Coventry PEACE Building Negotiations Stalled, Tenants Say

CLEVELAND HEIGHTS, OH — The tenants of the Coventry PEACE campus said recently their landlord, the Heights Libraries, are refusing to continue negotiations on extending leases. The Heights Libraries denied the accusation.

"We're still open to talking," a library spokesperson told Patch.

The tenants released a statement on Friday claiming the libraries have made unreasonable public demands and mischaracterized negotiations between tenants and landlord. The library system issued a statement suggesting the Coventry PEACE building could be razed should negotiations fail.

"These actions strongly suggest that the library no longer wants to be part of the campus vision, but wants the tenants to be blamed for its failure. However, we believe there is still a path to PEACE and we will continue to do our part to keep the lines of communication open and remain hopeful we can sit down to find a reasonable solution," the tenants said in a statement.

COVID-19 Hits

The Heights Libraries took control of the PEACE campus in 2018. The library system then signed individual, two-year contracts with tenants, which included several directives: to form a single, tenant-run governing entity and create a financially feasible structure for taking over the building.

As part of the contracts, the tenants were to create a Reserve Account to reimburse the library for advancing capital costs for repairs and maintenance. The leases included a clause for collective repayment of the Reserve Account at the conclusion of the tenancies.

When the COVID-19 pandemic began, many of the nonprofit tenants at Coventry PEACE were badly impacted. Ensemble Theatre and ARTFUL, the campus' two largest tenants, are still unable to run programs. New tenant, Robin VanLear and her Art Acts Studio, has been unable to reopen fully.

"Many of our organizations also had to cancel their largest fundraising events of the year, including our 'The Art of Community,' which was to feature VanLear. Proceeds from this event would have gone to the reserve account that is stipulated by the library," the tenants argued.

The tenants said that despite the financial challenges, they continued to pay rent to the Heights Libraries. Negotiations on extending tenant leases were delayed due the virus, tenants noted, so a a one-year extension was proposed. This setup would give both sides time to negotiation a long-term deal, the tenants argued.

"In June, the library responded with a one-year lease proposal, but with new demands. The most startling was expecting the tenants to assume all risks related to the building by taking on the costs of all maintenance, capital improvements and liability for the building, the exterior walkways and part of the grounds," tenants said.

The nonprofits said they would be unable to pay for repairs in a building they may not call home in a year.

"Coventry PEACE Inc. communicated its concerns to the library and asked for a meeting between the two parties’ board presidents. The library responded with nearly identical lease terms, and yet another demand: a $25,000 payment due August 1, which would be a down payment on $100,000 that the library is suddenly claiming the tenants owe to make the library 'whole.' This figure is far higher than any previously discussed," the tenants said.

The library system said the letters of intent and a $25,000 reserve contribution are due to the library by Aug. 1, 2020. Heights Libraries Director Nancy Levin said there is currently only $12,000 in the Reserve Account.

Levin, in a statement, said the library system took on ownership of the property to retain free parking for the Coventry branch, to allow non-profit tenants to remain in Cleveland Heights and to keep the park and playground open to the public. The last feature is mandated by the property's original deed from 1917.

"The park and parking lot has always been a focus of our desire to acquire the property," Levin said. "In the end, if the tenants don't succeed, we may demolish the school building and enlarge the park."