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Park management told residents the increase would pay to repair severe flood damage the park sustained in 2005.
However, the consultants said an increase of $15 to $25 per resident would be more than enough for the park’s owners to recover their costs.
The city’s Manufactured Home Rental Adjustment Panel will review the findings at a public hearing Wednesday at City Hall. The panel works independent of other city committees and resolves disputes over rent increases, said Redevelopment Manager Armine Chaparyan.
Mark Alpert, a lawyer representing the owners of Polynesian, said the report is based on flawed calculations.
“They made up their methodology out of thin air,” Alpert said. “(The consultants) have no experience in rent control.”
Park owners will be presenting additional information at Wednesday’s meeting, Alpert said.
The consultants have experience analyzing real estate, housing and re-development projects and programs, Chaparyan said. Phone calls to the consultants were not returned Monday.
Hunt Braly, a lawyer representing park residents said the flood damage could have been avoided if the owners had managed the park properly.
“We’re still not convinced this park has established its basis for any increase.” Braly said.
Park residents’ lawyers sent a letter to the city in December saying the rent increase could be retaliation for a negligence lawsuit that cost park owners $500,000 to settle last year.
Owners told residents they would be increasing rent either $200 or $135 in September.
“It’s certainly suspicious that they waited for the litigation to be settled and then brought a significant rent increase,” Braly said.
Alpert said park owners have a right to recover the money they spent on repairs; arguments claiming retaliation are a “distraction;” he said.
“I have no problem with the owner of a business venture making money,” said Polynesian resident Tom Foster. “But this $200 a month increase is absolutely ridiculous.”
Foster said he expects about 100 park residents to come to the hearing.
“If the rent goes up that high,” Foster said, “nobody could sell their houses because nobody is going to want to pay the kind of rent (Polynesian) would charge.”
