Subway’s downtown location is looking to end its lease at The Commons.
The Columbus Redevelopment Commission approved a motion Wednesday for redevelopment officials to begin discussions to terminate or amend Subway’s lease. Due to its master lease agreement with The Commons, the commission has the authority to lease facilities in the space, said commission attorney Stan Gamso.
George Estep, of Estep and Co., which owns the Subway in The Commons, has asked the commission to consider ending the lease and working toward an “organized closure and departure.”
“He’s indicated to us that the Subway facility he has in The Commons mall has been marginal at best,” Gamso said. “… With this pandemic that we’ve been living with, it’s gotten worse.”
Last March, The Commons closed its doors due to COVID-19. The space is still mostly closed to the public (except for private rental events). Its two interior tenants, Orange Leaf and Subway, have no exterior entrances and have been closed since March also.
These two businesses were among six restaurants who, as tenants of the city, were given a 100% rent abatement from April to July. The redevelopment commission later approved a resolution in July to provide Orange Leaf and Subway with continued 100% rent abatement until The Commons reopens.
Redevelopment director Heather Pope noted that while the rent relief provided some help, Subway has other expenses to manage. Despite being closed, the business has had to keep paying costs such as insurance, property taxes and utilities, she said.
The restaurant’s inability to be open should be a “strong consideration” toward letting them out of the lease, said Commissioner Al Roszczyk. He also suggested the possibility of making the lease decision in June or July, once the situation has presumably improved.
Commission president Sarah Cannon said that if the lease is terminated, the commission should emphasize Subway’s inability to open as a factor in the decision. This, she said, would avoid setting a precedent with their decision. She added that the commission may also request Estep’s help in finding a new tenant.
“It’s not an easy space to lease, and he may have connections that would help us find a tenant,” she said.
The Subway at The Commons, which entered its lease in 2011, is an “excellent tenant,” Gamso said. The business is in the second renewal phase of its lease with about a year and a half remaining. The business currently pays $32,400 per year (about $2,800 a month), as well as a maintenance fee, as part of the lease, he said.
City councilman Tom Dell, who attended the commission meeting via WebEx, suggested giving the business an option to buy out its lease.
In discussing next steps, Gamso said that any recommendation arising from discussions with Estep will likely be brought back to the commission for further action.
When asked if the decision to end Subway’s lease would be up to The Commons Board, he replied that because of the master lease agreement, the redevelopment commission is the one who has a contract with Subway. In the past, The Commons has never asserted a need to have approval over lease agreements by the commission under its master lease, he said.
However, the commission has a duty to report “our findings and our recommendations” back to the Commons Board, Gamso said.
“We definitely need to … either make the Commons Board aware of what’s going on or ask for their input or ask for their participation in any discussions,” he said. “I think that’s only fair.”
Subway’s rent goes toward helping maintain The Commons, Pope said. Commons Manager Shanda Sasse and parks associate director of business services Pam Harrell have been included in talks with Estep earlier this year.
Pope said she will share the commission’s discussion regarding Subway with the Commons Board at its next meeting.
“They’re interested in keeping the Commons vibrant and inclusive to all, but I think they leave the rental piece up to us, as spelled out in the master lease,” she said.
The Commons’ other interior tenant, Orange Leaf, has also been closed since March. Franchise owner Andy Russell said, at this time, his business’s long-term status is “still undecided.”
Rent abatements have been beneficial to the business and he commended the city for its assistance during this time.
“They’ve been responsive and helpful in every way possible,” Russell said.
