Arlington, Texas 2021-05-11 16:40:43 –
Thanks to the Arlington County Commission, ragtime in the courthouse can significantly reduce rent.
On Saturday (May 15th), the board will vote for. Modify the county lease A longtime local restaurant will reduce ragtime rent during an ongoing pandemic “to a level you can afford”.
Ragtime is located on 1345 N. Courthouse Road on the ground floor of the office building. Purchased by the county In 2012 it will lease 5,000 square feet of space. It is now owned by the county, but was previously owned by a private landlord.
Ragtime projects have declined “rapidly” during the pandemic, county officials report in detail. April 2020 sales were less than 10% of normal. According to the report, business has grown in recent months, but 50% below normal.
According to the county, ragtime will not be able to pay the rent at the rate required by the current lease, which was signed in 2013 and expires in 2026, due to the drop in sales.
“If sales fall significantly below normal, inflexible overheads such as employee salaries and utilities will not decrease to the same extent, thus absorbing a larger percentage of sales,” the report said. Stated. “This reduces the percentage of sales that can be applied to rent.”
As a result, an agreement was reached to reduce ragtime rent to an amount equivalent to 9.5% of total sales (unless it exceeds the basic rent rate of about $ 19,000 per month).
“As a rule of thumb, restaurants can afford to spend about 10% of their sales on rent,” the report said.
This rate is valid until 9.5% of total sales exceed the base rent for two consecutive months, or one year after the lease amendment is signed, whichever comes first.
Discounted rates date back to April 2020 and ragtime allows postponement of rent repayments.
“Ragtime will start paying discounted backrents (based on 9.5% of total sales) when sales return to normal,” said the staff report. “This discounted backrent is paid monthly for a year. The impact of actual revenue on the county in 2021 and 2022 depends on the total ragtime sales and when the sales return to normal. I will. “
“The estimated total revenue shortfall compared to the 2021 and 2022 budgets is about $ 100,000,” the report adds.
ARLnow is asking vintage restaurants for comment, but has not yet responded at the time of publication.
202014th Street N owned by the county. The building also has another tenant. Courthouse deli..
When asked if the county was working on an arrangement similar to its business, a county spokesperson declined to comment, especially for confidentiality reasons.
“We have worked with all county tenants who have requested relief due to pandemic-related difficulties,” a county spokesman wrote.
Via photo Ragtime / Facebook
Ragtime in Courthouse May Get Big Rent Break Thanks to County Board Source link Ragtime in Courthouse May Get Big Rent Break Thanks to County Board