Legal and Consulting Services
OPERATING EXPENSE RECOVERY AND BUSINESS CONTINUITY
Our client’s retail operation was facing three challenges that, individually and combined, threatened the continued operation of the business as well as involving overcharges of hundreds of thousands of dollars. The challenges included:
Expiry of the lease term with 1 x 5-year option in a desirable market with no relocation options and market rent at 200% of current rent paid;
A right to terminate the lease with one-year notice by the landlord;
A complex property tax miscalculation involving errors by the assessment board, the landlord, and the landlord’s tax experts spanning over a decade.
A Landmark team including the legal, transaction, lease administration and executive members was created to analyze the situation and assess options that would be in our client’s best interest.
Over a period of two years, we engaged outside tax counsel specialized in that region, held numerous difficult negotiation sessions with the landlord’s representative and their tax experts, filed and managed claims with the local assessment board, performed in-depth market studies on identical operations to identify relevant market rent values and terms, availed ourselves of the multiple contacts we maintained in the region to provide input and reported to our client continuously on the progress.
We achieved a five-year renewal at 15% below market. We obtained a settlement from the Landlord for our client for realty tax overcharges totaling $250,000. Our client was able to stay in the same location with no downtime in operations. We maintained a strong tenant-landlord relationship during the process – a testament to Landmark’s customer-service skills.