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HOME: OCTOBER 19, 2007: NEWS
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Nightmare on Second Street

Retailers get stiffed

BY RICHARD WHITTAKER

The vision of the 2nd Street District becoming a high-end Downtown shopping center took a blow last week when eight store owners were served with lease-default notices on their properties. Ground-floor retail tenants in the AMLI Downtown and CSC vertical mixed-use buildings claim that AMLI and property management firm Urban Partners distorted and inflated their rent bills and provided guesstimate spreadsheets instead of accurate utility bills based on meter readings.

"Everyone's struggling, but AMLI is denying any wrongdoing on their part," said April Lohse, co-owner of DJ-culture store Gomi, who found herself locked out of the shop on Oct. 9 with no additional warning. She said the store owed $9,000 in back rent but had been working with the management firm's accountants since August to develop a payment plan. However, when the doors were locked, the management told them they owed $22,000 in rent. "I'm back on three months' rent, not seven," Lohse said. "I told them those four months had been paid for, but they wouldn't let me back in my store to get my files." When the management company finally agreed to let the owners back into their store on Oct. 12 to collect their records and personal effects, the company's representatives were almost an hour late. When Lohse tried to negotiate a new plan so she could reopen, management rejected it. "Their idea of a payment plan is that I pay them in full."

This is not the first time Urban Partners has been accused by its Second Street tenants of being heavy-handed. In April, several retailers contacted the Chronicle on condition of anonymity (see "Red Ink on Second Street: Default or Confusion?" May 4). They had received final demands from the management company for utility, property tax, and common area maintenance fees. But these final notices were also the first time they had been asked for the money. The retailers complained they were suddenly faced with bills of up to $20,000, some backdated to 2005, and even after that, bills arrived erratically or only after multiple requests from the tenants.

"The story six months ago seemed to be, oops, it's a computer error," said Lohse, "but it's incompetence going back over the last two years." Speaking under conditions of anonymity, another retail tenant called the closure of Gomi "a warning shot to the other retailers. They're going after the weak ones, the ones without lawyers." AMLI and Urban Partners were contacted for comment but did not return multiple phone calls.


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COMMENTS
5
 
Seriously?! guest Oct 19, 2007 - 01:36 pm
Since when does getting kicked out for not paying rent warrant a story? C'mon! Ms. Lohse even admits to not paying rent and now thinks it's ok to blame the owners for locking her doors? Waste of a story....


Almost complete... guest Oct 23, 2007 - 05:43 pm
I knew having a few local indies on that street was too good to be true. AMLI's simply preparing to roll out the red carpet to the national chains. Starbuck's, anyone?


2 seriously from johngomi johngomi Oct 30, 2007 - 11:50 pm
i think you we're missing the point of the story. gomi was & had been in the process of trying to figure out the payment situation. we we're billed for $22000 for 7months "unpaid" rent. 4 of those months had been paid. the others we're while we we're trying to sort the accounting out with the AMLI's accountants along with 2+ years of utilities even though we had only been in the location for 14months. fact of the matter it has been a nightmare to actually get anything done because the has been no property management at all. We are an honest, hardworking, locally owned independent with 7 years of service in the austin area. We appreciate Mr Whitakers story, & appreciate all the support we have received from the community in this situation. You can say it's a waste of a story, but you wern't really aware of the facts surrounding the 2nd street area. if you we're in our situation you might feel differently.

most sincerely

johngomi



2nd Street District Shocker Oct 31, 2007 - 10:24 pm
A 24hr Adult Video Store would fit nicely on 2nd Street.

It would always have a steady stream of business if it was built around the reknowned Mr. Peepers on 6th Street back in the 70's.

Least people leaving the clubs downtown in the Entertainment District could get a breather before hitting the road home after dropping a few tokens to watch a quick movie.



That's a great idea. guest Oct 31, 2007 - 10:34 pm
The 2nd Crazy Lady couldn't be far behind.




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