FAYETTEVILLE -- The landlord for Haas Hall Academy has sued the school and its founder over a lease dispute.
Paradigm Building, owned by developer Tracy Hoskins, claims school officials renewed the lease for the charter school at 3155 N. College Ave. and is obligated to pay $20,770 per month in rent through June 2017.
The school on Monday deposited $68,094 with the court, the amount they say is due under the remaining lease obligation through June 30 of this year. School officials also filed a Feb. 19 letter which appears to give notice of their intent to vacate the building no later than June 30.
They also claim to have given Paradigm a check for $90,792 for all months remaining under the lease, which they say was refused, and claim to have two security deposits worth $22,728, which weren't acknowledged. They claim Paradigm is also seeking to impose a $2,269 penalty for non-payment or late payment.
Paradigm responded saying they didn't accept the $90,792 check because it could be construed as accepting a settlement. The late fee was for April payment that hasn't been made, according to the response.
Hoskins is a member of the city Planning Commission and the school's founder is Martin Schoppmeyer, a city councilman.
The parties first entered into a lease Oct. 31, 2008, and it has been renewed several times over the years as rent and space increased, according to the lawsuit filed in Washington County Circuit Court.
Paradigm contends the school last exercised its option to renew the lease in April 2014. The renewed lease period began June 30, 2014, and was for three years, according to the complaint.
The sides also discussed a longer-term lease that would cover more space that would allow the school to add more students, according to the complaint. That agreement never came to fruition.
The complaint contends Haas Hall had been paying Paradigm $32,061 per month under the earlier lease. Beginning in July 2014 and each month since the school has paid $20,770 per month based on the renewed lease.
Paradigm contends Haas Hall isn't a hold-over tenant paying on a month-to-month basis and never asked to be a hold-over tenant.
Paradigm wants a judge to rule Haas Hall exercised its option to renew the agreement and is liable for the lease for the duration of the three year renewal period. The lawsuit also wants an expedited trial saying Haas Hall has indicated through its attorney it intends to vacate the building and stop paying rent by June 30.
"Haas Hall wants to have its cake and eat it, too. It renewed its lease agreements and has paid the renewal rate of $20,770 per month since July 2014, instead of the $32,061 rate for a hold-over tenant -- $11,291 less per month," according to the complaint. "Now, Haas Hall claims that it was a hold-over tenant and wishes to vacate the premises by terminating its lease agreements, despite paying the renewal rate for nigh a year. Haas Hall cannot have it both ways."
The school plans to move to an empty building on North Front Street near East Joyce Boulevard by the start of the new school year in August.
NW News on 04/08/2015