[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather
Santa Clarita CA
Sunny
Sunny
57°F
 
Calendar
Today in
S.C.V. History
October 17
1837 - Trapper Peter LaBeck killed by grizzly bear at El Tejon [story]
Peter LaBeck


Carl Kanowsky, Esq.

You might remember my last column: Jim, owner of the traffic school, Fun While Drinking and Driving, had come to see me about the lease for his new space.

He was skeptical about the need to pay an attorney to review the document. So, I challenged him with eight issues he had not considered. Here they are in more detail.

First, were there any renewal periods? There were, but he really didn’t know the specifics. So, we examined the lease and learned a few things. There was one option to renew. It was silent as to what the renewal rate would be other than to say, “Market Rate.” So, if Jim had a smoking rate now, the landlord could make some of that money back, because the current lease would be below market. I recommended he ask for a definite amount or at least a predetermined percentage of increase rather than the vague “Market Rate.”

Then we talked about the landlord’s reserved right to force him to move. This was shocking news to Jim. “You mean my landlord could force me to move to a completely new location at his whim?” I confirmed that the landlord had that right under the lease. And while the landlord might help pick up the costs of the move, he most definitely would not pay Jim for any lost profits. That concept sucked.

I asked Jim if he was going to get any tenant improvement (or TI) allowance for the work he had to do on the new space. No, he didn’t even know he could ask for it.

Speaking of TI work, did Jim have any concept about how long the work was going to take? Did he have a general contractor inspect the location and give him an estimate of the cost? Was his anticipated use of the premises even permitted under the current zoning laws? Did he know if there was adequate parking? I strongly advised Jim to have those questions answered before he signed the lease. Because if he signed and then learned there were problems with the use, or that the TI work was going to take several months, it was too late to back out of the lease.

An obvious question was: When did he have to start paying the rent? Was it when he signed the lease? Or did the landlord give him a few weeks to finish his TI work before sending invoices for rent? What happens if the TI work takes much longer than anticipated? Will he be in a position where he’s paying rent before he’s even open for business?

Did he get an agreement that no other traffic schools would be allowed in the shopping center? In other words, did the landlord grant him an “exclusive use” right? And how exclusive is that right? Does it prohibit all traffic schools or just “comedy” ones? How about a driver’s training business? Would that violate the exclusivity clause? Did the exclusivity apply to tenants already in the shopping center? And what were the consequences if the landlord screwed up and rented to another school? Could Jim force the landlord to disown the new lease, or did Jim just receive some payment for his damages?

I alerted Jim that he was going to have give a personal guarantee. That meant the landlord could sue Jim personally if his new business ever fails. So, all of Jim’s personal assets were at risk for the full term of the lease, as well as any extension.

We then started talking about CAM charges, which will be the subject of the next column.

 

Carl Kanowsky of Kanowsky & Associates is an attorney in the Santa Clarita Valley. He may be reached by email at cjk@kanowskylaw.com. Nothing contained herein shall be or is intended to be construed as providing legal advice.

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

0 Comments

You can be the first one to leave a comment.

Leave a Comment


Opinion Section Policy
All opinions and ideas are welcome. Factually inaccurate, libelous, defamatory, profane or hateful statements are not. Your words must be your own. All commentary is subject to editing for legibility. There is no length limit, but the shorter, the better the odds of people reading it. "Local" SCV-related topics are preferred. Send commentary to: LETTERS (at) SCVNEWS.COM. Author's full name, community name, phone number and e-mail address are required. Phone numbers and e-mail addresses are not published except at author's request. Acknowledgment of submission does not guarantee publication.
Read More From...
RECENT COMMENTARY
Wednesday, Oct 2, 2019
In his message for October, Santa Clarita City Manager Ken Striplin invites the community to join in celebrating the Santa Clarita Skatepark's 10th anniversary.
Tuesday, Oct 1, 2019
October is one of my favorite months of the year.
Saturday, Sep 28, 2019
Tenants must realize they are responsible for helping to pay for the maintenance, upkeep, repair and, in some instances, replacement of common areas.
Tuesday, Sep 17, 2019
Some things to consider before signing a lease.
Tuesday, Sep 17, 2019
Did you know that there are two different ways to receive your Medicare benefits?
Wednesday, Sep 4, 2019
Paying attention to the road and avoiding distractions when you're a driver is always necessary.

