Lister Block | ? | 6 fl | Renovation

[thomax]

City approves restaurant for Lister Block
By Samantha Craggs, CBC News

It's official: two out of three vacant units in the Lister Block are filled.

City councillors have approved signing a lease with local restauranteur Chris DesRoches for a restaurant in the corner space of the historic building.

DesRoches and 28 Lister Inc. will open a “1920s-1930s New York/Chicago style chop/grill house,” city staff reported to the general issues committee Wednesday. The eatery will seat 120 and include a patio on King William Street.

DesRoches is a well-known business figure behind two downtown restaurants — La Bocca and LaCosta, said Coun. Jason Farr, who represents Ward 2.

“I don't think there's anybody out there who would say we're not truly looking good with the Lister,” he said.

DesRoches ran LaCosta from 1993 to 2005. He expanded the business to seven other locations.

The restaurant was one of four offers received for unit 106, said the report from Rom D'Angelo, director of facilities management and capital programs. The unit is 3,485-square feet with entrances off King William and James North. Rent is $4,222 per month, or $50,664 per year.

Three offers were received for unit 104, the 852-square foot future home of Mezza Caffe.

Unit 114, which is 452 square feet with no street access, still sits vacant. Given the new tenants, Farr said, “with 114, it's just a matter of time.”

Located at 28-50 James St. N., the current Lister Block was built in 1923. It closed in 1995 and was seen as a symbol of downtown urban decay until the city renovated it. It reopened last year.

City offices occupy five of the floors, and the Hamilton, Halton, Brant Regional Tourism Association rents out ground floor space

[thistleclub]

To recap...

Lease - Lister Block, 28 James Street North, Units #155 and #156
1,300 sf to 1,350 sf leased on an “as is” basis

(iii) Rental Rate: From the date of commencement, being April 1, 2012, the tenant shall pay fixed gross rent of $20.00 per sf plus HST based upon the gross rentable area, still to be determined. The rent will be approximate $27,000.00 per year plus HST;
(iv) Parking: Lease provides 1 surface parking space at a cost of $120.00 per month; and,
(v) Operating Costs: Operating costs will be included in the gross rent save and except cleaning, garbage, waste collection and disposal, security system, and interior décor and finishing. The tenant agrees to pay any escalations in expenses after the base year of 2012 (pro-rated for time);

Lease - Lister Block, 28 James Street North, Unit #104
852 sf leased on an “as is” basis

(iii) Rental Rate:
Year 1: $15.00/sq.ft. net ($1,065.00/mth or $12,780.00 annum)
Year 2: $17.50/sq.ft. net ($1,242.50/mth or $14,910.00 /annum)
Year 3: $20.00/sq.ft. net ($1,420.00/mth or $17,040.00 /annum)
Year 4: $20.50/sq.ft. net ($1,455.00/mth or $17,466.00 /annum)
Year 5; $21.00/sq.ft. net ($1,491.00/mth or $17,892.00 /annum)
Percentage Rent (5%) will take effect after year 3 when 5% of the Gross Revenues exceeds the annual base rent payments.

(iv) Parking: 1 parking spot will be provided to tenant at no additional cost.

(v) Operating Costs: In addition to base rent operating costs will be payable (estimated at $12.00/ sq.ft for 2013). In addition Tenant pays for utilities.

Lease - Lister Block, 28 James Street North, Unit #106
4,222 sf leased on an “as-is” basis

(i) Term: Ten years commencing upon date that building permit is achieved, plus a five year renewal option;
(iii) Landlord’s Work: All Landlord’s work, including base building ventilation, water, drainage and electrical, will be completed by the Tenant subject to the Landlord’s prior written approval of drawings. The Landlord will invest $267,000 for Landlord’s work with funds being made co-payable to both the Tenant and the contractors;
(iv) Net Rental Rate: Years One to Ten: $15.00/sq. ft. net ($5,277.50/ monthly $63,330.00/annually);
(v) Operating Costs: In addition to net rent payable in (a) (iv) the Tenant will pay $12.00 /sq. ft. ($4,222.00 /month, $50,664.00/annually) in operating costs which includes taxes. In addition, the Tenant will pay for separately metered utilities including gas and hydro. Water will be incorporated into the operating costs;

(b) That the Landlord’s cost of $267,000 be funded from the following Capital Work In-Progress (WIPs) Accounts;
(i) $125,000 from # 8140755700 - Aggregate Study;
(ii) $125,000 from #3621108002 - Brownfield Development;
(iii) $17,000 from #791550-54401 - The operating budget for Lister Block;


Unit #144 (452 sf) remains vacant.

[movingtohamilton]

The data is substantial, but what's your point? I've lost the plot?

[ihateittoo]

i think those are just facts.

