Civic Impact Rent Forgiveness
The Port Commission has approved through Resolution 20-55, $200,000 in rent forgiveness to two additional categories of tenants who have been negatively impacted by Covid-19:
- Locally-serving nonprofits with annual budgets of less than $3 million
- Tenants who produce art as their primary use of Port space
If all rent of all qualifying applicants can be addressed within the $200,000 cap, then all such rent would be forgiven (or, if such rent had already been paid, would be offered as a rent credit). If the total rent amount is in excess of the $200,000 cap, then each eligible tenant's rent would be forgiven or credited by an equal percentage up to a total of $200,000.
Key Tenant Requirements
- Provide documentation that demonstrates that tenant meets the above mentioned categies (e.g. nonprofit status, annual approved budgets, etc.)
- Satisfy all responsibilities under the existing lease
- Report rent amounts that will not be forgiven because, for example, the Tenant received government-funded financial aid to be used for rent
- Resolve unsettled disputes
Key Tenant Benefits
- Full or prorate base rents forgiven from March 1, 2020 through May 31, 2020
- Rent credits for rent paid during forgiveness period
- Rent credits will first be applied to any amounts owed prior to beginning of forgiveness period and then tenants would be able to apply such rent credits to rent payable during Fiscal Year 2021-2022
- Staff Report
- Form Lease Amendment (It is contemplated that Civic Impact Tenants will use the LBE Form Amendment as the base template)
Tenants wishing to participate in the Rent Forgiveness Program may be required to submit the following information through an online form or to Port Staff through the lease amendment process:
- Economic impact from COVID-19 and need for relief.
- Business practices for safe operations while COVID-19 is still circulating in the community.
- Revenue projections, understanding fluid economic conditions, indicating whether the tenants can resume current rent payments at the end of the forgiveness program or the end of the rent deferral period, as applicable.
- Documentation of all submittals to federal, state and local relief programs and summary of application or forgiveness status.
- If no such applications were filed, tenant would be asked to explain reasons (ineligibility, etc.).