Abadan Holdings, LLC, Mansour Samadpour’s property management
company, on Tuesday responded to our Feb. 7 article about the
impending closure of the Port Orchard Pavilion. Delilah Rene
Luke said she can no longer subsidize operations for the event
center, which she has operated since 2009. Luke said she and Abadan
were unable to reach an agreement on rent that will allow the
Pavilion to remain open.
In the article, Abadan attorney Mary Ogborn responded to
Pavilion manager Joni Sonneman’s statement that Abadan now wants
$6,000 a month for the place, by saying the future monthly asking
price would be negotiated with the new tenant. She neither
confirmed or denied that $6,000 is the current price for the
Pavilion, and Ogborn said Abadan had no further comment on the
Pavilion closing.
In fairness to Ogborn (and readers) I could have and should have
pressed her for confirmation of other statements made by Delilah
and Sonneman about arrangements between the Pavilion and Abadan
through the years, including Sonneman’s statement that rent had at
one time in the past been dropped from $4,000 to $3,000 per month
then raised back up. Ogborn, in her response letter, stated the
rent was never reduced to $3,000, and I have verified that is
correct.
Ogborn gave other additional details about the lease agreement
over the years that Pavilion representatives do not dispute,
including an arrangement that gave the Pavilion some credit, in the
form of one month’s free rent per year, for work done on the
building.
Ogborn said the rent originally, in 2009, was $5,000 a month. In
2010, Delilah and company approached Abadan regarding installation
of a sprinkler system that was required on the building and
requested a tenant improvement allowance. “Abadan was happy to
grant this allowance,” Ogborn said.
According to Ogborn and the Pavilion, this option was exercised
over the next two years, but not in the following three years.
There is some disagreement over who was responsible for initiating
the free rent option.
In May 2012, at the Pavilion’s request for a rent reduction,
Abadan agreed to $4,000 a month, and it remained at this amount
through fall of 2015. As the lease expiration approached, the
Pavilion and Abadan entered discussions on rent. The Pavilion
proposed $2,750 per month and asked for its three years’ worth of
retroactive free rent. Both parties agree that the Pavilion
received three months of free rent in the latter part of 2015 and
early 2016.
At the same time Abadan offered a one-year extension but stood
firm on $4,000 a month. “Thereafter the lease negotiations stalled
out,” Ogborn said.
The pavilion obtained a short-term lease extension to Feb. 15 at
$4,000 per month and later was granted another extension to March
15 at $6,000 a month (which is apparently where the $6,000 figure
came from). Abadan has said if the Pavilion wants to continue
renting the space month to month and not enter a fixed term lease,
the price is $6,000 per month, Ogborn said.
Samadpour owns multiple properties in Port Orchard, including
virtually the entire 700 block of Bay Street, where the Pavilion is
located.
Ogborn in a letter to me had this statement: “Abadan supports
businesses in Port Orchard and has worked with the tenants at the
Port Orchard Pavilion over the years to support them through their
struggle to develop a viable business. Over the years, Abadan has
worked with many of the tenants in Port Orchard to reduce their
rent in order to help keep their businesses viable during economic
downturns. Abadan has reduced the rent for the Pavilion in 2012 and
has not raised the rent for the Pavilion in three years.
“Abadan takes issue with the characterization of the
negotiations in your article because in actuality, tenants demanded
Abadan reduce the Pavilion’s rent by $1,250 per month or no deal
could be reached. Abadan cannot reasonably be expected to subsidize
a failing business by continuing to offer rent reductions and
believes it is unprofessional for the tenants to voice their
displeasure with Abadan by presenting a one-sided and inaccurate
version of the history of their tenancy and the lease negotiations
between our businesses to you.”
Regarding Ogborn’s letter, Delilah said that renovations she
made to the building, including urgent and critical repairs,
tallied far more than the total the Pavilion received in the form
of free rent.
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