response 126 of 220:

Feb 8 22:55 UTC 1999

I'd like to update folks as to today.

First off, I have contacted four insurance agencies regarding
liability insurance.  I'm still waiting for one, Benz, to return
my call.  Dobson McComber came back with a premium I can't even
bring myself to type in.  It was that high.  Both Aprill Agency
and State Farm (Dan Gilec) seemed to understand the uniqueness
of our operation and budget constraints, both are checking into
policies, but they seem to think if the underwriter will consider
us under the right category we would be looking at around $250 
per year.  This is for liability insurance which will simply meet
the terms of the lease, no bells and whistles.  Yuck.  Again,
this figure is not firm, but it's a best guess until they get 
back with a specific quote.

Second, I was able to get over to Flying Dutchman this morning
to pick up the (signable) lease.  As I was sitting in the 
reception area there was a women standing at the counter, speaking
with the secretary.  She was talking in concerned tones about
rental rates, understanding that rent shouldn't be too high, but
the way the electric was being figured needed to be discussed.
And couldn't Susan do something about that?.  

Yep.  

I apologized for interrupting but introduced myself as being
from Cyberspace Inc., and asked if I could help out, maybe address
any concerns she was having.  I again explained about our power use,
the way we measure and re-measure with equipment changes, and the
honesty of our volunteer staff.  Ms. Van Fossen seemed to understand
but the concern was still there, enough that when I suggested we'd 
be happy to have an independent measurement taken her response was,
"Well, then I'd need to find someone."  I asked what we could do to
make her feel more comfortable about the way we pay our electric and
she offered, "Maybe check the consumption quarterly."  She concluded
by saying she tended to trust people until proven otherwise.  So
we left it that the way we've been paying electric could continue.
But I do know she has concerns.

I now have the lease and it states the following regarding our rent:
 
     Months 6/01/1999 - 5/31/2000  $66.15 per month
     
     Option 6/01/2000 - 5/31/2001  $69.46 per month
            6/01/2001 - 5/31/2002  $72.93 per month
            6/01/2002 - 5/31/2003  $76.58 per month
            6/01/2003 - 5/31/2004  $80.41 per month
            6/01/2004 - 5/31/2005  $84.43 per month

The option clause reads:

OPTION: Providing Tenant has not been in default of this lease, Tenant
shall have the option of five 1 year Lease extensions at a 5% 
increase in rent per year.  Said option may be cancelled with a written
ninety (90) day notice at the discretion of either Landlord or Tenant.

Ms. Watrous and I agreed on a 4 month, or 120 day notice period, but
this isn't what made it onto the finished version.  I expect this was
an oversight.  I've left a message for her to call back and I'll 
clarify this point.

There is nothing in the lease about our electric payments.

So that's where things are to this point.

Oh, one last thing.  I was really hoping that if the quoted insurance
premium was simply above and beyond what we could afford that we
could appeal to the Landlord to release us from liability.  When
Ms. Watrous handed me the lease (in front of Ms. Van Fossen) I 
mentioned I was having a heck of a time finding affordable insurance
for our shoestring budget organization.  Ms. Watrous said she really
didn't have any suggestions on agencies to try.  But after Ms. Watrous
left Ms. Van Fossen told me to try Aprill.  So I did.  But I think
that kind of answered my question about any release.

response 128 of 220:

Feb 8 23:43 UTC 1999

But is it a good idea to agree to rent increases per year that are higher
than the current rate of inflation?  At the end of this lease, grex will
be paying 30% more in rent than it does now, yet has no guarantee it will
have any more members than it does now?  The realty company can offer this
deal to its corporate tenants because if the economy grows, those
companies should all be doing better business in six years.  Given
that Grex not able
to make that assumption, is it better off to have a fixed rent?  

