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Developer of Park Avenue West project entangled in family feud

By: Angela Webber//November 18, 2011//

Developer of Park Avenue West project entangled in family feud

Angela Webber//November 18, 2011//

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Last week in Portland, crews began dismantling a crane that has stood idle for two years at the Park Avenue West construction site. President informed the media earlier this month that work on the planned office tower will resume in 2013.

However, the project may come under greater scrutiny because of a legal dispute between Sturgeon and more than a dozen relatives. Specifically, Tim Moyer, patriarch developer ‘s son, claims Sturgeon, Tom’s granddaughter, misdirected money from some of the family’s assets to the Park Avenue West project. Family members disagree about the significance of the legal battle and also how it affects Park Avenue West, which is slated to open in 2015.

The dispute in the Moyer family was exposed last week when filed Nov. 14 with the Multnomah County probate office. The family is in the process of assigning a trustee for family trusts because Tom Moyer was diagnosed with Alzheimer’s disease, Tim Moyer said. Because of Tom Moyer’s deteriorating health, Sturgeon has essentially managed since 2009, according to the documents.

鈥淲hen that happened, it divided Tom Moyer Theatres into two entities 鈥 the Marilyn Moyer Trust and the Tom Moyer Trust,鈥 said Tim Moyer, who manages family farms in Hawaii.

In the documents, 14 of Tom Moyer’s 18 descendants are represented as opposing the petition of Kimberly Moyer, Tom Moyer’s daughter and Sturgeon’s mother, to appoint First Republic Trust Co. as trustee of the Marilyn Moyer Trust.

The 14 family members, including three of Tom Moyer’s four children and several grandchildren, contend that First Republic has conflicts of interests that would prevent it from being a neutral third party, because it has sided with Sturgeon and Kimberly Moyer 鈥渞epeatedly over the last 15 months 鈥 to the detriment of other beneficiaries鈥 of the family’s trusts, according to the documents.

Vanessa Sturgeon

鈥淢ost of the family would rather have someone more independent,鈥 Tim Moyer said.

The group contends that First Republic, as a trustee of the Tom Moyer Trust, ignored evidence that Sturgeon was involved in 鈥渋mproperly鈥 diverting money from two of the family’s holdings, at 1000 Broadway and Fox Tower, to the Park Avenue West project. The family members claim that $14 million has been transferred from 1000 Broadway to Park Avenue West since 2006, including $8 million in 2009.

Those claims were brought to Arbitration Service of Portland in August by family members who are beneficiaries of the 1000 Broadway property, and were settled privately. Tim Moyer said that a result of the settlement was that 鈥渟ome of the money has been returned, and management is being replaced.鈥

鈥淲e’re really disappointed that we couldn’t settle this within the family,鈥 Tim Moyer said. 鈥淏ut when someone blatantly violates operating agreements and treats someone with disdain, someone has to stand up.鈥

鈥淭he claims that are made in the filings are simply not accurate,鈥 Sturgeon said. She would not comment on the allegations, citing ongoing litigation; however, she did say that the 鈥渙ther side of the story鈥 would come out in future documents.

鈥淲hat is written in those pleadings is just totally inaccurate,鈥 Sturgeon said. 鈥淭hat’s all I can say.鈥

As to why the claims were being made, Sturgeon said she didn’t know.

鈥淭he issue is really narrow; it’s just about who’s going to be the successor trustee of Marilyn Moyer Trust,鈥 said Sturgeon, who added that it is a 鈥渟mall part鈥 of the family portfolio. 鈥淚t includes a small suburban shopping center and some bare land. It has very little impact on the company as a whole, and it has no impact on 1000 Broadway or Fox Tower or Park Avenue West.鈥

Despite claims by Tim Moyer and other family members that Sturgeon has mishandled family assets, she said she expects the Park Avenue West project to move ahead as planned.

鈥淒efinitely,鈥 Sturgeon said. 鈥淚t has no impact.鈥

Tim Moyer said that 鈥渢he market will take care of Park Avenue West.鈥

鈥淚t’s our hope that our father’s business will be able to move forward with all of the initiatives (TMT Development) decide to undertake,鈥 he said.



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