Real Estate

Does this mean no more fetish night?

By Sam Pfeifle

When the Portland Stage Company officially purchased the building at 21-37 Forest Avenue in Portland, on September 1, they got more than they bargained for. Not only did they buy the building from former owner Ed Gardner, they also took over landlord duties in dealing with the nightclub Zootz, which has resided in the building since Kris Clark opened the place in 1988.

September 1 also marked the end of a phase of Zootz's lease, currently held by George Sweeting, and the beginning of a five-year extension -- contingent on a renegotiation of rent at "fair market value."

Ah, there's the rub, says PSC director of marketing and development Kippy Rudy. "We've tried to contact them about a five-year renewal at market rate," she says, "and we've never heard any response since we've purchased the building." Naturally, PSC became concerned when their letters, sent September 8 and hand-delivered September 15, went unheeded. In fact, they've reached the end of their rope.

"We've sent them a letter," says Rudy, "to inform them that our lawyers have advised us to ask them to leave. We know they've received it." It was hand-delivered September 29.

Sweeting is baffled by the whole thing. "They're crazy," he says. "They got a proposal sent from us. We were already in negotiations when [Gardner] sold the building. Our lease did not run out, this is a five-year extension. Now we're arguing about what is fair market value." Sweeting would like $5 per square foot. PSC, and Gardner before them, are looking for something more in the neighborhood of $12.

PSC brought in two real estate firms, Boulos and Malone, to estimate the value of the space, says Rudy. "They came back with a range and that was right in the middle." But, she reiterates, "We don't know what [Sweeting's] issues are, because they're not responding."

"I have no idea why they're saying that," says Sweeting. "I've gotten one hand-delivered letter, our response to that was our original offer. Why would you need a response when you've got the offer sitting right there?" And Sweeting claims that he has not seen the letter asking for his removal.

This time it's Rudy's turn to be baffled. "The previous owner may have the proposal," she says, "but we do not. I know they met once, when [Gardner] suggested the rent he would like to see, and Sweeting stormed out." Other than that, she maintains, they've had no contact with Sweeting.

As for the future of Zootz, Sweeting is relatively unconcerned. "This is all crazy," he says again. "Somebody's yanking chains. This is typical lease negotiation, nothing major."