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Some Interesting Lease Tidbits From Cordish Cos.

May 2nd, 2012 by jake · 10 Comments

There’s been a lot of discussion about Cordish and 4th Street Live since we brought up the crazy maintenance fees that are driving away local businesses.

Many readers have had questions about leases these businesses sign with Cordish.

So we thought it’d be worthwhile to share a bit of the interesting tidbits we’ve found from a few leases businesses have shared with us:

Tenant shall not play or present any music within the Premises that is likely to have a detrimental affect on the Shopping Center, that is likely to create a perception that the Shopping Center is not safe for families and the general public, or that it is likely to attract organized “gangs”, as determined by Landlord in its sole discretion. Tenant shall not play or present any music within the Premises that can be heard outside the Premises. Tenant shall immediately comply with Landlord’s written directions concerning any music presented within the Premises. Thus if Landlord instructs Tenant to reduce the volume of the music played or presented within the Premises or cease playing or presenting a particular type of music within the Premises, Tenant shall immediately comply with such instructions.

-SNIP-

Tenant shall pay to Landlord the Minimum Rent in the sums set forth in … above and the Monthly Tax Charge, Monthly Common HVAC System Cost Charge, Monthly Common Area Maintenance Charge, Monthly Air Handling Unit Charge and any other monthly charges under this Lease in advance on the first day of each calendar month during the Term, without offset, notice, deduction, recoupment, setoff or demand therefor.

-SNIP-

WIthin twenty (20) days after the end of each calendar quarter during the Term, Tenant shall submit to Landlord a complete written statement showing the amount of Gross Sales from the Premises (and from such other business as may be required pursuant to Section 704 above) during said calendar quarter. If Tenant fails to timely deliver the statements required by this Section …, Tenant shall pay to Landlord a late charge in accordance with with Section …

-SNIP-

Landlord shall have the right to have an audit made of Tenant’s books and records pertaining to all Gross Sales. Tenant shall promptly pay Landlord any deficiency found in Tenant’s payment of Percentage Rent and any overpayment shall be promptly refunded or credited. If any statement required by Section … is found to differ by more than two percent (2%) from the audited amount, Tenant shall also pay for any and all costs and fees of such audit within fifteen (15) days after notice from Landlord, and if such audit proves such statements to be correct, or such statements collectively do not vary by more than two percent (2%) from the results of the audit, then the expenses of such audit shall be borne by Landlord.

-SNIP-

Tenant shall pay to Landlord, as Additional Rent, Tenant’s Pro Rata Share of all impositions of every kind and nature imposed by any federal, state, regional, municipal, local or other governmental authority or agency in connection with the ownership, operation or use of all or any portion of the Shopping Center (“Taxes”).

-SNIP-

The term “Common Area Maintenance Costs” means any and all costs and expenses of any kind incurred by Landlord in managing, maintaining, repairing, replacing, improving, operating and insuring the Common Areas, the Project, all improvements within the Shopping Center, without limitation, and an amount equal to twenty percent (20%) of the Common Area Maintenance Costs as an administrative fee. Landlord shall amortize items that should be capitalized under its normal accounting principles and/or tax regulations.

The fear of “gangs” is what stood out the most for us. Strangely, there was no mention of the racial profiling that’s regularly used by “security” folks at 4th Street on the weekends to determine whether or not patrons are granted entrance.

And the fact that CAM charges are just glossed over with no specifics, of course.

Possibility City!

Tags: Business · Cordish · Downtown

10 responses so far ↓

  • 1 concerned // May 2, 2012 at 12:12 pm

    Sounds like 21st Century day MOBSTERS!

  • 2 Rplant // May 2, 2012 at 1:21 pm

    How about when they play music in the street area that rattles windows at the hotel next door?
    Oh, it is OK, if CORDISH does it?

