Saturday, December 3, 2011

Raanan Katz: Common Area Maintenance - Where Is the Proof?

Per Raanan Katz’s company commercial lease agreement
“SECTION 23. OPERATING EXPENSES: As Additional Rent, Tenant shall pay to Landlord Tenant's Operating Expense Percentage of operating expenses incurred during the Term of this Lease. For the purposes hereof, "Operating Expenses" include, but are not limited to: real estate taxes, Landlord's fire and extended coverage and public liability insurance and for the cost of maintaining the common areas ("CAM"). For the purposes hereof, CAM includes, but is not limited to, all costs and expenses of every kind and nature paid or incurred by Landlord in cleaning, operating, altering, managing, equipping, decorating, policing (if and to the extent provided by Landlord), lighting, repairing, improving, restoring, renovating, replacing and maintaining all common areas of the Shopping Center, signs, buildings, parking areas and the roof, utilities, sewer and facilities serving and/or required to be maintained by the Shopping Center (including parking facilities and access ways contiguous with the Shopping Center and available for use by occupants of the Shopping Center by reason of easement rights or if Landlord is otherwise required to maintain or repair same) and all taxes, assessments, costs and other expenses related thereto, and all other areas of the Shopping Center (including, but without limitation, all landscaping and gardening). CAM shall likewise include (but shall not be limited to) water and sewer charges, utility system installation charges and assessments, costs of the operation, maintenance and repair of any stormwater drainage facilities; costs of all roof and roof membrane, and other maintenance, repairs and replacements performed by Landlord, costs of the installation, operation, maintenance, repair and replacement of any energy management system, costs related to capital expenditures that are designed to reduce overall operating expenses…

Payments for said Additional Rent shall be made monthly, based on Landlord's reasonable estimate of the current year's total operating expenses. This amount may be adjusted periodically. Tenant shall pay any amount due on account of Landlord's year-end reconciliation within thirty (30) days of Landlord's invoice. In the event Tenant remains a tenant of Landlord following the termination of this Lease, Tenant shall still be responsible for any and all operating expenses incurred during the period that Tenant remains a tenant of Landlord. Landlord shall have the right to levy a special operating expense assessment in the event of any extraordinary operating expenses, including, without limitation, costs relating to natural disasters, above-average snow removal costs, utility costs, insurance premiums or charges or taxes. Tenant shall pay this special assessment within thirty (30) days of Landlord's notice of same. Landlord shall not be liable for any inconvenience or interruption of business or other consequences resulting from the making of repairs, replacements, improvements, alterations or additions, or from the doing of any other work to or upon any of such Common Areas, or from delay or failure to perform such maintenance or other work with respect to such Common Areas where such delay or failure is attributable to labor troubles, material shortages or any other causes beyond Landlord's reasonable control. For the first and last partial calendar or fiscal year of this Lease, Tenant will pay its Operating Expense Percentage of Operating Expenses for the entire year multiplied by a fraction, the numerator of which is the number of days in the calendar or fiscal year subsequent to the date of rent commencement of this Lease, or prior to the date of Lease termination, as the case may be, and the denominator of which is three hundred sixty-five (365). In all circumstances, Operating Expenses must be paid no later than thirty (30) days after the date of Landlord's invoice of same. Tenant's Operating Expense Percentage may be adjusted by Landlord in its reasonable judgment to reflect vacancies at the Shopping Center or modifications to the overall size of the Shopping Center. If Tenant has any objections to any items contained in such Operating Expense invoice, Tenant must raise such objections in writing no later than fifteen (15) days after the date of such invoice (or other due date for such Operating Expenses payment) or such objections are otherwise deemed waived.”

Why Raanan Katz has not provided actual proof of his spendings towards operating expenses on the tenants' requests ?

Am I missing something?

1 comment:

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