We will put the Lease document up shortly.

Ian

Sent from my iPhone

Begin forwarded message:

> From: Justin Lacko <[email protected]>
> Date: 8 November, 2012 14:19:23 CST
> To: "Ian E. Trump" <[email protected]>
> Cc: Ron Bowes <[email protected]>, [email protected]
> Subject: Re: Lease Negotiations
> 
> Ian, below are my comments/edits, added to your response:
> 
> All Concerned,
> 
> Our recommendation to the Board and President Ron is to present Leon
> A. Brown Limited a check for first and last month’s rent and sign a
> Lease. We will have keys and access as soon as the lease is signed
> allowing for early move in opportunities.
> 
> Background:
> 
> Justin and I met with Bob Brown and determined the parameters of our
> Lease. Mr. Brown seems very engaged and is enjoyable to work with. An
> interview with the owner of Republic Architecture confirms Mr. Brown’s
> demeanor.
> 
> We managed to gain the following concessions from Leon A. Brown Limited:
> 
> Rent will be 2000.00 per month for the first year
> Rent will be 2100.00 per month for the second year
> Rent will be 2100.00 per month for the third year – This is largely
> due to Justin’s shrewd move during our negotiations, good job!
> 
> We clarified a number of points:
> - This is a 2nd floor space, not 4th floor as previously indicated
> (Justin's note: My mistake! Sorry guys!)
> - Above us is the artist Christian Worthington (unknown, at this time
> he does not reside in the space it is for his studio - sometimes he
> has an evening wine and cheese so it would be good to stay in touch
> with him to make sure we don't disrupt him)
> - Below us is Republic Architecture (operating hours 8:00 to 5:00).
> 
> Items not included in rent:
> - Electricity
> - Cleaning of our space (up to us to keep it clean)
> - Window washing (not required, if we want it then we need to arrange for it)
> - Light bulbs
> - Damage by us
> - Garbage removal (We are expected to keep the stairwell free of mess;
> they have a warning process before bills arrive if we leave shit all
> over)
> - An Occupancy Permit is not a requirement of the lease. Bob Brown
> specifically said "don't bother" and Shane Solomon of Republic
> Architecture said "don't bother." (Justin's note: I'm still open to
> researching this for a proper follow-through if anyone is concerned,
> but we already have an up-front cost of a couple hundred dollars for
> the application and architectural drawings to be prepared.)
> 
> Other Considerations:
> -  We are advised to carry 2 million dollars of insurance.
> -  We have access to a BFI Bin in the lane way for garbage disposal -
> at no cost.
> - If Landlord construction is planned we will be notified before
> entrance to our space.
> - If Landlord is responding to an emergency situation the space will
> be entered without notice.
> - The Landlord does like to swing by once a month to just visit - this
> is not an inspection, this is a customer call and due diligence on his
> part.
> - The A/C unit on our floor is not under warranty. If it works we can
> use it, if it does not work fixing it is at our expense. Bob said he
> has his electrician service it last year and as far as he knows, it
> works. We can install units in the back windows though - they (the
> windows) are condusive to this.
> - Tacks and nails for art on walls should be mounted properly - the
> Landlord is flexible on this point. Bob said he didn't really care
> what we hung as long as we don't wreck the walls.
> - ANY large scale construction projects, or proposed altercation to
> the space, must be approved in writing, in advance - Bob really
> doesn't want to see any permanent construction going on because the
> space is finished, but is okay with hanging panels/floating walls.
> - The Landlord would like to be “in the loop” on any large scale 
> installations.
> - In the 2nd year and 3rd year Rent will increase between $5.00 to
> $25.00 per month, this is reasonable due to costs of heating,
> increasing taxes, etc. The provision to escalate rent is identified
> and this is industry standard practice.
> - We are free to install our keyfob system on the front door once we
> can afford it, and Bob is fine with us installing a lockbox to house a
> key to let members in before we get our electric strikes installed
> (note: the building usually closes at 5PM and is not open on the
> weekends).
> 
> - Bob said that we could have early occupancy as soon as we provide
> the first and last months' rent - so we could start moving in stuff as
> early as this weekend!
> 
> 
> Commentary:
> 
> Mr. Bob Brown seems very flexible, amicable and motivated to have us
> as tenants. Justin and I asked several questions as to his character
> and nature with the owner of Republic Architecture and were pleased to
> find that dealing with him is easy. If we are respectful of the space,
> and engage Mr. Brown in our plans it will be a harmonious and
> enjoyable relationship. Justin and I both feel that this is an upscale
> location and fantastic space. It has the ability to attract folks and
> we have an opportunity to build a strong relationship with the Yellow
> Dog Tavern, Comic World and Towne 8 Cinema. Looking forward, this is a
> prime space, as a condominium/apartment complex is going into the
> building next door and the area is steadily improving. There is
> parking across the street in a lot which we have unconfirmed reports
> that it is free after 5:00 PM.
> 
> Justin's commentary: Like Ian mentioned, I think we can give the green
> light to this. We have a chance at a truly amazing space that is an
> excellent and fair deal, and combined with nearby amenities we have
> the opportunity to build partnerships for discounts with these
> locations. The numbers we have shown are within our budget numbers
> that we have been floating around - let's do it! Onwards with
> SkullSpace 2.0!
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