Adam Leitman Bailey, P.C. Negotiates Favorable Access Agreement with Tenant
Adam Leitman Bailey, P.C. was retained by a building owner of prime commercial retail space in the heart of Greenwich Village to negotiate an access agreement with the tenant of ground floor tenant space in the building to perform structural work to the columns in the space necessary to permit the construction of residential units on the roof of the building. Because the work would shutter the tenant’s operation for at least thirty days, the tenant tried to hold up the owner by requesting a large payoff upfront to permit such access. The firm then devised a strategy to move the tenant off its demands. The tenant had several pieces of mechanical equipment on the roof and its lease did not grant it roof space. Thinking outside the box (serving a notice to cure would result in a delaying Yellowstone action) the firm served a notice to terminate a license for the housing of the equipment on the roof. The tenant countered by seeking an injunction in the Supreme Court to stop the owner from commencing a holdover proceeding in the Housing Court, and for other relief. During an informal conference before the court, where Adam Leitman Bailey, P.C. laid out its arguments, the court strongly suggested to the tenant that it reach some accommodation with the owner or the court would likely permit the owner to bring a holdover proceeding. The fear of losing a proceeding that would require the removal of the mechanical equipment necessary to operate the tenant’s business brought it to the negotiating table. Then, the transactional attorneys at Adam Leitman Bailey, P.C. had a closed door meeting with the tenant and their counsel and the owner and negotiated a favorable deal for the owner, which allowed it access to install the column supports.
Jeffrey R. Metz represented the owner in the court proceedings and Jack Erdos represented the owner at the bargaining table and in drafting the agreement.