[movingtohamilton]

^^^ Absolutely agree. Thistle's data is always so thorough. But again...what's the point? Data is evidence presented in support of, or against, a thesis/argument, etc. So, did the lessee get hosed by the City? Vice-versa?

It's Thursday night and I'm grumpy.

[thistleclub]

The City’s terms, as outlined in a May 2012 property listing with Blair Blanchard Stapleton, were $20-$25 sq foot + $12 TMI or $32-$37/sf gross.

A year later, the City has arrived at three outcomes:

A: five-year lease on 1,300 sf at $20/sf gross (tenant pays cleaning, garbage, waste collection and disposal, security system, interior décor & finishing) + HST + $120/month parking space
B: five-year lease on 852 sf at $18.80/sf net (average) + TMI ($12/sf for 2013) + free parking space
C: ten-year lease on 4,222 sf at $27/sf gross + separately metered gas & hydro - $267K in Landlord upgrades (equivalent of comping 52 months’ gross rent)

These results are arguably closer to the 2008 assumption, built into Agreement of Purchase, that "the market rate for commercial retail space would be approximately $25.50 per square foot on a gross basis."

[thistleclub]

The Spec caught the "market rate"/"as is" discrepancy.

New Lister tenant can’t wait to be back downtown
(Hamilton Spectator, Meredith MacLeod, Apr 4 2013)

A restaurateur chosen Wednesday to lease space in the Lister Block closed his Mediterranean eatery just a block away in 2004 because he said an ailing downtown was chasing his customers away.

Now he can’t wait to be back.

Chris Des Roches has signed a 10-year deal for a 4,200-square-foot ground floor space at the corner of King William and James Street North. He plans to open 28 Lister, a 1920s-inspired New York-style chophouse with a 60-seat patio, bar area and chef’s table. The restaurant will feature the work of local artists and have an Art Deco theme....

The city listed the property last year and received three bids. Two of the bidders dropped out after the city counter-offered, said D’Angelo.

A city staff report estimates it will cost the tenant $500,000 to build a kitchen and outfit the space with furniture and fixtures. Des Roches expects to employ 25 to 30 in the restaurant and more in a catering operation.

Des Roches will pay more than $63,000 a year in rent to the city plus more than $50,000 in operating costs, including property tax. The city will invest $267,000 in ventilation, water, plumbing and electrical upgrades.

The deal means the city will get $15 per square foot in rent, 40 per cent less than it had once hoped to collect.


In a June 23, 2008 COW presentation on the Lister Block Agreement of Purchase & Sale, the Lister's total annual cost was estimated to be $39.90 per square foot gross.

[SteelTown]

Another lease secured...

http://www.hamilton.ca/NR/rdonlyres/...6__PW13047.pdf

In March of 2012, the City issued a Request for Quotation for Brokerage Listing services
to market the remaining three units for lease at the Lister Block.

The successful Broker was Blair Blanchard Stapleton Limited. Marketing took place through the Multiple Listing Service (MLS) system, at the Broker’s web-site and through site location signage. The listing agreement was in place from April 11, 2012 to September 30, 2012. Although numerous possible tenants were entertained, no offers were received on Unit #114 despite the listing agreement being extended several times.

On May 8, 2013, Brendon Coulter and Valerie Cousens submitted an offer to lease the space for the purpose of displaying, promoting and selling local art work. Brendon
Coulter and Valerie Cousens will start a new business called Lister Arts. This business will operate as an art collective which will allow local artists to feature and sell their art
work.

[thistleclub]

"The use of unit #114 for featuring, promoting and selling local art work is consistent with the vision of Lister Block as a treasured jewel amidst a thriving local art community. Over the past several months, City staff also worked with another proponent. The use was to be an architectural and interior designer’s office. However, this offer did not materialize.... Over the last year, staff has entertained numerous possible tenants including a credit union, a watch repair shop, a discount goods shop and most recently an architect’s/interior designer office. In each case, the business case was proven not viable either for the tenant or the City. "

Watch repair and discount goods strike me as long-shots, but $1080/month should have been doable for a professional firm. Guessing that a 480 square foot space with no street entrance was a deal breaker. Wonder who the other parties were?

[SteelTown]

http://28lister.com

[SteelTown]

Mezza Cafe is aiming for late August for the launch of the cafe.

28 Lister is aiming for opening after the Labour Day weekend.

[Dr Awesomesauce]

Good news! These seem like interesting tenants.

This makes me wonder when we're going to hear something about the property across the street at King William and James. Isn't it Spallacci who owns it? With the Lister approaching 100% occupancy, etc., I'm sure the value of his property is starting to creep up.

[matt602]

They've been working on shoring up the wall of the sirloin cellar building over the lats few weeks so that might be an indication... I'd imagine we'll hear news from LIUNA soon on the property next to Lister on James as well.

