pagethe

believes

trying

to

interpret

RSOMIII

to

reflect

current

preferences

The

problem sinceit

the City Council voter-adopted

does Page have

not have the authority

changein

RSOof

unilaterally

was

has thus

far prevailed

every one Citys

the lawsuits

hasthe

brought

The

courts

repeatedly

agreed

that

the

actions

have

violated

PM-0004

Mr

Theodore 2009

Eliopoulos

February

Page

rent that

ordinance the rent

and State laws andare lawful

in

the

process

has

either

explicitly

or implicitly found

increases

Allegation those .Rent lawsuits

.While the

Page

Mill

has wonthe

certain

technicaltheirwill

argumentsrent

on both ofunder perhaps thethe

fundamental

issue of not

legality of

increases

Stabilization of

Ordinance has and perhapspossibility of

been decided

and

not

be so

for

numberlegal

months

potentially

many more

given

the

complexities of

system and the

appeals

added.4prevailed on technicalitiesin

Responseactually

Advocates

claim that

Page

Mill

Thewhich

truth

is

the opposite

Page been

Mill

has

prevailed

separate

lawsuits are

all

of

support various

thecourt

fundamentalrulings

position

that

the

companysonthe

rent

increaseslegal

lawfulrather

The

have

based Judge

substantive ruled

issues

than

any

technicality

For example

Freeman

The

City

issuedentities for

rentin

certificates

to

Page

Mill

Management and2007set forth that

its

affiliated

Septemberof

are effectiveCertified certificate of

period

October and November one year Those certificatesissued

whichthe the

Maximum Rentis

Once

tate

law mandates

binding

and conclusiveis

the

Urgencyto the

Ordinancerent set

to

roll

upon the local agency the rent increase backthe landlordscertificate

Theto

effect of

3.2%

the past years actualrent

thus abrogatingforthin

right to

charge

up

amount

the

rent

Since

the Superior

Court rulings

in

Page

Mills

favor

the City has

filed

appeals

on two askedof

of for

the orders extensions key issuesof

Those appealsof at

are currentlybriefs

pending

but the City delaying

has repeatedly

time to stake

file

their

ultimately

any concretetheCity

resolution

the

Asfile

recentlyin

as the

January Courtof

30 2009Appealwith to

sought

its

fourth

extensionactivelyfinal

time to

papersof

By contrastCityin

Pageof

Mill

has

pursued

resolution that

the

legal

disputes as

the

hopes and

achieving

judgment

would inform the

parties

their legal

rights

responsibilities

going forward

Ill

Alleged

Predatory

Equityfunded

Allegation

Page.predatory

Mill

in

partis

by

CaIPERSinvestor

is

part to

of

predatory

equity

scheme.propertyrent

equity

which

using the..

funds

acquireis

rent-regulated

where

the clear

purpose

of

plan for the property

to

circumvent

the

regulations.5

Ibid

148

138

PM-0005

Mr TheodoreFebruary

I-I

Eliopoulos

2009

PagpResponseandeffort to of

The

advocacy andin

term predatoryslum housing

equity

implies

that

anysort

purchase

rehabilitate

deterioratedMill its

constitutes

some

underhanded amount ofthe Citysof

scheme Pageinvestmentdeteriorating

partner investorshistory of

have amassedto

the single the

largest quality of

capital rental

the

East

Palo Alto purchased Palo Park

increase

housingrental

stockin

WeEast

more These

thanunits

1700arein

units

thewell-

approximately established

2590

units called

Alto

an

old

neighborhood percentof

WoodlandPalo

on the westhousingvirtually

side of Bayshore Freeway stock

The

forty-five

the

East

Alto

rental of told

we

purchased units

has

undergoneincreased admitted

seismic security

upgrades Even

rehabilitation

uninhabitable

and

Mayor Ruben Abrica

the

CaIPERS

Board which he hasnt

anywhere

else someof

...their

We

do acknowledgetheir

the

beautifying

properties

good work that Page and you know trying

Mill to

has

done

in

improve

the

neighborhood.. Toconclude

added.6

that

effort

is

predatory

is

to

doom

thousands the

of

East

Palo

Altans

to

permanent

comes

from drug dealing

garbage-strewn gang-ridden and assorted criminal Harassmentof Tenants/Evictions

slums whereactivities

only

investment

capital

IV Alleged

Allegation the

Pageof

Mill

has

...engagedof

in.

.harassment reduced

against the

tenants

resulting

in

displacementin

hundredsattacks

people

.and

affordable

rental

housing

stock

our community andfrontal

Page

Mills

the Citys budget result of have negatively impacted as and city ..Some people are on tenants government

becoming

homeless.7

Response Change even positive change can be when like housing Page impacts vital interestsit

difficult Mill

for

those

involvedof

especially

has been an agentof

change

in

East Palo Alto

and

therefore

likely

to

be the focus

of

any discomfort residentsallegations

may

feel

We

accept they

that

possibility

We

do not accept

baseless

harassment

even

when

comefar

from

the

Mayortheaffordable significant rental

Moreoverportfolio

from

reducingto offer

housingof

stock

in

East

Palo Alto

our has

continuesis

supplyis

affordable

housing andat

What

changedstandardspoints to

that

this

affordable

housingwill

now

safeto

secure

meets acceptablevariety of price

of

habitability

We

are andof

continue

offer

housing

meet the demands

and sales taxes generated on the Citys andlocal

our increased property tax community Finally tremendously positive impact by our purchases have had diversedistricts coffers

