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Cordish Cos. Quickly Running Off Local Businesses

April 30th, 2012 by jake · 27 Comments

You already know this story: local businesses rarely move to Cordish-operated 4th Street Live and when they do, they don’t stick around long.

Turns out, those businesses are partly leaving because of Common Area Maintenance (CAM) fees that get imposed on tenants without any warning. Often in amounts that are three or four times the amounts quoted by Cordish during lease negotiations.

One business leaving the strip this month was billed more than $50,000 in back CAM reconciliation fees. Two restaurant chains were hit in 2009 with back CAM fees reaching to 2003. When they asked questions and complained, they were threatened with legal action.

Seems to us, based upon the businesses we’ve spoken with, that Cordish makes a practice out of estimating low CAMs to lure tenants and then drops excessive charges on them. Bait and switch? It’s hard not to think so since hundreds of thousands of dollars get paid to Cordish from those fees for “management” and “services” each year.

Let’s take a look at just the 2009 fees:

  • Cleaning $95,503.85
  • Building Repairs & Maintenance $261,974
  • Loading Dock $35,799
  • HVAC $16,189.80
  • Elevator & Escalator $35,419.36
  • Security & Safety $281,412.12
  • Trash Removal $4,291.39
  • Control Center $84,762.97
  • Utilities $184,856.84
  • Mall Office Expenses $208,318.88
  • Contracted Services $427,363.24
  • Snow Removal $1,879.61
  • Insurance $82,991.79
  • For a total of $1,720.762.85
  • 20% Administrative fees were charged: $344,152.57
  • For a grand total of $2,064,915.42

We won’t even get into the 2007 and 2008 fees. (Though, you can see those after the jump>

Cordish tells tenants the large reconciliation is due to outdoor cooling.

It’s time for Adam Edelen to audit everything related to Cordish with Metro Government. Because Memphis was on to something. When Cordish tried to move to that city, the local business association banded together and sued both the city and Cordish. They eventually backed out of the deal over unfair business practices and such.

Possibility City!

View 2007 and 2008 fees after the jump…

2007

  • Cleaning $211,777.10
  • Building Repairs & Maintenance $109,273.49
  • Loading Dock $19,054
  • HVAC $12,304.22
  • Elevator & Escalator $39,082.76
  • Security & Safety $425,833.85
  • Trash Removal $3,419.46
  • Control Center $90,830.28
  • Utilities $197,163,68
  • Mall Office Expenses $239,658.12
  • Management Fees $370,330.32
  • Contracted Services $167,804.74
  • Snow Removal $1,128.93
  • Insurance $69,765
  • Auto/Travel $17,253.15
  • For a total of $1,974,679.10
  • Plus 20% Administrative fees: $394,935.82
  • Grand Total of $2,369,614.92

2008

  • Cleaning $226,097.18
  • Building Repairs & Maintenance $242,369.14
  • Loading Dock $23,776
  • HVAC $20,450.43
  • Elevator & Escalator $35,651.18
  • Security & Safety $382,194.42
  • Trash Removal $3,822.18
  • Control Center $71,592.04
  • Utilities $194,597.78
  • Mall Office Expenses $205,523.70
  • Contracted Services $414,586.91
  • Snow Removal $5,818.36
  • Insurance $72,283.59
  • For a total of $1,898,762.91
  • Plus 20% Administrative fees: $379,752.58
  • Grand Total of $2,278,515.49

Tags: Business · Cordish · Downtown · Possibility City

27 responses so far ↓

  • 1 Steve // Apr 30, 2012 at 12:14 pm

    Add to all that, in February Mayor Fisher wanted to give them $850,000.

  • 2 Citizen~Z // Apr 30, 2012 at 12:54 pm

    Cordish sounds like a synonym for whore.

