6D (2) - Laserfiche WebLink

Home Browse Search

L,- --7) (?--) Staff Report to Redevelopment Commission Policy to Waive Lease Term for Vacating Tenants Prepared 7/6/11 Occasionally a tenant in the Michigan Street Shops or Wayne Street Retail space will move out before the term of their lease has expired. Under certain conditions, included in the attached policy, it may be appropriate to release the tenant from the terms of the lease. When an early voluntary move out occurs, the Commission has the right under the lease to collect rent for the space until the term expires or until the space is leased to another party, whichever occurs first. Voluntary move outs in Commission owned retail spaces have occurred primarily due to tenants acknowledging their business cannot be sustained. In lieu of incurring further debts and falling behind on rent, some tenants have taken the proactive step of working with us to vacate the space before their lease term has expired. While the attached Policy is more specific, the conditions required to release a tenant from the original lease term would ensure the tenant has paid all rent and any other expenses due, and is not relocating to another store front. Recently we have seen more experimentation with our downtown retail space such as the Pop Up Shops. And we have seen other unique businesses occupy the retail space. We have had a yoga business and a fine stationary business. Another unique business is Bombay Imports, which did well until the recession, then needed some relief which the Commission granted. As we continue to lease our retail space it is expected there will be businesses that are good fits for the downtown, and others where the fit may ultimately not be right. This type of Policy recognizes the Commission's willingness to be flexible and work with businesses that have made a good faith effort, kept current on their rent and gave notice of their need to vacate before the lease term expired.