An Oxford Village councilman believes a local developer should not be reimbursed for constructing a public parking lot because he allegedly violated part of his lease agreement with the municipality.
‘He didn’t live up to his end of the deal, so why should he be rewarded in the future?? said Councilman Chris Bishop.
Bishop believes the November 2005 lease agreement with developer Fred Hadid was violated because the building he constructed is going to be used entirely as office space instead of a mix of retail and office space originally pitched to the village.
The lease allowed Hadid the required amount of parking necessary to construct his two-story, nearly 20,000-square-foot building at the southeast corner of Broadway and S. Washington streets.
Approved by council, the agreement granted Hadid the nonexclusive right to occupy and use two village-owned parcels behind his building, between Broadway and Ensley streets, for free public parking for sum of $1 per year for 25 years.
Roughly 70 percent of the building’s parking is located on village property. Without the village lease, the building Hadid constructed would not have had enough off-site parking to gain site plan approval.
Back in June, Hadid’s building was purchased for an undisclosed amount by a group of private physicians and Crittenton Hospital Medical Center. They plan to use both floors for medical office space and call it the Crittenton Medical Plaza (see related story above).
Bishop believes this use violates Paragraph 5 of the village’s lease agreement with Hadid, which states, ‘Lessee shall erect a building of approximately 10,283 square feet of office area and 9,003 square feet of retail use.?
‘Paragraph 5 seems pretty clear to me,? he said.
When the building originally made its way through the planning process, several potential retail tenants for the first floor were repeatedly mentioned to village officials including Panera Bread, Baja Fresh and Cold Stone Creamery.
‘The council originally negotiated that lease with the good faith offering that they were going to have some retail,? Bishop said. ‘Now, we don’t have retail. Do I think that in and of itself is good or bad? No. But the agreement says there will be retail.?
Village attorney Bob Bunting said he would have to do some research before giving an opinion on the matter.
‘I’d have to look at it,? he said. ‘No one’s really asked me for a written legal opinion. I’d be happy to give it.?
Hadid’s attorney, Jake Porritt, could not be reached for comment.
In Bishop’s opinion, the lease was violated and neither Hadid nor the property’s new owners should ever be reimbursed for construction of the parking spaces on village property.
As part of the lease agreement, Hadid paved both village parcels, creating a two-lane alleyway and a free public parking area with a minimum of 40 spaces. According to Hadid’s site plan approved in November 2005, 63 of the 89 parking spaces shown were located on the leased village property.
The lease prohibits other private property owners from being allowed to use the parking spaces Hadid created, even though they are village-owned, to comply with zoning requirements without ‘giving full reimbursement? to the developer for their prorated share of the parking.
‘I just don’t feel the village should be burdened to live 100 percent (up) to the agreement, if the other party isn’t forced to live 100 percent (up) to the agreement,? Bishop said.
Bishop also doesn’t wish to see future development in that area hindered because property owners would be forced to, under the lease, pay Hadid or the new owners in order to use that parking to meet zoning requirements and gain site plan approval.
‘All those parcels on Broadway are now zoned commercial,? he said. ‘They may need to access that parking as part of their site plan.?
Reimbursement is the only portion of the lease the councilman is concerned with. He doesn’t believe the perceived lease violation should prevent Crittenton Medical Plaza from utilizing the village-owned parking.
‘I don’t think it invalidates the agreement or the ability to use the parking lot,? he said.
Despite his belief that Hadid violated the lease, Bishop is happy to see the Crittenton Medical Plaza open in Oxford.
‘I don’t mean for the contract with Hadid to cloud my perspective on Crittenton coming to town,? he explained. ‘I by no means think it’s bad that Crittenton and the doctors are coming to town. I love to see them coming. I think they’re going to bring a lot of people to our town.?
‘I’m excited to see the building occupied and not have a vacancy. I don’t want to take anything away from that.?