Otago Daily Times

Level 4 restrictio­ns cited in disagreeme­nt over cafe lease and rent

- MATTHEW MCKEW matthew.mckew@odt.co.nz

THE future of a cafe in Kingston hangs in the balance after a dispute between the landlord and leaseholde­r.

Gessica Veras had run Kingston Cafe and Bar for just over a year and ahalf.

She has claimed she was evicted by the landlord during lockdown, after the Covid19 restrictio­ns left her unable to pay her rent.

She said the locks were changed on the property overnight, preventing her from accessing her stock.

Owner Paul Miller has dismissed accusation­s that he evicted Ms Veras and said he had emails that proved she “relinquish­ed it [the lease] willingly”.

Ms Veras said the emails related to her informing him that she was unable to pay the rent and she “wanted to keep going till next year” with the business, but he had refused to negotiate reduced rent.

Mr Miller said the locks had been changed for insurance reasons after his lawyers understood that the lease was relinquish­ed, bringing to a conclusion months of rent arrears going back to October.

“Those rent arrears were shown leniency and compassion and allowed to continue for five months.”

He said it was a “shame” the tenant was blaming “business failure” on the Covid 19 pandemic.

He said although the tenant attempted to pay late rent, it was never fully paid and “arrears just continued to grow rapidly”.

Ms Veras said all owed rent had been paid until February, when the number of tourists fell because of the virus in China, and she was only able to afford a little over half the rent.

She then informed Mr Miller that lockdown would mean she had no income and therefore could not pay any rent.

Both sides have instructed lawyers.

The dispute has left six members of staff, who have so far received the government wage subsidy, unsure of their futures.

Police have confirmed they are making inquiries following a report of a breakin at the property on Tuesday, April 7.

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