  • 3 LMMS // Apr 30, 2012 at 12:56 pm

    Enough is Enough. when are we going to do something about Cordish. everyone including me thought that when Abramson was out of office things would change. Mayor Fischer is proving to be just as much of a corrupt knucklehead. one of the problems in this city is, the local news stations and the CJ rarely report about anything that looks negative when it comes to the Mayor. thank god we have the villevoice. its nice to see someone has the balls to uncover the truth. people need to stand together and demand answers. how much BS can we keep letting Cordish get away with?. its time Mayor Fischer stops posing for the social rags and acts like a freaking Mayor. If I have to see one more picture of that douchebag in the voice tribune or hear about one more stupid facebook or twitter post I’m going to puke. down with cordish and down with Fischer haven’t we seen enough!!!!!!!!!!!!!!!

  • 4 LMMS // Apr 30, 2012 at 1:09 pm

    And to think I voted for and helped campaign for the douchebag. boy do I feel stupid. I hope he doesn’t think many of us will be helping him come next election. I’d vote for Mickey Mouse in the next election before I’ll waste another vote on Fishy.

  • 5 Terry // Apr 30, 2012 at 1:42 pm

    Everyone will vote Democrat next election and Chris Pointer will be Jerrys Mayor again.Maybe Greg gets to wear the pants at home. WARNING!!!!!!! Wait and see the new taxes Greg will try to raise .Some new group will come up with a new “Urgent need “and be Gregs new ally to start a new tax. I spoke to Greg during the Campaign about Louisville having the 8th highest tax burden of any city in the U S.He would not talk only made His prepared sound bites prepared probably written by his handler Chris. I have a suggestion to the nutless and lazy news media ,don’t talk to spokespersons , If the mayor is out of town don’t let him hide , say he took the day off . He will be back ask him later , He probably only say what Chris tells him .

  • 6 LMMS // Apr 30, 2012 at 2:48 pm

    I can say the Fischer has shit on almost everyone who helped him get elected. He refused to listen to the people who were giving him the best advice. I’m not sure if and when he is ever going to figure out that he is the boss. he shouldn’t allow his reputation as a leader be tainted by the silly SOB’s that were Abramson’s cronies. but to be honest I don’t think he cares. he has proved that point over and over. it seems he is more concerned with setting stupid records. posing for pictures and allowing his right hand idiot Chris to make stupid facebook and twitter post. I remember talking to a few folks while Fischer was campaigning and quite a few of them told me that he seemed aloof and detached. I was in Fischer’s corner. I wish I would have jumped ship before this spoiled little wannabe hypocrite got elected. worst Mayor ever in my opinion right under Abramson and he isn’t even halfway through his term.

  • 7 E // Apr 30, 2012 at 4:45 pm

    I voted for Heiner.

  • 8 rocker // Apr 30, 2012 at 4:52 pm

    The whistle blowers of local business operators were NEVER listen to or taken seriously, Like the OWNERS of the almost two decades running City Block/O’Malleys Corner/Coyotes….Those guys were Screaming about all this Since the First year that Cordish showed up!….They were dealt retribution, treated like Troublemakers,Whiners, were attacked by every city agency, State ABC , conned by their Metro Councilman, Fucked by the Mayor Jerry, Fucked by the Office of Economic Development /Bruce Traughber …and were disrespected , discounted & discarded….
    NOW that’s it is Evident how slimy the relationship is with the City & the Cordish Co….NO ONE has the Balls or Knowledge to even know what to do??…I bet if you could get those operators that got screwed to get involved , They would know how to attack the CORDISH DEAL with the CITY….!
    But as usual most people just quit and give in when the deck is So Stacked against them!….The Looming problem is not many people have the time or the Money to go into that Battle with the CITY….after all, who can out spend those Crooks!…THINK ABOUT IT?….those #’s are $45k a week!!!…..and that’s not to mention tall the FREE MILLIONS that they GOT ALSO!