school

6lbid 7lbid

144 p.143-144

PM-0006

Mr TheodoreFebruary

Eliopoulos

2009

Page

Allegation

While

theis

judicial

appeals

of

Page

Millsits

illegalevictions.8

rent

increases

are

underway

Page The

Mill

utterly intent

on proceedingexpensivewill

with

Responseveryfail

eviction

process taken

is

and time-consumingto

It

is

remedytenants

of

last

resort But

we havein

and

continue drinking

take action drug

against

who

to

pay rent

engageor

violence

public

illegal illegal

activity

threaten attacks

neighbors

employees

destroy

property

subletting

gang and

activity physical

Howeverfor

like

the

allegations

of

so-called

illegal

rent

hikes the 66little

issue.of

evictions evictions

is

exaggerated15in

Betweenof rent

July and

December

2008

there were

court

ordered

non-paymentthe units underfor substantial

out of more thanstipulated to

1700 units ThatsAnother

over 3.5

percent

and

of these evictions

were

by both parties

and the residents have remained have beenevicted

paymentviolations

arrangementof

by order of the

court

the rental

agreementsof rent

Each

possible eviction of the rental

can be based on two basic issues agreement is due and payableif

Non-paymentof

orin

other

violations rental

Under the terms on theof

of

our lease the

agreementsto late notice

rent

first

agreement monthIt

asis

most and

late

subject

chargeto

paidrent

after

theis

fifth

the

monthThisis fifth

Undertheto

the

rental industry

agreementpractice residentinstill

three daymulti-family

payIf

or quitis

served

standardof

housing has the option to come to the office provide an explanation as can receive one- time waiver of the applicable late fee if nothe manageris

the

rent

not paid after the

month the

the late paymentis

and

effort

made

to the

contact matteris

or to

the

managementto

office

either of

by

phone

e-mail

or

in

person

forwarded

our attorney for the regain the

filing

an unlawfulof their

detainer action Duringthis

This process

action

required for an owneruntil

possession grantsto

property the

and upto

the

date

in

which

court

judgmentto

resident

has

an

opportunity

bring

their rent

current or stipulateinto their

mutually agreeable

payment

planthat

Wehave

have asallowed

Oompanythemto

entered

numerous tenancies

stipulations

pay

with

residents

continue

The

second

eviction

issue

is

for violationis

of to

lease issue

condition Notice

Underto to

the

Citys

Rent

Stabilization states

Ordinance an ownerbasisof

required

Ceasecure rangeor of

This notice

the

theto

violation

and

provides

an opportunity

ceaseissues

the but

behaviorprimarily

Theinvolve

notices three

cease

that

have been served cover types

wide

commonactivity

violation

Criminal or gangIllegal

SubtenantsHabitability/Condition

Apartment

Ibid

p.149

PM-0007

Mr TheodoreFebruary

Eliopoulos

2009

Page

Allegation

Heres anothersingle of

example

of

Page

Mill

proceeding

with evictionsto to quit evict

Oneis

wasthe

motherbeginningalleging

mother

who

receivedit

three-daythe

noticeintent

which

the eviction

process

signals

landlords the

the tenantactivity

that

she and her co-inhabitants were because

using

area for

gang-related

And

thats

interesting

there are only three other people are aged

whonot

live

with

her and image

thoseof

were her daughters

who

16

14

and 11 which

is

your typical

gang.9 Thewith

Responsetenantlegal lives

accuracy

of the

allegationin

begins

and

ends

with

this

fact

that

the

her three daughtersfailed to state that

services

adviser

two-bedroom apartment What the community was that she had an unauthorized guest or sub male suspect knownhigh

tenant

We

havealso

documentedin

as Jonathanlevel policy oftraffic

possibleactivity

stepson wasconsistent with our

the residence or sales

Our

security

noted

and

drug use

We

havewith

zero toleranceNoticeto

for for to

drug

activity

ondrugthe

properties

Thereceipt

tenantof

was

served the

Cease

suspected leave

activity

Upon

that

notice

tenant

asked

this

person

and

suspicious

activity

stoppedthis

Needlessthisisit

toto

say

woman wasthe problem residentsto

never

evictedlegal aid

Pageto

Mills to

managementtolerate

worked

with

tenantfair

resolve

Does

want usthe

drug activitytied to

Anddrug

to

our other

expose

them

security

problems

activity

Allegationof

Anotherthat his

individual

received

three-day

notice

that

was.Page

actuallyMill

the resultto

actions

sister

who wasin

co-inhabitant authorized

had taken.groupof

came

tow

vehiclesstarted

alleging

that

they werent

and

tenants

went outside and

protestingof

And

response the

many

them sayit

derisive to

say thatbrother

names And my face And thatreceivedMill

calling manager for Page Mill started the sister this case said You know you can And then her was extent of the verbal exchange on-siteinif

subsequently

notice

three

daysplacedto

later that

saying case

that with

they proother

were bono ones

threatening attorneg as

Pagewell

Managementfully

Andits

wevegoing

and

expect

that

be

dismissed

as

the

were.1

Responsenot tolerate

One

of

our employees receivedto

verbal ruled

threat

of

physical violence us sayingevictionin

We

will

threats to

our

one-time Thisis

threat

physically

employees judge harm our employeedifficult

against not

effect

that

didis

justify

proceedings so

tenants

one more example of just how have actually been evicted

it

to

evict

tenant

and why

few

9Ibid Ibid

p.150

PM-0008

Mr

Theodore 2009

Eliopoulos

February

Page

As

for

the towing parking

of cars

that

triggered

this

incidentin

weof

are proud

of

initiating

the

first

assigned parking

system ever implemented

most

neighborsin

now are guaranteed specific parking spot who park in other tenants spaces will be towedbut with time our tenants other non-East Palo Alto

