The Mercury News

NIMBY’s days are numbered after landlord hikes rent

Oakland artist incubator space NIMBY hopes to move 300 miles north to a desert ranch

- By Erin Baldassari ebaldassar­i@bayareanew­sgroup.com

OAKLAND >> Michael Snook is tired.

For the past 15 years, he’s sat at the helm of NIMBY, an arts incubator that provides studio space and shared tools for makers and creators. Its alumni have built everything from giant installati­ons for Burning Man to intricatel­y crafted sculptures that can fit in the palm of your hand.

But now, its days in Oakland are numbered. NIMBY has until the end of September before its rent will triple. A nearly two-year search to find anything comparable in the Bay Area has been fruitless, leaving Snook exhausted. It’s a fate to befall many of the do-ityourself maker spaces across the city as the increasing demand for land incents property owners to find higher-paying tenants.

Murray Hill Partners, a real estate investment firm, purchased the Amelia Street block near 84th Street in East Oakland at the end of 2017, said Steve Wolmark, a partner in the firm. It made improvemen­ts to the neighborin­g buildings and began leasing to cannabis cultivatio­n and manufactur­ing companies.

While Wolmark says he doesn’t have a new tenant lined up for NIMBY’s space, his company applied for a cannabis cultivatio­n permit there, according to city officials. He says he needs to raise the rent closer to market rate to pay for deferred maintenanc­e in the old warehouse. Demand from online retailers seeking distributi­on centers in dense urban areas, combined with the legalizati­on of recreation­al marijuana, is making spaces like NIMBY’s scarce

eral of them sought to maximize their illicit gains by deducting their bribe payments from their income taxes as fake charitable contributi­ons. And they did so from perches at the apex of money and power in the United States.”

The scandal revolved around corrupt California college admission consultant William “Rick” Singer, who has pleaded guilty to racketeeri­ng, conspiracy and fraud charges and cooperated with investigat­ors. A sentencing date for Singer has not been set.

Prosecutor­s said Singer offered wealthy parents two avenues to cheating their kids’ way into elite universiti­es with money paid through his bogus education charity. The payments would go to corrupt test proctors who made special arrangemen­ts for the students to take the SAT or ACT entrance exams and then corrected their answers, or to bribe university coaches to flag the applicants as athletic recruits with phony profiles.

Sixteen parents, including Hollywood actress Lori Loughlin and several from the Bay Area, continue to fight the charges. Trials could begin in October and stretch into next year.

Prosecutor­s said that beginning in 2015, the Henriqueze­s

paid Singer nearly $50,000 for test cheating for their two daughters and $400,000 toward bribing the former Georgetown University tennis coach to admit the older girl as a “side door” recruit to his team.

During a car ride home with Singer’s corrupt test proctor after he corrected the older girl’s answers on her SAT exam, prosecutor­s said, the proctor, who also has pleaded guilty, “gloated with Elizabeth Henriquez and her daughter, celebratin­g their successful fraud.” The older daughter was admitted to Georgetown.

Prosecutor­s said that although Manuel Henriquez acknowledg­ed participat­ing in the conspiracy, he

“continues to deny that he was complicit in the fake athletic recruitmen­t,” even though he directed the $400,000 payment to Singer’s sham charity. The Henriqueze­s wrote off the payment as a charitable donation on their 2016 tax returns.

Prosecutor­s said that in exchange for test cheating for their younger daughter, Manuel Henriquez used his influence at Northeaste­rn University, where they say he is a “prominent alumnus,” to secure admission for another Singer client. The Henriquez’ younger daughter was admitted to Northweste­rn University.

In recorded conversati­ons with Singer in late 2018 and early 2019, when he was cooperatin­g with investigat­ors, prosecutor­s said the Henriqueze­s schemed with him to align their stories.

“So what’s your story,” prosecutor­s quoted Elizabeth Henriquez in one of those calls with Singer, who they said replied “that you gave your money to our foundation to help underserve­d kids.”

“Of course,” Elizabeth Henriquez answered. “Those kids have to go to school.”

In a later conversati­on, Manuel Henriquez told Singer that “there’s no paper trail of money” in the scheme with the younger daughter because he helped Singer get another student into Northeaste­rn.

Georgetown would not comment on any specific students connected to the admissions scandal but said last May that the university had dismissed two students admitted based on false claims through the former tennis coach, Gordon Ernst, who has pleaded not guilty to charges of participat­ing in the bribery scheme.

Northweste­rn University had no comment Tuesday about the status of the younger Henriquez daughter or any other student connected to the case.

Lawyers for the Henriqueze­s have not yet indicated in court filings what sentence they consider appropriat­e.

 ?? RAY CHAVEZ — STAFF PHOTOGRAPH­ER ?? NIMBY founder Michael Snook, left, and artists Gaige Qualmann and Cloudy Cates are photograph­ed in front of their studio Saturday.
RAY CHAVEZ — STAFF PHOTOGRAPH­ER NIMBY founder Michael Snook, left, and artists Gaige Qualmann and Cloudy Cates are photograph­ed in front of their studio Saturday.

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