TO: Chair and Members of the Board
FROM: Diane Colonna, Executive Director
DATE: October 14, 2015
Title
TENANT UPDATES
BACKGROUND:
NOTE: The latest rent roll for the CRA-owned properties will be available on Monday October 12th.
At the date this memo was prepared the rent for O’Meara’s (CRA tenant William McDonald) is in arrears. Earlier this year a summary judgment gave the previous owners of the business, Virgil and BarbaraWillis, possession of two of the four bays leased by Mr. McDonald. Neither Mr. McDonald nor the Willises paid the CRA rent for the months of April and May, and the CRA attorney proposed the initiation of eviction proceedings to the Board. At the MCRA meeting of May 13, 2015 the Board agreed to give the parties until November 30, 2015 to resolve the issue, and suspended the requirement to pay rent while the dispute was being resolved. On July 15, 2015 the court found that Mr. McDonald had not been properly noticed of the court action, and vacated the writ of possession and final judgment. Possession of the premises was returned to Mr. McDonald as of that date, and he began to take steps to re-activate the business. The business became operational again during the month of August. Mr. McDonald was informed of the need to begin paying rent as of the date that he had regained possession. He did not submit rent for August or September, stating that he is trying to recover from the disruption of the business by the court action. CRA staff adjusted the date that rent would be re-instituted from July 15th to August 16th in order to provide some recovery time, however even with that concession the rent is still not up to date. Unless the Board wants to make additional concessions, staff will continue to monitor the status and take appropriate action when applicable.
RECOMMENDATION: For informational purposes
FISCAL IMPACT: N/A
CONTACT PERSON: Diane Colonna, Executive Director