ST. LOUIS – Ross Dress for Less Inc. is suing St. Louis Retail Outlet, doing business as St. Louis Mills Mall in Hazelwood, for not honoring lease provisions that allow the retailer to pay less in rent when the occupancy level of the mall falls below 60 percent.
According to the suit filed Aug. 6 in U.S. District Court for the Eastern District of Missouri, one of the lease provisions Ross entered with Mills Mall in 2012 was that it could pay "substitute rent" under a "secondary reduced occupancy period" provision of the contract as of May 1, 2015.
Ross claims it notified Mills Mall in March 2017 that its analysis of a tenancy report showed that occupancy was below 60 percent and demanded repayment of overpaid rent in the amount of $199,086.84 for a period of approximately two years – from May 1, 2015, through Feb. 28, 2017.
Ross further claims that it began off-setting the amount of substitute rent that would be due each month against the amount of overpaid gross rent and claims that as of June 30, the balance due has declined to $121,000.10.
Ross, represented by attorneys at Bryan Cave, claims it received no response to its March 2017 notice letter and sent further notices in September 2017 and last February, the last one indicating it had the option of terminating its lease and had a right to recoup $142,520.12 in overpaid rent.
Mills Mall responded in March, disputing Ross’s claim that occupancy was below 60 percent as of May 1, 2015, and claimed that it had occupancy reports from July 2016 through July 2017 that would show occupancy exceeding 60 percent.
"Despite its claim, defendant has failed to provide Ross with those occupancy reports," the complaint states.
Further, an attempt to mediate failed due to Mills Malls alleged failure to participate.
Among other things, Ross seeks payment of the unamortized cost of leasehold improvements in the amount of $490,295.99 if the lease were terminated as of Jan. 31, 2019.