Opinion ID: 2014162
Heading Depth: 1
Heading Rank: 1

Heading: plaintiff baron's lease

Text: Gerald Schoenfelter, President of Crossroads testified he, with the help of legal counsel, developed the form lease applicable to most of the areas leased at the center. The leases are necessarily long and complicated. They provide for terms of occupancy, renewal options, base rental with percentage rent over a computable amount, restrictions on assignments and subletting and for a great many other problems that may be expected to arise over the years of long term leases. Crossroads' lease provides for a 10-year term, five percent of the gross as rent with a minimum of $675 per month. Baron is to construct the building to be occupied. The controversial clause in the Baron lease reads: XXVIII. EXCLUSIVE OPERATIONS. Except for the Demised Premises no part of Parcel `B' shown on Exhibit `A' shall be leased to any other tenant whose principal business is the operation of a store selling fabric. Throughout the term of this lease, and any renewals hereof, the Lessee shall operate on the Demised Premises and during all normal business hours when Shopping Center's tenants generally should be open for business, a fabric store and shall not carry on any other business on the Demised Premises.    (The emphasized portions were typed. The rest was a mimeograph form.) Prior to, and at the time of signing the lease, a letter was written by Baron to Crossroads, dated July 26, 1965 which has an acceptance by Crossroads, signed by its president, at the bottom also dated July 26, 1965. This letter reads in part: 2. In the aforesaid letter, the Lessor will further advise Mr. Baron of its intention that it shall not lease to any tenant whose principal business is an operation of store selling fabric in the area of Parcels D, D1 and C of the site plan that it maintains ownership or control. This is further understood not in any way to restrict the Lessor as to disposal of its ownership in the aforesaid property. Our problem concerns the interpretation of the restrictive covenant in the lease itself because both stores are in Parcel B. We note the paragraph from the letter as indicative of the agreement between the parties.