The New 30+page Lease

[Rob Burrito]

It's a topic that currently effects some and will eventually effect all of us. After talking to most vendors, many of us have put hours of personal time and monies into having it professionally looked over. I've signed six previous commercial leases in my life so far, none have been this size by at least ten pages, quite surprising for a 160 sq foot market stand to say the least. Last month i signed a lease with the Eastern Market and it was half the size, i went over it in about an hour, with the president of the board, and had only one issue that was easily compromised. with the Central Market lease after noticing some vague and missing pieces, I had two lawyers advice (one specializing in real estate, one for general business) along with a review from two very experienced commercial realtors from Coldwell Banker. each professional i met with has had a few problems with certain parts of it, in four parts they were unanimous. i've put a total of 13 hours and alot of phone calls, and cash going over the lease, and it's quite burdensome. i've met with Annette and Alex twice going over it as well, spending 5 1/2 hours reviewing it with them. hopefully the experiences of the few of us that have gone over the lease can save everyone else time, cash and headaches.

first, i will get this out of the way by saying that i dont believe it is the intention of the board to screw anyone over with this. the potential to is there though -so, if it's a non issue and you are confident in your payment, attitude, and trust a very ambiguous board; you can just go along with it. i have found out that the lease is being instated to organize the market company's office in a more professional manner and an attempt to make the terms uniform among vendors. i personally feel alot of the 'uniformity' in place in the lease does not have the vendors best interests even remotely considered, but Annette did put it in the only positive light i've seen so far, and that is if the market company can prove that they have 50+ signed leases, they will be able to get more loans and grants for "projects" which at some point include fixing the electric and plumbing. that would be good for us all. so there i said it. there may be one good thing, and it's in the long run, and the expense of literally our rights as citizens. as far as sustainability of the market... i'm not so sure. it will protect the market from non-paying vendors, very thoroughly. which again is a good thing, you should pitch in you share to operate there- alittle overboard but it's to cover their ass in any situation, and make you pay for them to get the money that you didn't pay after your business didn't work out. ouch, but if any vendor would be in a situation i feel with enough communication Annette would consider terms with you for getting out of the lease.

moving on with the reason for the lease: it's my opinion that if the market cannot maintain and update itself on the income generated by our rents alone- and parking profit from its use of parking alone, it is not a good business model. while the goal is stated for the common good, rent and parking is the only sustainable income generated that i know of for the market house company. with 50+ vendors, if it would need 2-3million in loans and an extra 2-3million in grants as suggested by alex and annette, i feel it is operating outside of its means. the interest on the loans would add to the cost of the project as time goes on, and if a solution for a sustainable market isn't resolved it will just come up again later on. the counterpoint is if it can get the plumbing fixed, and electrical lines updated, it does need done. again i am not on the board nor have run a market, just from my business mindset, it doesn't make sense. as per the last vendor/board meeting, i asked if they would open their books for advice in creative solutions, and they declined- leaving only speculation. i do feel the market should be taking steps in the right direction and can appreciate their efforts, even though i may disagree with them.

Today, i believe i was the first one who has received a full, updated lease; it weighs in at 32 pages with attachments. The original one that many of us were given was missing pages and attachments and a new one would need to be provided before you sign anything. (and yes i was refused a keycard because i wouldn't sign a lease that said "DRAFT" in the background of every page) they should have one prepared soon, and will be coming around to set up meetings. I believe i was being used as a guinea pig for it, as the process was rather disorganized, didn't flow well, was missing parts, was told 'i'm not changing that/i dont feel like writing a lease for each vendor', i hadn't been sent certified mail i was told was sent- then alex admitted to not sending, ...and well finally no one else has apparently signed it yet (if you have speak up!) Also i was finally told directly today that the reason i wasn't given a keycard is that i did not sign the lease- so be ready for them to terminate your access, can't say it wont happen -it's why i was locked out for almost three weeks. the revised lease took two weeks to show up after my inital meeting with alex, i was still refused a keycard in the meantime. when i was handed the revision today, it didn't include some of the bigger changes that we had gone over, but most of the huge issues i had with it were resolved by changing my term from year lease to a 30day lease with 30day renewal terms.

i am highly doubtful that retaining month to month will be an option for most vendors. i did come to terms with it today, when i get some sleep tomorrow i'll go over all the points i brought up, the things i wouldn't agree too, lease oddities, and answers to some of my questions as provided by Alex and Annette. If you have thoughts, issues, disagree, questions please post them!