Item:
Title
Approve Thirumala Restaurant Lease Amendment #4 to Extend Rent Commencement Date to September 1, 2024
Body
Date of BOCC Meeting: March 25, 2024
Request for Board Action:
Agenda Text
The Board is requested to approve Amendment #4 to the lease between Durham County and Thirumala Hospitality Durham, LLC extending the Rent Commencement to the earlier of 60 days after Tenant's opening for business, or September 1, 2024.
Thirumala Hospitality Durham, LLC entered into a lease agreement for the restaurant suite #140 in the County's Administrative Building II on September 30, 2021. They have diligently pursued the design and bidding of the work required to complete the upfit of the space in accordance with the terms of their lease.
The owners have recently made the difficult decision to terminate the General Contractor that had been performing the upfit of the space. A new General Contractor is now on board and working to get the project back on track.
Schedule delays and difficulties with initial installation of the HVAC and other elements of the upfit have caused the delivery of the restaurant to fall well behind the schedule originally established in the Lease Agreement. This is now the 4th Amendment to the Lease, and we expect the last. The Tenant has worked diligently to successfully solicit bids from qualified contractors, complete the work, and secure the necessary permits. As this is a first-generation use of the space, unexpected issues have arisen that could not have been known by either party in advance.
It is worth reiterating that Tenant's principal is an experienced restaurant operator that has opened a several restaurant concepts throughout the Triangle and elsewhere. The Tenant has expressed their commitment to completing this project and opening this new restaurant in Admin II as soon as they are able.
The tenant is seeking an extension of the Rent Commencement Date to the earlier of 60 days after Tenant's opening fo...
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