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Alex said he would need a little time to do the response, but this is worth pursuing. I will let you know when I get more detail.
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Alex will try to get the LOI back to you this week prior to his 2 week vacation. If he can’t get it done, I hope that your group will understand. Please do not take the delay as a lack of interest. Alex is most interested in trying to put this deal together. He has requested that his grocery analyst put together a sales projection for the site, which is usually done much later in the process. Please let me know if this timing creates a problem for you. Thanks for your patience!
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Dave—I contacted our attorney, and here is the basic language that we need for self insurance. Please pass this on for the next draft. Minimum net worth of $50,000,000, determined in accordance with generally accepted accounting principles. If Landlord should ask, we do not agree to the term "tangible net worth" (I can supply reasons if needed) and we do not agree to furnish LL with financial statements as LL can download SVU's 10K financials from the SEC website.
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Alex & Dave....Sorry for the delay, but we really wanted to get our "ducks in a row" on the various open issues we discussed in our meeting. We are excited about the possibility of having a Shoppers Food Warehouse in our project, and offer the following compromises:Covenant To Open: Tenant agrees to open as a fully-stocked supermarket within six (6) months of the Rent Commencement Date, however not before Landlord’s adjacent apartment building is under roof. If Tenant elects to open b
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Thanks. I will review and get back with you shortly.
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Jim— Thanks for your comments. Shoppers remains interested in this site, and I would like to finalize a letter of intent including the terms below. Please let me know your thoughts as soon as possible. Covenant To Open: Tenant agrees to open as a fully-stocked supermarket within six (6) months of the Rent Commencement Date, however not before Landlord’s adjacent apartment building is closed to the elements and the retail space is substantially complete (ready for tenant fit-out).
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Got the updated LOI. There is still a blank for the size of the site, which I would like to have filled in. Also, I noted that there is a discrepancy in size. I have been assuming a store of 61,000 SF, and the LOI says 66,971. I don’t want anyone to get a nasty surprise later, so I would like to get closer on the size now. Is 61,000 a problem for you guys?
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Alex.....We’ve been working with the 66,971 square foot store for a number of months now. This was the result of our initially proposing a store of around 57,000 square feet—with around 10,000 SF of shop space facing East Capitol Street (I’ve attached a plan showing this named “Capitol Gateway 11-29-05”—where the shop space is represented by the architectural turrets on the plan)--and your desire to grow the store closer to Shoopers’ prototype--the 66,971 SF.I’ve attached 2 other files—the
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Just clarified parcel size and using reasonable efforts to help with beer and wine license.
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Alex, thank you for executing the LOI. We look forward to moving on to the lease document shortly. As we discussed on the phone, A&R understands the importance of beer and wine to Shoppers and we will use commercial reasonable efforts to assist you with obtaining this license. I did not include the language about beer and wine under the Use clause based on your instructions in an email to me dated 2/4 (see below). “Feras—I apologize, the line about a beer and wine license is already in the
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It seems I complicated things. I was hoping to add specific reference in the Use clause regarding Beer and Wine as a permitted use but did not need a second reference to the LL helping with obtaining a beer and wine license. No matter – we can dot all the “I”s and cross all the “t”s when we get to the lease.
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Dave.....Please find out from Alex when he expects to take it through committee.Jim
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3 meetings all in April. Last one is scheduled for 4/24.
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I am requesting a draft lease, which we can negotiate pending corporate approval of the project. Assuming project is approved, we could execute immediately. Hopefully this will help keep the timing on track.
