HERE IS A SUMMARY OF THE DRIPP DONUTS - DSDC DOWNTOWN LEASE

There has been substantial publicity about the structural problems with the Dripp Donuts building at 421 Market Street that has necessitated the closing of the shop. The building has now been condemned.

The lease for this building and the adjacent parking lot is dated August 1, 2022. The lease was recorded this week.

Here are some pertinent terms of the lease for the building and the parking lot:
a. The lease term is for five years with a five year option to renew.
b. Dripp had an option to purchase the building during the initial term of the lease.
c. DSDC made improvements to the building before it was leased.
d. The pre-improvement appraised value of the building on December 12, 2019, was $660,000.
e. The building has approximately 8352 square feet and the adjacent parking lot which is included in the lease has space for approximately 21 vehicles.
f. The rent during the initial term was ZERO DOLLARS per month.
g. The rent during the second five year term, if the option to renew was exercised, was to be $1,200 per month.
h. Dripp Donuts was required to post a $1,000 security deposit.
i. Dripp was responsible for payment of all utilities and real estate taxes.
j. Dripp accepted the leased premises in the condition they existed at the execution date and acknowledged that the premises were in satisfactory condition.
k. Dripp assumed responsibility for the condition of the leased premises.
l. Dripp was responsible for maintenance of the building but was NOT responsible for repairing any latent defects existing prior to the commencement of the lease.
m. The lease gives the option to the DSDC to terminate the lease in the event of partial or total destruction of the building.
n. In the event of termination due to partial/total destruction, "the parties shall be released, WITHOUT FURTHER OBLIGATIONS TO THE OTHER, from the date of possession of the Premises is surrendered to the Landlord".

This is a summary of the lease which is now a public record.