[WSBARP] Covid Grants as Revenue for Percentage Rent

[Roger Moss]

Erik, I have not seen that argument made in Washington or California. My reaction is the claim does not make much sense, but there may be language in the lease two make the argument. I’ve not seen any, and since the grants are typically targeted for rent or paying salaries, aren’t they more akin to loans? 

If there is any chance the tenant can get back on their feet, there are much more constructive ways to use percentage-rent mechanisms to create a mutually beneficial interim rental agreement.

In retail real estate, sales determine value for both retailer and landlord, whether or not there is a percentage rent clause.

Roger A. Moss 
Managing Director
Rincon Resolutions LLC
206.790.1971 Seattle
415.371.9724 San Francisco
RinconResolutions.com

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> On Apr 22, 2021, at 4:04 PM, Erik Marks <erik at egmrealestate.com> wrote:
> 
> Has anyone heard of a Landlord claiming that Covid-related grants received by a restaurant tenant fall within the "Gross Revenue of all kinds derived from business operations on the Premises" definition used in a Percentage-Rent Lease?  
>  
>  
> -- 
> Erik G Marks 
> Attorney at Law 
> PO Box 16247
> Seattle, WA 98116
>   
> (206) 612-8653
> erik at egmrealestate.com <mailto:erik at egmrealestate.com>
> Physical Office:
> 4220 SW Spokane St
> Seattle, WA 98116
> 
>  
>  
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