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The project will not be in the April approval cycle. I do not believe that the loading dock issue has been resolved, and there are lots of details in the site plan that need to be worked out. Some of that is our slow process, but most of the hold up goes back to A&R. They made major revisions to the site plan 2 weeks ago, and they never addressed certain issues such as how cars can get back and forth from the top deck to the lower deck. I think the site plan is getting better, but I want most of
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Alex and MarkAs a follow up to our conversation last week regarding the SFW tweaks on the Capitol Gateway enclosed is a plan that attempts to address the key issues associated with the grade at the entrances (down from 10% to 5%), the loading doc and back in areas and the to the second level. Please let us know if you have additional comments. Also, I am scheduled to meet with Manekin in two weeks to discuss A&R’s role in the construction of the store. I will report back a synopsis of our
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The site plan changed dramatically just before I was going to submit it. The good news is that everybody likes the new plan much better, but the bad news is that it has cost us time. While there is pressure to approve the deal quickly, it is critical that we have a site plan that works for us before I go before the real estate committee. These are not minor details that can be worked out later. We have the most recent site plan and are reviewing it. We did not get that in time to include the pro
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Dave & Alex.....I know that A&R and Alex have had recent discussions regarding the site plan, and possibly other development matters. The purpose of my e-mail is to request that you confirm that our deal will be submitted to this month’s Real Estate Committee. Please also let us know what date that is, and if the next step would then be to immediately generate a lease.
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AlexShould we have a meeting out in Vegas to see if we can’t push this deal forward and finalize? I think we just got a little of track with the study of the site plan and I think both of us would like to get this through your committee and push a store opening as fast as possible. Please let me know what times work for you. My Monday is fairly clear-couple of meetings; my Tuesday afternoon is booked solid Tuesday morning is clear
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AlexAs a follow up to our conversations at ICSC, I wanted to set up something in the next week to ensure we have finalized everything for our SFW on East Capital Street to move forward. I have some flexibility to meet on Wed, Thursday or Friday coming up. Also, any word on the draft lease?
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Alex – attached is a revised sketch showing a 61,000 SF footprint store with additional inline retail per our discussion last week. We sent Mark and Joe a revised sketch on Friday for their review. We look forward to receiving your feedback shortly.
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Here is the latest site plan for Capitol Gateway. I think it works very well. Questions or comments?
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I am working feverishly to get this project submitted, and I am down to the last few days. We are going with the revised site plan and the 61K store. I will submit the red-lined drawing unless you can come up with a better version quickly. Also, I need any elevations that you might have for the project. Also, there may be some changes between the LOI that we negotiated and the lease that we are working on. This is bad timing relative to this deal, but the company has just created and rolled o
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Alex, per your request, attached is the colored plan and rendering. Please let me know if you have any questions.What day is the committee scheduled to make the decision? Thank you.
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I just spoke with Alex who said he has everything he needs for the committee’s review and is pleased with the package. The review will be a series of 3 meetings through most of July. I will follow up with him periodically and keep the group updated. Next week I will follow up with him on the draft lease.
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Talked to Alex, he said 2 weeks. I made sure he knows how important it is to the Mayor.
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Tony—Capitol Gateway cleared the first approval hurdle, but we were asked to make some changes to the financial assumptions. As a result, we did not make the second meeting.Other than the obvious time delay, this is not bad news for the project, and I remain very optimistic. This type of change is a completely routine part of the process. Usually, I can make the changes very quickly and keep the project on track for the next meeting. In this case, however, we are dealing with hyper food
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All is still well with our project. I have a new boss who has asked some questions prior to the next committee meeting. Please copy Vicky on any response as I am on vacation and having lots of connectivity problems.1.) Can you resend the sectional plans that shows all the different layers of the project from the side. (I have it but can't access due to bad link w/ internet)2.) When will apartments directly across east capitol street be completed. I need a date.3.) Will you charge for parki
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Feras, I did submit the Capitol Gateway package yesterday (8/12). ThePIC meeting is scheduled for Monday, August 18, 2008. After the packageis reviewed at this meeting a determination will be made whether theCapitol Gateway project will proceed to IC for final approval. The ICmeeting will be held on Friday, September 5, 2008.Hope this helps and if you have additional questions, please let meknow.Thanks.
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Feras,Capitol Gateway was pulled from the PIC agenda. I am not certain of anyspecifics since I did not attend the PIC meeting.I can ask Alex to follow up with you regarding more specifics since heis in preparation to repost for September.Thanks.
