Mike’s Diner Bar is at 2680 Middlefield Road in Palo Alto.
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Mike’s Diner Bar, a 29-year-old Palo Alto fixture, is at risk of eviction after the owner was one day late paying rent.
Owner Mike Wallau, who has about eight years left on his lease, hopes that he can continue to operate his restaurant at 2680 Middlefield Road after his attorney files a motion to set aside the eviction brought forth by the property owner, Scher Holdings LLC.
“I’m not in this for a fight with the property owner,” Wallau said. “I’m just a small family-owned business trying to survive.”
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Last month, a family emergency prevented Wallau from paying his rent, which was due July 17. The following day, he wrote a check to Ventana Property Services, a real estate company that manages the property, for $22,052.81, but Wallau then received a letter dated July 20 informing him of his eviction.
“Per the stipulation agreement, your July 2023 rent check was due no later than July 17, 2023. A check in the amount of $22,052.81 was received by our offices on July 18, 2023. Because of your violation of the stipulation, Owners are proceeding with the eviction,” Ventana Property Services wrote in a letter that was reviewed by SFGATE.
Since the eviction news, the Palo Alto community has rallied to support Mike’s Diner Bar. A petition set up by the Midtown Residents Association had already garnered more than 906 signatures as of Wednesday afternoon, according to Len Filppu, who is president of the Fairmeadow Neighborhood Association. Both neighborhood associations are under the umbrella group Palo Alto Neighborhoods.
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“Our first goal was 500 [signatures], but we blew through that so fast,” Filppu told SFGATE. “Our new goal is 1,000, and we’re getting close. We will present these signatures to Palo Alto City Council … on Aug. 14 and ask them for help in finding a solution to this problem. … Customers and neighbors don’t want to see their favorite local family-run sit-down restaurant leave.” Filppu added. “Hopefully the signatures will show the property owners how much Mike’s is valued and help persuade them to negotiate a solution.”
Last August, Wallau faced eviction for owing one month’s worth of rent, which was estimated at $19,000 at the time, according to Palo Alto Online. Later, Wallau and the property owners came to an agreement that required him to pay his rent dues plus $5,000 worth of legal fees. There was also a new stipulation added to his lease that required him to pay rent on the 17th of each month with the possibility of eviction if he was even a day late.
In an interview with KTVU-TV, Edward Scher, principal of Scher Holdings LLC, said that Wallau had “habitually paid rent late” during the past 15 years, sometimes submitting bounced checks. Wallau said that it’s been very difficult working with the management group. He shared that he’s tried to reach out to the property owners since receiving the eviction letter but said that they have only referred him to their attorneys.
Wallau