Latest Additions to SCVNews.com
1837 - Trapper Peter LaBeck killed by grizzly bear at El Tejon [story]
Peter LaBeck
The Los Angeles County Board of Supervisors on Tuesday unanimously approved a motion by Board Chair Janice Hahn and Supervisor Hilda Solis to assess and address the specific needs of American Indian and Alaska Native individuals experiencing homelessness in the county.
County to Assess American Indian, Alaska Native Homelessness
A water main break in Valencia caused lane closures and traffic delays as crews work to stop water from spilling onto the streets Wednesday.
Water Main Break Shuts Down Eastbound Newhall Ranch Road
The Los Angeles County Board of Supervisors unanimously approved a motion to provide recommendations for how to modify county ordinances to grant the Sheriff's Civilian Oversight Commission subpoena power through the Office of Inspector General.
Supes Seek Subpoena Power for Oversight of Sheriff’s Department
AVITA Medical, a regenerative medicine company with a technology platform positioned to address unmet medical needs in therapeutic skin restoration, announced that its American Depositary Shares (“ADS”) have been approved to list on the Nasdaq Capital Market, or Nasdaq.
AVITA Medical Now Listed on Nasdaq
Thirty-two features have been submitted for consideration in the Animated Feature Film category for the 92nd Academy Awards.
32 Animated Features to Vie for 2019 Oscar
The deadline for poets to submit poems for the city of Santa Clarita's 2020 Sidewalk Poetry Project is Thursday, Oct. 31.
Oct. 31: Deadline to Submit Poems for 2020 Sidewalk Poetry Project
For the first time since the Santa Clarita-based firm was founded in 1998, a third partner’s name is becoming part of the official name of the firm as Poole & Shaffery becomes Poole Shaffery & Koegle, LLP.
Poole & Shaffrey Add Partner Koegle to Law Firm’s Name
As part of the 26th Annual National Public Lands Day, Saddleback Butte State Park is leading a habitat cleanup on Saturday, October 26 from 8 a.m. to noon, and officials invite local residents to pitch in.
Oct. 26: Saddleback Butte Cleanup on National Public Lands Day
The William S. Hart Union High School District’s governing board is set to discuss a letter addressing allegations of an open-meeting law violation with respect to its recent search for a new superintendent.
Hart District to Discuss Letter on Superintendent Search, Transparency
The U.S. Forest Service has closed the Saddleridge Fire area in the Angeles National Forest for the safety of the public and fire suppression personnel, officials said Wednesday.
Saddleridge Blaze 46% Contained, Forest Service Closes Fire Area
Santa Clarita Mayor Marsha McLean joined other local officials from across the Southland to commemorate the signing of the San Gabriel Mountains National Monument Plan in Arcadia on Thursday, October 10.
McLean, Officials Meet to Sign San Gabriel Mountains Monument Plan
SCV Water officials hammering out a plan to manage groundwater are still accepting applications for the agency’s seven-member advisory group.
Water Heads Find Groundwater Advisers, Still Accepting Applications
SCV Water and its water-banking partners, Rosedale-Rio Bravo Water Storage District and Irvine Ranch Water District, recently opened six new groundwater wells and a conveyance system to the Cross Valley Canal in Kern County.
SCV Water, Partners Add 6 Wells in Kern County
Through a $700,000 federal grant, the California Highway Patrol has developed the Get Educated and Ride Safe II campaign, or GEARS II, to promote motorcycle safety and awareness.
CHP Wins $700K Grant for GEARS Motorcycle Safety Program
California Governor Gavin Newsom signed Los Angeles County-sponsored Assembly Bill 539 into law on Thursday, taking a major step in protecting borrowers from predatory high-cost loans.
Californians Gain Protections from Predatory Loans
Recognizing California’s fiscal health, Moody’s Investors Service has upgraded California’s outstanding general obligation bonds credit rating to Aa2 from Aa3.
Moody’s Upgrades California’s Credit Rating
1853 - Sarah Gifford, community leader and wife of Newhall's first railroad station agent, born in England [story]
Sarah Gifford
The next Canyon Country Advisory Committee (CCAC) meeting will be held Wednesday, Oct. 16, from 7:00 p.m. - 9:00 p.m.
Oct. 16: Canyon Country Advisory Committee Meeting
Los Angeles County Chief Executive Officer Sachi A. Hamai announced she will retire as top administrative leader of the nation’s largest municipal government in early 2020, capping a 31-year career leading innovation and managing solutions to some of the region’s most challenging issues.
County CEO Caps 31-Year Career; Announces 2020 Retirement
Valencia-based Lief Labs, a premier formulation and product development innovator and manufacturer of dietary supplements, is pleased to announce that Lief’s rank has risen to 1,022 on the Inc. 5000 definitive ranking of America’s fastest-growing, privately held companies.
Lief Labs Joins List of America’s Fastest-Growing, Privately Held Companies
The community is invited to The Ranch at Fair Oaks for a fall yard sale.
Nov. 2: Fair Oaks Community Association Fall Yard Sale
The city of Santa Clarita will host the Great California ShakeOut earthquake drill at City facilities on Thursday, Oct. 17, at 10:17 a.m. to help train community members on how to properly drop, cover and hold on during an earthquake.
Residents Encouraged to Participate in Great California ShakeOut
For the second time in as many years, The Master's University women's swim team wasted no time qualifying a pair of relays for NAIA nationals.
Lady Mustangs Swim Team Qualifies for Nationals
%d bloggers like this: