July 12th, 2019

Dear Co-Owners:

Since the ESJ Tower Condominium was built in 1975, ESJ Towers, Inc. (“the Inc.”) has been both the management entity on behalf of the Council of Co-Owners and the largest co-owner in the Condominium. This arrangement has made possible for everyone to enjoy the comforts and convenience of “hotel-living” in the Condominium, as envisioned in our By-Laws.

Since we purchased the Inc. in 2015, we have invested $4,745,823 to transform the common areas and the building of the Condominium into the modern, stylish facilities that we enjoy today, which has significantly increased the value of everyone’s property.  This has all been done without requiring other co-owners to make any additional financial contribution, and with no maintenance fee increase for five years, except for the post Hurricane Maria insurance.  We have also made a proposal to fix the fees for the next five years, only possible because a future investment by the Inc.

Many of you do not know this, but on numerous occasions the Inc. has funded shortfalls in the account of the Council, including $414,317.48 for last year’s insurance premium. Just right now, the Council owes the Inc. $1,045,347.65.

Some of you have expressed a desire for more frequent communications from your Board, and we want to satisfy those desires. For example, we have now set up a website at esjcondo.com where co-owners can go and obtain all relevant information about our budget, the insurance claims, and our plans for the future to continue to improve the property.

Over the last few months, a small group of co-owners, led by Ms. Chana Cohen, has systematically tried to undermine everything the Inc. and the Board is trying to do for the common good. This group went as far as self-proclaiming themselves as the “new Board” in a “meeting” which they knew had been illegally organized. The Inc. had no other choice but to file a complaint in the Department of Consumer Affairs against Ms. Cohen and her group. There is also a defamation lawsuit that we were forced to file against Ms. Cohen for the baseless and malicious lies she has been spreading about our Board members and me personally.  Also, the Inc. has filed a lawsuit against her for tortious interference with contractual relations.

As you know, these legal processes take time. Unfortunately, Ms. Cohen and her group are causing real damage to our Condominium every day.  Here are just a few examples:

• Owners have been actively encouraging co-owners to not pay their fees and assessments.  This has resulted in a current deficit in assessments and maintenance fees from Council members in excess of $2 million.
• They contacted our insurance company and caused so much confusion that they have put in danger the $13.5 million that we expect to receive from a Hurricane Maria supplemental claim (see “Documents” section of the website for a description of how we distributed prior insurance proceeds and how we intended to distribute future proceeds).
• In June, the Inc. obtained and paid for an extension to the insurance policy covering the Condominium.  Because of the actions of this group of co-owners, the insurance company delayed our request for an additional extension until the day before it expiredyesterday.  The Inc. is also paying $137,000 for that extension.  We expect to get a new policy for the Condominium in the next couple of weeks, but this will require the payment of a premium in excess of $1,000,000.  Because of the above mentioned deficit, there are no Council funds to pay this amount or the extension, and I am not inclined to have the Inc. cover this deficit, as it did last year.
• They have created a toxic environment in our lobby and actively discouraged timeshare owners, members and hotel guest upon registration.
• They have harassed the Inc.’s personnel, which has resulted in 12 formal complaints so far.

Sincerely,

Keith St. Clair
President