Tenants who pay for Non-tenants visitors and nearbyour units This policy

wasthis

controversial

the

beginningin

tenants

have grown to appreciate houses take for granted apartment exampletenant

system

that

Allegation fromhis

10 And

then

one

final

is

who

is

HIV

positive for

and

suffers

neuropathy

apartmenttreatment

and high blood pressure. .He received an eviction doctors note that was despite the fact that he hadanimal thefor his

having

dog

in

authorizing with of

the dog pro

as

diseases

Andthatin

wehis

placed

that

case

bono

attorneyvirtually

And

result

was

settlement

again

kept

the

terms

the

tenancy

unchanged

and allowed

him

to

remain

apartment

with the animal.11

Responsewhere

The dog was dogs are prohibited

pit

bull

large

potentially

dangerousthe

pit

bull

in

propertysanitary

Neighbors

complained

about

dogs

barking

The

conditions on the patio

area where

the dog

was

kept were simply unacceptable

Because

of

the

owners

lack

of

controlliability

and care suchanimal At that

of

the

animal therepresentsto

potential

danger

to

other residents and the issued thefile

potential to quit

breed

us

as owners

wein

three-dayof

notice

for

cause

time there was no documentationor

any medicaltreatment

condition

treatment

the like

Whentenant

the

issue

was

brought

to

our attention

we

permittedwithAll

the

tenancy by

to

continueto

based

uponto

reasonable

accommodationthe adjacent

claim and residents

assurancesparties

theinto

keep the animal from agreement Coststhis

disturbing

entered

written

effect

Utility

Allegation

11

Page

Mill

attempted

to illegally

pass

throught

utility

costs.12

ResponseAlto rent

Once

again

advocatesactually to

are confusing

control

ordinance

throughs

so

our attempt

says The do so could hardly be

agenda with what does not prohibit ordinancetheir called

the

East Palo

utility this

passeffort

illegal

However

was

rescinded

Ibid12

p.151 136

PM-0009

Mr TheodoreFebruary

Eliopoulos

2009

Page

10

VI Christopher LundAllegation

12the staff13

Advocate PageMiii

Chris

Lund ..

two

weeks team

agoto

was

offered

$25000

by with

member CaIPERS

of

Properties

executive

cease

my

conversations

Responsehaltall

Chris Lund against promisein

wasus

shakingin

usfor

down

for

money

This

youngoffer

man12

promised

to

advocacythatit

return

$20000of

4SeeAs andthis forin

also Allegation the

below Heto

nowPolice

says

received

was

fact

was madeof

onlyat

exploratory

he claimswithall

have

the direction

cooperation For

the Palo Altoof this

Department as anddisturbing

part

its

investigation

into

extortion

the details Chris

bizarre

circumstance

see

the

attached

letters

to

Lund

and

accompanyAllegationgetting

materials

13

Chris

Lundover yearrole

Id justof

like

toin

let

the the

Board knowlocal

that national

this

is

going to

bethe

significant

amount

attention

both

and

media possibly

the

New

York

Timespiece

the

next four

weeksequity15

Gretchenis

Morgensonin

who

wrote

initial

May

this

on predatoryofin

veryin

interested

doing

follow-up

piecethis

focusing

on the

public

pension

funds

these

schemes

and focusing

on

example with

CaIPERS

East Palo

Alto

Responsehas hadsincestory called

We

have talked youngof

to

Msis

Morgenson

and she

tells

us that

the only contact

shehas

with

this

man

through

e-mails

he sends herstating that

Nonetheless

he

some

our

attorneys and

employees Lundtold

he was working

onbe out

with

Msis

Morgensonworking

and askingarticle

for

comment

At this time

Ms15th

Morgenson

saysin

she

not

on the

Mr

you on December

would

four

weeksour office escalatein

Please keep in mind this is the young man who came into demanded $20000 or he would go to Ms Morgenson and tenants groups

late

October

andof the

the

advocacy

and

their allies

See

related

allegation

and Response causedpeople

11

above

Allegation thelast

14

Chris Lundto

charges

that

Page

Mill

hasof

roughly

18

monthsafter

move Thats an

average

1500 people over per day 20 people per

week

week

week.16

Responsebeen

This

allegation

is

the

kind

of

unsubstantiated

erratic

advocacy

exposed wrong you need

to Mr Lundsto

numbershis

are

based

in

fiction

To

understand

why

we have hes

understand

premises

3lbid

152 arucle JessicaAlto

See attachedextortion

Bernstein-Wax

East

Palo

Alto

activist

landlord

trade

attempted

bribery

allegations 154 153

Palo

Daily

News

February

2009

Ibid Ibid

PM-0O10

Mr TheodoreFebruary

Eliopoulos

2009

Page

11

First Alto

he claimsis

that

the

average

household

size thatliving

for

renter-occupiedto

units

in

East

Palo our

3.83

people

per unit

and he uses

numberin

extrapolate that

prior to

arrival

there must have been

6700

people

the units that

Page

Mill

acquired

SecondFinally

he claims

that

the vacancy

rate

prior to

our acquisition

was

just

two

percent

he

claims

that

survey

he himself

conduoted

showed

current

vacancy

rate

of

24 percentthese the

Using over

largely

last

18

times population populationof

made-up numbers he guesses that 1500 people must have moved months The shorthand is alleged initial vacancy rate of two percent of 6700 134 minus alleged current vacancy rate of 24 percent times

6700

1608

equals

alleged

displacement

of

1474 people

The

facts

are these

His

estimate

of

average

householdfor

size

even

if

accurate

for large

East

Palo

Alto of

as

whole wouldof

would not be accurateby logicyield

our

property portfolio

Oursize

number

studios

much

smaller average householdis

That

means

his

estimate

6700 people beforeAt no time was

our arrival

widely

exaggerated

the vacancy something

rate

ofin

this portfolio

2%

Theis

actual

portfolio

at fact

acquisition that

was36

wasOnly

excess

of

10%

thisthe

an estimatebuilding

occupancy based on thepurchased Thatis

manyrate of

units

were

un-rentable 13

Moreoverapartments

first

we

contained

apartments more than

were

actually

occupiedrate of

vacancyof

60%surveythe actualin

Despite

Mr Lunds

self-styled

overall

rentable units has not exceeded

15%Lunds

the past eight

vacancy months

the

portfolio

So

evenin

were

we

to

accept

Mr

undoubtedly the numberof

flawed people

premise

ofall

6700 causes

people would

living

our units

prior tO

our acquisition

lost

to

be 335VII Alleged

Deceptive

Public

Relations

Allegationin

15

Page

Mill

has engaged

public/private

partnership with

in deceptive relations. public the City of East Palo Alto.17

.They

claim to

be

ResponsePalo Altorelationship

When Page Mills investors made the decision to acquire property in East we did envision ourselves as partners with the City We wanted positive of the rental as we worked to rehabilitate sizable percentage Citys

