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deduction represented what petitioners thought was the cost of
the improvements.13
On brief, petitioners proposed the following findings of
fact:
8. The petitioners were granted six months rent-free use of
the retail space at The Mall at Barnes Crossing as a
condition of Articles IV and V of their lease agreement in
consideration for costs incurred by the petitioners in the
build-out of the retail space. * * *
9. The petitioners performed $127,067 of work on the
retail space at The Mall at Barnes Crossing, and
$18,739 of those expenditures were in lieu of rental
payments to be made equally over a six month period by
the petitioners. Those rental payments were for the
period of December 1995 through May 1996.
On opening brief, petitioners state, in pertinent part, as
follows:
The petitioners received, from their lessor,
credit equal to 6 months rent as consideration for the
permanent improvements made to the lessor’s real
property. Upon the completion of the first 6 months of
occupancy, the petitioners commenced paying full rent,
with no additional consideration for the improvements
made.
On answering brief, petitioners state, in pertinent part, as
follows:
The petitioners received, from their lessor,
credit equal to 6 months rent as consideration for the
permanent improvements made to the lessor’s real
property. Upon the completion of the first 6 months of
occupancy, the petitioners commenced paying full rent
on the improved property, as if the improvements had
been paid for by the lessor, with no additional
13 The parties agree, and we have found, that the cost of
the Improvements was $127,067, not $103,388.
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