Letter of Intent Updates

I got Marks version of the LOI (at 5:45 am!!!!) and he had made many updates that I really like. Changed almost all of the things I wrote on a previous post and then some.  Mark did mention something about adding an allowance for build out. Like they would pay $5 per square foot in build out expense. I didn’t see that in the revision and let Mark know.

Also, after meeting with Rand I had some additional questions/ideas for the LOI.

  • In a lease agreement the condition of property being delivered to the tenant should be extremely detailed. Rand has been around the block and said builders will do the minimum and if we don’t get it in the agreement they can get away with it. So I need to include things like floor and doorway molding, primer and paint on the walls, paint on the ceiling if we are having the open ceiling plan, what condition the flooring is in and the size of doorways. They could give us the 30″ doorway to the back storage room instead of the 36″  and that could suck when moving kegs.
  • Even though this is just a LOI I want to add something in there about the amount of space they will provide. When looking at the blueprints for that building it looked like the smallest space was maybe 3000 square feet. I don’t want that much. I know that these are not all set in stone since it depends on where support beams fall but I suggested putting a range of 1900 to 2100 square feet. That way I won’t get stuck with more space I need that would lead to more rent expense.
  • The last thing I wanted to add was the contingenies. Again, I know it is not the lease but I didn’t think it was a bad idea to write that this is all subject to financing and licensure.

I sent these over to Mark. Let’s see how quickly they can turn it around. My check should arrive Monday to pay Rand the retainer.

Cheers!

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3 thoughts on “Letter of Intent Updates

  1. Make sure you don’t have to personally sign the lease. You’ll want to sign as the business LLC only. If they require you to personally sign in addition then they can go after you and your assets . They may require you to sign so if you do, just know what it means. Hopefully Rand covers this well

    Liked by 1 person

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