iblcJ

143

PM-0011

Mr

Theodore 2009

Eliopoulos

February

PageA2housinghousing improve stock securityrepair

neglected

streets

and roads and

seismically

upgrade

Regretfully Citys

the

rent-control

conflictsMill

discussedits

aboveto

appearthe plans

to

have where

poisoned

the

attitude for

towardcritically

Page

and

investors

point

evento

pemiit

applications

important residential

infrastructure

appear

have been

delayedNevertheless 8-hour-a-day bracingto

we havesecurity

plunged

aheadof

spending

nearly $12 million so far to implementrental

rehabilitate

uninhabitable buildings

units

install

seismic-safety landscapingto

prevent

possible

collapse

and

plant of

extensive

make

the community more livablearticlein

and address decades

blight

recent

Apartmentto

beenour

inspired

by our work

Management magazine said neighboring landlords have make some of their own upgrades The article highlightedcounterin

slate

people Palo

tile and granite entryways new wood decking would be surprised to find these upscale amenities

topscrime

saying housing

Manyin

multifamily for

Eastof

Alto

an area

that

has18

long

struggled with

reputation

and

lack

economicVIII

opportunities

Adversarial

Relationship

Allegation stretched

16

Page

Mill

has assumedof

an

adversarial

relationship

with

the

City that

has

the resources

the City

Responseof positive

Page

Mill

neverlittle

wantedcivic or

an

adversarial

relationship

with

the have

City Thattried

kind

relationship

forcelive

makes for changein

business

sensein

Instead badly

we

to

beof

We

employ 40 people

needed jobs and 70%

our

workforce

East Palo Alto

few

daysto

agopolice

to

assist the

the

East

Palo

Alto

Police

Departmentplacement

weto

signed

an our

agreementproperties area where

place

shotspotter the

gunshot

soundgunshots

system

on

so

can

triangulate

spund

of

and respond

the

actual

shots.occur

several beat Working With our security people we have hosted police have shared Our surveillance footage of criminal activity with the police

meetings

and

Our workof

with

the Menlo

Park

Fire

Department

which Troy

provides Holt

fire

protection

to

our part

the City

won

us praise from

area Fire Captain

IS

Emily 14

Landes

2008

Page MIII See attachedof

Properties

Transforming

East

Palo

Alto

Apartment Management OctoberBoardof Administration

Transcript

Committee

Open

Public Employees Meeting Session Monday December

Retirement

15 2008

System 145

Investment

PM-0012

Mr

Theodore 2009

Eliopoulos

February

Page

13

Weemergency

have safety

never20

seen

these

properties

in

such

good

state

of

fire

and

We

wanted

to

do even morethe

Webicycle

assisted

City

Engineer

in

preparing

and applying

for

state

funds

for

and pedestrian --Weoffered to

projects

pay

for to

grant

writer

consultant

to

help

East

Palo

Alto

gainin

access

to

available

money

pay

for repairing

some

of

the worst

maintained

streets

the state

We

were turned

downbus stopfor

Weto

offered

help protect

to pay to build them from accidents

the children

in

the Woodland

Park

area

and inclement

weather

We

were turned

downto

Webetter

offered

to

install

new

streetlights at

and

upgradeof about

existing

ones The

provide never

and safer

street

lighting

entirely

our cost

$600000

City

responded nor actedInsteadfailed to to

on the permit

request.21

the

Cilfy in

has wastedsingle

precious

resourcesruling

on

series

of

legal

actions

that

have

result

favorable

court

We

have They

repeatedly ignored

urged

the City not

take actions

that to

have already

been adjudicated

our advice

and dared

us to go

back

court

It

was

East

Palo Altos

stated

intention

to

confiscate

Pagelate

Millsin

future

rent carried

increases through

that

triggered

and accelerated

the rent

hikes that

began

2007 and

2008

Weof

very

much

regret

that

Ca1PERS

has put

been draggedit

into

the fray but as one

member

East Palo Altos

own

City Council

The

City

Council

is

the devil

here not CaIPERS.22

20

January21

20 2009 WestManager and Permit

Park

ManagementJennifer East East Palo Palo

office

Newell

Court

East

PaIb Alto

CA 94303Mill

See

attachedCity

correspondenceCity City of of

MooreAltoApril

Development

Officer

Page

Properties

to

Alvin

JamesApplication22

22 2008to pull

Mayfor

2008Servicein

Revocable

Encroachment

Alto

and

PGE

Application

AgreementMill

Joshua Melvin East Palo Area News Group 12/17/2008

Alto

council

asks

CalPers

investments

Page

properties

Bay

PM-001

PAGE MILL PROPERTIES

BATTLE

Owner

activist

trade barbs

East Palo Alto landlord community organizer exchange bribery extortion accusations

BY JESSICA BERNSTEIN-WAX DAILY NEWS STAFF WRITERbitter legal conflict

belweenstrange

East Palo Altostwist this

biggest the

landlord and

unhappy

tenantsactivist

took traded

week as

companyat

and

prominent under the

accusations

of attempted

bribery and extortion four-plex

Christopher

Lundof

community PageMill

organizer

and tenant

control

Properties

managementis

companyharassing

Woodland $600rent

Park Management increase threatening andvisits

LLC

says the firm

him

with

submitted

Pagewith

MIII

officials

demand paperwork he already an off-duty Palo Alto police lieutenant home by from them in counter that Lund tried to extort $20000letters that to his to

