East Palo Alto's largest landlord has closed its offices in the city and pulled property management staff from its apartment complexes, leaving facilities in disrepair and tenants in some 1,700 units wondering whether to pay their rent.
Police, firefighters, code enforcement officers and county health inspectors dropped in on the complexes owned by Palo Alto-based Page Mill Properties throughout the afternoon Friday, asking questions of the residents and documenting code violations.
Unreachable for most of the day, Page Mill officials released a statement shortly after 5 p.m. implying the company has run out of money.
"We have reached an interim solution with Wells Fargo Bank that allows Page Mill to maintain control of the properties in the short term," the statement said. "Page Mill will continue to manage the property and collect rents, and the bank will release the money necessary for normal operations of the property. Rents are payable in the normal fashion and the services will continue as usual."
Page Mill has been a lightning rod for controversy in East Palo Alto since it began buying up apartments in the city's Woodland Park neighborhood in 2006. Tenants have complained of harassment, spotty maintenance and big rent hikes, and the city has battled the company in court — mostly unsuccessfully — over alleged violations of its rent control ordinance. Page Mill, which also owns major commercial properties in SanFrancisco and San Jose, has responded that it is just trying to improve long-neglected properties.
Lately, however, the company has run into serious financial problems with its East Palo Alto holdings. A spokesman told The Daily News last month that Page Mill was in danger of losing its properties after missing a $50 million payment to Wells Fargo.
In its statement Friday, the company put a positive spin on its latest agreement with the bank.
"We are proud that our efforts will preserve the jobs of more than 45 staff members, many of whom are from East Palo Alto," the company said. "We expect no disruption to tenants during this period."
But there has been disruption, said dozens of anxious residents who wondered Friday whether the complexes had been abandoned entirely.
After weeks of declining maintenance at the complexes, including pools that turned dark green with algae, residents said a moving van showed up Thursday to haul furniture, computers and other valuables from the company's leasing and property management offices. Workers also removed signs telling residents whom to contact in case of emergencies and declined to answer questions, several residents said.
The scene at a Page Mill complex at 5 Newell Court on Friday was chaotic. Debris littered the courtyard and children scaled the fence of the pool, which San Mateo County health inspectors closed last month after Page Mill stopped cleaning it. Tenants paced and conferred outside the vacant property management office, trading rumors and debating whether to pay their September rent.
A sign on the office window read: "Please put all rent in drop box, or if you have any questions please call (650) 324-6180." The number rang busy throughout the day.
Page Mill's corporate headquarters in Palo Alto was also unreachable, with a recording saying the office was closed.
Marisela Alvarez, who lives at 5 Newell Court, said her family filled out a money order for the rent but was agonizing over whether to place it in the drop box. On one hand, they feared the evictions that have made Page Mill infamous among some of its tenants. On the other hand, they weren't eager to donate hard-earned cash to a landlord that appeared to be going under.
A tenant who asked not to be named said he wasn't going to pay his rent because he worried resident gang members would break into the drop box and steal it.
Dean Peterson, San Mateo County's director of environmental health, said his office has fielded several complaints about the condition of Page Mill's complexes. He said obvious code violations, including the pools, have him working with the San Mateo County District Attorney's Office to consider enforcement options.
"Regardless of your cash flow, there's always a responsibility to maintain your property in a safe manner," Peterson said. He added, "The health system will respond to any and all complaints, document any violations and work with the residents and the city of East Palo Alto to address any immediate dangers to life and health."
East Palo Alto Police Chief Ron Davis visited one of the complexes Friday afternoon and said he was troubled to find the lights out in one of the hallways and no maintenance staff available to fix them.
"What I'm seeing right now is an abandoned property from the owner's point of view," he said.
Davis added that he's been told the Menlo Park Fire Protection District has some of the buildings on a 24-hour fire watch due to problems with the fire alarms. Fire Chief Harold Schapelhouman could not be reached for comment.
Page Mill didn't say how much longer it will hold onto the property, but resident Celia Vilchis said staff members showed up briefly at 5 Newell Court on Friday afternoon and told residents they would maintain the property for three more weeks. They didn't say what would happen after that.
Another tenant, Wayne Curtis, said he doesn't care what plans the company has in store — he wants out.
"This place is run like a ghetto," he complained. "Everything's broken here." The way Page Mill has managed the property, he added, "A bank would be better."
E-mail Will Oremus at woremus@dailynewsgroup.com.
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