Ester Short Commons, the sublease with the Vancouver Farmers Market

[Chief]

this is an upload of the City of Vancouver Staff report SR111-03, Ester Short Commons- master lease between the City of Vancouver and the Ester Short Commons Limited Partnership and sublease between the City and Vancouver farmers market.

This is the document that created the lease that the Indoor farmers Market just announced they were going to breach, by closing at the end of September. This provides a look into how this entire deal came about, and exactly what is at stake, and who is left holding the bag in case of default.

<a href="http://www.clarkblog.org/docs/SR111-03 Esther Short Commons.pdf"> SR111-03 Esther Short Commons Master Lease</a>

Go do some reading, and judge for yourself what this is going to cost us.

Stout Hearts.

[Pat Campbell]

Looks to me that the city got a pretty good deal on this lease.

Someone will want to take over this space as it has got to be more valuable to someone than the $8/sq. ft. the city is obligated to.

[Chief]

I disagree Pat; the City gave the Farmer's Market a good deal on this lease, by heavily subsidizing it for them. It looked good on paper, until the FM defaulted, now they have to find someone who can do something useful with that space for at least $6700 a month, just to stay even with the terms.

If it remains vacant for any length of time, it will only become a bigger and bigger white elephant that's probably not well suited for much of anything as it sits. Go take a close look at that property, and you tell me what would fit in there in place of the "Indoor Farmer's Market", and thrive on the non-existant foot traffic.

No matter who goes in there, someone has to pay the lease, and I hope that means that this time the City will insist on a proper Business Plan first.

I know I will...

Stout hearts...

[Pat Campbell]

My guess is a franchise might easily move in. Or, how about something along the lines of a Powell's Book Store annex? Even an expanded Starbucks (needed) might fit into the space and easily generate a return of greater that $8/sq. ft. for the leaseholder. The specail deal was for a perceived special situation that foreseeably didn't pan out. I think the city can save its butt here Bob. If nothing else, Ellie is always willing to step in...

[Chief]

Like I said, I will insist that whomever the City considers this time present a viable Business plan first, and prove that they are capable of meeting the terms.