exchange

for agreeing

vacate

his unit

and solve the companys

problems

communitythe

groups andMills

unflattering

On Tuesday Pageaway fromand LundAgainst harassing saidlie Public

attorneysoffices

media coverage sent Lund letter ordering employees because

him

to stay

companys behavior

and

of his erratic

plans to responctwtth Participation bothoffice parties

an antiSLAPP

StrategEc

Lawsuit

lawsuit

The

only thing

seemand

Mills Palo Alto

Nov

agree on is that Lund met with General Counselto

visited

Page

Jim Shore and

Director of Operations

Russell that

Schaadt Lund who has workedwith

Shore

said

WednesdayMills

other tenants

to

oppose Page

THREATS

page 11

THREATSFrom pagerent

increases

offered

to

abandonthat to

his activismMill

for

$20000 Lundits

howeverbuy outlegal

says he merely suggested those tenants who wantedbattles

Page

could

cut

losses andin

leavecity

rather

than

engageletter

costly

with residentslater

and the

Four days

Page

Mills attorneys

sent

Lund

rejecting

his

PM-0014

demandlegation

$20000 buy-out Lund responded patently falsefor

Novwas

20 by

calling

that

al

ThenoquidIn

query regardingin

voluntary

vacate

agreements

exploratory

and

at

point

this

meeting was there Lund wrote

suggestion

of either

implicit or explicit

pro

quo

the days that followed

Pagean

Mill

approached Lund

the Palo Alto

Police

Department which Aspart

initiated

extortion

investigationcalled

of the investigation

Schaadt

on

Dec

while officers

listenedIn

that

tape-recorded

conversation

Schaadt

offered

Lund $20000

to

get

you out of the picture

Youdownalleged

said

Hey maybe weandall

the road

of this

buy you guys out and we get you out and you go stuff disappears Schaadt said referring to the has never been about personalall

Nov

conversation andit

ThatsLundthe

not on the tablelater

settlementin

responded

adding

That was

exploratory for

of the people

neighborhoodAlto police

Palo

Agent Dan

Ryan

confirmed

his

department re.corded thecomplaint

call

as

part

of an investigationfiled

into

Lund based

on

Schaadt

and

Shore

Weoffice

received

complaint

about

possible

extortion

and

we

did

investigate

that_alleqatioi

Ryan saidthe case

Wetofile

did

submit the case

to the district

attorneys

They have declinednotedthat insists that

Ryan

any charges was closedattemptedcall ofall

But Shore

Lund

to extort

the

company

then

backtracked

during the policethat

Mr

Lund

said

he was the source

of

our problems with CaIPERSwith

California Public

he was theagainst interview the policecall

System Employees Retirement one who was leading all of the advocacythat

the

newspapersEast Palo

that Altoin

us and

he could

makegivethis

that

all

stop

groups in Shore said Wednesday Schaadts

an

He

said

You

could

me money Lund who wassaid he interpretedin

unaware

of

investigation bribery

until

week

phone

as

attempt the

and went public with the story

Decemberis critical

After he launched

Web

site

www.epatenants beganstepping

org which upits

of

Page

Mill

Lund

said the

companyAlto

efforts

to discredit

him and

paint

him as

crazy

activistpolice

On Jan 29workfor

Lund saidPaloMill

Lt Timhis

Morgan

who does

contract

Page

was

loitering outside

house

snapping

photos

Lund

PM-0015

said he asked Morgan

to

identify

himself and

got no response

but recognizedChristine

him as the man who accompaniedGriffith

Schaadtrent

and

Pagesaidbut

Mill

attorney

to their carsin

at

January on both

board meeting The lieutenant was Lund

dressed Lund Scene

plain

clothes

occasions

said he later called

East Palo Alto policearrivedto take pictures

Morgan had

left

the

by the time

officers

Morgan wentunidentified

to the residence

of

Lunds

car after an allegedincident

person followedthe

Shores wife Shore said Thatposted anti-PageMill

occurred family

same day someoneis

flyers

near the Shore

homeunderstandingthat

Myhes wasLund

Mr Morgan whoto take

advisesof

us on security issues car to seeifit

not an employee the as

went

picture

Mr Lundscouple

same well

car

Shore said

Mr

Morgan

took

of photos of

Mr

RyanJohnson and

of the Palo

Alto Police

Department

said formerfor

policeMill

chief Lynneearly last

authorized

Morganin

to

do contract work

Pagethe

year

he began have

workingpolicy

for the

We We

companyof thatis

some

time

in

summeroutside of interestor the

the department that.carefullyto avoid

regulatesconflict

employment

and the purpose

any

appearance of conflict of interest Ryan said understand theres some controversy in recent months understand the history of the lawsuit and the allegations back betweenpoint

