4/13/05
Leases Expected to Generate More Than $1 million in Rent, Capital Upgrades
The Chicago Transit Board today approved lease agreements for eight storefront properties located at CTA rail stations on the Red and Purple Lines. In addition to bringing new services to Chicago Transit Authority customers, the leases are expected to generate more than $1 million in rent and capital improvements for the CTA over the next five years.
The seven new long-term leases and one new month-to-month lease bring the total number of storefront property agreements to 42. As part of their agreement with the CTA, the business owners will provide rent and make capital upgrades to improve the appearance of the spaces involved, the majority of which were previously vacant. The leases were competitively bid.
"The new lease agreements provide tangible benefits that are a win for all concerned," said Chicago Transit Board Chairman Carole Brown. "In addition to bringing value-added services to CTA customers, the businesses add to the economic vitality of the surrounding communities and generate revenue for the CTA."
?Customers will appreciate the convenient amenities that will be a step or two away from our rail stations as a result of these new lease agreements," said CTA President Frank Kruesi. ?This makes taking public transportation enjoyable for our customers and anchors the CTA in the communities we serve."
CTA storefront properties are located next to CTA stations but have separate dedicated entrances. CTA also leases concession spaces which are located inside CTA rail stations.
The locations and businesses for the new storefront leases are as follows:
1521 W. Jarvis ? general merchandise and news stand store (currently vacant)
1120 W. Thorndale ? tax, real estate and insurance service (currently vacant)
1118 W. Thorndale ? news stand (currently vacant)
3942 N. Sheridan ? lease renewal for Alta Vista Foods (same occupant)
3939-3941 N. Sheridan Road ? shoe store (currently vacant)
3938 N. Sheridan Road ? coffee shop (change in occupant)
1647 W. Howard ? fast food grill (currently vacant)
1024 Central ? a convenience store (currently vacant)
By signing agreements with the CTA, each vendor has agreed to lease, operate and make capital upgrades to the storefront spaces. Capital improvements typically consist of electrical, plumbing, heating and air conditioning improvements, as well as new windows, counter tops, shelving, flooring and ceilings.
The leases are for a period of five years with the exception of the space near the Howard station, which is for a one-year period due to pending construction that is expected to get underway at the Howard station.
The CTA's competitive bid process evaluates bids for the spaces based on the vendor's proposed rent and capital improvement expenditure, financial background, experience with retail spaces, proposed design of the retail space and intended use.
Total contract value is a combination of the bid rent and the amount of capital improvement to the retail space proposed by the bidder.
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