Tuesday, March 17, 2015

How East 6th Street mainstay Mitali East lost its lease

As we first reported back on Saturday, the owners of East Sixth Street mainstay Mitali East have lost their lease.

According to posted signs in the restaurant between First Avenue and Second Avenue, Mitali East "is being forced to close" courtesy of the building's new owner, Steve Croman of 9300 Realty.

And now Mitali East has posted a letter outlining how the 42-year-old Indian restaurant lost their lease.

It's a little complicated... here's part of the letter:

It all started in 2010 when we had modified a lease agreement with the Previous landlord due to business becoming slow after the 2008 financial meltdown. Which we followed and paid by according to that modified lease agreement.

Fast forward to June 2012 and our building was sold by the old landlord to 9300realty (aka 334 east 6th LLC). 9300realty was made aware of our modified lease agreement from us and the old landlord. 9300realty who became our new and current landlord honored the modified lease agreement from June 2012 to November 2013 for about 18 months. Not sure why after 18 months 9300realty decided that they would not abide by the modified lease agreement.

It may have to do with the fact that at that point they had almost bought out most old tenats in the building and renovated the apartments to higher rents.

On December 2013 we got a notice that our rent would increase to the pre-modified amount. We reminded 9300realty about the agreement we had and they knew about when they had bought the building, but they didn't adjust it accordingly. Since then we have been paying according to the modified agreement monthly which they cashed and they had been billing the old amounts. We kept in contacting them to adjust the amounts to reflect our balance due as $0.

So basically this is how things followed: these ARE NOT THE REAL figures for rental amounts just make believe amounts to show an example.

In this example we will use 9,000 as the modified amount and 15,000 as the old amount. Basically it went like this. During this whole time our amount due was $0 if modified lease agreement was applied.

• December 2013 Rent paid 9000 they billed 15,000 difference 6,000
• January 2014 Rent paid 9000 they billed 15,000 difference 6,000
• February 2014 Rent paid 9000 they billed 15,000 difference 6,000

This pattern went on until April 2013 when they added up the differences of the 4 months and added April 2013 rent to file nonpayment proceedings in housing court. Even though our rent due balance was $0 since it was paid up to date.

There's a lot more. You can red the whole thing here.

Back on Friday, we heard that they would be closing any day now. Mitali East was not open as usual yesterday. Calls to the restaurant were met with a generic outgoing message. So perhaps that's it. The restaurant is open for business today.

Previously on EV Grieve:
Landlord Steve Croman denies new lease for 40-year-old Mitali East on 6th Street


Marty E. said...

I went there for a final feast there last night and there was a sign in the window saying that they were closed but would be open on Tuesday. I guess we will see.

Anonymous said...

Typical landlord games. But it is a shame that the neighborhood will lose one of the very best, if not the best, Indian restaurant on the block which was known for Indian food. I have been eating there for close to 30 years. The authentic cuisine and real tandoori oven made this restaurant a highly recommended eatery. It is sad that once again the old saying, All good things come to an end, is going to be true in this case. We will miss you Mitali East.

Ken from Ken's Kitchen said...

When do we break out the guillotines?

nygrump said...

Ken, they're already in use. But everyone is too busy jerking off to facebook under the influence of alchohol to care. Today, in fact, is National Jerk-off to Facebook While Drunk Day.

DrBOP said...

Greed-pig goes......SNORT!

Anonymous said...

Good faith agreement with a landlord, huh. File it next to "jumbo shrimp" or "original copy". I.e. it's one of them oxymorons.

Anonymous said...

the post says the building is owned by Steve Croman but also by "9300realty (aka 334 east 6th LLC)". My building was bought by a LLC 2 years ago - how can I find out who really owns it?

Giovanni said...

I would trade a million greedy Cromans for one Mitali, and I'd throw in the spoiled brat children to boot.

Anonymous said...

Impressive to say the least.

Anonymous said...

There is a special place in hell for this guy and his wife. I wonder how he would feel if a bunch of EV residents stopped by his home or office for a chat?

Anonymous said...

Went for dinner tonight after seeing the sign on their door last night - they're closed. The sign tonight directed people to Haveli.

RIP Mitali East

GO TO HELL AND FAST, CROMAN. You've already done way too much damage in our neighborhood as it is.

Gail said...

This is a shame, Mitali East was my favorite Indian restaurant. RIP.