and and

weforth

Pagewhere

Millall

and

some

of the tenants

groupsmight

he

added

This

may be

of our

current

agreements

be reviewed

but thats

personnel

matterpolicy private

The departments employmentprivate

manualsecurityto

prohibits

employeesprivate

from accepting

outside

as

guardpotential

investigator or other similarof interestif

security positionthat

avoid

conflicts

Butsaid

doesnt

mean

they

cant have

outside

employmentCity Attorney

its not in Larkin

conflict

with their job responsibilities

Assistant

Donald

The Lundnoting

lieutenant played

no

role in the thatMill

departments statementis in

extortion

investigation

of

Ryan said Morgan echoedthat his contract

an interview

Tuesday

with

PagePalo

for

emergencynot involved

preparedness

con

sulting

As

far

as the

extortion

in

Alto for

Im Page

in

anyIt

of

thatto

Morgan said Im just consulting do with the police department

Mill

Properties

has nothing

PM-0016

But Lund workwith

said he wantsMill

authorities

to look into the

possibility that

Morganshis

if he

Page was in any wayit

influenced involved

the extortionin initiating

casethat investigation their

or getting

buddies on

E-mail Jessica

theyve got Bernstein-Wax

seriousat

problem on

hands

Lund

said

jbarnstein dailynews group corn

PM-aOl

iHL

rn

-o

On

-s

mostrole

of 01it

thecoIls

buildingslot

sir

hod

thein

hIghest the city

police lowest

service

Now

has

the

2001

MANHATTAN

BEFORE

200

MANHATTAN onein

AFTER gongfamily leader leaderin

In

inslonce single

was poor

living

homewas

repair arrested kept

The gongbut

eventuallyat

other

membersbythe then kinds

the

gangMill

congregatingthe

homehodofit

Page

bought

home ondareio

demowere

shed Thosewilling to

the

steps

luke

nprove

the

environ

rnenl

says Shoro

Page

Mill

Properties

continued

on page

60

16

october

2008

apartment

rncnogcrnc-i

PM-0019

Page

MIII

Properties

...ccnltnrred

from

pageJ

In

addition

to securityto

other

basic also elevatorsstairs

improvements

properties

were

needed

Crockedlocks leaky

pools brokendeteriorating roofs

busted daarrailings theissues

andof

and

wereto

just

few

that

neededfilled

be addressedwith

Manyandin

units

were

knee-high also

mold

garbage

The

companythroughout

invMtedEast

seismic

upgrades

their

Palo 100

Alto portfolio buildingsto

which

includes

around

ranging

from with

single-family

homesunits

complexes The

hundredshit

of

Should

Big

One

we haveout

much more protection

Shore

points

Nowingto

that

basic the that

life-safety

issues

ore

be

tackled upgradesreally

company

can

move on

may seem casmeticquolity oflife

but ing

affect

Landscappatches

420

OKEEFE BEFORE

has

been

huge

focuswith

Dirt

hove grownpertect

been

planted that spot

grassto

and overthe

weedshiding

usedfor

provide

weaponspulled

and drugoutMill

paraphernalia

hoverose

been bushes

andhas

reptoced even

with

Pagecity to

begunto

landscapingtheir

properfies

adjacentsure

propertIes areas

maketheir like

surrounding The

also look

best

ongoingthe

maintenance GaleMills

is

paintingRussell

Golden Page

Bridgedirector

jokesat

Schacdt

property

rronogernent

Inc

enhancementsunits Ar

are

aisa evrdent

inside lhetar

Woodlandunits

Apartmentsreceived

exomnple vacantpaint

hcve

new carpetnetsThe

tile

and

kitcnen

cabithein

camoonyplans privacy pointingto

also plant

resurtaced

000i andfor

palm

trees

tron

mare

and and

shadereplacing

Other

plans

include give the

siding to 420 OtCEErE

complexhrkianis

mare

cattage-slyle believesat

AFTER

lank nateskun.t

whoone

the

36has Of

.jeveiorrrent

many Vattote naIL

course

allot

lhee

irpravemenistic

well astried to

the City freeze

at

East Pataafter

Alto

whiclr corn

rrrn-endr.s ontanrintat prideii

We

tar

danr

came at cap Sham csimaeshasr.penr

rents

tenants

how

UUi

uroperties

and

companyso tar askwitnr

aaunc

$12still

miTtenIc

panedtime courtsfight that

aboutfreeze

the increases

Al press

operategive

andcuris

the

services

were

tryingAlt

much maie workAlto cas.s als

camecon

had he

beenis still

cented

by

he

residenTs thaiin

he adds

we

Thougntrol

East Paloat

under been

rent

rhaughthe

city

trying to

return tckeir..rt5

the

resiaertts

raspact

andthink

ameto

the

have

passedtram the

icreases

arde re

where

they

live

and

1itugh wankscurue vacat

ide

tenants

berret.tinrg

drecilca

were

ctaing

Theseat

rent increasesI.e

nave

beenare

accots as

Weand trae

rave

followed

thoughtful

legal

conerirron minanity

whoin

St

social never

policy and

explains never

Shareraise

We

living

the

unrts

will

rents

60

october

2308

apartment

mar agenrenl

PM-0020

outside rents

of

whotso

were allowedin

to

do

but they

their

own upgradesta

Many

properties

adjasimilar

were

tow

manynot

cases

that

cent

Page

Mills arelike

undergoingpoint

economicallytoiking

could

be

justified

Were

improvementsing

new

new deck

obout two-bedroomfor

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company

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tenantslike

This

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kind

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East Polo Alto

two

agofrom

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program

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propertiesMillis

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apartment

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2008

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of

PM-0021

PAGEMILLII

April

22

2008

Anthony

Docto

birector Alto

of Public

Works

City of East Palo

of Public Department 1960 Tate Street East Palo

Works

Alto

CA

94303

Re

Submittal

of Street Lighting

Plans

for

Roadway

Safety Lighting

Upgrades

Beat

Dear Anthony

As

follow

December up to our meeting with you onElectrical Street

2007

where we submitted

the an

preliminary

Lighting

Plans

dated

11/02/07

we

are transmitting herewithlighting

Encroachmentof

Permit Applicationin

for the

proposed AltoPlans

roadway

safety

upgrades

westsets

Highway

101

the BeatElectrical

area of East Palo Street-Lighting

We

have

enclosed

eleven

11

of

Designelectrical

Developmentengineering

dated

4/17/08 and

prepared

by ourestimateis

consultant

AlfaTech

Cambridge Groupin calculating

their

preliminary

of probablethe

construction

costs for your use

the permit

fee

Also enclosed

work plan for the Capital Expenditurepreviouslyalso for

Street replicating

Lightingthis

lrnprocement Program wein

discussed

to

assist lighting

the City

in

program

other

areas

We

have

enclosed

specifications

and

completed

PGE Applicationthey canlike

of the Cityfor

Service

your

review

As

previouslyfor

discussed

we

submitted

these plans

to

PGE andWe

begininitiate

engineeringcontract in

drawings with order

PGEto

these upgradesat

upon

approval

the

earliest

opportunity thestreet

by and would

the City

would

to

appreciate

your review

and comments

move forwardadvanceplease

with

lighting

improvements

Thankany

you

in

forcall

your timely reviewat

and considerationor email

of these plans

If

you have

questions

me

650

833-3858

me

at

jmoore@pagemill.com

cc

Salani

Wendt

Transportation

Commission

Secretary

480 Cowper Tel

Street

Floor

Palo

Alto

CA

94301

650

833-3800

Fax 650 688-6820

PM-0022

PAGEMILLMay 82008

Alvin James City ManagerCity

of East

Palo Alto

2415

University

Avenue

East Palo Alto

CA

94303

Re

Roadway

Safety Lighting

Upgrades

Beat

Dear Alvin

Westill

understand very

andlike

much

within

the Beattoillicit

you were unavailable to meet with us today but we would levels that currently exist meet with you to discuss the limited lighting aiea which create concerns for vehides and pedestrians and can safetyare sorry that toactivities

contribute

whereStreet

darklighting

zones existplans our for

We

are

endosingsafety

for

your reviewupgrades

and which

consideration

the

proposedto

roadway

lighting

we planned onwith an

providing

you today

at

encroachment Docto

permit

application

meeting We formally submitted these plans and other rdevant to design and cost information

