Greenspace
Senior Member
If a client is is needing health-related help, they will be allowed to use the facilities like showers etc. Under the DP it can not be used as a shelter. They'd need a different permit for that.
- Thread starter Hilman
- Start date
IanO
Superstar
Not the best look, but without details it is hard to really evaluate.
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'Not financially viable': Boyle Street to close downtown Edmonton location when lease expires
"We've known for a long time that September 30 was the date that we would be required to leave. So we've been prepared for this and we're aware of this for a while"
Author of the article: Matthew Black
edmontonjournal.com
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'Not financially viable': Boyle Street to close downtown Edmonton location when lease expires
"We've known for a long time that September 30 was the date that we would be required to leave. So we've been prepared for this and we're aware of this for a while"
Author of the article: Matthew Black
'Not financially viable': Boyle Street to close downtown Edmonton location when lease expires
The social service agency said that it was not "financially viable" to extend the lease at its downtown location which will close Sept. 30.
edmontonjournal.com
Vacs
Active Member
agreed not the greatest look but a lot of things didn't go Boyle Streets way with getting their new facility under way which would have lessened the blow.Not the best look, but without details it is hard to really evaluate.
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'Not financially viable': Boyle Street to close downtown Edmonton location when lease expires
"We've known for a long time that September 30 was the date that we would be required to leave. So we've been prepared for this and we're aware of this for a while"
Author of the article: Matthew Black
'Not financially viable': Boyle Street to close downtown Edmonton location when lease expires
The social service agency said that it was not "financially viable" to extend the lease at its downtown location which will close Sept. 30.
Boyle Street also drove a hard bargain for this property and got way over market value. They had gone as far as submitting and getting approved permits for a full renovation of the current building. I feel like that was more of a "if we don't get what we want, we will just stay and renovate."
Lots of variables on both sides.
MacLac
Senior Member
I’m confused……oh well……bring on the wrecking ball and Smith’s promise of dollars to “help with Ice Districts’s Phase 2” infrastructure build.” You know, to match YYC’s bucket load of cash they’re getting
Stevey_G
Active Member
Does anyone understand why the lease wasn't considered financially viable at 1 dollar per month as leased by the OEG? From the article, it sounds like the OEG was willing to extend the same lease rate they were given in 2021 for an additional year to bridge their transition to their new facility.Not the best look, but without details it is hard to really evaluate.
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'Not financially viable': Boyle Street to close downtown Edmonton location when lease expires
"We've known for a long time that September 30 was the date that we would be required to leave. So we've been prepared for this and we're aware of this for a while"
Author of the article: Matthew Black
'Not financially viable': Boyle Street to close downtown Edmonton location when lease expires
The social service agency said that it was not "financially viable" to extend the lease at its downtown location which will close Sept. 30.
I REALLY hope there's more to this story than what I'm seeing, and that this isn't something like political posturing to obtain the extra financing required from the province for the new facility.
husky
Active Member
I think commercial leases often put stuff like maintenance, utilities, taxes as part of the responsibility.
archited
Senior Member
They are the "triple net" portion of commercial leases.
Stevey_G
Active Member
That would explain things. If the building is constantly dealing with flood repairs that would cost an arm and a leg.
Greenspace
Senior Member
Also there could have been other conversations around managing disorder that Boyle wasn't ready to agree to. OEG is having to deal with negative feedback from some of the Fan Park experiences by international guests and there might have been some expectations there Boyle couldn't or didn't want to meet.
kcantor
Senior Member
it also wouldn’t surprise me knowing how many times they have had to deal with floods (and had to close the building while they did) that they are no longer able to get insurance. if that’s the case, it also wouldn’t surprise me if this was simply a matter of their deciding that the risks to self insuring those losses with a limited amount of capital that is already committed to their new building simply want fiscally prudent. given that a flood would also close the building and that it would make no sense to remediate a building they’re leaving in a matter of months, at least this way they can plan for not having a permanent base of operations with a time frame of their choosing instead of leaving it to chance.
Stevey_G
Active Member
That seems like a logical decision. The timing is pretty rough with winter coming and whatnot.
I don’t know a thing about commercial leasing, but it seems wrong that tenants should have to cover the costs of remediation regardless of cause. It would make more sense for the property owner to cover insurance for the facility, and for the tenant to insure improvements and items of ownership. How it is sounds unethical.
David A
Senior Member
I think that is probably the explanation, as Boyle Street said it was not financially viable. There may be some major work required on the building, which wouldn't make sense if they were not going to stay for the long term.
However, I feel this may become a distraction from the real underlying problem, which is needing more permanent shelter space, which is a provincial responsibility. The Boyle Street situation will get sorted out, with a better, larger more useful space. It is the underlying problem which is not being resolved.
Glenco
Senior Member
The Katz group bought the building from them so who knows what the terms of that agreement were. It could be they agreed that Boyle street would assume responsibility for the chronic deficiencies. We don’t know so best not pull out the old ethical card until we get some clarity.
kcantor
Senior Member
building insurance is typically part of the operating costs that tenants are responsible for. standard practice is that that would include any deductibles as well as the policy cost.
you also have to remember that the condition of the building and the availability/costs of insurance etc. are a result of circumstances and decisions previously made by boyle street and not the current landlord who only recently acquired the building from them and who paid far more than what the market in general would have paid them for it.
Kosy123
Senior Member
Boyle Street seems to have gotten a stopgap measure in place, one of which uses the location of their new building.