Item:
Title
Approval of Thirumala Restaurant Lease Amendment to Extend Rent Commencement to August 1, 2025
Body
Date of BOCC Meeting: March 24, 2025
Request for Board Action:
Agenda Text
The Board is requested to approve the amendment to the lease between Durham County and Thirumala Hospitality Durham, LLC extending the Rent Commencement date to August 1, 2025. The Tenant opened the restaurant for business in October 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 opened for business in October 2024.
Due to issues with the smoke detection system approved and installed in the kitchen, Anjappar experienced a number of false fire alarms during their first weeks of operations. It was ultimately determined that the smoke detection system needed to be removed and replaced with a heat detection system. Change orders like this are not at all unusual in construction projects. The Tenant has absorbed the costly removal and replacement of the smoke detectors and has asked that the rent commencement date be extended by 3 months. This is not a forgiveness of rent, but rather a delay in beginning of the full 120 month rent period commencement.
The financial consequence of the fire alarm system change is not something Durham County as the Landlord is responsible for in this case. That said, we do recommend delaying this final rent commencement date to August 1, 2025. We certainly want to make sure the restaurant is off to a great start and enjoys a long and successful tenure in Admin II.
Alignment with Strategic Plan: The attached Lease Agreement supports Sustainable Infrastructure & Environment by planning for long-term use of County facilities, and equipment.
Resource Persons: Nancy Mitchell, Senior Real Estate Officer; Peri Manns, Deputy Director of E&ES; Jay Gibson, Director of E&ES.
County Manager's Recommendation: The Count...
Click here for full text