The Cosy Nook Cafe Port Erin

[Roger Mexico]

1 minute ago, Happier diner said:

'Possible' extension is a bit woolly 

Oh quite.  I was just explaining where the ten years came from, despite, as you said five years being normal.  It does seem strange to offer the possibility of extension to a new tenant, when one wasn't offered to the old one.  The timing is also odd - announcing it on Christmas Eve to start in only three months time.  You'd expect this to have been started in the Autumn at the latest.

[Roger Mexico]

1 hour ago, Paulos The Great said:

Just MNH being greedy then if the existing operators want to extend to lease. After  Covid-19 when the hospitality industry is on its backside it’s a very silly tactic if that’s the case. But then that’s government isn’t it. Lacking in reality. 

Perhaps not MNH, given the involvement of Chrystals and Davis (why the extra cost?).  The AG's Office has control over a lot of contracting - the problem is who do you then complain to if you think something dodgy has gone on?

[finlo]

44 minutes ago, Ramseyboi said:

 

Having said that I believe the current tenant (who have done a great job down there) should have some sort of heady art to avoid someone else just coming in with a low bid and then capitalising on the hard work and good reputation that have built over the last five years.

 

This sort of thing?

[Paulos The Great]

4 hours ago, Ramseyboi said:

They can’t just give out an extra five year lease because the current occupant wants one.  They have to be seen to be going through the correct procedures.

I had a look on Crystals website they are offering the new lease with an extension option for another 5 years so presumably the same terms (a five year extension) could be made to the existing tenant if the lease is extendable.

It certainly looks like something odd is going on. 

[ManxTaxPayer]

4 hours ago, finlo said:

This sort of thing?

 

An Arcimboldo piece would work much better. 

[Ramseyboi]

1 hour ago, ManxTaxPayer said:

 

An Arcimboldo piece would work much better. 

Looks like one of the shelters on Ramsey prom

[The Voice of Reason]

2 hours ago, Paulos The Great said:

I had a look on Crystals website they are offering the new lease with an extension option for another 5 years so presumably the same terms (a five year extension) could be made to the existing tenant if the lease is extendable.

It certainly looks like something odd is going on. 

Well not necessarily. The terms offered to future prospective tenants do not have to be the same as those which the present tenants signed up to.

Maybe the relationship with the incumbent tenant has lead them to re evaluate things and decide that if all goes well with future tenancies then offering an extension option is the way to go. 
They could equally have decided , say , to now offer a seven year lease  rather than the current five, for a variety of operational reasons.

I am not sure it is indicative of something “odd” going on.

[Paulos The Great]

15 minutes ago, The Voice of Reason said:

Well not necessarily. The terms offered to future prospective tenants do not have to be the same as those which the present tenants signed up to.

Not really I’ve seen a few of these DOI drafted leases they usually have a standard extension clause in them so I’d suggest that something is going on in that either the current tenants don’t want to extend but if they say they don’t other interested parties are going to ask why they don’t want to which might make it a difficult sell or some other fallout has happened.

[Happier diner]

2 minutes ago, Paulos The Great said:

Not really I’ve seen a few of these DOI drafted leases they usually have a standard extension clause in them so I’d suggest that something is going on in that either the current tenants don’t want to extend but if they say they don’t other interested parties are going to ask why they don’t want to which might make it a difficult sell or some other fallout has happened.

Except it's not a lease is it?

[Gladys]

2 minutes ago, Happier diner said:

Except it's not a lease is it?

That is how it is described by Chrystals.

[Paulos The Great]

4 minutes ago, Happier diner said:

Except it's not a lease is it?

Yes it is. Crystals have the full lease details. It’s just a lease on a MNH building.

[Happier diner]

2 hours ago, Paulos The Great said:

Yes it is. Crystals have the full lease details. It’s just a lease on a MNH building.

My sincere apologies. I was out and about. I meant to say this is not just any lease is it?

Meaning it's high profile and one the islands key tourist assets. 

[Gladys]

10 hours ago, Happier diner said:

My sincere apologies. I was out and about. I meant to say this is not just any lease is it?

Meaning it's high profile and one the islands key tourist assets. 

Not sure that makes much difference really.  Perhaps there may be extra covenants by the tenant, but in reality it is a lease for catering premises which has been put out to tender.  The rent tendered will reflect the commercial viability of a catering business operating from that location, I guess, and the number of days p.a. it is able to operate to cover costs and generate a profit.  Like I said above, there won't be a passing trade, people have to want to go there depending on weather, time of the week/year, etc. 

[Happier diner]

10 minutes ago, Gladys said:

Not sure that makes much difference really.  Perhaps there may be extra covenants by the tenant, but in reality it is a lease for catering premises which has been put out to tender.  The rent tendered will reflect the commercial viability of a catering business operating from that location, I guess, and the number of days p.a. it is able to operate to cover costs and generate a profit.  Like I said above, there won't be a passing trade, people have to want to go there depending on weather, time of the week/year, etc. 

Yes thats right. I was kind if meaning though that there were 80,000 stakeholders. 

Normally someone leases a commercial property to carry out a business. Some succeed and some fail. However, normally normally GMP isn't really bothered. In the case of high profile, Government owned properties, they are.

Edited December 27, 2021 by Happier diner

[Gladys]

1 minute ago, Happier diner said:

Yes thats right. I was kind if meaning though that there were 80,000 stakeholders. 

Normally someone leases a commercial property to carry out a business. Some succeed and some fail. However, normally normally GMP isn't really bothered. In the case of high profile, Government owned properties, they do.

Yes, I can see that, and perhaps that stakeholder interest will affect the rent to support the business and give it a better chance of success.  Nevertheless, for the current incumbents, they have had 40% of their lease term subject to covid restrictions, on tourists, TT and full lockdown.  You would just think that a pragmatic response would be to offer an extension with a full tender exercise later.  There may be financial regulations which make that impossible, but if they are able to offer a lease with a renewal now, why can't they extend the current lease?

Again, not one I would have a principled row about, but it does not seem a very unimaginitive approach.  I am not sure that it is indicative of anything odd going on, just a lack of commerciality on the part of MNH.