Here is the proposed lease agreement:
Notice that this proposal says, "Landlord will provide a lease to Tenant net of Building expenses (i.e. triple net)"
Triple Net Lease?
"What Does It Mean?
A lease agreement that designates the lessee (the tenant) as being solely responsible for all of the costs relating to the asset being leased in addition to the rent fee applied under the lease. The structure of this type of lease requires the lessee to pay for net real estate taxes on the leased asset, net building insurance and net common area maintenance. The lessee has to pay the net amount of three types of costs, which how this term got its name.
This type of lease can also be referred to as a "net-net-net lease" or a "hell or high water lease".
Investopedia explains Triple Net Lease
For example, if a property owner leases out a building to a business using a triple net lease, the tenant will be responsible for paying the building's property taxes, building insurance and the cost of any maintenance or repairs the building may require during the term of the lease. Because the tenant is covering these costs (which would otherwise be the responsibility of the property owner), the rent charged in the triple net lease is generally lower than the rent charged in a standard lease agreement."
This Town proposal states:
Tenant shall pay its proportionate share of Building operating expenses and real estate taxes. The real estate taxes and CAM for 2008 are currently estimated to be $4.93 per square foot. That prorate share of expenses include the following:
- Common Area Utilities
- Elevator
- Real Estate Taxes
-Common Area Maintenance and Repairs
- Landscaping and Grounds
- Real Estate Taxes
-Management Fees
- Insurance
So, if this is the proposal that would be agreed upon for the lease to Kings Pork, then the Supervisor lied on camera to Rnews that the Town would not be responsible for snow removal and taxes would be paid by the landlord - the Town DPW won't be plowing it, you'll just have your taxes pay the landlords to contract out to plow and remove snow.
It says quite clearly in the lease proposal that "real estate taxes" and "Landscaping and Grounds" is part of the payment the town will make for CAM, so, the Town is still "responsible" for it. They're just paying through a lease with your taxes.
Did she even read this proposal?
