Businesses in Redevelopment Area Consider Their Options

Tenants within the have found that new space in pristine buildings means higher rent. Many say that proposed rent was a shock and will force them to move. But others are excited about the new development and plan to stay. Some already occupy new space within the development, which is located between Bullard Parkway and Chicago Avenue.

Vlass Temple Terrace LLC began negotiations with existing and new tenants in the plaza on July 1, 2009, said Vlass principal Mark Sneed.

Sneed said all tenants were on a month-to-month lease when Vlass acquired the property. He said tenants received notice in mid-August that they had until Oct. 1 to vacate. The developer plans to demolish the last building once the tenants have vacated.

Some long-term tenants said the proposed rent, plus common area maintenance (CAM), would have more than doubled what they pay now.

Sneed declined to comment on specific tenants or leases. He said each lease depends on numerous factors, such as square footage needed, build out provided by the developer, tenant mix and location.

Several tenants signed new leases and relocated within the new development. They include , and . The and signed lease extensions.

Sneed said negotiations with , and were unsuccessful. While some tenants said the increased cost was the primary reason to move, Sneed said there could have been other factors.

Sneed confirmed will leave its corner spot when its lease expires in two years. He said if the restaurant stays within the redevelopment area, it will be in another location.

The eight tenants that remain in the Terrace Plaza Shopping Center are preparing to move. Two are negotiating to relocate within the new redevelopment area. One said it will relocate close to the post office.

 co-owner Muna Faouri said her business is negotiating on new space within the development. Alico Fashions has anchored the plaza’s northern end for 13 years.

is also considering staying.

“We’re in negotiations now with the developer about proposed space within the new development,” said the Rev. Raymond Williams. “We’ll share space for the time being. When we moved into this development three-and-one-half years ago, it was made clear to us that the project was being sold, redeveloped, and we would have to move.”

Williams said while the timing was not exact, the developers have done a fantastic job of keeping the church informed.

Downtown Temple Terrace Barber Shop owner Richard Seija said he is excited about staying within the redevelopment area. Seija plans to have three chairs in the new shop and will add a barber at his new shop next to the post office.

“I’m excited about the new development and the location of the new shop,” said Seija. “Being next to the post office will create good visibility for walk-in customers.” Prices will remain the same, he said.

Two businesses will close.

“We’ll not be staying within the redevelopment area,” said Sonny Cheshire, owner of . “We’ve been in this location for five years. The developer’s proposal was too expensive for this type store. We’re not going out of business but will probably close and put everything in storage until a new lease is signed. We’re looking at three possible locations.”

 will close permanently, Sneed said.

Two businesses have chosen other retail sites nearby. The developer offered smaller space with increased rent.

“After four years here, we’ve decided to move,” said  co-owner Elizabeth Grasho. “We’re very excited about our new location. We were chosen as winner in the pet store category, for the Best of 2011 Northeast, and are pleased to join other 2011 winners (Chuck’s Natural Foods and Antonio’s Pasta Grill) in Terrace Oaks Plaza.”

Jean Grace, co-owner of , said she will also move.

“We’re moving to the Point Plaza at the intersection of Temple Terrace Highway and Harney,” she said. “We’ll be paying about half (rent plus CAM) of what was proposed by downtown redevelopers.”

Grace’s has anchored the building’s south end for seven years.

“As a gardener, watching the demolition and the uprooting of all the trees has been sad,” she said, adding that she hopes many more will be planted.

“I’m unsure on quantity of trees to be replanted, but they will be healthy good quality trees, not ones that had been damaged,” said Sneed. “Gardeners will be happy.”

 president Ruth Kegel said her non-profit organization must move to more affordable space.

Kegel said performances will be in the new Cultural Center, but there will always be the need for 3,000 to 5,000 square feet of black box space for storage, rehearsals and props.

“Creating this new downtown development is much like planning a wedding,” said Kegel. “You plan and plan, but there will always be changes.”

She said the developers were ahead of schedule and gave Masque little time to find space for its December production of “Footloose” but said change is inevitable.

“We would have liked to have been a visible anchor in this new project, but operating as a non-profit, we cannot afford the rents the developer must charge to be profitable.”

The Cultural Center is part of the Main Street development phase, Sneed said. Ground breaking is set for Dec. 1. Sneed said he couldn’t comment about when Masque’s performance space would be ready because there are too many variables.