Empyrean Towers in Oakland a step closer to rehab: 2 Investigates
March 2017
http://www.ktvu.com/news/234658169-story
OAKLAND (KTVU) -- More than two years after 2 Investigates first exposed unsanitary and unsafe conditions at the trouble Empyrean Towers hotel in Oakland, the property is now one step closer to being rehabilitated.
The City Council on Tuesday night approved a resolution giving the city authorization to negotiate a deal to have the property deemed a historical site, through the California State Historic Preservation Officer (SHPO). That would free up funds as part of the rehabilitation process.
According to the proposal, “the purpose of entering into the Agreement is to minimize, reduce or avoid adverse effects on the historic building” while it is being rehabilitated and eventually sold to a non-profit that plans to turn it into affordable housing.
Last March, a bankruptcy judge approved the potential sale of the property to the Berkeley-based affording housing non-profit group Resources for Community Development (RCD), paving the way for what tenants and their attorneys hope is reform at the hotel.
Part of the court’s decision requires that the building is maintained as affordable housing for at least 55 years.
But the building that some tenants called a “nightmare” is still far from a dream. 2 Investigates visited the Empyrean Towers on Wednesday to find holes in the walls haven’t been fixed, and the elevator is still not functioning.
Resident Katherine Bergman, 83, says she is forced to climb flights of stairs to her home. And due to faulty plumbing, Bergman says she resorted to bathing with baby wipes during cold snaps.
2 Investigates first exposed dangerous and unsanitary conditions at the Empyrean Towers more than two years ago. Uncover camera footage revealed fire damage, broken toilets, missing smoke detectors, and uncollected garbage among the problems on a long list of complaints reported by tenants.
In March, it already appeared that a major facelift was well underway. At that time, the building had new paint, light fixtures, a heating system and hot water heater.
Nearly two years ago, tenants were forced out of the building by a serious health scare when investigators found coliform bacteria in the water in one of the pipes. Some residents told 2 Investigates by the time it was discovered they already drank the water and had gotten sick.
The City of Oakland filed suit against the owners of Empyrean Towers in April 2015, accusing management of illegal evictions, failing to make repairs and for creating a public nuisance. Inspectors documented dozens of problems including broken windows, faulty plumbing, and an elevator that was frequently out of service.
At that time, owner Alice Tse agreed to a deal that would provide $500,000 for a long list of overdue repairs. But shortly after, Tse had filed for bankruptcy and control of the property was handed over to a Chapter 11 trustee.
Lina Torio is an agent for the trustee overseeing the property while it's in transition. She says the elevator would cost $3 million to repair and her group is not authorized to spend that money during the bankruptcy.
Torio showed 2 Investigates a new water tank installed for the entire building and other upgrades. She said it’s not the trustee’s job to renovate, but rather keep the property safe until the ownership transfer is finalized. That is expected to happen in March 2017.
KTVU's 2 Investigates team was honored to receive a 2016 Edward R. Murrow Award for continuing coverage of the dangerous and unsanitary conditions at an Empyrean Towers.
Landlords show up to support embattled landlord of Oakland's Empyrean Towers:
2 Investigates
May 2017
http://www.ktvu.com/news/2-investigates/257674523-story
Dozens of volunteers gathered in front of Oakland City Hall on Friday to show support for a local landlord at the center of a legal fight over the unsanitary conditions at a residence hotel she used to own.
The city is suing Alice Tse over the conditions at the Empyrean Towers hotel after a series of 2 Investigates reports uncovered the unsafe conditions inside. Tse’s supporters say the city is treating the property owner unfairly.
“If this thing happened to Alice, it will happen on every property owner in the Bay Area,” said volunteer Alex Ko.
A crowd of about 30 people chanted in English and Chinese outside and carried signs, some saying “Alice is innocent,” before taking their protest inside City Hall.
Tse did not attend the rally herself, but for the first time her mother Jannny Tsui spoke publicly, through a translator, to defend her daughter.
“She says she doesn’t have money for living,” the translator said on behalf of Tsui. “She’s asking the questions ‘Why? What did I do wrong? What did my daughter do wrong?’”
Tsui said the city has seized some of her property as part of the legal claims against her daughter.
In 2015, the City of Oakland sued Tse and Empyrean Towers alleging years of code violations, illegal evictions, and even abuse of tenants. Later that year, a court-ordered receiver stepped in to run the day-to-day operations of the Empyrean Towers after a judge stripped control of the hotel from owners.
The move was one of the demands in the city’s lawsuit filed by City Attorney Barbara Parker. Parker's office credited 2 Investigates for exposing unsafe and unsanitary conditions at the property.
2 Investigates revealed video and pictures showing brown water in tenants’ sinks, holes in walls, broken doors in the common bathrooms, cracked windows, faulty plumbing, and incomplete repair jobs.
Cell phone video taken by an attorney representing some tenants revealed the doors to some vacant rooms at the hotel had been nailed shut.
When we asked Friday about the living conditions at Empyrean Towers, Tsui said her daughter was in the process of fixing the issues, but the city did not give Tse enough time. Although she could not provide proof, she said in some cases the tenants caused the damages themselves.
“The city already inspected it and the next week, they’d come back and it would be broken again,” Tsui said.
Friday’s protesters, some of who are landlords themselves, said they feared Tse’s case sets a dangerous precedent for all Bay Area landlords.
“We are afraid the government will do this to other owners too, and not giving them their fair chance” said Meina Young, a volunteer at the rally. “The government is trying to take over the property and that is not fair.”
In July 2015, Tse agreed to a deal that would have provided $500,000 to cover a long list of overdue repairs at Empyrean Towers. At the time, Tse also agreed not to oppose the decision to place the property into receivership. The funding and receivership ultimately fell through and Tse filed for bankruptcy that same month.
Last year, a federal bankruptcy judge approved the sale of the Empyrean Towers hotel to a Berkeley-based affordable housing non-profit group called Resources for Community Development (RCD), paving the way for what tenants and their attorneys hope is reform at the hotel.
2 Investigates reached out to Tse but did not receive a response before the time of publication. At a hearing in March, Tse also declined to speak to KTVU producers regarding the ongoing Empyrean Towers lawsuit with the city.