[CaptainKirk]

Originally Posted by matt602

I'd imagine we'll hear news from LIUNA soon on the property next to Lister on James as well.

From Dec 12, 2012...http://www.thespec.com/opinion-story...block-project/

Joe Mancinelli of LIUNA says the design for the second phase of the Lister Block redevelopment could be completed by the summer of 2013 with construction to follow soon after.

Can't wait!

[matt602]

Neither can I. Given all the recent construction downtown, I'm starting to feel a lot less pessimistic about these things. With the, Acclamation condos, Tivoli Tower and this new construction, there's gonna be a lot more nightlife along James North.

[Dr Awesomesauce]

^It seems like we've been waiting forever for those Acclamation lofts to break ground. Any time now would be OK with me.

And I'll be interested to see what LIUNA has in mind for Lister, style-wise. A nice combination of the stone from the Thomas Building and a bit of glass perhaps.

A lot of nice infill happening along James N but what to do about the City Centre? Let's face it, it needs tens of millions in upgrades.

[thistleclub]

New optimism for an old frustration
(Hamilton Spectator, Mar 31 2008)

Two new towers side-by-side in downtown Hamilton.

One a rental retirement home for seniors, the other a condominium also marketed to seniors.

Each containing about 120 units.

Each -- depending on the size of the floor plate -- seven to 12 storeys high built atop a two- or three-storey parking arcade.

A total of 200,000 square feet.

Projected construction cost: $60 million.

That's the proposed second phase of the Lister Block project.


The project thumbnail in the Dec 2012 story is slightly more abstract:

Laborers’ International Union of North America is pushing ahead with a residential and commercial development adjacent to the newly restored Lister building....

According to Mancinelli, the project will include a large residential tower directly behind Lister and a prominent commercial presence immediately next door to it on James Street North where the historic Thomas building used to be.

The new commercial frontage will feature the heritage façade of the Thomas building which LIUNA preserved prior to demolishing the decrepit interior....

Mancinelli declines to put a dollar figure on the project or say how many units it will contain.

But he says it will cost many millions, include a “significant residential” component, and soar higher than Lister’s seven storeys.

[Dr Awesomesauce]

^Seniors flats are still the plan then? I guess you do what you know. They've got a few retirement homes around I believe. A lot money to be made from that market.

[thistleclub]

Originally Posted by pEte fiSt iN Ur fAce

^Seniors flats are still the plan then?

I have no idea. That article is five years old, but its as explicit as LIUNA has ever been about its Phase 2 ambitions.

[thistleclub]

Elsewhere in blast-outta-the-past news, the La Costa narrative offers a glimpse of how far we’ve come:

Hamilton Spectator, Mar 19, 2001:

Chris DesRoches, owner of La Costa, has been operating his restaurant in the core for seven years and says he has no trouble attracting customers.

While he says there's more good than bad downtown, he agrees the core could use some cleaning up, especially compared to its neighbours in Burlington and Oakville. "(In those cities) there's no peep shows, there's no decaying buildings, no hordes of teenagers and other types hanging around ... Those things do put a negative spin on how people perceive the downtown."

Mostly out-of-frame in Google Books, a snapshot of La Costa’s storyline appears on pages 260–261 of Jerry Langton's Fallen Angel (John Wiley & Sons, 2006):

The back of Delta Bingo faces King William Street, the downtown’s artsy district. There are bookstores and art galleries, nightclubs and restaurants and the city’s massive police headquarters. One of the strip’s most popular restaurants was La Costa, a family-style Mediterranean bistro with an adventurous menu and a respectable wine list. For 11 years, La Costa stood at the corner of King William and Hughson and won the “Best Italian Restaurant” title from the readers of The Hamilton Spectator eight times. But in a chain that has spread from suburban Toronto to Calgary, the Hamilton location was the only La Costa that lost money. It even started with a bad omen: two days before it opened, a woman was stabbed to death on the sidewalk in front of the restaurant. “That poor woman. I couldn’t believe what happened,” said La Costa owner Chris Des Roches. “In the months that followed, it was a big struggle to get established; people wouldn’t come downtown after that.”

But as other stores closed and violent crime became more common downtown, fewer and fewer families came to Hamilton to eat out. Those that did often reported to Des Roches that they were harassed by aggressive panhandlers, had their cars broken into or were even mugged. A month after a random, almost fatal stabbing in the Jackson Square mall two blocks away, La Costa shut down its Hamilton franchise. “The downtown has deteriorated so much that people don’t come downtown anymore; Gore Park is full of gangs,” said Des Roches. “We really tried to keep it going; we did everything to keep customers happy. But when my customers tell us they are afraid to come down on Saturday night, you can’t change that.” The day the restaurant closed, there was a sign posted in the window that thanked loyal customers and explained that it was just too difficult to do business downtown. Within hours it was painted over.