REDEVELOPMENT OF EXISTING SITES AND BUILDINGS MARK ELLIOT & DAVID KIRK
(vii) Making the Building a Condominium. charged to a condominium association which will
Sometimes a building densification can include allocate these costs between various uses (and
adding another use to the improvements made to condominium units) and then assessed to the office
the top of the Building (such as adding an enclosed owner, as a part of a monthly assessment. Do the
leases in the building
permit these charges
(billed
association)
by
an
to
be
passed through to the
tenants as an operating
cost? If they do not, one
must carefully assess
whether the operating
cost language is drafted
in a broad enough
manner to capture the
cost which is being
billed in an entirely new
manner.
residential suite or a hotel floor on top of an office
Private Covenants
building). Where this occurs, for a variety of
reasons, primarily financing requirements, the These same issues that an owner undertaking a
building must probably be converted to a building densification must face exist for an office
condominium (with office use floors being one unit, park densification; there are other issues involved
and the other use floors [residential; hotel] being as well. One issue unique to office park
another unit). Where this occurs, it is possible that densification would be leases that have a legal
expenses normally characterized as operating description attached to them, which is used to
expenses under an office lease will have to be describe the land upon which the Building sits.
charged in an entirely different manner; they will be Adding a legal description to a lease is done by an
charged as a part of a monthly assessment to the owner to help define where charges for upkeep can
condominium association. be passed on to the tenant, and where common
areas exterior to the building begin and end, so that
For example, it is likely that expenses that were a tenant's ability to expand out into the office park is
once directly charged to landlord for operating the limited. Where you are creating new development
building (landscaping; electricity; water) will now be sites by carving up and combining tracts of land that