Re: [Mpls] City Zoning

[Bob GUSTAFSON]

David Held made the point....   >Landlords exploiting renters is commonplace. They try to get their renters to pay for >improvements that he should make....... >A good, responsible landlord will cover the costs but that doesn't happen in many cases. >Also, in this particular case, not only does he have to landscape the area directly in >front of his business, but the entire section of the mall owned by the >landlord. It's not fair but that’s how the books read. and then he asked the question... >Is there someone with more experience on this topic and how we can assist >the renter open his business?   BG Unless something has changed the last few days a site plan is not required for just any tenant. The requirement has usually kicked in on projects I have worked on when a restaurant was moving into a space not previously used as a restaurant. Other changes will require sites plans as well, but not just the normal leasing of space. A commercial tenant moves out, you want to move in, you negotiate with the owner for the space. You don't need to worry about site plans. If you don't like the offer made you don't rent there. If the owner doesn't think you have a prayer as a business owner, or if your demands are excessive, he is better off letting the space sit empty. If the owner likes you, and wants to have you in the space he will pay for improvements, cut you an advantageous lease, or whatever it takes to entice you to sign a lease.   Now lets say you are an owner, with space available for rent. Along comes a potential tenant with the latest hot concept for a restaurant. Lets assume the space you have has not been a restaurant so the first step in dealing with the city is to check with zoning. Here is where you will most likely be hit with the requirement for a site plan, which will include parking requirements.    City requirements do not stop here however, nor do the costs of opening a restaurant. Just a stripped down place will easily run well over $100,000 before you even open. Once you are approved by zoning you need to be approved by the health department. If you meet all of their requirements you get to present your plans to the building department. Now being a responsible citizen you are in total support of accessibility issues but now you realize those requirements will cost you because the restroom that has been in the space for years is not up to current code and in fact you will probably be required to provide two accessible restrooms as we wouldn't want our womenfolk and menfolk having to share a toilet used by someone of the opposite sex. Lets not forget that you will need to talk to the state regarding SAC charges, a fee for hooking up to the water and sewer system. I worked on one potential restaurant in Eden Prairie mall where the SAC charges were going to be over $20,000. Hard to believe, but the landlord didn't want top pay that bill.   Now if the potential business owner that you are concerned about is a food service business, it appears you are asking the bad irresponsible landlord to front for the site plan, and I suppose the restrooms, probably the mechanical costs, the SAC charges and while he's at it perhaps he should give an allowance for walls, ceiling, floor finishes etc. All of this for a restaurant where most likely the owner is under funded, has no existing operation, but his friends have said he is a good cook.   Sounds to me like the landlord has made a business decision that the tenant is not worth the risk.   As to you question of how you can help this tenant open his business. Easy. Lend him the money he needs. That is what you are asking the landlord to do.   Bob Gustafson 13th