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Shoppers Food & Pharmacy http://washington.bizjournals.com/washington/related_content.html?topic=Shoppers%20Food%20%26%20Pharmacy plans to open its first Shoppers Food Warehouse http://washington.bizjournals.com/washington/related_content.html?topic=Shoppers%20Food%20Warehouse in D.C. as part of a new subsidized housing development in the Capitol Heights neighborhood.The Lanham-based discount grocer has signed a letter of intent to occupy a roughly 110,000-square-foot retail center at the
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Capitol Gateway has been revised and re-submitted for approval. If all goes well, it will be approved 10/30.
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Tony and Feras,We are back on track. Approval meeting today went very well. No major issues. We will proceed to next meeting, and we are on track for final meeting 10/30. I’ll keep you posted.
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Gentlemen—As I know you all are on the edge of your seats, I am sending this note to everyone at the same time. There was no decision on Capitol Gateway.In fact, no decision was made on any projects for Shoppers Food (I also had several remodels) because the president of Shoppers and a senior executive at Supervalu were unable to attend at the last minute. I was not aware that they would be absent until I was in the meeting and presenting my projects. The determination was to present all S
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GentlemanI ended up having a call with Alex Montague and John Domino about our site. It was a make shift call based on John’s schedule. The call was primarily to inquire about our ability to start the project and whether or not anything had changed based on the recent economic environment. I gave them the mechanics of the PILOT and the potential NMTC but explained to them these tools were contingent upon SFW taking the next step. They understood that with the City subsidy and the relatively l
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AlexOur team has discussed internally as well as with District officials the conversation we had two weeks ago. I wanted to get back to you on a couple of open points:We can not link the opening of the SFW and the first office building for a couple of reasons. The first is that the grocery store is a priority of the administration and they have offered to structure the incentive package that allows infrastructure as well as the ability to facilitate SFW's ground lease rate to be so low. In
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Tony--I would like to speak with you briefly to review the current status ofthis deal on your side as well as mine.I will share the information below regarding the scope that you candeliver along with our pad, and I will let you know if it changes ouroutlook.Absent that, our outlook has not changed. Although our process hasbecome elongated as we respond to internal and external changes, pleasedo not mistake that for a lack of interest. I am very close to what Ibelieve will be the fin
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My people are very focused on the question of getting an office building going. Would it be possible to set up a meeting with you and me to speak with the mayor (or Neil Albert or whoever we need) to discuss the possibility of getting a city agency to commit to an office lease?
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Tony—Thanks for getting back to me. I will make the call and let you know the upshot. Meantime, I have gotten some clarification from my committee, and I want to make sure you know exactly what Shoppers is looking for. I am not sure I was completely clear at our last meeting. These are not either/or items – the committee is looking for each of the following: 1.) We are looking for a significant rent reduction to improve our return and offset increased risk to operations due
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AlexWe see the market and demographic differently. We see a dense market with significant households in the trade area. We all desire to have more development within the immediate proximity but this can not be assured. Our response to your below points are below: 1) We are not willing to entertain a rent reduction. I did have a conversation with members of the Deputy Mayor's office-they did not give me a firm response but I gathered that Shoppers has made this request at another site in t
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Tony,Thank you for the response below. We are making progress, and I would like to proceed with a meeting with the City. I just left you a voice mail as well in hopes that we could speak for a few minutes.
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Tony,I will send you an LOI with changes that we would like, but I would like to give you a “heads up” on a few key points ahead of time. I ran some quick numbers on the new rent that you proposed. There is no financial advantage to Shoppers in reducing rent in the first 10 years if you make it up in the next 10. In fact, the proposed changes cause a slight decrease in our return. Please let me know if you are willing to consider an actual reduction in the rent. Please note that there we
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Alex.....Per our conversation on March 10, the Landlord is expecting no further deferrals on your decision regarding our site following your March 23rd Investment Committee meeting. Please contact either myself, Tony or Feras following that meeting.
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The project was approved at the meeting yesterday and will proceed to the final approval meeting. As before, I am optimistic but cannot make any guarantees. I most certainly will contact you as soon as the next meeting is over.
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