Subject:
Title
Board Discussion: Options Regarding Representations of Steven Powers, Lessee of Complex Cafe
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Fiscal Impact:
Indeterminate: Dependent on specific action taken by the Board and the comparative use of the space should the Board choose to terminate
Dept/Office:
District 3
Requested Action:
Recommendation
Board discussion of Steven Power’s statements and breach of contract
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Summary Explanation and Background:
On July 20th, 2021, Steven Powers came before the Board to request a reduction in rent payments for the lease to the Complex Café. During this discussion, Mr. Powers stated to the Board that he personally managed the café and was not engaging in subleasing. Documentation has come to light that showing Maria Paz Jordan Pulgarin has “purchased” and is running the café.
The lease states that “Vendor agrees not to assign or sublease the leased premises, any part thereof, or any right or privilege connected therewith, or to allow any other person, except Vendor's agents and employees, to occupy the premises or any part thereof, without first obtaining County's written consent. County expressly covenants that such consent shall not be unreasonably or arbitrarily refused. One consent by County shall not be a consent to a subsequent assignment, sublease, or occupation by other persons. Vendor's unauthorized assignment, sublease or license to occupy shall be void, and shall terminate the Contract at County's option. Vendor's interest in this Contract is not assignable by operation of law, nor is any assignment of its interest herein, without County's written consent.”
In fact, Mr. Powers has entered into a contract with Maria Pulgarin to “sell both café to Maria Paz Jordan Pulgarin. . .for the price of $120,000. Maria Paz Jordan Pulgarin will take full control of both cafes [sic].” In return, Ms. Pulgarin appears to have agreed to pay this sum in payments of $2,000 per month, including $1,200 rent directly to a County employee. It goes on to state that the parties “have come to agreement for Steven Powers to sell both café to Maria Paz Jordan Pulgarin [sic].” There can be no question that this is a breach of contract, and that Mr. Powers failed to present this information to the Board on July 20th, 2021.
As to the breach of contract in subleasing, the lease entered into by Mr. Powers gives the County certain options moving forward, up to and including termination of the lease, at which time it may choose to re-let the location to another private entity, repurpose it for its own use, or to make arrangements with a constitutional office in exchange for a reasonable transfer. As such, it is requested that the Board discuss its options in moving forward with this property.
Clerk to the Board Instructions: