[graciegirl]

Originally Posted by Bogie Shooter

(As appeared in The Villages Daily Sun)
Talking with Scott Renick
Renick is The Villages director of commercial development


Posted: Wednesday, May 17, 2017 3:00 am | Updated: 3:07 pm, Wed May 17, 2017.
By DAVID R. CORDER
Daily Sun Senior Writer

Scott Renick has worked with The Villages Commercial Development Division for 11 years, and the last eight years as its director.
He and his staff are responsible for recruiting new businesses to the community, negotiating commercial leases and determining whether a prospective tenant has the long-term wherewithal to serve
the residents.
Sometimes, however, businesses fail; and, over the years, Renick has heard a number of false rumors about why a certain business failed.
Renick talked with the Daily Sun about one of the latest rumors, as well as dispelling some of the most common myths he has heard.

What’s the story on the latest rumor about The Villages forcing Crispers to close its restaurant in Southern Trace Plaza by increasing its lease payment?
The truth is they approached us about the ability to terminate their lease early. They called us and asked to get out of the lease. Them approaching us to find a replacement spoke to what their long-term plan was, at least for this store. So, we started our marketing efforts and fortunately discovered Habaneros Mexican Grill. It was fortuitous timing. We found something that worked for both parties, and now we’ll have a seamless transition with Crispers closing and the opening of Habaneros as soon as possible afterward.*

Is this the type of unfounded information you heard when Perkins Restaurant & Bakery closed its store at Buffalo Ridge Plaza?
Yes, Their lease expired, and they opted not to renew it at any rate. Although I can’t offer any details, we would have
considered renegotiations.

What about the claim The Villages charges higher-than-average market rates for rent?
That’s another myth; that The Villages charges too much rent for businesses to be able to survive. Every business knows the terms of their lease before signing a contract, and has included that in their pro forma. Any rent escalations are defined from the outset and are either fixed or tied to the federal Consumer Price Index. So there are no surprises on either end. There are properties within The Villages that require higher rents than others, but also many properties in the community that we do not own charge higher rents than we do.

What’s the No. 1 myth being perpetuated about commercial leasing in The Villages?
That every business in The Villages pays to The Villages Developer a percentage of every dollar they take in. I have heard this from the first day, and it is completely false. Some businesses do pay a percentage of sales only after they exceed a certain threshold that is predetermined and agreed upon. It’s a clause in their lease that kicks in only after sales reach a certain threshold; so it’s pre-negotiated. This is a common practice in retail leases nationwide. Within
The Villages, only 7 percent of our businesses met this criteria last year.

What about the claim that The Villages’ leasing rates discourage businesses from expanding into the community?
That is patently false. Rent is a single line item in every tenant’s budget, and a small factor in a broad evaluation of the investment to open a business. We’ve all been to locations where businesses are thriving while paying literally exponentially more rent than in The Villages. There are dozens of reasons why a particular business might decline locating here. Some have certain requirements for population or other specialized needs that we cannot control or satisfy. Many others are based on misinformation or preconceived biases about our market, which keeps my team working each day to educate and change people’s minds.

Is there any other disconcerting myth that troubles you?
That The Villages doesn’t care about vacant spaces.
The Villages’ intention is to own indefinitely its commercial properties in the community. While we have no shortage of businesses interested in opening a location, turnover is not good for anyone involved and ultimately costs money. So we are careful to analyze every aspect of a proposed business to hopefully place those with the greatest chance for long-term success. In doing so, we would rather carry a vacant space than put in a business with a marginal potential, only to see it fail.

Thank you Bogie.

The Villages ARE in it for the money. That is fine with me. I am a Capitalist.

I think they do a great job here and I like that the Morses do a good job with their big, BIG development. Many of us moved from lovely well maintained areas around the country and even Florida. I am not angered by financial success and I am not jealous of it. I don't think all rich people are good are all good people are rich. I think we are lucky to live here and I am glad this is the place we chose to live out our years.

I read posts above from people whose philosophies of life I am familiar with from having read their opinions on this forum for many years.. They haven't waivered and neither have I.