SPRINGFIELD – The City’s economic development agency this week gained a new property and also lost a longtime tenant.
The Springfield Economic Development Agency this week approved steps forward to purchase the now-vacant U.S. Bank at 437 Main St. The city manager will negotiate and enter into an option agreement with the U.S. Bank property owners for the 0.71 acre lot, which connects South A. St. and Main St. It is zoned as mixed use commercial.
Economic development manager Allie Camp stated that SEDA’s interest in acquisition is “for future redevelopment of the site.” No specifics were identified. The option agreement will begin the option term: a 30-day due diligence period. Staff will then return to SEDA with findings from option term to deliberate how to move forward. Due diligence activities are projected to cost $15,000-$20,000.
At an unspecified, later date, City staff will bring SEDA a resolution to add this property to the downtown urban renewal plan.
Lane County Commissioner David Loveall recused himself as he has a direct conflict of interest.
Vino & Vango’s leases terminated
In response to downtown Springfield’s Vino & Vango’s inability to pay rent for its two leases at 236 and 240 Main St., SEDA voted to hold store owner Pauline Hauder, 76, accountable.
Regarding how much money Hauder owes the City as of April 9, that number is not yet available. But Camp wrote, “as of April 3, Vino & Vango owe $6,587.10 in unpaid rent payments not including interest and fees.”
She continued, writing, “with interest and fees since Dec. 2021, the total amount owed is now $16,426.83, which includes a credit for $371.98 for interest and fees since the last SEDA meeting on March 11, per Board direction (without a credit, the amount owed would be $16,798.81).”
Ultimately, SEDA approved a four-pronged motion unanimously.
“Tenant Vino & Vango was in default under the current lease agreements at 236 Main St. and 240 Main St.
That SEDA terminate the leases at 236 Main St. and 240 Main St. with 30 days notice to the tenant.
That if a tenant vacates both premises completely before the 30 days, the city manager will forgive the tenant and personal guarantor of all past due rent and fees except for forfeiture of tenant security deposit.
If before the end of the 30 days notice period, the tenant pays all past due rent, including fees and interest for the leases at 236 Main St. and 240 Main St. and the terminated storage lease, then the city manager is authorized to enter into a new lease agreement in substantially the same form provided in attachment one, but not including the repayment plan.”
In her three minutes to address SEDA, Hauder only had time to blame the COVID-19 pandemic and this year’s recent ice storm for her financial issues. The next morning, Hauder said she had not yet received the official notice from the City, but she is leaning toward vacating the premises within the 30 days and pursuing the past due rent and fees forgiveness.
She added that she hopes to maybe move her business to Eugene or make Vino & Vango mobile by bringing her expertise and supplies to businesses which already have liquor licenses.
SEDA board chair Kori Rodley said this matter “is very difficult and not necessarily pleasant.”
“One of the things we have to acknowledge is that we need to do better in terms of how we manage our properties and how we become increasingly professional in how we do that because we are working to be in the business of developing downtown Springfield,” Rodley said. “It’s going to take all of us continuing to do better.”
The business first opened in April 2011.
