County sets rental property rates at old L&S shopping center

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JoAnn's Beauty Shop remains open in the mostly vacated property in the old L&S Foodland shopping Center on North Jefferson Street. News Courier/File Photo
This abandoned space at the southwest corner of the center is boarded and covered in graffiti. News Courier/File Photo

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September 13, 2012

County sets rental property rates at old L&S shopping center

Commission takes on landlord role

By Adam Smith adam@athensnews-courier.com The News Courier Thu Sep 13, 2012, 02:00 AM CDT

— With its purchase of the old L&S shopping center on North Jefferson Street, the Limestone County Commission is now acting as landlord to businesses and three house tenants.

The commission voted at Wednesday’s work session to approve new rental rates for its tenants. It was the only item on which the commission took action.

Commission Chairman Stanley Menefee said at the Sept. 4 meeting that the county has to charge “fair market value” when setting rental rates. That rate, he said, should be comparable to rents on similar properties in the same area.

Based on figures suggested by Commissioner Bill Latimer, the commission agreed to charge a barbershop on the premises $125 per month, and a nearby beauty shop $175 per month because Latimer said it’s a bigger building. The barbershop currently pays $75, while the beauty shop pays $150.

Commissioners also agreed to rent the three rental houses on the seven-acre property for $150 per month. County Administrator Pam Ball said all three homes are occupied, but only one tenant is paying rent.

“We don’t want to rent any more (of the property),” said Commissioner Bill Daws. “We’ll work with the (businesses) there to keep them going.”

Commissioners, however, seemed uncertain of who is renting property at the location. While they initially believed only the barbershop and beauty shop are operating at the site, Commissioner Gary Daly said he saw another storefront that had an “open” sign in the window.

“If there’s somebody in that other space, they need to pay $125,” he said.

A lease agreement between the renters of the homes and the county states Limestone County “shall maintain in good and safe working order all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances, required by law.” Renters, however, are required to keep the property “clean and safe” and maintain plumbing fixtures and use other utilities “in a reasonable manner.”

The county’s lease with the businesses states the county will maintain fire insurance on the buildings and real property and will be “responsible for maintenance, repair, and routine upkeep of the roof, exterior of the leased premises, and to heating, cooling, hot water heater and other such plumbing and electrical fixtures.”

When asked if the money collected from renters would cover the maintenance and repair costs the county is now responsible for, Menefee said he had his doubts.

“We shouldn’t be in the realty business, but (the tenants) were living there and the commission may want to look at giving them a reasonable amount of time to relocate,” he said. “The commission needs to look at taking that property and clearing it or do whatever we have to do so we’re not spending a lot of money renovating it. We might look at putting something up there like a grocery store or some type of business.”

Menefee has been an outspoken critic of the commission’s decision to spend $525,000 to purchase the former shopping center. While he believes the property could require millions of dollars in renovation funds, commissioners said after purchasing the property, the deal was too good to pass up.

“Those houses are really old and the fee we’ll charge will be dedicated to maintenance,” Latimer said. “I think we should look at term limits (on the leases), and give them at least two years. Whenever they move out, we can move (the houses) off the lot.”