More on the Corti move

CoolDMZ wouldn’t be earning CoolDMZ’s pay if CoolDMZ wasn’t a contrarian on the Corti Brothers situation. I’m having trouble mustering a lot of sympathy for the Cortis after reading the Bee’s follow-up story today. I suppose I liked Corti Bros as much as the next guy, though my patronage of things that can be described as “upscale” is seldom to never. (Unless Nordstrom Rack counts as upscale?)

I’m not shocked that Heather Fargo called Darrell Corti and offered the city’s help in finding a new location. Would that help entail explaining how a month to month lease works? All I keep reading is that Corti fans will go wherever he decides to move, even if it is out of town. I hope there are some patrons who are be pissed that a 60 year old company allowed themselves to operate on a wing and a prayer for 20 years despite knowing how loyal their fans were. What if you live down the street, have been shopping there since 1970, and can’t drive?

Apparently Corti was paying 60 cents on the dollar for rent. If customers are paying $1.20 on the dollar for their products, according to figures I just made up, where is all the money going? Certainly not into real estate advisers…

Sure, it would suck if Corti closes down because they can’t find rent at the rate they were paying. But I can’t help feeling that some of the same people who would blame the eeevil management company or the eeevil Raley’s folks for this, wouldn’t offer the same sympathy to families who are losing their homes–for which they signed 30 year mortgages–because they failed to predict how they’d handle their adjustable rate mortgage. Just because folks who took a risk to buy their first house don’t offer a kickass wine section or a bonkers deli counter?

Let’s just hope other local institutions can learn from this situation. We all know real estate is crazy times USA right now, so for gosh sakes lock something down if you’re coasting by on month to month.

Author: CoolDMZ

"X-ray vision to see in between / Where's my kimono and my time machine?"

55 thoughts on “More on the Corti move”

  1. Thanks,

    I appreciated the discussion even though we were on opposite sides of the issue. I also appreciate the fact that you are blogging about sac issues and events.

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  2. Wow…how many comments on one post?!! I was absolutely stunned when I heard about Corti Bros losing their lease. All these (nearly 20) years I’ve been going there, I just kind of assumed they owned it. I am a little shocked at the situation and do think it was probably helped along by some behind-the-scenes dealings. However, bottom line is that losing a store like Corti Bros is a huge loss to our neighborhood. Sure, we have SaveMart and TJs within a 5 block radius, so it’s not like we’re going to *suffer* (like certain unnamed neighborhoods that haven’t had a single grocery store since the 1980s).

    But, still, hate to lose something that is an integral part of the old-school feel of the ‘hood, ya know?

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  3. “Wow…how many comments on one post?!!”

    The answer is “lemon grass beef with egg roll” (which is what the number “52” usually means to me in my own special OCD/Rainman way.)

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  4. People,

    A lease is an obligation between two parties, a Landlord and a Tenant. In exchange for the property for a set rent and term, the Landlord leases the Property to the Tenant. Aside from rent and term, there are several other items in a lease that make up the contract that bind the two parties.

    Most often a Tenant will stay in a month-to-month lease or prefer to be in one if they simply are unsure where they want to take their business: relocate in a smaller space, a larger space, or simply close up shop. He/she needs flexibility and the peace of mind that he/she is not liable for rent owed.

    It is the Landlord prerogative to get the best cash flow for his/her investment, period.

    He/she might want a mo-to-mo to delay a major renovation, redevelopment, or new direction they want to take with the property.

    Retail, in particular food service and food related stores, is in the toilet. If you can double your rent in a location and lock up the cash flow for long term, you do it. Davis owns property all over town and I’m sure some of her other properties aren’t meeting proforma. I have also heard though she is a certifiable nut job.

    The Corti’s I feel weren’t and still aren’t sure what they want to do with their family business. It is difficult to have a succession plan in place with such a dynamic family.

    With this amount of uncertainty in the market and in your Tenant’s long term goals, you cannot fret on a good business decision. The shit thing now is I believe Darrell now knows he wants to continue his legacy and regrets not coming to Jesus earlier.

    That is the bottom-line.

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  5. Latest news: Good Food (or whatever wierd name the Raleys maven selected) will NOT be moving in. Current land owner now holds two signed pieces of paper obligating someone to do something. Lawsuits will abound. I sense an Environmental Impact Study!

    In other words, Sacramento will soon be getting a new parking lot where Cortis currently sits! I just hope they match the new property fence to the current fence just to Corti’s west.

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