Anthony

on April 22 2008 advance

We

are transmitting theseat

plans

to

you

in

of our rescheduledto

meeting

on Monday

May 12 2008with youinputin

200pmdetail

to give

you an opportunityforwardto

more

We

look issue

them prior to discussing them meeting with you and appreciate your valuablereview

on

this

very important

Thank youassistance

If you have your time and consideration any questions do not hesitate or email to call me at 650 833-3858 please

for

or

if

can

be

of

me at

jmoorepgemill.com

Development

Officer

cc

Anthony

Docto

Director

of Public

Works

480 Cowper Tel

Street

21 Floor

Palo

Alto

CA

94301

650

833-3800

Fax 650 688-6820

PM-0023

Capital Expenditure Street Lighting

Improvement Program

Problem StatementTherein the right-of-way lighting levels

is

currently to

serious

lighting

deficiency

and

this

program

proposes

measuresuniformity limited

improve

the situation

There

are limited

and lack of lightingAdditionally lighting with has been

which

creates safety other

problems for vehiles and pedestrianscontinue to for

lighting levels

activities

be prevalentcondition

Additional

installed

on private properties

to

compensate

this

Mission

Statement

The

goal

is to

improve safety the most cost effective Improvement

and

efficient

way possible byfocuses 101

implementing on the

Street Lightingstreet

Program This improvementthe public right-of-way

program

primarily

lighting

system within

on the west side of U.S

in East Palo

Alto

General Program Scope

Evaluation Coordinate

of existingelectrical

street

lighting

conditions

locations

and

connections

requirements

of new lighting fixtures with

PGE and

verif

that

new

fixtures

can be mounted Development

on existing poles Documentslight

Prepare

Design

including

plans

and specifications

showing

existing and proposed Generally Engineering follow

new

street

locations for lighting adopted

guidelines

and standardsCalifornia

by lBS illumination and

SocietyAssociation

Caltrans

Department

of TransportationOfficials

AASHTOof Public

American Wthksfor

of State Highway Transportation Documentsto

Submit Design

DevelopentCity

City

of East Palo Alto

Department

review aid approvalwith

Coordinate

of East

Palo

Alto

on proposed might have Department

lighting

layout pole locations

and

any lighting requirements Coordinate with City of East Palonecessary Coordinate construction

that the City Alto

of Public

Works

to

obtain

the

encroachment

permits Palo Alto

with City ofBast

andPGE

on an agreed

upon

schedule

bf

PM-0024

PRonsszonAL

Coiuownon

ZACKS UTRECHT

LEADBETTERTclephoneFacsimile

415

956.8160

415288-9755

www.zulc.cozn

November

2008

Mr1643

Christopher

Lund

Woodland

Avenue

East Palo Alto

CA

94303

RE YOURDear

LETTER

DATED OCTOBER 262008

Mr

Lund

Wemanagerdated During

represent

Woodland

Park

Managementbuildingthat

LLC

and

1643

Woodlandletter to

LLCclient to

the to

property

and

owner respectively of

the

you you

reside delivered

in

Thisin

responds our and

your

letter

Octoberthat

26 2008

and

to

information

person

yesterday anddesist certain

meeting

you demandedinterfering for

$20000with

to vacate contractualis

1643

Woodlandthat

cease

from your inVestors

recent

activities

relations respectfully

our

client

enjoys with

Your demand

$20000

buy-outabout

rejected

With performingthe otherto

respect the

to

your complaints

maintenance

andare

upgradesfor the repairs

that direct

the

owner

is

roof

of your buildingin

these improvements

benefit

of you and ofthe

tenants not

residing

the building dwelling

As

the

worknotice

involved

to

commonCivil

areas

property and

any

individual

unit no

was required under

Code

Section

1954

Youclaimscertainly efforts to that

are

correct recite

that in

each

tenant

can

separately

sue

the

owner

for the

nuisancelandlord

andwill

other

you

your

letter that

Should

such

actions

be

broughtto

almost

prevail

To the extentand upgrade

your complaint appearsfor the

be

solely

premised

on

the

owners

improve

the property

tenantsis

there

can

be noto

nuisanceagainst

and no any such

interference

with an

implied

covenant

The owner

fully

prepared

defend

claims

Your

letter

fInther

alleges

withoutthat

supportacts

that

the

ownerrise to legal

is

attcmpting claim under

circumventCivil

the

EPA

rent control

ordinance Putting

and

such

somehowof

give or

Codethe Palo

Section

1940.2record

aside

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complete

lack

factual

analysis in the

in

your

letter East

owner ofAlto unit

of 1643there

Woodlandarc

Avenueon

owns no more thanthe rental rate that

units

City offor

and

therefore

no

controls that the

maythe

be charged

your dwellingthe

Similarly and Thereits

we

understand your tenancycurrently will

predecessor been

ownerto

of

building onthe the

enjoyedrental

same

exemption chargedanticipates

that are

has never two

subject

controls

rate that lilly

may be

at least

legal

actions

pending

whereinwill

owner

rightsits

be favorablystate

adjudicatedlocal

The ownerinsure thatit

continueadjust

to aggressively the rental rates

pursue

all

of

right

under

and

law

to

may

of

its

PM-0025

Mr

Lund 2008

November

units

to the

market

conditions decisionto

To therefrain

extent

that

you have you

enjoyedrental

below marketrate

rental

rates

in the

past

ownersin

from sendingits fixture

increase should

not that

bethe

construed

any

way

as

waiver

of

rights that

in that suggests

regard your

We

understandis

ownerrate

mayfrom

have

mistakenly Thisrental letter rate

servedis

you

withto

notice that

unit

protectedis

by

rental

controlsthe

intended

clarify the self

1643

Woodlandexemption

Avenueprovided

automaticallyin the

exempt

controls

under

executing

SPA

Rent

Stabilization

Ordinance

The owner goodfaith

has agreed will

to

credit

your

rental

accountis

in the

amount of $200admissionrental the

as

gesture fault or

of

and goodthe part

This

good

faith gesture

made withoutto

of any onis

liability

on

of the landlordas

Shouldin

you wish

vacate

yourclient

unit

or before also preparedtrust

Novemberto

30 2008

you

indicatedinfull

your meeting refund your responsethe to

with oursecurity

owner

refund yourthisletter

Novembersatisfies

rent

andfor

deposit without Should

deduction anyfUrther

that

your requestfeel free

yours

you have

questions or concerns

to contact

undersigned.

