When we first discussed the Casino build-out for tenants, I distinctly recall that all of them were to get a black box build-out. This was described as a bare space and one in which the tenant was responsible for all construction to ready the space for occupancy. Anderson & Carr complained about that in a PBG Post article.
Now, according to Morganti, each space will be finished to a Vanilla box costing $60,000. The back-up does not indicate whether this is $60,000 for each space or total cost. A Vanilla box means that it will be up to the tenant to pay for paint, flooring, any built-in cabinetry or counter tops, and anything else that is custom to the particular tenant's business.
Typically a vanilla box space will have sheet rock walls ready for paint, a drop ceiling or a finished sheet rock ceiling depending on the building, a concrete floor ready for the installation of carpet or some other type of flooring, a bathroom (again, no paint here either), and usually the lights and plugs are installed. Anything else will be done at the expense of the tenant. Sometimes the landlord will give the tenant an allowance for construction improvements with the cost of the improvements being added to the base rent.
The casino is estimated to be complete in November 2013? At that time, tenants are supposed to start paying rent. In the case of our Lake Worth Casino, we, the landlord, are giving concessions of free rent during the build-out anywhere from 4 to 8 months with the exception of Johnny Longboats. Longboats requested free rent during the build-out, time undetermined, (there is no copy of the proposed lease in the back-up) as well as the first 5 months free (the graph shows 6 months free) because it says it will be spending over a million to build out the space. Essentially this means that Longboats will not be paying any rent to the City for possibly the first year or longer. They also have requested a waiver of the security deposit until year 5 in recognition of their investment and have asked for only one rental increase during the ten year term.
Tonight the city commission votes to execute the leases for:
Johnny Longboats, Lake Worth Beach, LLP.
Kilwin’s Chocolate and Ice Cream.
Fox Surf and Beach Shop.
Mama Mia’s on the Beach.
Note: It was stated at last night's meeting on beach leases (Oct 19) that the November 2013 date was wrong. The Casino is expected to be built by October 2012.
The Greater Bay deal is starting to look better every day. Under that deal the city's only obligation was about 1.8 million to be paid from the beach fund. All other expenses were the responsibility of GB. That included all the costs of construction including turtle lighting, maintence, insurance, tenant rentals, and a yearly payment to the city of at least $500,000. The city retained full control over who the space could be leased to. Now we have a city that can't even accomplish basic functions responsible for getting this right and we now hear that the costs are out of control. Old tenants are getting screwed and Johnny Long is asking us for a free ride. Our commissioners and city manager have no idea how to run a business and now they have to figure it out. Say goodbye to the yearly $500,000 Greater Bay rent and say hello to this mess and a law suit that is costing us hundreds of thousands of dollars. Pray that we win that case.
ReplyDeleteThere is absolutely NOTHING good about Greater Bay and nothing good about them having control of our beach for 40 years. Thank God we kicked them out of town. By 2013, this building will be completed. By the middle of that year, most everyone will be paying rent. Longboats we'll see what happens tonight. We will have total control of OUR Casino, not some out of town flim flam man.
ReplyDeleteStanton better have the audio stream up tonight. I don't want to get a babysitter to attend the meeting. I tried to listen last night and the audio was down!
ReplyDeleteLynn, we the people who live here have control of nothing. We don't control the beach. (That's why NYPD will not be there when it opens.) This commission has made that very clear. Stanton has taken control away from the people thanks to commissioners with no sense. GB did not have a 40 year lease but did get a 19.9 year lease with major decisions requiring city approval. In all likelihood GB would not have come through and the deal would have fell apart knowing what we know now. But at least we would have been out of the deal without a law suit. All that the taxpayers have now is that we are now responsible for paying for this should the city fail to do it right. Odds are we are screwed. Next we will get a beach assessment.
ReplyDeleteTechnically speaking. However, the McCauley law suit proved that they would be on our land for 40 years. The Judge said that the law suit had merit. When GB left town, the law suit was dropped.
ReplyDeleteGreater Bay sucked. In every possible way. Greater Bay was only a middle man to flip for the big boys that wanted our beach (Like PUGGY ). Too bad our spineless weenies on the Commission have stabbed our local beach merchants in the back.Owners promised right of first refusal have been kicked to the curb. people should DEMAND,LOUDLY that the audio be on tonight! Stanton-YOU SUCK!! Go micro manage some other town.
ReplyDeleteLynn, responding to your first post, do you sincerely think that the team in place on the dias has the smarts and wherewithal to manage the Casino tenant situation?
ReplyDeletePersonally and sadly, I have no faith that they are up for the job of dealing intelligently with leases, and all that is involved with the tenants.
Look how they screwed up the costs of the beach construction.
Sad, sad, but true.
The way in which I understood it was, the real estate brokerage company of Anderson & Carr would be handling that. But I don't know anymore. Things have a way of changing. The tenant is responsible for just about everything and whatever we are responsible for is factored into the rental amount.
ReplyDeleteLynn,
ReplyDeleteIn your "sidebar" you say, "See how they want to screw our long time tenants! Johnny Longboats to stay opened until 2am, 7 days a week. NUTS!
Can you explain what you mean? I don't see how the two are related.
Two different thoughts--not enough space to make them more clear.
ReplyDeleteThey aren't related. Longboats is a new tenant. Because of his 2am requirement, all of the leases will have a closing of 2am.
The city is not recommending renewing our long time tenants, NY Pizza and LW Tee Shirt Co.
The McCauley suit proved nothing. A suit having merit does not mean there would have been a verdict in his favor.Only after a trial would we have seen if it really was valid.
ReplyDeleteIs the question above asking if a 20 year, minus 1 day lease WITH a right of first refusal for an additional 20 years, minus 1 day, to be considered a lease longer than 20 years requiring the vote of the residents?
ReplyDeleteOr did it revolve around the fact the lease time didn't start until the end of construction or "CO"?
Greater Bay's suit was given merit also. You seem to like to take the side of GB anony at 2:29. What's your problem?
ReplyDelete