  • 9 ace hat // Apr 30, 2012 at 6:55 pm

    What a bunch of HORSE POO-POO!….what ? is everybody STUPID?….Those kind of CAM charges ?? split up between what? 15 tenants MAX! …That would be $153K in CAM charges per tenant, and even if it were prorated by Sq. Ft. TELL ME what kind of tenant can afford that!…..so figure those expenses were paid by the FREE $$$$ that Cordish has gotten from the city , ???? Maybe from the $3,5 Million they got from the City to STUDY what they are going to do at City Center?. SOME One Should really AUDIT those expenses How’s about the $400k for adminstration,,,,QUITE a payroll to run a Shopping Ctr! with only a small tenant base that they own and operate 90% of the tenants. Can we say “Fabrication of Expenses”.????

  • 10 G'town Reader // Apr 30, 2012 at 11:41 pm

    Has anyone looked deeply into whether Cordish has, or had, any connections with the “Mafia” or any other criminal organization?

    Ahem! I, too, voted for Heiner.

  • 11 Chang Woo // May 1, 2012 at 1:23 am

    What do you think, Mafia ain’t what it used to be….now Organized Crime is existing right under everyone’s noses. You think Cordish get all these Deals just cause they are qualified, WTF These guys have everything so OVER Inflated in cost , the amount of money they have plowed thru is astounding!!! It’s a hell of a SCAM….and they have found that Niche where there is Not Much Oversight!

  • 12 jake // May 1, 2012 at 7:19 am

    Mafia? HAHAHA.

    Mafia folks are saintly compared to people playing political games.

  • 13 The Highlander // May 1, 2012 at 7:22 am

    The FIRST comment, here, says it all. The Mayor is SO FAR OUT OF TOUCH that he was willing to continue with the ‘program’ that was established with Cordish by his predecessors, Mayors Arm’weak’ and Happy Pants that he wasn’t even aware (or willingly ignored) what appears to be a criminal enterprise that may rise to RICO proportions.
    The additional sad fact is that the Metro Council doesn’t have the balls to do anything about it.
    So we exist within a potential criminal enterprise that’s shepherd by the mouthpiece, Poynter, and ignored by all the political widgets.
    Only in Louisville.

  • 14 Fisch Fun // May 1, 2012 at 9:07 am

    Wake up Tyler Allen- the city needs you!!! Bridges, Cordish, Preservation- Too bad the city can see it now after the Brown induced fog has cleared.

  • 15 jake // May 1, 2012 at 9:11 am

    I seem to recall Tyler Allen pussing out and refusing to attack on any of the points he’d promised to attack. Primarily because he didn’t want to upset his family and his family friends – those folks involved with River Fields.

    So…

  • 16 Cantinflas // May 1, 2012 at 10:00 am

    Thanks for your hard work, Jake. I don’t even bother reading the C-J or looking at or listening to the local TV and radio outlets for real Louisville news – I turn to this site for juicy details and analysis. I just buy the C-J for the funnies (I’m hooked on Apt. 3G. That Margo’s such a bitch – she needs to get laid more often) and sports.

  • 17 jake // May 1, 2012 at 10:11 am

    There’s plenty in the C-J. Though, I’m not sure it justifies spending however much per month the paper costs.

    Toni Konz, Andy Wolfson, Debby Yetter, formerly Stephenie Steitzer, et al.

  • 18 Jeff // May 1, 2012 at 1:08 pm

    Sounds like tenants and their lawyers aren’t doing their job if they sign a lease that doesn’t set a cap on CAM fees. Probably Cordish wouldn’t allow such a cap, but (admittedly, speaking as someone who isn’t in the business) I wouldn’t touch a lease without one with a ten foot pole.

  • 19 Jeff // May 1, 2012 at 1:09 pm

    NB: Cordish is scum, I’m not disputing that. Just wondering if tenants should be doing more due diligence.

  • 20 jake // May 1, 2012 at 1:17 pm

    Come on.

    Stop giving scum a bad name.

