Lease of Canteen to Mario Fernandes and Farah Haniff Fernandes

MEMORANDUM
To: Chairman and Members, Central Housing and Planning Authority
From: Hannifah Jordan, Corporate Secretary
On behalf of the Management Team, CH&PA

Date: July 25, 2016
Subject: Lease of Canteen to Mario Fernandes and Farah Haniff Fernandes

Two vacant offices were rented to the above named Tenants on the 1st November 2011 for a period of three (3) years for the purpose of a Canteen. The lease was determined on 31st October 2014, however, the Tenants are currently holding over as monthly tenants.
The Tenants were responsible for the renovations as sketched in Diagram “Proposed renovations for cafeteria” and paid a security deposit of $150, 000.00.
According to the lease, at the end of the tenancy, the Tenants are to remove all counters, fittings, air condition unit and furniture and yield up the premises in good and tenantable conditions…: See Clause G.
Rent
The Tenants were expected to pay a rent of $75, 000.00 no later than the 7th day of each month during the period of the lease. However, the Central Authority issued a notice to vary the rent from $75, 000.00 to $50, 000.00 for a period of six (6) months from July to December 2012. The original rent should have been payable as of January 2013. This however did not happen and the Tenants continues to pay the reduce rental which has been accepted by the Central Authority. A draft letter was prepared on October 3, 2013 however no instructions were issued to forward same to the Tenants.
Mrs. Fernandes wrote to the CEO on October 10, 2015 requesting the variation of rent be permanent. Further, the Tenants wrote the Board in letter dated October 26, 2015 for consideration to waive the outstanding rent due from January 2013 to present and for the rent to remain at $50, 000.00 per month.
This matter even though was listed as an agenda item at one of the Central Authority’s Board meeting it was never discussed by the Board.
The matter was raised at the Management Team Meeting on July 18, 2016 and it was recommended that:-
A formal memorandum be prepared and re-submitted to the Board for Consideration of the options stated below:-.

The Central Authority either seek to
recoup the outstanding sums owed at the original rent from January 2013 to present in the sum of $1, 050, 000.00, or
write off the rental owed as per request by Tenants

The Central Authority to conduct a survey among its employees to ascertain whether to retain a canteen on the compound and thereafter either
give notice to end the (monthly) tenancy, and
open Tender for expressions of interest for the provision of services for a canteen (the current tenants may re-apply if they so desire)

For your information and consideration,

Hannifah Jordan

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