The Redevelopment Commission on Dec. 1 approved a rent-credit resolution for Dimension Mill Inc. after reviewing lease language and the downtown tenant's reported loss of event-hall use.

Staff described the sequence: the mill's south wall failed earlier in the year, emergency stabilization and rebuilding occurred and the space was out of service for 122 days (presentation at SEG 2484-2496). Staff identified lease section 8.01 as the relevant clause for abatement/reduction of rent during periods of repair and explained the calculation used in the legislation.

The staff calculation used the mill's annual rent ($104,040 with a 2% annual increase applied for 2025), a daily rent equivalent of $285, the percentage of the building represented by the event hall (roughly 19.1456%), and a 122-day outage to yield the proposed rent credit of $606,657.89. Commissioners asked staff to make the resolution language track the lease precisely; legal counsel and staff agreed to reference section 8.01 explicitly in the recitals. Commissioner John Fernandez and tenant representatives described the financial impact of lost bookings during the outage; the tenant said they estimated more than $40,000 in lost event revenue during the outage (SEG 2644-2668).

Outcome: Commissioners approved the amended resolution unanimously (vote recorded at SEG 2762-2766). The resolution was amended so its recital explicitly cites lease section 8.01 to align with the lease's rent-abatement provisions.

Provenance: topicintro: SEG 2481 topfinish: SEG 2766

Speakers quoted or relied on in this article: staff presenter (construction/property staff), Dana Kerr (legal counsel), John Fernandez (tenant representative).