Grex's average rent over the next six years (if you add all the increases
up) will be $75 a month.  Maybe grex could ask for a flat rate-- agree to
pay say $70 now as long as that price is guaranteed to be fixed for the
next five years.  Grex would be paying more money than it has to for the
first half of the lease and less than it has to for the last half, but the
realty company would be getting more *now* and can always terminate the
lease down the road.

response 130 of 220:

Feb 9 00:27 UTC 1999

but if grex could get a fixed rate somewhere else isnt moving worth
considering?  maybe grex cant get a fixed rate anywhere these days
though?

response 132 of 220:

Feb 9 01:03 UTC 1999

Well, of course, it would depend on the rate.  But I think a 5% increase each
year won't break our budget.  If we get a new member every 2 years that should
cover it.

response 134 of 220:

Feb 9 03:03 UTC 1999

You're welcome.

response 136 of 220:

Feb 9 15:41 UTC 1999

Arbornet (M-Net) pays $300 per year for a "special businessowners
policy" from Hastings Mutual Insurance Company.  Our agent is
Dobson-McOmber!  For the $300/yr we get $1,000,000 commercial
general liability coverage, $500,000 each occurrence, plus a mixed
bag of other covrages including $5,000 medical expenses.  The 
"additional insured" is our landlord, the NEW Center.
        I see no reason why Grex shouldn't get exactly the same
coverage.

response 138 of 220:

Feb 11 04:24 UTC 1999

I think halon got banned at some point.  Seems the people demoing it at
trade shows started getting cancer or something like that.  Halon was
also real expensive - much more than the cost of replacing our
equipment, even with new equipment.

response 140 of 220:

Feb 11 06:37 UTC 1999

No asphyxiant is good to breath, but Halon decomposes in fires to some
really nasty stuff, and it is also bad for the ozone layer. CO2, or even
just N2, would be fine. CO2 is especially good because it is heavier
than air and can be stored in greater quantities at lower pressure.

response 142 of 220:

Feb 11 12:10 UTC 1999

Remember, richard, Grex might be paying slightly more to stay in this 
location, but moving takes a big, immediate hit out of our wallet.  
Great job working things out, Mary. 

response 144 of 220:

Feb 11 22:47 UTC 1999

Mary, thanks so much for handling a could-be-unpleasant job so quickly and
efficiently.  I am sure those of us who sue Grex every day salute you.

response 146 of 220:

Feb 11 23:44 UTC 1999

That $300 for insurance is per year, not per month, but I think you got that
right in your math, and just wrong when reciting figures.

However, I'm under the impression that that insurance is a pretty standard
part of commercial leases.  Also, you're assuming that we could find some
other equivillent space, in the Ann Arbor area, for $60 per month, rather than
the $75 we'd be paying in the Pumpkin.  Ann Arbor realestate tends to be quite
expensive.  Assuming that $60, because that's what we've been paying for a
few years, is the going rate for any room like that, and that a rent increase
of 5% a year is outrageous, doesn't work in the Ann Arbor realestate market,
where that's a pretty good price for a room that size.

response 148 of 220:

Feb 12 00:03 UTC 1999

Ms. Watrous mentioned to me at our first meeting that our space would go
for quite a bit more than what we're paying now if offered to a new
client.  When told the dimensions she said something just a little larger,
in the same building, just rented for $200 per month. 

I've heard back from State Farm and they are unable to offer
us a policy, or at least not anything that suits our needs
and budget.  The exact reason was the underwriter wasn't
interested in supporting a policy with such a small premium.
They used to do it, for PTO's and such, but no longer.

Aprill Agency did find a company with a policy that meets
the needs of the proposed lease.  Hastings Mutual will cover
us for a premium of $300 per year.  This is the same company
that covers M-Net although it sounds like we'll get slightly
more coverage for the same premium. 

I really need to get the proposed lease online, for everyone to
read.  Jan has offered to scan it in but I'm afraid he might
be too busy to get to it.  So, if it doesn't show by tomorrow,
I'll type it in.  Which means ya'll have to deal with my typos
and formatting. ;-)