  • 3 I'mapro // May 2, 2012 at 2:00 pm

    4th street live Mayor happy pants golden egg. the golden egg that probably forced O’malley’s, Atmospheres and several other locally owned bar businesses to close shop. how can you compete when your competition is getting free rent.

  • 4 Anon E Mouse // May 2, 2012 at 5:03 pm

    Wait…. Cordish has the right to view the books of their tenants and act accordingly BUT the City does not have the right to do the same to Cordish?

    Am I reading that right?

  • 5 ace hat // May 2, 2012 at 6:29 pm

    This is GREAT INFO!..So the Cordish “GANG” dosen’t want any Other “GANGS” ,,,,LMAO,,,,,WTF….Just Goes to demonstrate further that the Guys the Taxpayers depended on to be on their toes surely couldn’t have been even remotely aware of what was going on with this DEAL!…..These guys set leases up to downright Fuck every tenant!. So they would be able to charge FEES out their ASSES! On Everything!….Hell they got Free Money from the city for improvements and even have a CAM charge for improving cost! WHAT A SCAM….Administration Fee, Management Fee., Mall office Fee….all the same in my book but add up to about 1 million to run a shopping ctr in downtown withwhat 15 tenants???
    ———————————————————–
    Mall Office Expenses $239,658.12
    Management Fees $370,330.32
    Plus 20% Administrative fees: $394,935.82
    ———————————————————–
    UNREAL….

  • 6 ace hat // May 2, 2012 at 7:47 pm

    And that’s ONE YEAR!!!!!….I bet there’s not another shopping ctr with a tenant base the size of 4th st, that had 20% of the expenses this place has fabricated!!!!…..ASK JIM KING if he’s make them a loan with a performa like That?

  • 7 Anon E Mouse // May 2, 2012 at 10:12 pm

    Are these common lease terms? If not, is it any wonder there aren’t any businesses that can make a go of it there?

  • 8 jake // May 2, 2012 at 10:18 pm

    I think the music bit – “gang” reference aside – is reasonable. Particularly when it comes to loud ass clubs and bars.

    But passing on fees and taxes that the property owner is responsible for – on top of charging hundreds of thousands in management fees – is extreme. Cordish essentially pays nothing out of pocket. All costs are passed on to tenants. And then they milk them for more money to line their pockets. Then they con Metro Govt into throwing millions at them. Then they jack rates up on tenants again.

  • 9 ace hat // May 2, 2012 at 10:33 pm

    Look Here guys!….What ?…does a building need to FALL on you….These #’s are so far screwed beyond belief it’s laughable….ask ANY real Estate developer what the average internal management expense is per Sq Ft?….and then get an expert to do the real deal audit & evaluation….Make the comparasion ….SOME ONE take the challange and investigate Where all that money they were given went ….Hell if Cordish is the main operating tenant since the own and operate most of the venues there….then who the hell are they charging????….They said when they closed Red Star, Saddle Ridge, Parrott Beach and all the numerous other operations that were Two plus years behind in rent, and failed!??…..how the hell would they have collected that money and paid it to themselves ?…Unless they used the City Money to cover it…..JUST FOLLOW THE MONEY!….JUST how many square feet is the retail operations at 4th st…..Geez !…I admit life and business are hard , but it’s a lot harder when U R Stupid!….And the people running that deal with the Cordish Co. are Obviously Stupid and out gunned!….None of that makes ANY Sense.

  • 10 chief // May 3, 2012 at 12:18 am

    Tenant shall not play or present any music within the Premises that can be heard outside the Premises. Tenant shall immediately comply with Landlord’s written directions concerning any music presented within the Premises. Thus if Landlord instructs Tenant to reduce the volume of the music played or presented within the Premises or cease playing or presenting a particular type of music within the Premises, Tenant shall immediately comply with such instructions.

    You gotta be kidding, this is crafted so as to handicap the tenant and throttle him down if Cordish deems they are hurting business in the venues Cordish owns, Overreaching and discriminatory don’t u think?

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