Progress

Hello,
New Day new stuff on my mind. No ranting today. Great news is I have copies of the plans ready for submittal to the health dept and waste water. You can download them if you want...it's a big file and 12 pages worth of stuff... but it's pretty cool!

https://www.yousendit.com/transfer.php?action=batch_download&send_id=758542319&email=0b127ea347a56f570e93df13bc950589

"On the lease front, here are the only 2 issues we are negotiating... This is my agents em to the landlord's.

Item #17 pertains to the last two paragraph of paragraph #26. It is unreasonable that the landlord can terminate the lease within the final 24 months of the term even if the damage is covered by insurance. The landlord already has the right to terminate if the damage is outside the bounds of the coverage – that is more reasonable. The final paragraph seems to be in conflict with other provisions of the lease. We either need to exclude landlord’s negligence, or limit t the coverages provided within landlord’s insurance policy. We will each carry our own insurance, but if the landlord is found responsible, his insurance should be primarily liable. The tenant’s insurance carrier is taking another look at this language as well.

Item #25 pertains to the renewal option. The rent for the term is to be adjusted to fair market rent with a minimum of 103% of the previous year’s rent. That is fine. What is not acceptable is the next to last sentence of the paragraph which nullifies the option if the landlord and tenant can not agree on the fair market rent. There has to be a definitive way to set the market rent if landlord and tenant can’t agree. The most common way is to use an MAI appraisal, or brokerage opinions of value. Ultimately, we should have a binding arbitration clause, or similar provision, that will determine the rent. This is a deal breaker."
Keep your fingers crossed.
Talk again soon,
Julie