BUSINESS NEWS
Coast River Business Journal
January 2021 • 3
Commercial evictions
Worries rise with economic restrictions
Story & Photo by Edward Stratton
Coast River Business Journal
estratton@crbizjournal.com
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Shortly after a six-month commercial eviction
moratorium enacted by Oregon ended in October,
Atlas Youngs Bay sought to kick out Ross Stores
from the North Coast Shops along U.S. Highway 101
for nonpayment of rent.
Ross and Atlas eventually reached a settlement,
avoiding the loss of the fi rst major retailer on the
North Coast since the start of the coronavirus pan-
demic. But the legal squabble highlighted the tenuous
situation faced by commercial tenants hurting during
the coronavirus but still beholden to landlords.
Oregon banned commercial evictions from April
through October, during which time many businesses
closed or lost business amid restrictions meant to stem
the spread of the coronavirus. The end of the morato-
rium began a six-month grace period lasting through
March by which tenants could cover unpaid rent.
Atlas based its eviction claim on more than
$14,000 of unpaid rent in October. The landlord also
claimed that Ross had racked up more than $70,000
in unpaid rent during the moratorium not subject to
the eviction case. The two parties eventually reached
a private settlement, and Ross, a tenant of the shop-
ping center since 2003, remained in place.
Few evictions
The North Coast has thus far avoided a rush of
commercial evictions. Real estate attorneys said that
owes to the symbiotic relationship between landlords
and tenants.
J. David Zehntbauer, a partner at Portland law
fi rm Dunn Carney LLP who specializes in real estate
litigation, said landlords have the option of agreeing
to a repayment plan with tenants or ratcheting up the
pressure with an eviction process.
“A majority of what I have seen is that landlords
and tenants… have been able to reach resolutions,”
Zehntbauer said. “Landlords, as a general rule, don’t
really want empty spaces in their buildings. And they
also understand that it’s not like there’s a whole bunch
of new tenants clamoring to get into these spaces
while we’re still under these diffi cult circumstances.”
Christian Zupancic primarily practices real estate
law along the Oregon Coast. He said most businesses
probably decided earlier in the pandemic whether
they could afford to keep storefronts.
“The ones that feel like they can weather the
storm, usually they can work out a good arrangement
with their landlord,” Zupancic said. “And the ones
that feel like they are going to shut down their doors
will fi nd a way to just leave anyway.”
Restaurant choices
Several regional eateries have thus far closed up
shop, deciding they could not make it work without
more fi nancial support.
The Holens, from left, Jennifer, Ana and Chris, opened Nekst, a brunch spot next to their old
restaurant, Baked Alaska.
Christopher and Jennifer Holen, owners of the
Baked Alaska seafood restaurant in Astoria, decided
to close the business and abandon the expansive
ground-fl oor space on Pier 12 they’d occupied for
nearly 20 years, fearful they could not get enough
sales to make ends meet. The couple downsized into
a small to-go lunch counter called Nekst in a build-
ing next door.
“I just pulled the plug,” Christopher Holen said.
“I said, ‘You know what? Let’s build something that’s
COVID-proof.’
“I’m just glad I’m still youngish and can start over
with something new.”
Oregon recently extended the residential evic-
tion moratorium through June. Business groups had
unsuccessfully pushed for an extended moratorium
on commercial evictions. Zupancic said it came down
to priorities.
“It’s one thing to close up shop and try a differ-
ent business, but it’s a whole other thing to try to fi nd
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to provide quality and
affordable laboratory services.
a place to live,” Zupancic said. “You always need a
place to live. You may not always have a business.
One of those things is more of a dire circumstance
than the other.”
New help coming
In December, Congress approved a new $900 bil-
lion stimulus bill, including $284 billion for a new
round of forgivable loans through the Paycheck Pro-
tection Program. Borrowers are required to use 60%
of the forgivable loan on payroll costs, while the other
40% can be used for operating costs including utili-
ties, rent and mortgages.
“I’m obviously hopeful that the next round of PPP
loans allows folks to right the ship and to address
the nonpayment balance from April to September,”
Zehntbauer said. “The grace period’s done March
31. So come April … if folks haven’t been able to
make a deal, my prediction is there probably will be
an increase in commercial litigation.”
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