Despite his serving up sweet treats to customers, Cookies of Course’s “head cookie” (also president and owner), Alan Boysen, has been left with a stale taste in his mouth.
After 28 years leasing the same location at Vancouver’s Harbour Centre, Boysen has been notified he will be evicted, or more accurately, renovicted.
“Renoviction,” said Boysen, “means that the landlord invokes a clause in the rental agreement that allows the lease to be broken with four months notice in the event that the landlord chooses to redevelop the property.”
And redevelopment is certainly afoot.
The historic building is slated for a major facelift with work beginning in spring 2013. On the inside, the current food court is being enlarged, ceilings will be raised and a second floor galleria will be added. On the outside, new canopies will be installed and the Cordova Street entrance will be widened.
Boysen understands that all of this is legal; however, he argues that it’s “not particularly ethical or moral.”
He did receive written notice – albeit on November 30, 2012 – exactly four months from the final day, which is required by the lease.
The notice was delivered by building security guards and required Boysen’s signature “like a registered letter.”
He considers the way things were handled as a slap in the face.
“I am insulted that, after 28 years, I was never consulted beforehand by upper management. What stings is that I am being booted out for a dubious plan that, in my opinion, will not see success for the mall … the location is not appropriate for what they are trying to do.”
In addition to building up his business, Boysen has built up relationships with his employees and his regular customers.
Boysen also sympathizes with his 13 neighbouring food court tenants who will be forced out, in addition to five others in the redevelopment’s Phase 1 who were previously renovicted to make way for another dollar store opening soon.
For the inconvenience, Boysen has been promised compensation in the form of the “undepreciated capital cost of the leasehold,” but he noted that his landlord has thus far offered no explanation – leaving him to scratch his head in confusion as to “whatever that means.”
Boysen doesn’t have much time to reflect on the past. Instead, he will pack up his mixing bowls, move out and head in a different business direction. He feels pessimistic about a return to the property.
“I plan to increase my wholesale and delivery aspects of the business, as the landlord only wants ‘major regional and national brands’ after the redevelopment,” he said. “I am looking for a space to mix my batter and bake my cookies. I would not accept relocation in Harbour Centre unless the terms of the lease were improved vastly.”
Unceremoniously forcing commercial tenants to the curb for this reason is sad. As the Lease Coach, I coach and consult with commercial tenants on leasing issues and have witnessed similar problems where tenants are shown the door without any compassion if it slams behind them. I have also spoken with many tenants who, like Boysen, are unclear about the language in a lease.
Commercial landlords can, however, legally evict tenants for any number of reasons.
Tenants can learn a couple of valuable lessons from this story:
•they should resist getting too comfortable where they are – no matter how long they have been in business and paid regular rent to the same landlord; and
•they should always get professional help prior to signing an initial lease or renewal.
Going to a lawyer is often a tenant’s first thought; however, the better choice is to contact a commercial lease consultant because a commercial lease’s legality is rarely in question. It’s far more important to have an expert read, understand and negotiate on many of the terms contained in the lease document.
What commercial lease consultants frequently do to avoid such problems is to either negotiate for a longer period of notice time (for example, 24 months) that the landlord must give the tenant facing renoviction or negotiate for a predetermined financial value to be provided to the tenant as compensation.
As a tenant, you want to remain in control and not simply shrug off the commercial lease as just the way the cookie crumbles. •
