Question on a commercial lease/rental

[fishtank]

Just hopefully someone with some knowledge or can point me to someone who knows more , the situation is that the building that my business is in , is in the process of being expropriated by the city , I still have a 3 year remaining on the lease with the original landlord , do the city have to honour the lease and paid me out for the remaining lease , and can I go after them for moving cost and other expense for relocating ??
Thanks

[ChickakooKookoo]

Sounds like you're going to have to move no matter what. With that in mind, I'd call a commercial real estate agent. They can probably help you understand the expropriation process and help you find a new location at the same time.

[mooseknuckle]

Originally Posted by fishtank

Just hopefully someone with some knowledge or can point me to someone who knows more , the situation is that the building that my business is in , is in the process of being expropriated by the city , I still have a 3 year remaining on the lease with the original landlord , do the city have to honour the lease and paid me out for the remaining lease , and can I go after them for moving cost and other expense for relocating ??
Thanks

Yellowhead/142st area? I've spoken with a few guys concerned with that mess.

I'll ask if they have figured out whats up.

[kidd]

Fishtank, you probably have a lease document and I would check there for any Expropriation or Eminent Domain language on how that would be handled between tenant and landlord. It may read that the landlord needs to share compensation with the tenant.
Second, the lease should have given the tenant the right to register a caveat for notice of the lease on the title. A tenant should always register that notice of lease on title because then in a case like this the City needs to recognize the lease and then deal with you. Without that caveat I am not sure what the options for you are. I don't know enough about it but I hope some of this helps. I would be making a call to a lawyer to ask.
kidd

[Dean2]

First steps, talk to your Landlord and the City both of which are free. Call the City, get hold of the right department and see what they are planning to do. Depending on what each of them have to say, you may or may not have a problem. If you don't like what you hear, talk to a good commercial realtor and or a Lawyer depending on what the issues are that arise from your discussions.

Don't go in looking for a fight or assuming they plan to screw you over and you will often find that a reasonable outcome can easily be negotiated. I NEVER get a lawyer involved until after the deal is agreed to. All they are good for is papering a deal you have already agreed to. if you let them negotiate or discuss anything directly you are going to end up in a war with a huge legal bill and you won't get anywhere near as good an outcome as you could of by talking to the parties directly.

[schmedlap]

Originally Posted by kidd

Fishtank, you probably have a lease document and I would check there for any Expropriation or Eminent Domain language on how that would be handled between tenant and landlord. It may read that the landlord needs to share compensation with the tenant.
Second, the lease should have given the tenant the right to register a caveat for notice of the lease on the title. A tenant should always register that notice of lease on title because then in a case like this the City needs to recognize the lease and then deal with you. Without that caveat I am not sure what the options for you are. I don't know enough about it but I hope some of this helps. I would be making a call to a lawyer to ask.
kidd

Most commercial leases have provisions as to entitlement to compensation and/or possible termination in the event of expropriation. That needs to be looked at. The City may or may not need you to vacate soon or before the end of term, or may prefer you to stay put for some time. Whether or not you have registered a lease caveat may have some relevance. And do not assume that the City of Edmonton will have fair or due regard for anything other than their own perceived immediate interests - they are rather notorious for using technical process to try to stomp all over owner and tenant rights in such matters, leverage compensation negotiations, etc. The Expropriation Act contains quite substantive provisions for regard to the rights of all those with interests. All of which means you should definitely consult with a lawyer who has actual expertise in such matters, particularly since, in many cases, the Act may direct payment of all costs in this regard by the expropriating government authority.