Assuming that Neighbours, Seattle’s venerable gay nightclub, survives the “Ricin Threat of 2009,” owners must still deal with the ongoing fallout of lease dispute from last summer.
In August, a family land trust that owns the dilapidated dance hall on Broadway and East Pike Street sent a letter terminating the nightclub’s lease and ordering the club to vacate the premises by the end of the month. In the letter, landlords argued that Neighbours, which has been getting gays hammered to disco and new wave since 1983, was only permitted to run a tavern, restaurant, and cabaret—not a nightclub. (More here.) Neighbours responded with a lawsuit against the owners, arguing they had a right to stay.
“The old owner was fine with us,” says Mona Elassiouti, who manages finances for Neighbours. She says after the family's primary representative died, his brother Donald Regalia took over. “The brother has different interests,” she says.
But now, four months later, the Regalia family says Neighbours hasn’t been paying rent. “We haven’t received rental payments in two months and there have been shortfalls in rental payments for two prior months,” says the Regalia's attorney, Charlie Lyman. “Unfortunately, we have been frustrated that we have requested meeting on several occasions but it hasn’t come to fruition,” he says.
“We didn’t want to sit down with someone trying to kick us out,” says Elassiouti.
As for the accusations that rent isn’t paid: “That is completely incorrect,” responds Neighbours attorney Mark Kimball. “I have looked at the accounting recently. I think we overpaid slightly and we are current on the rent.”
Rumors have swirled that the bar will be demolished for condos. But Lyman dismisses the speculation. “There is absolutely no plan in place that I know of to demolish building and put condos there that I am aware of,” he says. When asked if the Regalia family would seek to keep Neighbours in the space through the end of its lease in 2020, he said, "The answer is yes and no." He wouldn't elaborate on any specifics.
Both parties say they expect the disputes can be resolved by the end of the month. “We are planning to have a meeting regarding settlements,” says Kimball.
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