Oakland City Attorney Statement: $500,000 not enough to clean up Oak Knoll, October 8, 2009


The City Attorney’s Office appreciates SunCal’s announcement today that it will seek to secure $500,000 for maintenance and clean-up at Oak Knoll. While that’s a good start, it doesn’t come close to addressing the amount of work that needs to be done.

Like every other property owner, the trustee overseeing Oak Knoll is legally responsible for abating safety hazards and nuisance conditions. SunCal and its owner Lehman Brothers are clearly focused on protecting their assets in bankruptcy. However, these companies can’t ignore the law and their legal responsibilities in cities where they used to do business.

Today’s announcement is the first sign that SunCal and the bankruptcy trustee intend to comply with the Order to Abate served by the City in June. However, the bankruptcy court still must approve the payment, and the trustee has yet to file court documents asking for approval.