Questions on opening a shop

[ElPugDiablo]

Thanks for the tip on Simons ElPugDiablo. I have been by there but never checked it out, will do.

They have till the end of 2007 on their lease with an option to renew for 5 years at that point. I am not sure what you mean by what kind of increase.

So you are really buying a 5 years and 6 months lease. Whatever the purchasing price you might want that to be contingent upon re-negotiate a lease with the landlord, something like 5 year, plus 2 5 year option. Otherwise after the 2013 your landlord can double the rent or tell you to leave and there is nothing you can do about it.

When I asked increase I mean the increase in rent. You need to compare that to COLA.

 

[jdandtracy]

Ask about requirements for various occupancy levels. I am building a shop now in Colorado Springs. If we have >50 occupancy rating, we have to have two stall bathrooms and two UL rated fire doors at least 34 feet apart. Our space has neither, and the upgrades would cost approximately $35,000 to accomplish (new storefront and major bathroom changes).

In my location, you get one occupant for each amount of square footage shown below:

cafe - 1 per 15 sq ft
Service/Bar - 1 per 200 sq ft
Storage - 1 per 300 sq ft
Hall/Bath -1 per 100 sq ft
Business use - 1 per 200 sq ft

You take your floor plan and calculate your occupancy based upon those multipliers. We came out to 78 and could not afford the costly upgrades to the storefront. We had to change our layout to get below 50 by reducing our seating area and increasing our storage/halls/bar area.

There are all kinds of Regional Building Codes that can put you in a bind. Be sure to consult with an architect or go down to the building department and ask questions...

Also, check into grease trap requirements. This almost killed us. We ended up getting a variance due to our building configuration, but without it we would have been dead in the water.

Good luck,
JD