Item:
Title
Approve Thirumala Restaurant Lease Amendment to Extend Rent Commencement to May 1, 2025
Body
Date of BOCC Meeting: September 9, 2024
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 the earlier of 180 days after Tenant’s opening for business, or May 1, 2025. The Tenant anticipates opening 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 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.
As this Board has been made aware through previous requests for lease extensions, the Tenant has faced multiple issues in the construction and upfit of this space including contractor delays, inspection issues, and unforeseen challenges with ductwork installation.
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. These 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 5th Amendment to the Lease. The Tenant has worked diligently to successfully solicit bids from qualified contractors, secure the necessary permits, and complete the work.
It is worth reiterating that the Tenant is an experienced restaurant operator that has opened several restaurant concepts throughout the Triangle region 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 anticipates opening for business in October, 2024. They are seeking an extension of the Rent Commencement Date to the earlier of 180 days after Tenant’s opening for business, or May 1, 2024.
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 County Manager recommends that the Board approve the amendment to the lease between Durham County and Thirumala Hospitality Durham, LLC extending the Rent Commencement to the earlier of 180 days after Tenant’s opening for business, or May 1, 2025.
Signature
County Manager: ____________________________