Today the Chicago Transit Board approved a lease agreement between the CTA and Waar, Inc., owner of Quizno's, for space at CTA's main office building at 567 W. Lake Street. The lease agreement, with terms for up to 10 years with a five-year extension option, was approved following a competitive procurement process and will generate more than $420,000 of additional revenue for CTA over the life of the agreement.
The agreement also requires Waar, Inc., to provide $134,220 in capital improvements to the 1,860 square-foot property including creating a small dining area and installing equipment necessary to operate the restaurant.
Revenue from the lease agreement contributes to CTA's operating budget, which is used to support day-to-day operations. CTA receives public funding, comprised of regional sales taxes and matching state funds, for approximately half of its total operating budget with the remainder coming from CTA fares and revenue generated from sources such as advertising, concessions and leases. In 2005, more than $1.4 million was generated from commercial properties owned by CTA.
The leasing agreement with Waar, Inc. was developed through the services of Transwestern Commercial Services Illinois, LLC which manages the headquarters building and acts as the broker for CTA to lease retail space within the building.
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