Diamondtooth Space Rental Details

THE DETAILS

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This is likely more information that you care to digest, but please don't hesitate to call or email me if you have questions or concerns.

I just met with Bill Kees, the landlord, and he would like a decision, and a deposit, by Friday. To view the entire contract, with triple net and the condo declarations, click here.

I have met with Bob, Todd, Meghann and Julya on Monday (because they were available on short notice) for more in depth conversation about the lease, and all are essentially in favor. I believe we all are reticent to take on a new lease, however, all things considered, this feels like an affordable and practical option, and a fantastic location.

Todd and I went through the potential timeline carefully, and while it will likely be up to 6 months or more before we would be asked to move out of the Stronghouse, this feels like the smart and proactive move.

THE FINANCES

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Anticipated increase: $1000/mo.

CURRENT OCCUPANCY COSTS

• MONTHLY COST: $3200/mo
• OUR COST: $450/mo
  • This is because rents are at an all time high in the Stronghouse right now with full capacity ++

DIAMONDTOOTH/NEW SPACE

• MONTHLY COST = $3317/mo
• OUR COST = $1317/mo 
  • Base rent is $2200/mo
    • (will  incrementally increase to $2500 by 2019)
  • NNN is $900/mo
    • Subject to tax fluctuations
  • Utilities are about $217/mo currently
  • Sublet estimate= $2000/mo
  • Increased sales with storefront = ??
  • Due on signing $5000/security deposit
  • Due June 1: $4700 (first and last)

The term of the lease is 3 years. We can get out of it if we can find a renter to take our place, which is what the Customs House is doing right now.

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Other info from the email exchange sent April 22, 2016

The Customs House space seems to be in high demand, according to the word from Lynne, the current renter, and the vibe on the street.

BAJA

• Serendipitously, I met Bill Kees, the owner of the Customs House space, in Baja last week--he spends the winter minutes up the beach from where I was staying-- so we scheduled a chat over guacamole.  (no, really.)

THE TIMING

• Bill wants to rent the Customs House space June 1
• He's on his way back to Telluride and called this morning
• He wants a deposit ($1,000?) Monday to secure the rental

THE TIMELINE

• Once Meriwether has final approvals (June or July?) they will put the Stronghouse up for sale. Price TBD. (It's a "condo", commercial, part of the HOA)
• It's possible some of the artists will want to stay put until its absolutely necessary to move. We will facilitate this as possible.
• Garrett thinks they will start construction on the site as early as Sept 1. 
• It is my opinion that the construction will impede our activities, and we should find a new space before it begins.
• We expect the Warehouse construction to take about 3 yrs.
• The term of the lease is 3 yrs. (attached)

THE GALLERY

• We would like to continue the gallery presence in our offices because we like art, and it gets people through the door. 
• There's ample wall space for a gallery/office in the Customs House space.

THE ARTISTS

• The stronghouse is full to capacity (or more) and we have a growing waiting list. We have some ideas about temporary studio space;

1. Some artists could sublet at the Customs House space.

2. It may be possible for artists to move to the Youth Link. (it's Town property, is funky, temporary, but could be cool)

3. It may be possible to maintain some studios at the Stronghouse during construction, depending on the purchaser.

THE MONEY

As we all know we have a lot of fundraising to do--this is a leap of faith, as per usual. I have hired Kelly Sudderth, the campaign manager from Marfa, on an hourly basis for now, to provide the support we need to raise the initial $300,000- $500,000 in the next few months. It's possible we will need a bridge loan to make this move.

There is a lot of educated guess work here.

• $5000 deposit due soon-ish--we would use savings for now.
• $2200/mo + nnn ($800) + utilities (gas+electric, $200/mo) = $3200/mo
• Our expenses will go up by up by an estimated $1,000/mo.
• We would sublet to a few artists, and also could also consider subletting to other non profits (and the library) to create a shared office setting
• We pay $2500 + utilities now, for 2x the space....but half is underground.

THE QUESTIONS

• Please ask.
• Should we try to move into Gallery 81435 (and be right across from the construction zone all day?)
• Should we go underground into the old PIP's space for $2000/mo + NNN? (or so)
• Should we take our chances and wait for something else?
• Should we go to Baja and discuss?

SOME ANSWERS

• We would not pay two rents...unless there was some way for some artists to stay in the Stronghouse, in which case we would structure a deal with Meriwether that would cover the rent and our continued management.
• My guess is the increase per year for the new space will be about $12,000.