Burbank City Council Extends Local Commercial Eviction Ordinance until June 30, 2021

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The Burbank City Council approved extending the Local Commercial Eviction Ordinance in response to the COVID-19 Pandemic. The approved Ordinance expires June 30, 2021, unless extended again.

The Ordinance does not forgive the payment of rent, but rather acknowledges a commercial tenant is still obligated to pay any missed rent as deferred payments. Any deferred rent will be due six months after the end of the expiration of the Ordinance. With the extension, this means all deferred rent would be due on December 31, 2021. Additionally, the Property Owner may not charge or collect interest, late fees or other penalties that could accrue on unpaid rent through the end of the six-month grace period. Residential evictions continue to fall under State legislation AB 3088/SB 91.

The City Council continues to encourage both residential and commercial tenants to pay any portion of the rent they can afford, to speak with landlords and if possible, work out a repayment plan.

Extension of Urgency Eviction Ordinance as to Commercial Tenants Urgency Eviction Ordinance 20-3, 942

BurCal Apartments8715

1 COMMENT

  1. Dear Friends in High Places:

    A disclaimer. I am not a commercial property owner and this ordinance does not affect me in any way.

    That said, this is a shockingly unfair and unreasonable ordinance.

    The City is interfering with contractual relations between tenant and property owner. The banks continue to demand payment on mortgages.

    Even in the best of times, only half of all small businesses survive five years from the date they open. Source: US Small Business Administration: https://www.sba.gov/sites/default/files/Business-Survival.pdf

    You are causing unreasonable harm to the property owners with the ordinance while only half of small businesses in Burbank will last five years anyway.

    And the City is taking 8 to 12 weeks to complete plan checks, so when a landlord has a vacancy to fill and a tenant wants to move in, it’s taking up to three months to approve their build outs and new construction. Most new stores will have build outs and the City is not only preventing property owners from collecting rent but is also delaying permits and approvals.

    I have repeatedly raised this concern to you, for the benefit of our business community.

    The City must prioritize filling all vacant stores at warp speed. The current forecast for fiscal year 2020-2021 shows a deficit of $15,351,434!

    Source: https://burbank.granicus.com/MetaViewer.php?view_id=42&clip_id=9341&meta_id=380181

    To stop the bleed out, the City must get plan checks approved in days not months!

    To be fair to property owners of commercial properties, this ordinance should be rescinded! It is not a primary residence. You’ll let a retailer stay in business, keep the money from sales and not pay the building owner–while the building owner has to keep paying the mortgage! That is not fair at all. Any half of all stores fail in five years regardless so you are giving at least half of the tenants a delay of the inevitable. Even in a good year, not everyone has what it takes to run a successful company! This is wrong.

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