    Some scum/mulm in pond and aquaria situations can be beneficial and necessary for life to exist.

  • 21 Sesame Street // May 1, 2012 at 1:27 pm

    Abramson should be spending time in prison just for allowing Cordish to screw the city of Louisville. I’m sure his palms got greezed while everyone else got bent over.

  • 22 The Highlander // May 1, 2012 at 1:51 pm

    Sesame: You’re probably right about Happy Pants getting ‘greased’ and about everyone else getting ‘bent over’, but you’re one ‘picture’ short of the entire ‘shot’ — i.e., it’s a circle, because Happy was the last one ‘bending over’ in the ‘circle.’

  • 23 Chang Woo // May 1, 2012 at 4:54 pm

    If the Councilmen we have here in this City can’t recognize what has transpired here with Cordish then they are NOT FIT to be in those positions. As long as they handle issues in a manner which their adgenda is “how it effects” their position, and not represent their taxpayers as to what’s the right & best thing for them as a whole, then the entire process is FUCKED up!…If the Council was doing what is supposed to be doing, “Vetting” deals such as the CORDISH DEAL, and since most of them didn’t even review or read the propossed deal when Jerry sent it over and shoved it down their throats and demanded support & approval….They should be held accountable & NOT be left to do what ever they want.
    It’s time a mechanism is put into place to FIRE, Remove any Councilmen ,by a signature petition of people within his and adjoining districts….Something needs to be done to put a leash on these guys!
    At least the voters could remove some one who obviously demonstrates his loyalty is to someone other then the people who elected him!

  • 24 The Highlander // May 1, 2012 at 5:49 pm

    Chang Woo: Interesting nom de plume. If, indeed, you’re of Oriental extract, then you have no real concept of how a bunch of nincompoops can remain in government around here, because no one (around here) is EVER HELD ACCOUNTABLE. HELL, AROUND HERE WHEN YOU F_ _ _ UP IN PUBLIC OFFICE YOU WIND UP BEING LT GOVERNOR OR THE CHAIRMAN OF THE PUBLIC SERVICE COMMISSION!!!

  • 25 Chang Woo // May 1, 2012 at 7:12 pm

    They all are disrespectfull to those they represent. They should be fLOGGED!

  • 26 I'mapro // May 1, 2012 at 7:25 pm

    Hell why even have a Metro Council if they are just going to sing off on this shit and pretend its a good deal. a 2nd grade student can tell you cordish is a bad deal.

  • 27 ace hat // May 2, 2012 at 12:01 am

    Well I’mapro HOW Right U R!…Were the oversight is needed is in the Investigative reporting area! and years ago I guess that happened to a certain extent, However IT”S been a long time since the Media in this town has had any INTEGRITY, seems the FIX has been “IN” for decades with the Courier-Journal. The confidence of the” truthfullness”, and the correct presentation of putting things in CONTEXT , has totally Eroded.
    To bad there’s not a way to make people of this community “Hyper Aware” of the Ville Voice, IT”s the ONLY place to get real FACTS.
    I cancelled my subscription to the Curious-Urinal a couple years ago and look to the VV for all the Local scoop!….Yahoo news feeds forup to the minute info on the Regional,National,& World news .
    These political Pricks have all gotten so confident that they can get away with anything it’s ridiculous. It’s the basic Culture of the system! I agree with Chang Woo, devise a better protocol to empower the removal of a Council member that can be initiated simply and swiftly. There needs to be some kind of mechanism that says : If any Councilman’s district demonstrates that a significant showing of the registered voters are displeased with the representation they are receiving , and the Councilman is NOT doing what the majority in his district wants him to do, Then they can remove him! Something should be DONE! After all that’s the Big MOTTO of the President isn’t it “CHANGE” This CITY needs to CHANGE every one of those that they can prove just caved to the pressure of Jerry & his cronnies.
    It would nice to see someone in there with some NUTS! And get RID of the STUPID ONES.

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