Publication Date: Friday Apr 17, 1998

EAST PALO ALTO: Rehab work starts on apartments

The Pepper Tree Apartments in East Palo Alto, closed in January after the city found a slew of problems, may be ready to open within the next two weeks.

That's the estimate of Mark Moulton, executive director the Peninsula Habitat for Humanity, which is organizing volunteers to do the work.

The 33 apartments at 1717 East Bayshore Road were evacuated Jan. 29 on orders from the city building department, San Mateo County Health Department, and the Menlo Park Fire Protection District because of unsafe conditions, including a natural gas leak.

The gas leak has been repaired by the apartment complex owner, Richard Herndon, but other structural repairs are needed, including work to fix water damage and other damage to floors and walls in most units.

Herndon rejected an offer on March 9 from Habitat for Humanity to do the work, saying he would rather do it himself.

But the city stepped in last week and reached an agreement with Habitat for Humanity to do the repairs. City Manager Jerry Groomes had earlier told the City Council that the staff was frustrated by how long the repairs were taking. Pepper Tree residents have attended several council meetings to ask officials to speed up the process.

"The work began today and should take about two weeks," Moulton said on Wednesday. "We'll easily have 10 to 12 people a day working there."

More than 100 Pepper Tree tenants have been forced to find other housing since Jan. 29, with several families staying at a Redwood City motel at the city's expense.

Groomes said last week that the city has incurred $50,000 in expenses so far in dealing with the Pepper Tree, including the motel bills, and about $15,000 worth of materials will be needed to bring the apartments up to building code. The city expects to recoup its costs by placing a lien on the property.

Pete McCloskey, Herndon's attorney, could not be reached for comment.

On Feb. 2, Herndon filed a lawsuit against the city, alleging that the forced evacuation of the apartments was a form of inverse condemnation and was done to lower the value of the property.

The city's redevelopment agency is in the midst of negotiating a purchase price with Herndon for the apartment complex, which will be torn down to make way for the first phase of the Gateway 101 redevelopment project. So far, the city and Herndon are far apart on a purchase price.

Once the apartment complex is sold to the city, the residents will have 90 days to leave before the complex is torn down.

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