Very

truly

yours

KS UTRECFIT

LEADRETTER

PC

drew

Zacks

cc

Jim Shore

Esq

PM-0026

LflLfl.JPROFESSiONAL

flit

Lv

UTD

CHT2009

233 San

MontgomeryFrancisco

Street

Suite 94104

400

California

CORPORATION

Tclcohone Facsimile

413

956-8100 288-9755

4b

www2uIpc.com

February

Mr1643

Christopher

Lund

Woodland Avenue

East Palo Alto

CAHalt

94303 Harassment Trespass andIntimidation

ReDear

Request

to

All

Mr Lundrepresent

We

Woodland

Park

Managementrespectively

LLC and 1643 Woodlandbuilding

LWin

the

property

manager andto

ownerthatMill

of the

you

reside

This the

letter

is

requestof

you

refrain

from further direct communications Park

with

employees

Pagethat

Properties Woodlandin this

ManagementFurtherthis

LLCis

andto

1643

Woodlandon

LLC except as providedcertain assertions

letter

letter

place youpotentially

notice

made

by you

are untrue andof

maliciousclient

and slanderous you havebe

Continued assertionof their lack that

untrue statementsmerit areresult of

about

my

after

been informedfor

of factual

defamatory your untrue

and and

you

may

liable

any damages

may

occur

as

malicious assertions

Fact Page You havebusinessthis

Mill

Properties

..Has Improvedyour position and

the

Neighborhoodyour belief that our

right

to

advocateare

assert

practices

predatory

Howeverthe

we

disagree

Your usecontributions

of

pejorativeclient

andto

offensive

term ignores

very positive housing

mythe

madeof his

enhancing

East Palo Altos

stock and

reducing

numberat

virtually

uninhabitable

slum unitsthe

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recent appearance

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To quote Mayor Ruben CalPers Board workthat PageMill trying

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improve the neighborhood.. Even youreal

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one

issue

that the of your discussions with my client acknowledged East Palo Alto is ...about to maintain some tryingin

affordable

housing stock

the

area and also allowing added.J

Page

Mill

to

make

reasonable profit

PM-0027

Christopher February

Lund 2009

Page

of

Fact So-calledYour

illegal Rent Hikes

Werentdescribe

Illegal

After All

epithet

predatory

equity

fails

to

the

need

to

increase the

attract tenant security quality of East Palo Altos housing stock improve reduce slum housing to improve the neighborhood investment and jobs

Nevertheless

while

it

is

offensive

and

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protected

speechbut

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you

your phrase continue

predatoryto assert that

increasesin

are

illegal

matter hasto

now beendo soto

litigated

and

decidedliability

Page Mills favor you cannot continue The making of false statements with thereputation

without

risking

intent

damageSpecifically

someonesnot only

and

business amountsthat

to

defamationin

have

the courts

determined

landlord

East Palo Alto

may

even the City and up to the maximum rent stated on the certificate the Rent Stabilization Board have now conceded this key point In recent chargebriefs thatit

bothis

in

the Superiorthat the

Court and

the

Court of Appealto

the

City stated

true

law allows

landlords

charge

tenants

up to thethatthisis

amountsthe

stated

onif

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certificatesis

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concedescalculation

case

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there

an

error

the

ThusPark and

bytheto

definition various

disputed

rent

increasesprevailed with

arein

legal

Woodland

property owners

have

every phaseif

of the

litigation

date

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that

you

are

armedthe

this

knowledgeasresult of the

you continuecanof

to

publicizeliable

statements

that

rent

increasesclients

are illegal you

be held you

now knowpotential

damages to be untruefinancial

incurred

by

my

statementsof

To

give

you

an idea

magnitude

such

damage

haveto

attachedPull

recent newsin

article Mill

East

Palo Alto

Council Asks CalPers

Investments

Page

Properties

Fact ExtortionWhile

Is

Not Protectedbad no andright

by the

First

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some

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ugly

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underto

the

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my

clients

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letter

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andto

harass employees be untrue

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you

know

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specifically of

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you camein

to

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clients of

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the

late

afternoon

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2008 andyou

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presence

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and

demandedincluding

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continue hammeringthe

the

media

to lining

up

Joshua

Melvin

East Palo

Alto

council

asks calPers

to

pull

investments

in

Page

Mill

properties

San Jose Mercury

December

17 2008

PM-0028

Christopher February

Lund 2009

Page

of

New

York

Times2and

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advocacy

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Youth

United for Communitywith the California

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onin

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with

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briberyin

offer you reportedoffer of

CALPERS and some media wasthe

fact

an

madeyoufor

at the

Palo Alto

Police

during

their investigation

extortion

What

is

most

interesting

about

the police to

directed

call

is

that

while you you

attempted todid

make

blanket

denial

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admit the following

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meeting

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000

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Schaadtthis stuff

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forward

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Chris

Lund Russell amof with terms

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things of

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person

addedSchaadt In the properties there are flyers on the door and you know dont guess how this is going to stop we sit down and meet or do whatever.. mean you know Chris Lund fleah can.. am in most of what you guarantee you position now to control know YUCA United for Community Change or some of these.. alt the other groups you had stepped in becau