HOTEL PONDEROSA 515 SOUTH VIRGINIA STREET RENO, NEVADA 89501 To all Ponderosa Hotel tenants: Unfortunately, I must relay some very bad news to you—The City of Reno will soon foree us toraise your rents substantially. A recent survey shows the average rent for a one-bedroom apartment without utilities in mid-town Reno is about $1,200 and the weekly hotel next door to the Ponderosa now charges $1,300 per month. Most of you are paying roughly half that amount. We are aware that many, if not most, of you are living on fixed incomes; collecting social security/disability, unemployment and/or veteran’s benefits, With that in mind, we have always strived to keep your rents low. Our way of keeping the rents stable has been having Wild Orchid make monthly payments to the Ponderosa. However, even with the $20,000 to $30,000 per month subsidy from the Wild Orchid the Ponderosa still consistently loses money and those losses have been absorbed by our family. Until recently, we had no plans to discontinue these Payments, or to raise rents more than a few dollars a month, but things have changed. Reno City Council and the Reno Planning Commission are considering taking away Wild Orchid’s liquor license and eventually forcing it to close or relocate. If the city moves forward with this, we will be forced to raise your rents by more than $500 to $600 per month (moving to current housing market rates). We only intend to raise your rates to match the current market if, and only if, the City of Reno enacts the proposed changes to the adult business ordinance regulations. Again, we've had no plans on discontinuing the monthly subsidy from Wild Orehid, but if the City of Reno adopts the new regulations and takes away Wild Orchid’s liquor license we will have no choice We deeply regret this turn of events, but we won't have a choice if the City adopts the changes. If you wish to prevent the City from forcing us to raise your rents, I suggest you or your representatives contact the members of the Reno Planning Commission and the members of the Reno City Council to plead your case against their proposed actions. list of contact numbers is attached to this letter. Perhaps you can stop the City from gentrification of the Wild Orchid at the expense of your homes. You have my sincere apologies for this bad news. I hope you can convince the Reno City leaders that “Growth for Growth’s Sake” is not desirable if it doesn't benefit present residents. ‘The number one problem created by this growth is the influx of new residents and soaring housing costs. Perhaps you can convince the City of Reno to save the Wild Orchid so that your rents are not forced up by this housing shortage. Thank you for your anticipated support. Sincerely, CE--—_______ Kamy Keshmiri on behalf of The Keshmiri Family